Senate Summons NICON, AIICO, Others Over N17bn Pension Fund

The Senate Committee on Public Accounts yesterday summoned NICON Insurance Plc, AIICO Insurance and other insurance companies over their reported failure to remit N17.4 billion Pension Fund to Pension Transactional Arrangement Directorate(PTAD).

The Senate based its summon on the 2016 report of the Auditor General of the Federation (AGF), which unravelled the non-remittance of N17.4 billion Pension Fund to PTAD.

The Auditor General’s report had said, “Returns on pension funds totalling N17.4 billion forwarded by the underwriters were not accompanied by the following documents: (i) (ii) (iii) (iv) Bank Certificate of balances as at the close of accounts. Accounting Statement showing the following: (a) (b) (c) Actuarial Value of Assets: Valuation of Assets at the lowest cost. Actuarial surplus: Excess of assets over Liabilities Actuarial Liabilities /deficiency: Excess of Liabilities over Assets A minimum of 3 years Annual Financial statements. Major Policy files and associated investment ledgers, if any.

“The submission of the above-mentioned records/documents will facilitate the perusal of their claims and reveal the fairness and transparent position as at close of business before PTAD took over.”

In her response, the Executive Secretary of PTAD, Dr. Chioma Ejikeme, informed the committee that PTAD took over the Assets and Liabilities of Defunct Pension offices without a formal handing over.

She explained that on taking over, the directorates wrote all underwriters to make returns and remit whatever amount was in their custody into a Central Bank of Nigeria (CBN)-dedicated account.

She further said some of the underwriters responded to the request while some did not.

According to her, ‘’The bank Certificate of balances, Accounting statements, three years’ financial statements and policy files requested by the federal auditor were not handed over to PTAD at the time of consolidation. It is worthy to note that the amount stated N17.4 billion comprised of cash, securities and properties from the nine Insurance Underwriters as q result of the letter PTAD sent to them. These figures represent the claims by the underwriters with regards their indebtedness.

“In order to ascertain the true position of legacy funds in the custody of Underwriters, the Directorate appointed a consultant in 2018 who carried out a forensic audit of 9 out 12 of the insurance underwriters and produced Final report on the recovery if the legacy funds and assets for PTAD. The insurance companies bare presently disputing the report of the Forensic Audit and some of them are presently subjects of litigation.”

In his comments, the Chairman of the Committee, Senator Mathew Urhoghide, asked the affected companies to appear before the Committee next week Thursday