December 12, 2019

Reps probe MDAs over allegations of infractions in insurance undertakings

…suspend all 2020 insurance renewal 

By Levinus Nwabughiogu

Worried by allegations of infractions, impunity and corruption by the Ministries, Departments and Agencies of government in their insurance undertakings, the House of Representatives, on Thursday, mandated its Committee on Insurance and Actuarial Matters to conduct a forensic audit of insurance premiums by the institutions.

The House also directed the MDAs to suspend all 2020 insurance renewal processes until the investigations were.

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The directive followed the consideration and adoption of a motion by the minority whip, Gideon Gwani on the “need to investigate alleged breaches, impunity and other infractions by some federal government institutions on insurance and actuarial matters and the need to ensure probity.”

Gwani, in his motion, said that allegations of infractions involving MDAs and insurance companies in the payment of insurance premium by the government were rife and needed to be investigated.

He said that the people and the country were at the receiving end of the anomalies in the sector “due to the fact the premium meant for this payment were suspected to have been squandered by some insurance companies and few individuals and is only forensic auditor will bring this to fore.”

He further stated that “several billions of naira are suspected to be paid as premium annually on either Non-existent assets or on unverifiable Data with unadjusted premium in breach of Section 61 of Insurance Act 2003 by some Federal government institutions, which include but not limited to; Office of the Head of Civil Service of the Federation, National Youth Service Corp, some security Agencies in collaboration with Insurance Companies that do not pay claims.”

Adopting the motion, the House also mandated the Committee to hold an investigative hearing involving all relevant stakeholders in the insurance industry to ascertain the veracity of claims of corruption by both  MDAs and other institutions in the sector.