Reps summon CEOs of Insurance firms over N267bn unremitted public funds

The House of Representatives summoned Chief Executive Officers (CEOs) of Insurance companies over the non-remittance of N267 billion from the National Housing Fund (NHF) investment fund in 2019, reports Tribune.

Chairman, Ad-hoc Committee investigating non-remittance to the National Housing Fund (NHF) and utilisation of the funds from 2011, Hon Dachung Bagos issued the notice in Abuja following their failure to appear before the Ad-hoc Committee.

Section 6 of the FMBN Act provides that: “Every registered Insurance company shall invest a minimum of 20 per cent of its non-life funds and 40 per cent of its life funds in real property development, of which not less than 50 per cent shall be paid into the fund through the Federal Mortgage Bank of Nigeria.”

Meanwhile, Section 12(3) provides that “Failure by any insurance company to pay to the bank any amount due under subsection (2) of this section shall be regarded as a contravention of this Act and shall constitute one of the grounds for which the Commissioner for Insurance may cancel the registration of an insurance company in default.”

While noting that the Ad-hoc Committee will not receive the presentation from the delegation sent by the Insurance Companies, Hon. Bago insisted that the Chief Executive Officers of all the Insurance Companies should come and explain why they are still owing over N267 billion.

He also stressed the need for the management of the National Insurance Commission (NICON) to show proof of insurance companies that were in default of remitting workers’ investments to the Federal Mortgage Bank of Nigeria (FMBN).

He said the insurance companies should come along with all the money they had remitted to FMBN, adding that they should also provide evidence of sanctions to those who had defaulted.

According to him, in 2019 alone, 54 insurance companies have not remitted N267 billion.

“They need to tell us where the money is. This figure does not include 2020–2023.

“We have the law, but we are not working with the law; rather, we complain daily,” he said.

Dachung said the 10th House of Representatives would address the issue, adding that all the concerned CEOs must appear no later than Tuesday next week.

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In his remarks, Hon. Kama Nkemkanma said: “What we are talking about here involves billions of unremitted dollars; I will want us to be more serious.”

He called on the CEOs of insurance companies to appear rather than send their subordinates, saying that there was a need to get to the bottom of the problem.

Also speaking, Hon. Timilehin Adelegbe lamented that the issue of non-remittance of workers’ NHF contributions was not something to joke about.

He said: “For any outstanding unremitted funds, the CEOs should be held responsible, and if they fail by the next hearing, we will publish their names.”