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NAICOM drags insurance directors to EFCC, SEC for illegal acquisitions of shares

By Favour Nnabugwu

The National Insurance Commission (NAICOM) has dragged some directors of insurance companies to the Economic and Financial Crime Commission (EFCC) and Security and Exchange Commission (SEC) over illegal acquisition of shares of their companies.

The Commissioner for Insurance, Alhaji Mohammed Kari  said the commission would not condone any act of illegality and corruption from any insurance company.

Kari stated that the Commission dragged some financially reckless directors and managers of insurance firms to the Economic and Financial Crimes Commis-sion(EFCC) to retrieve the money they had stolen and ease financial constraints of the companies they managed, many of which they have rendered financially impotent.

The CFI said, “I can confirm to you that one chairman returned N66 million. We have identified quite a number of cases like that and we have stood our ground that they must refund it because it is share holders’ and policy holders’ money, it is not their money.

And that is not all, we have also,similar to what we did on companies under intervention, we have discovered that some shareholders or directors acquired shares without paying and we have taken them to EFCC, we are trying to get them cough out what they have taken.

“Those refunds can ease the financial constraints of the companies and those actions they have taken are criminal acts and the law enforcement agents have the right to treat them as criminals and we believe it will help to restore confidence of shareholders in the industry.

He added that without a share audit the commission would not have been able to find out the actual shareholders of these companies.

The Commissioner said that in the process of investigations carried out by forensic review on  some companies it was discovered that some directors were claiming to be majority shareholders while in the real sense they were not.

Following the investigation, the directors were directed by the commission to relinquish their shares which they did voluntarily.


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