25 Insurance companies have come under scrutiny as the House flags off investigation into alleged financial infractions, vowing to recover unremitted revenue
The House of Representatives has launched an investigation into the alleged non-remittance of multi-billion-naira revenue due to the Federal Government by 25 insurance companies operating in Nigeria.
Chairman of the House sub-committee on capital market and other institutions, Rep. Kwamoti Laori (PDP Adamawa), disclosed this during an investigative hearing with representatives of the affected firms at the National Assembly Complex, Abuja, on Monday.
According to the sub-committee chairman, the 25 insurance companies allegedly involved in the financial infractions are: International Energy Insurance, LASACO Assurance, Consolidated Hallmark, Guinea Insurance, AIICO Insurance, Axa Mansard, Mutual Benefit Assurance, Linkage Assurance, Prestige Assurance, NEM Assurance, Sunu Assurance, Regency Assurance, Veritas Capital Assurance, Universal Insurance, Coronation Trust Insurance, Sovereign Trust Insurance, Cornerstone Insurance, Custodian PLC, Alliance & General, Industrial & General, Goldlink Insurance, and African Alliance.
The committee expressed dissatisfaction over the failure of the Chief Executive Officers (CEOs) of the 25 firms to honour its invitation in person, with some companies sending representatives unable to respond to critical questions.
It emphasized that the House is committed to supporting President Bola Tinubu’s efforts to boost national revenue and would not allow any entity to sabotage those efforts.
Expressing displeasure over the inability of the representatives of the insurance companies to answer some of the inquiries, he said: “We have insisted that the CEOs appear in person so that they can answer some of these. Like you have seen, one of the companies’ CEOs sent somebody that could not answer any of those allegations that are before the committee.
“That is not good, and that is why the committee still made this order that it is only the CEO that will appear in person so they can come and answer for these allegations against them. It is in the public domain that the National Assembly is saddled with the responsibility to ensure compliance with statutory provisions. And where there are leakages in the revenue that should accrue to the Federation, to the Federal Government, it is our duty to ensure that we put a stop to that.
“And that is exactly what we are doing. From our preliminary investigations and findings, there are a lot of infractions by these companies. That is why we invite them and place the cards before them and say, look, these are the infringements, and these are the costs that are supposed to be paid to the Federal Government in terms of revenue.
“And we have not seen evidence of that. So it is for them to come in and explain to us if they have paid, and then the case is in. But if they have not paid, then they should just go and pay.
“This is just as simple as that. But it appears that every time the National Assembly wants to do its work, you see people who run to court to stop the National Assembly. And tomorrow again, it is the same people that will come and accuse the National Assembly of not doing its duty.
“How can we do our duty if, for a simple invitation and the documents have been sent to you in advance, everything has been sent to you, please come and answer this, and then you run to court and say, no, we don’t want to appear? And then tomorrow, you say the National Assembly is not doing its work.
“So people are trying to drag in the court and cover up for infractions they have caused, and they have been causing this Federal Government to be losing revenue.
“The President is trying to ensure that, yes, there are enough funds for the government to execute its promises to the people. But where private entities will always try to sabotage this effort, that should not be tolerated. It should not be condoned in any way. And that is why we are trying to do this work, and they are trying to throw in some spanners in the works.”
Laori explained that the committee was “saddled with the responsibility of a petition based on infractions from these insurance companies in respect of their operations and non-compliance with certain statutory provisions. And, of course, those infractions have resulted in the Federal Government losing hundreds of billions in revenue from these companies.
“That is why they are being invited, and each of them has been sent and given the extent of their liabilities for them to come in and agree or debunk those liabilities.
“That is the essence of all these things we are doing here to ensure that what is due to the Federal Government comes to it through the private operations of these private entities.”
In response to legal processes filed by some of the indicted companies Rep. Laori said:
“In respect of the first issue, some of the companies ran to court, and they have served the House with court processes. It is for us, as the House, to sit down and look at the process. If it in no way goes to the basis of what we are doing here, we will definitely proceed. But if it does, then of course we have to await the decision of the court in respect of that.
“The law allows us to weigh what is before the court and to see if it goes to the root of what we are doing here. If it doesn’t, I assure you we are going to proceed. Except if it does, then we have no option but to put a hold on it pending the outcome of the court action.”
Laori also questioned the effectiveness of the National Insurance Commission (NAICOM), the industry regulator, noting that the situation could have been avoided had NAICOM fulfilled its supervisory responsibilities effectively.
“NAICOM, of course, has a supervisory role in respect of that, and I am not holding briefs for them, but I think if they were doing their job, we would not be here talking about this. And I expect them to sit up. It is because there are certain lapses somewhere, that is why today we are doing what we are doing here in terms of investigations.” Rep. Laori said
