A comprehensive investigation is underway as the Senate delves into suspected irregularities within the subsidiaries of the Nigeria Postal Service (NIPOST).
The spotlight is on NIPOST Properties and Development Company and NIPOST Transport and Logistics Services Limited, following the release of N10 billion in restructuring funds by the Federal Ministry of Finance.
In a resolution passed in 2023, the Senate uncovered alleged illicit transfers of federal government shares from two NIPOST subsidiaries to private individuals. Shockingly, individuals in key roles within the Bureau of Public Enterprises (BPE) and NIPOST were identified as shareholders.
Corporate Affairs Commission (CAC) records as of November 8, 2023, affirm the significant shares held by top BPE officials in the subsidiaries. Responding to these revelations, the Senate declared the NIPOST subsidiaries as “irregular and illegal,” recommending their immediate winding up and deregistration.
The Senate’s resolution from the previous year calls for a thorough investigation into the N10 billion allocated for NIPOST’s restructuring and recapitalization. If evidence of “injudicious utilization” emerges, the Senate demands that the responsible committee recover the entire amount.
Expressing concern over the potential privatization of valuable NIPOST property assets, estimated in trillions of naira, a high-ranking government official emphasized the risk of these assets falling into private hands through share inheritance.
After receiving a letter about the infraction, individuals involved hastily 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 were discovered, raising questions about the legality and transparency of the original share transfer. An official remarked that “BPE has no business holding shares in NIPOST,” underscoring the alleged disregard for established legal frameworks.
The government official, speaking anonymously, emphasized the Senate’s unwavering stance on demanding investigation and rectification. He highlighted the NIPOST scandal’s broader implications, stressing the need for comprehensive and transparent results to ensure the protection of national assets with utmost integrity.
Responding to inquiries, a BPE official explained that the NIPOST subsidiaries were registered in 2020 when the CAC portal only allowed individuals as shareholders. Subsequently, the portal was updated to allow companies to hold shares with representatives, correcting the shareholding of NIPOST subsidiaries in line with the subscribers’ original intent.
