The Senate has launched an investigation into the N10 billion restructuring funds released to NIPOST by the Federal Ministry of Finance.
According to the Nation, this development followed the discovery of irregularities in the agency’s subsidiaries, NIPOST Properties and Development Company and NIPOST Transport and Logistics Services Limited.
The Upper House of the National Assembly, in its resolution of December 30, 2023, revealed that it uncovered alleged illegal transfer of federal government shares in two NIPOST subsidiaries to private individuals.
The discovered infractions generated outburst which instigated the lawmakers to call for immediate action.
Findings showed that some individuals in key positions within the Bureau of Public Enterprises and NIPOST were listed as shareholders of the two NIPOST subsidiaries.
The Corporate Affairs Commission records affirmed that as of November 8, 2023, some top officials of BPE control significant shares in the subsidiaries.
The Senate, while responding to these discoveries, passed a resolution on December 30, 2023.
The resolution declared the NIPOST subsidiaries in question irregular and illegal and recommended their immediate winding-up and deregistration.
The Senate resolution goes beyond immediate action, it called a out-and-out investigation into the N10 billion voted by the Ministry of Finance for NIPOST’s restructuring and recapitalisation.
Should evidence of “injudicious utilisation” surfaces, the Senate said the committee responsible must recover the full amount.
The resolution read, “The sum of N10 billion released by the Ministry of Finance for the proposed NIPOST restructuring and recapitalisation be investigated and the funds fully recovered if established to be injudiciously utilised by the relevant committee of the Assembly charged with the responsibility of fiscal prudence.”
A top government official, who craved anonymit, explained what will become of a the alleged malfeasance.
The official pointed out the enormous value of NIPOST’s property assets, estimated in trillions of naira and expressed the alarm at the prospect of the assets falling into private hands through share inheritance.
“Imagine 15 years from now when none of us is on the scene, their children can come and lay claims to the shares and in the eyes of the law, those shares will belong to whoever their next of kin will be, for government assets,” the official told The Nation.
He added, “The alleged share transfers represent a blatant disregard for established legal frameworks. Even the recently enacted Petroleum Industry Act (PIA) allocates shares to corporate entities, not individuals.”
Reports revealed that after receiving a letter on the infraction, the individuals involved hurriedly reassigned their shares in NIPOST Transport and Logistics to three government entities: NIPOST, 80%; BPE, 10%, and the Ministry of Finance Incorporated, 10%.
It was also discovered, controversial shareholding arrangements that have led to changes in the ownership structure of NIPOST Properties and Development Company.
The changes reinforced concerns about the legality and transparency of the original share transfer.
The official said, “BPE has no business holding shares in NIPOST, and the involvement of an MDA in shareholding directly contradicts established procedures.”
The government official who doubted the credibility of the transaction said, “the Senate is unwavering in its stance, demanding investigation and rectification”.
“The NIPOST scandal raised serious questions about corporate governance and asset protection within public institutions. The Senate’s swift action and call for investigations are commendable, but ensuring swift, comprehensive, and transparent results is paramount. The Nigerian public deserves clear answers and the assurance that their national assets are being protected with utmost integrity,” the official said.
When contacted, a BPE official said, “The NIPOST subsidiaries were registered in 2020 and at the time, the CAC portal only allowed individuals to be shareholders as there was no option of using companies as shareholders.
“This was because the commission wanted to hold people accountable in respect of shares ownership. Subsequently the CAMA 2020 became operative in January 2021, which was six (6) months after the Companies were registered.
“The portal was thereafter updated to allow companies to hold shares but with representatives. The shareholding of NIPOST subsidiaries has been duly corrected to reflect the intent of the subscribers.”
