Shareholders laud NAICOM’s intervention in erring firms

Shareholders laud NAICOM’s intervention in erring firms

Chuks Udo Okonta

Shareholders have thrown their weight behind the National Insurance Commission (NAICOM) on the taken over of the management of erring insurance companies.

 The commission today Thursday, took over the management of Goldlink Insurance Plc, having took charge of Alliance and General Insurance two months ago.  

The President, Nigerian Shareholders’ Renaissance Association, (NSRA) Olufemi Timothy, told Inspen that an industry were regulation is not effective, there is danger to the stakeholders, adding that with the kind of measure, taking by NAICOM, all underwriters will now sit up.

He said: “With the measure taking by NAICOM, underwriters would now see the commission as a dog that can bark and bite. It is a good development that some people are made scrape goat. We have been complaining of uncomplimentary things going on among the underwriters.

“Now that NAICOM has risen to punish them, they would realise that most of the things they have been doing that they can escape with them.

“The step taken by NAICOM is a good development and it portends a good future for the industry.

On why shareholders have be silent over the rot that is now being uncovered by NAICOM, he said:

“When you talk of shareholders in the insurance industry, you are likely to have 200,000 of us. Where you have 200,000 shareholders, opinions would vary. Some of us who are active have been talking of the misdeeds in these companies, but no body listened to us. We have been calling on the regulators to look into the accounts of these firms, but no body cared to listen, but now that we have got somebody who is ready to listen and take action, we are happy that our voices would be adhered to and our complains would be acted upon.”

Secretary, Nigerian Shareholders Solidarity Association (NSSA) Gbadebo Olatokunbo, said the taken over of the company is a good development, adding that it would raise the confidence of stakeholders.

 He noted that the taking over of the firm would serve as deterrent to other operators who have been exhibiting carefree attitude in carrying out their responsibilities.

NAICOM in a statement said has constituted a seven-man interim board of directors to oversee the affairs of Goldlink Insurance Plc with effect from November 1.

It noted that the constitution of the interim board is sequel to the recent resignation of members of the board of directors of the company following anomalies/misstatements discovered in the audited financial statements of the company for the year ended December 31, 2011.

The interim board has been, among others, charged with the responsibility of carrying out full investigation of the financial reports and corporate governance failures observed in the course of reviewing the company’s financial statement for the year ending December 31, 2011.

The interim board, which shall be for six months in the first instance, has Mr. James O. Ayo, as Chairman, Mr. Gbolahan Olutayo, as Managing Director and Mr. Adeyinka Olutungase, as Chief Finance Officer.

Other members of the interim board include Ambassador Umar Damagun, Alhaji Sashe Dabana, Prof. Chioma Kanu Agomo and Mallam Abubakar Sadiq Mijinyawa (independent director).

It is important to note that this development does not any way affect the capacity of the company to provide dependable insurance services.