The Senate has ordered a probe into the N10 billion restructuring funds released to NIPOST by the Federal Ministry of Finance as reported by The Nation.
This followed the discovery of irregularities in the agency’s subsidiaries – NIPOST Properties and Development Company and NIPOST Transport and Logistics Services Limited,” said a statement from the Senate.
“In its resolution of December 30, 2023, Red Chamber said it uncovered alleged illegal transfer of federal government shares in two NIPOST subsidiaries to private individuals,” the Senate resolution declared.
“This January could be one of the most difficult starts to the year the NHS has ever faced,” said Stephen Powis, the national medical director, expressing concerns about the potential impact of the strike.
“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,” read the Senate resolution.
A government official, speaking on the condition of anonymity, painted a picture of the potential consequences of the alleged malfeasance, stating, “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 alleged share transfers represent a blatant disregard for established legal frameworks. Even the recently enacted Petroleum Industry Act allocates shares to corporate entities, not individuals,” the official emphasized.
“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 further stated.
“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,” a Bureau of Public Enterprises official said.
