The Senate has initiated an inquiry into the disbursement of N10 billion in restructuring funds to NIPOST by the Federal Ministry of Finance. The investigation was prompted by identified irregularities in two of the agency’s subsidiaries – NIPOST Properties and Development Company and NIPOST Transport and Logistics Services Limited.
On December 30, 2023, the Senate passed a resolution following the revelation of an alleged illegal transfer of federal government shares in these subsidiaries to private individuals. The lawmakers uncovered that individuals in key positions within the Bureau of Public Enterprises (BPE) and NIPOST were listed as shareholders in the subsidiaries, as per Corporate Affairs Commission (CAC) records.
The Senate declared these subsidiaries “irregular and illegal” and recommended their immediate winding-up and deregistration. Beyond this, the resolution demanded a thorough investigation into the utilization of the N10 billion allocated for NIPOST’s restructuring and recapitalization by the Ministry of Finance. If evidence of “injudicious utilization” is found, the responsible committee is tasked with recovering the full amount.
A government official, speaking anonymously, highlighted concerns about the potential consequences of the alleged malfeasance. The official emphasized the significant value of NIPOST’s property assets, expressing alarm at the possibility of these assets falling into private hands through share inheritance.
After receiving a letter regarding the infraction, individuals involved reportedly reassigned their shares in NIPOST Transport and Logistics to three government entities: NIPOST (80%), BPE (10%), and the Ministry of Finance Incorporated (MOFI) (10%). Controversial shareholding arrangements also emerged in the ownership structure of NIPOST Properties and Development Company.
Addressing concerns, a BPE official explained that the NIPOST subsidiaries were registered in 2020 when the CAC portal only allowed individuals as shareholders. The portal was later updated to allow companies with representatives to hold shares after the operative date of CAMA 2020 in January 2021.
The Senate’s proactive stance on investigating the NIPOST scandal raises questions about corporate governance and asset protection in public institutions. While the swift action is commendable, ensuring transparent and comprehensive results is crucial for addressing concerns and upholding the integrity of national assets.
