Panic In Insurance Sector As Reps Commences Investigation Into Non Remittance Of Revenue Owned Government( List Of Defaulting Companies)

Panic In Insurance Sector As Reps Commences Investigation Into Non Remittance Of Revenue

OpenLife Nigeria reports that the House of Representatives, on Monday, launched an investigation into the non-remittance of multi-billion naira revenue owed to the Federal Government by 25 defaulting insurance companies operating across the country.

Chairman of the Subcommittee on Capital Market and Other Institutions, Hon. Kwamoti Laori, who presided over the investigative hearing in Abuja, read the Riot Act to those involved.

 

According to the subcommittee, the 25 insurance companies allegedly involved in the financial infractions include: International Energy Insurance, LASACO Assurance, Consolidated Hallmark, Guinea Insurance, Axa Mansard, Mutual Benefits Assurance, Linkage Assurance, Prestige Assurance (listed twice), NEM Insurance, 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.

Expressing displeasure over the absence of the 25 Chief Executive Officers (CEOs) of the invited companies, Hon. Laori vowed that the House would leave no stone unturned in supporting President Bola Tinubu’s efforts to boost government revenue.

 

Commenting on the inability of company representatives to answer critical inquiries, he said:

“We insisted that the CEOs appear in person to respond to these issues. As you have seen, one company sent a representative who couldn’t address any of the allegations before the committee.

 

“That’s unacceptable. The committee has now resolved that only the CEOs must appear in person to respond to these allegations. It is public knowledge that the National Assembly is charged with ensuring compliance with statutory provisions. Where there are revenue leakages, it is our duty to act.

“From our preliminary investigations, we found multiple infractions by these companies. That’s why we invited them—to present the facts and the corresponding amounts owed to the Federal Government.

 

“We haven’t seen any evidence of payment. If they have paid, they should show proof. If not, they must pay. It’s that simple.”

 

He also criticised the frequent resort to legal action to obstruct legislative investigations.

 

 

“Each time the National Assembly tries to do its job, some people rush to court to stop us. Then, they turn around to accuse the Assembly of inaction.

“How can we perform our duties when companies refuse simple invitations and instead seek injunctions—even after receiving documents in advance?

“This is an attempt to use the courts to cover up infractions that are costing the federal government significant revenue.

 

“The President is working hard to ensure adequate funding for government programmes, but private entities sabotaging these efforts should not be tolerated.”

 

Hon. Laori added that the committee’s work was triggered by a petition highlighting various infractions and non-compliance with statutory provisions by the insurance companies—resulting in the loss of hundreds of billions of naira in revenue.

 

“Each company has been notified of its liabilities and asked to respond—either to confirm or deny them. The objective is to ensure what’s due to the government is paid by these private operators.”

 

Reacting to court injunctions filed by some of the companies, Hon. Laori stated:

 

“Some firms have served the House with court processes. We will examine these and determine whether they affect the core of our investigation. If they don’t, we’ll proceed. But if they do, we’ll await the court’s decision.”

 

On the role of the National Insurance Commission (NAICOM), he said:

 

“NAICOM has a supervisory role over the insurance sector. I’m not speaking on their behalf, but if they were fully effective in their oversight, we wouldn’t be here today. Their lapses have contributed to the current situation, and I expect them to step up.”