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Senate Launches Probe Into Alleged N10 Billion Mismanagement At NIPOST

Published

12 months ago

Jan 3, 2024.

EKO HOT BLOG reports that the Nigeria Postal Service (NIPOST) is under intense scrutiny after revelations of irregularities and possible misappropriation of N10 billion in restructuring funds.

A Senate probe has been launched following discoveries of alleged illegal transfers of federal government shares in NIPOST subsidiaries to private individuals.

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The subsidiaries in question, NIPOST Properties and Development Company and NIPOST Transport and Logistics Services Limited, have come under the Senate’s radar. Shockingly, individuals within crucial positions at the Bureau of Public Enterprises (BPE) and NIPOST were identified as shareholders in these subsidiaries, raising eyebrows and concerns over corporate governance.

The Corporate Affairs Commission (CAC) records disclosed significant shares controlled by top BPE officials in the subsidiaries. This discovery prompted the Senate to label these actions as “irregular and illegal” and advocate for the immediate winding up and deregistration of the NIPOST subsidiaries.

The Senate resolution mandates a comprehensive investigation into the N10 billion allocated by the Ministry of Finance for NIPOST’s restructuring and recapitalization. Any evidence indicating the improper use of these funds is to be recovered by the committee responsible for fiscal prudence.

A government official, speaking anonymously, highlighted the potential risk of NIPOST’s valuable property assets falling into private hands due to these alleged share transfers. Expressing concern over the legality of the actions, the official stressed the need to protect government assets from being inherited as private shares.

In response to the allegations, individuals involved hastily reassigned their shares, attempting to reallocate them to government entities to rectify the situation. However, concerns persist regarding the transparency and legality of these actions.

A BPE official, addressing inquiries, explained the initial rationale behind the shareholding structure, citing limitations within the CAC portal at the time of registration. They claimed subsequent corrections were made to align with the intended shareholders.

While defending the corrections made, the official reiterated the Senate’s unwavering stance on investigating and rectifying the situation.

Emphasizing the need for transparent and swift action, they highlighted the importance of safeguarding national assets with integrity.

This unfolding scandal has raised profound questions about corporate governance within public institutions.

The Senate’s prompt response and call for investigations are laudable, but ensuring transparent and comprehensive results remains crucial. The Nigerian public deserves clarity and assurance regarding the protection of their national assets.