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Nigeria: Nicon - Ibrahim Threatens FG With N10bn Lawsuit
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Vanguard (Lagos)
16 November 2007
Posted to the web 16 November 2007
Emmanuel Ujah, Patience Saghana & Ifeanyi Ugwuadu
Abuja
THE man from whom the Federal Government on Wednesday seized NICON and Nigeria Re, Mr. Jimoh Ibrahim, is heading to the court to ask for N10 billion as damages for the government action. He vowed that he would not beg for the return of the two companies.
Government itself through the National Insurance Corporation (NAICOM) moved in yesterday to formally assume control of the firms, suspending the two chief executive officers of NICON.
It also asked the companies to submit reports on their operations and accounts since their privatisation two years ago.
Mr. Jimoh, at a press conference in Lagos, said he would press contempt charges against officials who spearheaded the seizure of the companies.
Accusing government of taking the law into its hands instead of waiting for the determination of the suit he filed against it, he said: "Our lawyers have our brief to commence forthwith committal to prison proceeding against government officials involved, including the Attorney-General of the Federation and Minister of State for Finance."
He pledged to "help the government to respect the rule of law by committing those officials to jail."
Government, he said, acted as if it was unaware of the three separate injunctions granted by the courts against seizure or interference by government. He described the action as executive lawlessness and akin to a "violation of the Constitution of Nigeria.
"The matter in respect of NICON Insurance Plc and Nigeria Re is currently before a Federal High Court, and the court granted three different injunctions restraining the Federal Government from interfering with the running" of both organisations until the determination of the case," he said.
Noting that the government's sack of the board of NICON overruled the court by upturning its injunction through executive fiat, he vowed to teach the Justice Minister matters of law in the upcoming litigation.
However, government says it acted to save the industry from collapse as the court action instituted by Ibrahim was targeted at subverting the reforms of the government in the insurance industry and the economy.
NAICOM asks for NICON, Nigeria Re accounts
NAICOM officials moved into the headquarters of NICON Insurance Plc and Nigeria Re in Abuja, yesterday, and asked heads of departments to submit reports on the operations and accounts of the two firms since their privatisation in 2005.
The NAICOM team led by Mr. Sunday Thomas, stormed NICON Insurance office at the Central Business District under tight security at about 11 a.m. and proceeded to seal off the ninth floor of the company, which accommodates the offices of the Group Managing Director, Mr Ibrahim.
It was learnt that NAICOM officials held a meeting with Chief Operating Officer (Life Business), Mr Ladi Owolabi and Chief Operating Officer (General Business), Mr Emmanuel Jegede. They were both sent on suspension.
Mr. Bayo Samuel, who is the most senior technical person in the company after the COOs, and the Executive Director, Finance and Administration, Alhaji Sadiq Sharubotu, were directed to oversee the company pending the appointment of an interim board.
Mr. Thomas' team also met with the staff to assure them of the good intention of the government over the dissolution of the board and management of the company. The NAICOM team was said to have met with the staff who had mixed feelings over the development, since they were not quite sure of the final outcome.
A separate NAICOM team, it was learnt also, visited the headquarters of the Nigeria Re on Herbert Macaulay Way to carry out government directives on the board and management of the company.
NICON Insurance and Nigeria Re came under the hammer for refusing to submit themselves to the technical review panel on post-recapitalisation verification.
Under the new capital base set for companies in the industry, life moved from N150 million to N2 billion; General, N200 million to N3 billion; and Reinsurance firms from N350 million to N10 billion by a deadline of February 28, 2007.
Both companies failed to appear before the panel set up to probe the scam in the insurance industry recapitalisation and also did not appear before the presidential committee established to re-examine the panel's report and recommendations.
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The Presidential Technical Review Committee led by Alhaji Bala Zakariya'u set up to re-verify the 71 insurance companies cleared by the former Commissioner of Insurance, Chief Emmanuel Chukwulozie, submitted its report to the government without NICON and Nigeria Re, appearing before it because Mr. Ibrahim had secured a court injunction to stop the panel from reviewing the claims of the recapitalisation of both NICON and Nigeria Re.
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