House of Reps Accuses BPE of Misusing N10 Billion, Demands DG’s Personal Appearance
Mercy Adi
The House of Representatives on Monday sharply criticized the Bureau for Public Enterprises (BPE) for allegedly squandering approximately N10 billion on the registration of two companies for the Nigeria Postal Service (NIPOST), which reportedly ceased operations just one year after their launch.
This revelation emerged during an investigative hearing led by Hon. Bamidele Salam, Chairman of the House Committee on Public Accounts.
According to the audit queries issued by the Office of the Auditor General of the Federation (oAuGF), the two companies—NIPOST Transport and Logistics Limited and NIPOST Property—were established in May 2023 but were dissolved by a Presidential directive in May 2024. Hon. Salam expressed disbelief that such a substantial amount was expended only for the companies to collapse so soon.
In response, BPE’s Head of Finance and Accounts, Imam Rilwan, explained that while N10 billion was allocated to the companies as start-up funds, approximately N400 million was designated for the BPE’s preparatory activities.
He detailed that the expenditure of N423 million for the registration and operational setup of the companies, which was approved in 2017, was necessary to rent office spaces and provide essential services. He added that the funds were utilized effectively and that the companies’ assets had been returned to NIPOST management.
Despite these explanations, Hon. Salam criticized the advance expenditure from government funds before their official release, labeling it a violation of the Public Procurement Act. The committee was also dissatisfied with the BPE’s justification for using funds allocated for other purposes and demanded additional documentation.
In light of these concerns, Hon. Salam has directed BPE’s Director General, Ayodeji Gbeleyi, to personally appear before the committee on Wednesday, September 11, at 12:00 PM with all pertinent documents related to the transaction. The move underscores the committee’s determination to hold BPE accountable for the alleged financial mismanagement.
