Nnamdi Duru and Sufuyan Ojeifo
14 May 2008
Lagos — Following Federal Government's return of the NICON Insurance Plc and Nigeria Reinsurance Corporation (Nigeria-Re) to Global Fleet Oil and Gas Limited, core investor in the two companies, separate boards have been inaugurated for the two companies respectively.
Chairman of Global Fleet Oil and Gas Limited, Barrister Jimoh Ibrahim emerged as Chairman of NICON Insurance while Dr. Amos Akingba becomes the new Chairman of Nigeria-Re, taking over from Ibrahim.
This came just as the Industrial and General Insurance (IGI), Company Ltd., yesterday asked the Federal High Court Abuja to set aside the sale of NICON Insurance to the preferred bidder, Ibrahim. IGI also asked the court not to give effect to the terms of settlement reached between the government and Ibrahim on the return of NICON to the core investor.
The two boards were inaugurated after shareholders of both companies at separate meetings endorsed the appointment of the new members into the boards of the two companies.
Jimoh Ibrahim assumed the position of Chairman of NICON Insurance Plc while retaining his position as Group Managing Director of NICON Group which includes NICON Insurance Life and non-life companies, NICON Airways, NICON Hotels, etc. Joining him on the board of NICON Insurance Plc were former Commissioner for Insurance, Chief Oladipo Bailey and the immediate past President of the Institute of Chartered Accountants (ICAN), Dr. (Mrs.) Catherine Okparaeke. Other members of the NICON Insurance board nominated by the core investor are Dr. Amos Idowu, Bishop Stephen Ogedegbe, Dr. Emmanuel Esiemohiah and Mrs. Binta Bello.
The Bureau of Public Enterprise (BPE) is expected to nominate two representatives while the Federal Ministry of Finance nominates one person to complete the 10-member board. Dr. Amos Akingba was elected Chairman of Nigeria-Re and to sit with him on the board of the reinsurance companies are Barrister Jimoh Ibrahim, Chief Oladipo Bailey, Honourable Greg Egu, and Mrs. M. Abiodun Wright all representing the core investor in the company.
Also on the board of Nigeria-Re are Director-General of BPE, Dr. (Mrs.) Irene Chigbue, Mr. Gbenga Orunsajo, Alhaji Ismaila Sani, Chief Adeniyi Akintola (SAN) and Mr. Joe Ameh who retains his position as Managing Director of the company. In the suit filed by IGI counsel, Professor Abiodun Adesanya (SAN) and Mr. Kola Awodein (SAN), the plaintiff contended that the purported sale of 70 per cent equity of NICON to Ibrahim was unlawful, null and void. A copy of the court processes was made available to the News Agency of Nigeria (NAN) in Abuja yesterday. According to the plaintiff, Section 1 of the 1999 Privatisation Act recommends that only 40 per cent equity of NICON should be sold to strategic investors.
The percentage, IGI said, was increased to 51 per cent by BPE (Privatisation and Commercialisa-tion) Order 2004.The plaintiff contended that contrary to the two statutory provisions 70 per cent of the equity of NICON was sold toIbrahim. "When questioned, the reply of the BPE was that there was a resolution of the National Council on Privatisation (NCP) for the increase," the plaintiff submitted .IGI urged the court to declare that "a resolution of NCP on privatisation is not contaminous with the official gazette of the Federal Government".
The plaintiff is also seeking the court's declaration that Assurance Acquisition Ltd., used by Ibrahim in buying NICON was merely a front and was not qualified in the sale exercise. IGI alleged that Assurance Acquisition was incorporated after the August 1, 2005 deadline for execution of "Liability Aversion Agreement and Non-Disclosure Agreement". "Before a company would be regarded as a lawful bidder it must execute the statutory agreements.
"Assurance Acquisition did not and could not have executed the Agreements since it was incorporated only on August 26, 2005, (25 days after the deadline)," the plaintiff said. The plaintiff further said that Assurance Acquisition did not meet the pre-qualification condition for bidding which states that investors must possess evidence of technical, managerial and financial capabilities.
In another development, Ibrahim, who is the Chief Executive Officer of Nicon Luxury Hotel, Abuja, yesterday told members of the Senate Committees on Federal Capital Territory (FCT) and Housing probing the sale of Federal Government houses and other related matters, that he inherited N712 million debt when he took over the management of the Le-Meridien Hotel, Abuja .
He made the disclosures when the joint Committee visited him in his office as part of the on-the-spot assessment of property sold in continuation of the probe.Ibrahim said that the former Sofitel Hotel was wrongly given out on concession to Le-Meridien for 18 years, stressing "When this hotel was sold to us, there was 18 years irrevocable contract to Le-Meridian at no kobo. There was also a debt of N712 million."According to him, "many floors were not completed when I took over the hotel. Only two lifts were working when I took over the hotel."Ibrahim told the Committee that the current management of the hotel, under his leadership, has started fixing the floor.He said that that it had ordered two lifts at the cost of N300 million.Also yesterday, the Committee visited the Bakassi Market in Abuja . The Committee was told that the sum of N267 million was spent on excavation of 27,000 cubic rocks by Julius Berger at Market site.
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