NAICOM Orders Review Of IGI’s Accounts, Suspends Unitykapital Board | Independent Newspapers Limited
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NAICOM Orders Review Of IGI’s Accounts, Suspends Unitykapital Board

Posted: Aug 5, 2015 at 12:30 am   /   by   /   comments (0)

The National Insurance Commission (NAICOM) has ordered Industrial and General Insurance Plc (IGI) to appoint an auditing firm from among KPMG, PWC and Delloitte to conduct a comprehensive financial review of the company and submit the report to the commission within two weeks ending before August 14.

NAICOM also barred the Board of UnityKapital Assurance Plc from holding any meeting or taking any further decisions in respect of the affairs of the company for the next 90 days.

This was in accordance with regulatory orders issued by NAICOM on the two insurance companies, in exercise of the powers conferred on the commission by its enabling laws.

The orders, which were conveyed in separate letters dated July 30 and 31 were signed by the then Deputy Commissioner (Technical), Mohammed Kari, now the substantive Commissioner for Insurance.

The auditing firm IGI is required to appoint will undertake a comprehensive review of the company’s accounting system; conduct capital verification and validate the financial position of the insurance firm as at July 31, 2015.

Besides, the management of IGI was ordered not to incur any expenditure in excess of N250, 000 and not carry out new investments or dispose any of its assets without the prior approval of NAICOM. Additionally, IGI has been mandated to start submitting monthly report on its activities to NAICOM effective August.

In a similar vein, the executive management of Unitykapital has been directed to run the affairs of the company, while all issues, which may require approval of the board shall be referred to the commission for consideration for approval.

Again, the management Unitykapital has been ordered not to incur any expenditure on a single transaction in excess of N250,000 without prior  approval of the commission.