By Disun Amosun
The House of Representatives Committee on Capital Market and Institutions on Monday disclosed that 25 Insurance Companies are being investigated for various alleged financial Infractions, leading to loss of revenue running into billions of naira by the federal government.
Chairman of the sub-committee raised for the investigation, Rep. Kwamoh Laori disclosed this at a scheduled meeting with the management of the affected companies in Abuja.
The sub-committee chair however flayed majority of them for opting to seek court injunction to prevent the investigation, rather than appearing before it to state their roles in the allegations.
17 out of the 25 affected insurance companies that opted for litigation sent their Attorney, Barrister Abimbola Kayode to represent them at the Hearing, which originally was scheduled to afford them the opportunity to state their sides in the allegations,
He stated that the sub-committee is vested with the responsibility of investigating petitions on infractions in respect of their operations and non compliance with certain statutory provisions.
Rep Laori said “That is why they were invited and each of them have been served and given the extract of their alleged liability, and it affords them them the Right of Reply on the allegations.
The lawmaker described the essence of the investigation as hearing from all sides concerned and ensuring that what is due the federal government comes to it through the operations of private entities.
Rep. Laori was of the opinion that resorting to seeking court injunction to stop the investigation was tantamount to throwing spanners into the smooth workings of legislative process.
He said that it is the duty of the National Assembly to track revenue accruing to the federal government and that companies doing business on behalf of the government are expected to be thorough in puting a stop to revenue leakages.
The sub- committee chair added that the affected companies are expected to appear before the Committee to explain their financial standings as well as the status of liabilities paid out or not.
“Some of the companies ran to court and have served the House with court process. It’s for us and the House leadership to sit down and examine the processes to determine if we could continue with the investigation or not.
Rep Laoriu said that the committee would continue to insist that Chief Operating Officers of the companies appear before the Committee rather than sending unqualified representatives.
“We have insisted that the Chief Operating Officers appear in persons so that they can answer questions posed to them snd be held accountable for their responses. Like you can see, one of the COOs sent somebody that cannot answer any of the question put to him regarding allegations that are before the committee that is not good enough”
Rep. Laori also indicted the National Insurance Commission for not living up yo its supervisory role in the insurance industry, adding that”. It is because there are certain lapses somewhere on their operations that is we are seated here today conducting this investigation.
