Senate summons NICON, AIICO Insurance, others

Senate Committee on Public Accounts has summoned NICON Insurance
Plc, AIICO Insurance and others insurance companies over failure to
allegedly remit N17.4 billion Pension Fund to the Pension
Transitional Arrangement Directorate (PTAD).

The panel premised its summons on the 2016 report of the
Auditor-General of the Federation, which faulted the insurance
firms for not remitting the sum of N17.4 billion of Pension Funds
to PTAD.

However, the Executive Secretary of PTAD, Dr. Chioma Ejikeme,
told the Committee that PTAD took over the assets and liabilities
of the defunct pension offices without a formal handing over.

Ejikeme said: “On taking over, the Directorates wrote all
Underwriters to make returns and remit whatever amount is in their
custody into a CBN dedicated account. Some of the underwriters
responded to the request while some did not.

“The bank certificate of balances, accounting statements, three
years financial statements and policy files requested by the
Federal Auditor were not handed over to PTAD at the time of
consolidation.

“It is worthy to note that the amount of N17.4 billion comprised
of cash, securities and properties from the nine Insurance
Underwriters as a result of the letter PTAD sent to them.

“These figures represent the claims by the underwriters with
regards to their indebtedness.

“In order to ascertain the true position of legacy funds in the
custody of underwriters, the Directorate appointed a consultant in
2018 who carried out forensic audit of nine out 12 of the insurance
underwriters and produced a final report on the recovery of the
legacy funds and assets for PTAD.

“The insurance companies are presently disputing the report of
the Forensic Audit and some of them are presently subjects of
litigation.”

It was learnt that three insurance companies who are in Court
with PTAD are Standard Life Alliance Assurance, NICON Insurance and
Niger Insurance.

Others that are not in court with PTAD are AIICO Insurance,
Custodian Life Assurance Ltd, Nigerian Life and Provident Company
Ltd, African Alliance and LASSACO Assurance Plc.

They are all expected to appear before the Committee by next
week Thursday based on the resolution of the Committee chaired by
Senator Matthew Urhoghide.

The Auditor-General in his report had said: “Returns on pension
funds totalling N17.4 billion forwarded by the underwriters were
not accompanied by the following documents: Bank Certificate of
balances as at the close of accounts and Accounting Statement
showing the following: Actuarial Value of Assets, Valuation of
Assets at the lowest cost.

“Actuarial surplus: Excess of Assets over Liabilities Actuarial
Liabilities/deficiency: Excess of Liabilities over Assets, a
minimum of three years Annual Financial statements, major policy
files and associated investment ledgers, if any.

“The submission of the above-mentioned records/documents will
facilitate the perusal of their claims and reveal the fairness and
transparent position as at close of business before PTAD took
over.”

Senate Committee on Public Accounts has summoned NICON Insurance
Plc, AIICO Insurance and others insurance companies over failure to
allegedly remit N17.4 billion Pension Fund to the Pension
Transitional Arrangement Directorate (PTAD).

The panel premised its summons on the 2016 report of the
Auditor-General of the Federation, which faulted the insurance
firms for not remitting the sum of N17.4 billion of Pension Funds
to PTAD.

However, the Executive Secretary of PTAD, Dr. Chioma Ejikeme,
told the Committee that PTAD took over the assets and liabilities
of the defunct pension offices without a formal handing over.

Ejikeme said: “On taking over, the Directorates wrote all
Underwriters to make returns and remit whatever amount is in their
custody into a CBN dedicated account. Some of the underwriters
responded to the request while some did not.

“The bank certificate of balances, accounting statements, three
years financial statements and policy files requested by the
Federal Auditor were not handed over to PTAD at the time of
consolidation.

“It is worthy to note that the amount of N17.4 billion comprised
of cash, securities and properties from the nine Insurance
Underwriters as a result of the letter PTAD sent to them.

“These figures represent the claims by the underwriters with
regards to their indebtedness.

“In order to ascertain the true position of legacy funds in the
custody of underwriters, the Directorate appointed a consultant in
2018 who carried out forensic audit of nine out 12 of the insurance
underwriters and produced a final report on the recovery of the
legacy funds and assets for PTAD.

“The insurance companies are presently disputing the report of
the Forensic Audit and some of them are presently subjects of
litigation.”

It was learnt that three insurance companies who are in Court
with PTAD are Standard Life Alliance Assurance, NICON Insurance and
Niger Insurance.

Others that are not in court with PTAD are AIICO Insurance,
Custodian Life Assurance Ltd, Nigerian Life and Provident Company
Ltd, African Alliance and LASSACO Assurance Plc.

They are all expected to appear before the Committee by next
week Thursday based on the resolution of the Committee chaired by
Senator Matthew Urhoghide.

The Auditor-General in his report had said: “Returns on pension
funds totalling N17.4 billion forwarded by the underwriters were
not accompanied by the following documents: Bank Certificate of
balances as at the close of accounts and Accounting Statement
showing the following: Actuarial Value of Assets, Valuation of
Assets at the lowest cost.

“Actuarial surplus: Excess of Assets over Liabilities Actuarial
Liabilities/deficiency: Excess of Liabilities over Assets, a
minimum of three years Annual Financial statements, major policy
files and associated investment ledgers, if any.

“The submission of the above-mentioned records/documents will
facilitate the perusal of their claims and reveal the fairness and
transparent position as at close of business before PTAD took
over.”