The House of Representatives Public Accounts Committee (PAC) has chided the Bureau of Public Enterprises (BPE) for allegedly wasting N10 billion to register two companies for the Nigeria Postal Service (NIPOST) that folded up one year after take-off.
It also directed the Joint Admission and Matriculations Board (JAMB) to pay about N3.457 billion and N6.327 million naira into the Consolidated Revenue Fund (CRF) within 30 days and tender evidence of payment before the committee.
The Investment and Security Tribunal (IST) was also directed by the committee to recover and pay taxes not deducted from five contractors and the accompanying fine among other liabilities standing against them.
Chairman of the committee, Rep. Bamidele Salam (PDP, Osun) gave the directives while speaking at the resumed investigative hearing of the committee on Monday after presentations by the various organisations.
- Tinubu trying, he inherited near-bankrupt nation – Tafawa-Balewa
- Bauchi: Senator Buba donates to flood victims, asks gov to act
He said that it was unbelievable that N10.4 billion was spent to register the two companies NIPOST Transport and Logistics Limited and NIPOST Property that took off in May 2023, only for them to fold up barely a year through a presidential directive in May 2024.
In his submission earlier, the BPE Head of Finance and Accounts who stood in for the Director General (DG) of the agency, Imam Rilwan informed the committee that while about N10 billion was given to the two companies for their take-off, about N400 million was given to the BPE for the take-off of the two companies.
According to him, the registration of the two companies for NIPOST was approved in 2017 and the BPE spent about N423 million for registration and other activities for the take-off of the companies.
Rilwan said when the money was eventually released in 2023, the BPE had to recover its money, adding that the N423 million given to the agency was used to rent office accommodation and carry out other essential services for the companies.
He, however, said that while the BPE paid rent for the two companies from 2022, the companies took possession of the offices in May 2023, while they folded up in May 2024.
According to him, all properties belonging to the two companies have been officially handed over to NIPOST management.
However, the chairman of the committee insisted that spending money before it was released was a clear violation of the provisions of the Public Procurement Act.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
