House of Representatives Committee on Finance has raised issues against the Nigeria Postal Service (NIPOST) over alleged irregularities in the registration of subsidiary companies.
Hon. James Abiodun Faleke, chairman of the committee, raised the issues on Wednesday, when the Ministry of Finance Incorporated (MOFI) alongside other agencies appeared before the committee for an interactive session on the 2024-2026 Medium Term Expenditures Framework and Fiscal Strategy Paper (MTEF/FSP).
Speaking during the session, Faleke noted that documents before the committee showed that two subsidiary companies under NIPOST were registered under individual names as shareholders instead of the Federal Government, wondering why that was so since NIPOST is a federal government asset.
He said the registration of the two subsidiary companies namely, NIPOST Property Company Ltd and NIPOST Logistics were done with individuals as shareholders.
“Is NIPOST part of your assets? I have a document before me; the registration of NIPOST Property Development Company Ltd. I saw that the shareholders of these companies are individuals. Okoh Alexander Ayoola, Adeyemi Alexander, Aliyu Halima; these are personal names. Are people allowed to register NIPOST property in their personal names?
“I also have NIPOST Logistics also registered in personal names. I want to know from you; did you give CAC permission to register Nigerian assets in personal names; some of them were working as civil servants and some of them have retired.
“Are you also aware that N10 billion was approved and withdrawn to be used for the set up of these entities and that same N10 billion came in and also went out in the name of NIPOST from an account opened as NIPOST Property; Are you aware of that”, Faleke queried.
Responding, Dr Armstrong Takang, chief executive officer of MOFI, admitted there were irregularities within the system and that he needed the support of the committee to address them.
“The question you raised is precisely why this committee needs to partner with us in addressing irregularities in our system. That is one example, there are many cases. The simple answer is simply no; for a federal government entities, the shareholders must be registered under MOFI”, he said, noting that the BPE was in better position to respond the N10 billion withdrawal, as the supervising agency when same was done.