By Godfrey Bivbere

COMPTROLLER General of Customs Col. Hameed Ali (Rtd), has been summoned to appear before the House of Representatives ad-hoc committee over N250million insurance commission paid to an unlicensed broker appointed by the Customs Service.

Chairman of the Committee, Hon. Adekunle Akinlade said documents presented to the committee revealed that Guinea Insurance, which provided insurance cover for Nigeria Customs Service, paid N250 million as commission to a firm, a broker that is not licensed by the National Insurance Commission (NAICOM),between 2013 and 2015,

Customs CG, Hameed Ali

Akinlade said these sums represented a tip of the iceberg in regard to the discoveries the Committee has made from documents submitted to it by insurance companies.

He said his committee was aware that the use of unlicensed brokers was one of the strategies used by government officials to defraud government, stressing that the committee has directed its (names withheld) clerk to summon the Comptroller General of Customs to appear today, November 2, to explain why his agency engaged an unlicensed insurance broker in violation of the law.

Akinlade said the committee uncovered N640 million paid by two underwriters as commission to two unlicensed brokers (names withheld).

While defending the facts before the committee, the Managing Director of Guinea Insurance, Isioma Okokuku admitted that her company erred in doing business with the said firm, contravening the Insurance Act which bars insurance companies from engaging brokers not licensed by the National Insurance Commission (NAICOM).

She said that her company was moved by desperation to retain the Custom Service account, explaining, that the said firm, was engaged by Customs as its brokers and that the firm was not paid directly by her company.

According to her, it is the insured who selects the broker, stressing, “The truth is that we were aware they were processing their license. This is an industry that is competitive. We needed the business to grow. But we did not appoint the broker,. they were appointed by Customs. We did not pay them commission directly. The premium was paid to them and they deducted their commission.”

The committee said that another broker, Staco Insurance, which was not licensed by the insurance regulatory body got N390million commission from Nigeria Ports Authority (NPA).

But Managing Director of Staco Insurance, Mr Sakiro Oyefeso, said it was the duty of the regulatory agency to bring to the knowledge of his company the fact that Standard Insurance was not licensed at the time the transaction took place. Oyefeso admitted that his company committed an infraction and pleaded for leniency.

The Chairman of the committee has however, directed insurance companies to furnish the committee with details of every business they did with government between 2013 and 2015.

He said, “In the first quarter, the sector did very well and suddenly in the second quarter, business kind of slowed down and insurance premium slowed down as well and the flow of premium is a factor of how well the consumers are doing.
“After the first quarter of the year, we thought this is our best year ever but then, you could have cancer but you are living without knowing you have cancer. However, the day you are told you have cancer, you will start thinking of death. Our economy has not been good, but the moment the recession was announced, everybody started panicking and businesses were affected. So it is a psychological thing.”