Public Accounts Committee Demands Accountability for ₦10 Billion Spent by Bureau on Two Dissolved Firms

Advertisements

The House of Representatives’ Public Accounts Committee has told the Bureau of Public Enterprises (BPE) to account for approximately ₦10 billion spent on the registration of two companies for the Nigerian Postal Service (NIPOST).

The companies in question, both of which ceased operations just a year after their establishment, NIPOST Transport and Logistics Limited and NIPOST Property, began operations in May 2023 but were dissolved following a presidential directive in May 2024.

During a session of the investigative hearing, BPE’s Head of Finance and Accounts, Imam Rilwan, representing the agency’s Director-General, stated that the sum of ₦10 billion had been allocated to the two companies to facilitate their launch. 

Furthermore, ₦400 million was reportedly used by the Bureau of Public Enterprises for preparatory activities necessary for the companies’ operation, including office rentals and other essential expenditures.

The BPE’s activities were initially approved in 2017, but the funds were only disbursed in 2023. Rilwan explained that the bureau used part of the funds to recover its expenditure, stressing that ₦423 million was specifically allocated to office space rentals for the two entities. 

He further informed the committee that once the companies were dissolved, all assets were transferred to NIPOST management.

Chairman of the committee, Bamidele Salam, pointed out that spending government funds prior to their release contravenes the provisions of the Public Procurement Act. 

Salam directed BPE’s Director-General, Ayodeji Gbeleyi, to appear before the committee with all relevant documents related to the transaction by 11th September.

Similarly, the committee has urged the Joint Admissions and Matriculations Board (JAMB) and the Investments and Securities Tribunal to repay ₦3.46 billion and ₦6.33 million, respectively, to the Consolidated Revenue Fund. 

This request followed the Fiscal Responsibility Commission’s (FRC) reveal that JAMB had failed to remit 50% of its internally generated revenue (IGR) to the government, as required. Instead, the body remitted only 25%, leading to a default.

JAMB’s Director of Finance and Account, Mufutau Bello, speaking on behalf of the Registrar, Prof Ishaq Oloyede, explained that the board does not receive government funding for its capital and overhead expenses, which he claimed exempted them from the 50% IGR remittance requirement. 

This, however, was contested by the office of the Accountant-General of the Federation, which maintained that JAMB is obligated to meet the 50% threshold.

Salam disapproved JAMB’s failure to respond to official correspondence from the FRC regarding its debt, stressing that government agencies must operate transparently through proper channels of communication.

The committee has demanded that the outstanding funds be deposited into government coffers within 30 days.

Advertisements