Chuks Udo Okonta
The National Insurance Commission (NAICOM) has ordered the management
of Industrial and General Insurance (IGI) Limited, to within the next two weeks
appoint a reputable auditing firm to conduct a comprehensive review of the
company’ s accounting system; capital verification and financial position.
A regulatory order , signed by the newly appointed Commissioner
for Insurance Muhammed Kari, which was issued the company and obtained by
Inspenonline, mandated the management of IGI to appoint any one of these three auditing firms – KPMG; PWC
and Delloitte to undertake the financial review.
The company was also mandated not to incur any expenditure
in excess of N250, 000.00 without the prior approval of NAICOM. It was asked not
to carry out new investment or dispose any of its assets without the prior
approval of NAICOM and should make a monthly report of its activities to NAICOM
effective from August 2015.
The regulatory order reads: “Consequent upon examination and
investigation of the activities of Industrial and General Insurance Company
Limited, (IGI) and in the exercise of the powers conferred on it by the
enabling laws, the National Insurance Commission (NAICOM)hereby issue this
regulatory order and directs that IGI shall:
1. Within two weeks from the date of this regulatory order
appoint any one of the under listed auditing firm to conduct a comprehensive
financial review of the company and submit the report to the commission: KPMG, PWC
and Delloitte.
2. Mandate the auditing firm to, among others,
A. Undertake a comprehensive review of your company’s
accounting system
B. Conduct capital verification and
C. Verify the financial position of the company as at 31st
July, 2015.
3. Not incur any expenditure in excess of N250, 000.00
without the prior approval of NAICOM
4. Not carry out new investment or dispose any of its assets
without the prior approval of NAICOM
5. Make a monthly report of its activities to NAICOM
effective from August 2015
“This regulatory order takes effect from 3rd
August, 2015 and is for a period of six months. He regulatory order may be
extended until such period when he commission is satisfied that here is full compliance
with the provision of the National Insurance Commission Act 1997 and the
Insurance Act 2003 and the method of transacting business is such that your policyholders
and potential policyholders are adequately protected.
“These directives are for immediate compliance.”
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