Reps grill BPE over N10bn waste on defunct firms

By Christiana Ekpa

The House of Representatives Committee on Public Accounts on Monday accused the Bureau for Public Enterprise (BPE) of wasting about N10 billion in registering two companies for the Nigeria Postal Service, only for the companies to fold up one year after take off.
The Committee also directed the Joint Admission and Matriculations Board (JAMB) and the Investment and Security Tribunal to at into the Consolidated Revenue Fund of the Federation, about N3. 457 billion and N6. 327 million naira respectively within thirty days and tender evidence of payment before the committee.
Chairman of the Committee, Hon. Bamidele Salam (PDP, Osun) who spoke at the resumed investigative hearing of the committee said no reasonable Nigerian will believe that N10. 4 billion was spent to register the two companies only for them to fold up barely obe year after.
The two companies, NIPOST Transport and Logistics Limited and NIPOST Property reported took off in May 2023 and folded up through a Presidential directive in May 2024.
BPE Head of Finance and Accounts who stood in for the Director General of the Agency, Imam Rilwan told the committee that while about N10 billion was given to the two companies for their take off, about N400 million was given to the BPE to prepare the ground for the take off of the companies.
He said the issue of registering the two companies for NIPOST was approved in 2017, paving the way for the BPE to expend about N423 million in registering qnd carrying out other activities for the eventual take off of the companies.
He said when the money eventually released in 2023, the Bureau had to recover its money, adding that the N423 million given to the BPE was used to rent office accommodation and carry out other essential services.
He said while the Bureau paid rent for the two companies from 2022, the companies took pocession of the offices in May 2023, while they folded up in May 2024.
He said all property belonging to the two companies have been officially handed over to NIPOST management
However, Salam said spending money from. Government coffers before the money is released is a clear violation of the provisions of the Public Procurement Act, adding that such an action was not laughable.
Aside trying to justify the expenditure, the representatives of the Bureau could not explain why they would spend money meant for other activities for the two companies, demanding relevant approvals from the Bureau.
While expressing displeasure about the development, Salam directed the Director General of BPE, Ayodeji Gbeleyi to personally appear before the committee on Wednesday September 11 at 12.00noon with all relevant documents relating to the transaction.
While ruling on the presentation by the Joint Admission and Matriculations Board, Salam said their refusal to reply letters from the fiscal responsibility commission informing them of their liabilities was an admittance of their indebtedness to the government.
Head of Monitoring and Evaluation of the Fiscal Responsibility Commission, Bello Aliyu Gulmare had told the committee that the exam body was defaulting in its remittance, r emitting only 25 percent of its IGR instead of 50 percent
He said the Commission wrote to the Board in April informing them of their indebtedness and another letter in August, adding that the Board did not respond to any of the letters.
But the Director of Finance and Account of JAMB who represented the Registrar said the Board was not receiving any capital and overhead funding from the government and was therefore required to remit 25 percent of their IGR.
He said there was a government circular that exempted them from remitting 50 percent of their IGR to government, a claim that was disputed by the office of the Accountant General of the Federation.
He said the Board has a letter from the Ministry of Finance granting them waiver from paying the 50 percent waiver.