The House of Representatives Sub-Committee on Capital Market and Institutions has launched a probe into 25 Insurance Companies over allegations of financial misconduct that reportedly cost the Federal Government hundreds of billions in lost revenue.
Chairman of the Sub-Committee, Hon. Laori Kwamoti, disclosed this during a meeting held on Monday at the National Assembly Complex in Abuja. He revealed that the investigation was prompted by petitions alleging various infractions and non-compliance with statutory regulations by the affected Insurance Companies.
Kwamoti emphasized that the Companies were summoned to either confirm or refute the allegations made against them. “This Committee is acting on a petition concerning alleged breaches by these Insurance Companies. These infractions have caused substantial revenue loss to the Federal Government. Each Company has been notified of its specific liabilities and is expected to respond accordingly,” he said.
He stated that the core objective of the investigation is to ensure that revenue due to the Federal Government is fully remitted through proper oversight of private sector operations.
“It is the constitutional duty of the National Assembly to track and safeguard Government revenue. These Companies must help plug financial leakages and clarify whether or not they have fulfilled their financial obligations,” Kwamoti added.
However, he expressed concern that some of the Insurance Companies sought legal action in an attempt to halt the Committee’s proceedings. “A number of Companies approached the courts and have served the House with legal documents. We’ll review these processes. If they don’t interfere with our mandate, we will continue. Otherwise, we’ll await the court’s decision,” he stated.
Kwamoti criticized these legal maneuvers, suggesting they were deliberate efforts to undermine the National Assembly’s oversight responsibilities.
He further insisted that only the Chief Operating Officers (COOs) of the Companies would be allowed to appear before the Committee, citing an instance where a Company sent a representative who could not adequately respond to the Committee’s inquiries. “We need the COOs themselves present to provide concrete answers. Sending unqualified representatives is unacceptable,” he stressed.
The Lawmaker also took a swipe at the National Insurance Commission (NAICOM), accusing the regulatory body of failing in its supervisory duties. “If NAICOM were doing its job properly, we wouldn’t be holding this investigation. Their lapses have made this inquiry necessary,” he noted.
Seventeen of the Insurance Companies that approached the court were represented at the hearing by their attorney, Mr. Abimbola Kayode.