The House of Representatives has queried the irregularities in the registration of subsidiary companies under the Nigerian Postal Service (NIPOST).
The Chairman, House Committee on Finance on Hon. James Faleke issued the query 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/FSP.
He said the registration of the two subsidiary companies namely, NIPOST Property Company Ltd and NIPOST Logistics were done with individuals as shareholders.
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 since NIPOST is a federal government asset.
He said: “Is NIPOST part of your asset? 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.
Faleke also raised issues over the approval and withdrawals of N10 billion for the purpose of the registration of the subsidiary companies.
“Are you also aware that N10 bilion was approved and withdrawn to be used for the set up of these entities and that same N10 billion came in and also went out in the name of NIPOST from an account opened as NIPOST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, the Chief Executive Officer of MOFI, Dr. Armstrong Takang, admitted that 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.
“This was recently brought to my attention and we are on it. We have sent a letter to CAC through the Federal Ministry of Finance that they should not register any shareholder in a government entity other than MOFI. That is the only way in the eyes of the law that the government can claim such property.
“We did also indicate in that letter that whenever any one wants to register a commercial entity for the federal government, they ought to request for a letter of no objections from MOFI to ensure that the registration process does not in any way undermine what the law states as far as ownership of government interest is. Clearly, that is what that is”, he said.
On the issue of N10 billion reportedly approved and withdrawn for processing the NIPOST subsidiary companies, Takang noted that the Bureau of Public Enterprises (BPE) would be in the best position to answer that.
He words: “I will defer that question to BPE because BPE supervised the process for unbundling of NIPOST to those two entities which is Logistics Company and Property Development Company.