Shareholders under the umbrella of Independent Shareholders Association of Nigeria (ISAN) on Wednesday, December 23, faulted claims made by the Commissioner for Insurance, Mohammed Kari , that insurance operators are using shareholders to cover gross financial mismanagement in their companies.
The President of ISAN, Mr Sunny Nwosu disclosed to Insurance Journalists in Lagos that the allegation is unfounded and challenged the commissioner openly to name the shareholders who are being used by Managing Directors to support financial mismanagement in the insurance companies.
He said “while Kari was the Managing Director of Nicon Insurance Plc, he was also the Chairman of Niger Insurance, there after he went to UnityKapital Insurance as Managing Director, for destroying UnityKapital was it the shareholders that made him to be incompetent managing Unitykapital Insurance as at that time. These are questions Kari must give answers to before making such allegations against shareholders which I represent.
He said “Kari is my friend despite the fact that he was lucky to have being made the commissioner for Insurance. In a civilized world will any government appoint Kari when he has not accounted for the blunder in UnityKapital Insurance? Unitykapital is a quoted Company investment which I have the right to speak on because I have shares in it.
He further said that “Niger Insurance is crawling today because Kari is part of the destruction of that company and he is talking about shareholders.”
He affirmed that for them at ISAN no Insurance Managing Director will admit that any shareholder has come to visit him, adding that shareholders only look at their financials which they have sent out to us and we will review and send them a copy of our review.
He insist that they do not visit any insurance company, adding that it is a taboo in ISAN for members to visit managing Directors in the insurance industry or any industry for that matter let alone to be used as instrument for financial mismanagement.
He called on the commissioner to concern himself to the development of the Nigeria Insurance sector to the admiration of investors rather than make allegation that is unfounded and only help to destroy the eroded image of industry.
He said “We bought some of these shares at N2.00, N3.00 today it is static at N0.5kobo and recently one of this company were sold at N0.25kobo and this same NAICOM led by Kari approved of it. Now haven gone to where they have intervened they should tell the insuring public which shareholders they found to be supporting financial misstatement. It is very important because you don’t just talk because he wants to talk he should have proves that any shareholder went to any insurance company or is involve in such allegation, adding that ISAN is clear and sure that they are not part of the statement he made.
He said that most companies the commission has taken over are worse today than what it used to be when the commission took it over, adding that in all the companies no shareholders has been found wanting or involving in the collapse of such companies.
He urged the commissioner to tell Nigerians the truth on what has happened to UnityKapital Insurance which he Kari was the Managing Director before becoming the commissioner for insurance because they invested in the company.
It would be recalled that Monday, December 21, the Commissioner for Insurance Mohammed Kari said that shareholders are deliberately being misinformed, misled and used as stooges by management of some insurance companies to cover up their gross financial mismanagement.
He made this allegation at the 2015 Champion Newspaper Insurance Day/Luncheon held in Lagos, that the claim by shareholders that their dividends are not paid due to one per cent insurance development levy, fines and penalties paid to NAICOM is far from the truth.