CAC revokes certificates of two NIPOST subsidiaries

The Corporate Affairs Commission (CAC) said it has revoked the certificates of incorporation of two subsidiary companies of the Nigeria Postal Service (NIPOST).

The two companies are NIPOST Properties & Development Company Limited and NIPOST Transport & Logistics Company. According to the commission, the certificates of incorporation were “inappropriately procured”.

With the revocation, CAC said all assets of the companies should be transferred to the parent company, NIPOST.

What CAC is saying

• “The General Public is hereby informed that the Commission sequel to its powers contained in Section 41 (7) of the Companies and Allied Matters Act No 3 of 2020 revoked the Certificates of incorporation of the below mentioned companies because same were improperly procured.
• “These companies are NIPOST Transport and Logistics Services Company Ltd RC 1673881 and NIPOST Properties & Development Company Ltd RC 1673971.
• “By virtue of these revocations, the Companies are deemed to be dissolved and their Assets and Liabilities transferred to the Nigeria Postal Services established under the Nigerian Postal Services Act Cap N127 LFN 2004.”

Senate’s probe of NIPOST’s restructure

The action of the CAC in nullifying the incorporation of the two NIPOST subsidiaries may have come as a fallout of the controversies that have trailed the companies since they were registered in 2020.

Earlier this year, it was reported that the N10 billion earmarked by the government to restructure NIPOST had allegedly gone missing. This led to the  Senate ordering a probe into the missing restructuring funds released by the Federal Ministry of Finance.

The Senate allegedly discovered that illegal transfers were made to private individuals from two subsidiaries – (NIPOST Properties and Development Company as well as Transport and Logistics Services Limited).

What you should know

Before the recent Senate probe order, the National Union of Postal and Telecommunications Employees (NUPTE)  supported by the Senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASCGOC) had kicked against the unbundling of NIPOST.

In a joint statement released early last year, the unions said the commercialization plan by the Federal Government through the Bureau of Public Enterprises was to “tactically make NIPOST extinct under the guise of reform/commercialization.”

The two unions said it was so “glaring that the shrewd plan of the Bureau of Public Enterprises (BPE), Federal Ministry of Communications and Digital Economy (FMoCDE), the Federal Ministry of Finance, and other self-centered individuals involved in this process was to tactically reap NIPOST of its assets and leave the Organisation high and dry as against the promised growth and improvement.”

The statement said the two unions have engaged all relevant authorities on issues that border on this reform, particularly the two subsidiary companies that were created (NIPOST Properties & Development Company Limited and NIPOST Transport & Logistics Services Limited).

• “The Unions had on several occasions presented their position, stressing that the reform process is manned with fraud and irregularities but the BPE, FMoCDE, NIPOST Governing Board and the Postmaster-General/CEO have decided to pay lip services to the issues, instead, the Honourable Minister further directed those concerned to commence the take-off of these subsidiaries without recourse to our concerns,” the statement added.

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