• Monday, May 27, 2024
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Reps begin probe of alleged N180.9m insurance breach

Femi Gbajabiamila

The House of Representatives Committee on Insurance and Actuarial on Tuesday commenced an investigation into the N180.9 million insurance premium allegedly paid for the failed Satellite 1 project which was launched in 2011 as well as Satellite 1-R for which Nigeria obtained $500 million Chinese loans.

The Committee at the hearing presided by the Chairman, Darlington Nwokocha grilled the Managing Directors of Fasahal Insurance and A & G engaged by NigComSat management over alleged irregularities surrounding the unilateral appointment of the insurance brokers without due process.

The Committee’s Chairman, Nwokocha said the investigation was based on about six petitions written by concerned Nigerians within the insurance industry and those working within some of the concerned organizations.

He stated that the investigative hearing was aimed at unraveling issues bothering on infractions, impunity perpetrated by the operator who alleged influenced the contract as well as financial recklessness entrenched in the multi-million dollar satellite contract(s)

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Other lawmakers who spoke during the hearing frowned at the blatant breach of extant regulatory laws and demanded relevant documents on various transactions carried out among the parties involved.

While responding to questions on the appointment of the Lead insurance company, NigComSat Managing Director, Abimbola Alale argued that the Chinese company which manufactured the Satellite unilaterally nominated the UK based insurance firm to ensure NigComsat 2 which was launched in 2014.

But in his presentation, the Managing Director of Fasahal Insurance company, Frederic Adejo who affirmed that he is not a chattered Broker, disclosed that NigComSat introduced him to the Lead Insurance firm.

On his part, the Managing Director of A & G Insurance company, Abiola Ajibowu told the Committee that all relevant documents required by the Committee have been transmitted, adding that the only evidence of the contract is the policy document which contained the value of the asset, the premium paid and the period of the insurance policy.

The ruling, the Committee Chairman issued a 7-day ultimatum to all the parties to provide relevant documents relating to the transactions.

He also demanded bank statements on all the transactions, schedule insurance policy, insisting that there is no classified information that should be hidden from the parliament.

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