The chairman of the House of Representatives ad-hoc committee on Insurance, Mr. Adekunle Abdulkabir Akinlade, has justified its resolve to review the transactions between ministries, departments and agencies (MDAs) of government and insurance firms saying it was borne out of the need to ensure a level playing field in the sector.
Speaking after members of the committee grilled the Acting Director-General (DG) of the Bureau of Public Enterprise (BPE), Dr. Vincent Akpotaire, at the National Assembly complex Abuja, he maintained that there was more to the leverage enjoyed by a few insurance firms in their dealings with the MDAs than met the eye.
Abdulkabir whose committee is probing allegations of wrongdoings between MDA’s and insurance firms from 2013 to 2015, made reference to the resolve by the BPE to retain the patronage of Hogg Robinson Nigeria Limited since 2009 contrary to the provision of the public procurement Act (PPA) 2007.
The committee observed that BPE had been patronizing the aforementioned insurance firm since year 2000 without placing advertisment calling for bids as prescribed by the PPA.
Efforts by Akpotaire who assumed the helm of affairs of the BPE in February this year to clarify the issue was rejected by members of the committee who also questioned the BPE for paying the sum of N5.7 million to Heirs Insurance Brokers for motor cover within the period under review.
Akpotaire denied knowledge of the alleged EFCC investigation of an alleged N27 billion insurance-related fraud under his predecessor.
When asked by Akinlade if he was aware of the said investigation by the anti-graft agency relating to the bureau, he vehemently denied any knowledge in his official capacity even when he was reminded that he was under oath which will amount to perjury should his claim be proved to be false.
He joined the BPE as an Assistant Director in the Post-Privatization Monitoring (PPM) Department in 2007 and between 2008 and 2010, moved up to become the Deputy Director and Head of Council Secretariat, a unit responsible for all the National Council on Privatisation (NCP) secretarial activities.
In February 2010, he was appointed a director in charge of National Facilities and Agricultural Resources, a position he held until his new appointment as Acting DG.
Under further questioning, he disclosed that the last time the bureau advertised any insurance procurement was in 2009 which the committee cited as a breach of the extant provisions of the Public Procurement Act of 2007.
The DG could not give any answer to other infractions identified by the committee. At one point, the DG had to apologize for omissions and misrepresentation of facts as contained in documents before the ad-hoc committee.
Akinlade further advised the DG to “step down” and cause reappearance on Monday November 21, 2016 with the relevant information relating to insurance covers procured within the years under review, 2013, 2014 and 2015.
The Commissioner for Insurance (NAICOM) was also in attendance.
Akinlade also insisted that the comptroller General of the Nigeria Customs service (NCS), Col Hammeed Ibrahim Ali (rtd), to explain whether it allegedly paid N250 million to Fortis Insurance Brokers Limited or not.
He is also to clear the air over the committal of 57 other noticeable infractions relating to over-invoicing, and payment of hundreds of millions of naira to non-existent insurance firms during the period under review.
The managing director and chief executive officer of Fortis, Chief Lawrence Dafiode, had in a letter dated 1st November 2016, to the committee denied ever collecting such sum of monies from NCS.
Akinlade issued the directive after the Custom Assistant comptroller General (ACG), (Head Resource Development), Mr Austin Warikoru, who, alongside other officials of NCS appeared before the lawmakers pleaded for another date since his boss was attending an African customs summit in Zimbabwe which will on Friday, this week.
Also, the House Committee on Public Accounts yesterday commenced investigations into alleged theft of one 45KVA generator belonging to Federal Ministry of Women Affairs and Social Development.
According to Office of Auditor General of the Federation (OAGF), it was allegedly stolen in the ministry’s office in Calabar, Cross River State, shortly after it was procured for the office in 2011.
Dissatisfied with the explanations of the ministry on how it disappeared and the police report that originated from the incident, the OAGF petitioned the lower legislative chamber on the matter.
The office also in its annual report for the year ended 2011 petitioned the lawmakers over a payment voucher of N576, 400.00 allegedly raised by the ministry for Duty Tour Allowance (DTA) of four of its staff members to ascertain the alleged theft in Calabar.
According to the auditor-general, the staff did not embark on the trip, although they are said to have refunded the money in unclear circumstances.
The AGF wondered why the refund would be a day after the attention of the affected staff was drawn to their failure to go on the journey.
The claim for the refund, it said, has not been substantiated.
The AGF also alleged that upon its visit to the ministry for audit, the latter could not also explain the whereabouts of 21 vehicles it procured within the year for its activities in some states. He lamented that rather than distributing them among them, the records in the ministry show that the ambulance vehicles were received by politicians and corporate bodies in the targeted states.
In her defence, the permanent secretary in the ministry, Mrs. Obiageli Phyllis Nwokedi, pleaded for another opportunity to enable her prepare her responses thoroughly.
She hinged the plea on her newness in the ministry, saying that she is only a year old in her current posting.
Before the committee granted her request, Nwokedi had earlier attempted to respond to all the queries, stating that the three transactions were duly carried out, without any iota of doubt.
The submissions of the ministry’s director of finance and accounts, who avoided being named, however, angered the committee, which accused him of attempting to conceal vital information and requested that he forwards his detailed academic qualifications and work experiences to the panel for assessment within one week.
The committee is also asking the ministry to turn up next week with more details on its defence concerning the three allegations, warning that failure to do so as required would lead to stringent sanctions.
