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The House of Representatives has launched a sweeping probe into the operations of 25 insurance companies over alleged financial infractions and non-remittance of statutory revenues to the federal government.
The House Sub-Committee on Capital Market and Institutions, chaired by Kwamoti Laori (PDP, Adamawa State), is conducting the probe.
At a hearing on Monday at the National Assembly, Mr Laori disclosed that the exercise was triggered by petitions alleging systemic breaches and non-compliance by the firms, which have collectively cost the federal government hundreds of billions of naira in unremitted funds.
Mr Laori explained that each company had been served with details of its alleged liabilities and was expected to confirm or debunk the figures.
According to him, the infractions stem from failure to remit revenues derived from compulsory insurance schemes, such as group life insurance for federal workers, and other policies where remittances are meant to be made to the federal purse.
In a twist that could stall the investigation, the lawmaker disclosed that 17 affected companies have filed lawsuits challenging the committee’s summons and investigative powers.
According to him, the firms have officially served the House court processes, and it was represented at the hearing by a legal practitioner, Abimbola Kayode. However, he has dismissed the development as a potential ploy to frustrate legislative oversight.
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“Some of the companies ran to court and have served the House with a court process. It is for us and 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 would definitely proceed, but if it does, then we have to wait for the decision of the court in respect of that,” he stated.
The lawmaker criticised the move, describing it as a deliberate attempt to obstruct legislative oversight and further expressing frustration over the attitude of some companies, which sent low-level representatives incapable of responding to the issues raised.
He, however, insisted that only the Chief Operating Officers (COOs) of the indicted firms would be allowed to appear before the lawmakers.
“We have insisted that the Chief Operating Officers appear in person so that they can answer some of the questions. Like you can see, one of the COOs sent somebody who could not answer any of those allegations before the committee, and that is not good,” he said.
NAICOM under fire
Mr Laori did not spare the National Insurance Commission (NAICOM), accusing it of sleeping on its regulatory responsibilities. He said the commission is supposed to supervise the companies.
“If they were doing their job diligently, we wouldn’t be sitting here discussing this today,” he said.
The committee, thereafter, indicated that the probe will continue, and any company found wanting may face sanctions or legislative recommendations for stronger enforcement mechanisms.
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