By Christiana Ekpa
Haven uncovered lots of infractions in the Capital Oil Plc, the House of Representatives Committee on Capital Market and Institutions has mandated the Security and Exchange Commission (SEC) to reconstitute an interim management for the company.
The Committee Chairman Hon. Tony Nwulu gave the directive to SEC at the ongoing investigate public hearing on the compliance of companies with operational and regulatory requirements at the National Assembly, Abuja
According to him, the committee mandated SEC to reconstitute an interim management for Capital Oil so as to ensure that none of the culprit go unpunished.
“Haven uncover a whole lot infractions, we need to communicate with the Interpol and extradite former MDs of defaulted companies. We interfaced with the insurance companies yesterday, four were absent, and we expected fifteen.
“The process has led to the uncovering of a whole lot within the insurance sector, which we will also make public. The committee will also give letter of commendation to those who performed beyond expectation.
He said “For those that believe that other people’s money is free for all, we will ensure that no matter how highly placed they are, they will not be speared”
“The committee gave them today to re appear they have not. We made firm our position that failure to appear will leave us with no option other than to make their infractions public to the media.
He added, “We want them to know that the committee is not taking this lightly to protect the investing public. You collect money from shareholders and you believe you cannot answer the call of their representative.
According to him, “Most of the insurance companies that came have defaulted in paying dividends, only few paid. We also discovered a whole lot of infractions bothering on cooperate governance and insider dealings. After the committee finish its work, there are some that we will mandate SEC to quickly take over their management.
“We have identified some that are just struggling, but answering big names for nothing and are in contravention of a lot of things including taxes. Great insurance plc, consolidated hallmark insurance plc and Staco insurance plc falls in this category.
“Some directors and CEOs have companies that do business directly with the insurance company they head. Some are in violation of SEC and NICOM regulations. We will further proceed to invite SEC, NICON, NLC, shareholders and law enforcement agencies to be televised live. We want them to come and explain to Nigerians and the shareholders what they have been doing with their money. We will leave no stone unturned.
“We will do everything possible to make sure Nigerians does not lose money and their jobs. We will expose the banks the way we expose the insurance companies. Let it be on record that we have invited first bank severally but they have refused to respond” he stressed The eleven companies that came are as follows; Suno insurance plc, Law union and rock insurance plc, Aico insurance plc, sovereign trust insurance plc, wapic insurance plc, Mutual benefit assurance plc, Corner stone insurance plc, Universal insurance plc, African alliance plc, led by their CEO, and ED.
The insurance companies that could not come but sent letters are; Staco insurance plc, Great Nigeria insurance plc, Consolidated hallmark plc.