•Jimoh Ibrahim Photo: Sun News Publishing

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Group Managing Director of NICON Insurance Plc, Barrister Jimoh Ibrahim said that the insurance company was solvent before it was taken over by the Federal Government contrary to the information being peddled by the National Insurance Commission (NAICOM).

Mr Ibrahim said NAICOM was economical with the truth when it alleged that the organisation was insolvent, noting that the 2006 audited account of the corporation has been released to the public since November last year. The accounts, he said, showed that the company’s fundamentals were positive.
According to him, the account which was signed by Akintola Williams Deloitte had a gross premium earning of N14.8 billion as against the N15.1 billion in 2005.

He said NICON earned N2.4 billion as profit before tax in 2006 when he took over the company. This is against the N1.3 billion loss it recorded 2005 (about 300 per cent growth) before the take-over.
Ibrahim said that contrary to Federal Government and NAICOM accounts, NICON Insurance has not borrowed any money since he took over the management nor has there been any movement of assets of the company.

Said he: “When we took over, we reduced management expenses drastically and turned the company around. NAICOM is lying to the public.”
Management expenses, he said, was reduced to N1.6 billion as against N2.4 billion spent in 2005, (about 50 per cent reductions) while investment income rose from N268 million in 2005 to N501 million in 2006. Earning per share stood at 484 kobo against loss negative of 277 kobo in 2005.

Under the composite balance sheet, Ibrahim said long term investment stood at N5.4 billion against N2.4 billion of the previous year while debtors came down from N16.3 billion to N12.2 billion.
The account, which witnessed impressive growth in the year put company total asset at N33.6 billion as against N32.4 billion of the previous year. The asset appreciated by over a billion naira while shareholders fund rose from N5.3 billion to N8.07 billion in 2006.

According to the account approved by the Board and management of NICON the auditor qualification of over N6 billion negative in pension carried over before privatization was removed by the Auditor in 2006 using the actuarial valuation report prepared by Alexander Forbes.

Commenting on the accounts of the company Deloitte said, “In our opinion, the company has kept proper accounting records and the financial statements are in agreement with the records in all material respects and given in the prescribed manner, information required by the Companies and the Allied Matters Act CAP C20 LFN 2004 and Insurance Act, CAP I 17 LFN 2004. The financial statements give a true and fair view of the financial position of NICON Insurance Plc as at 31 December 2006, and of its financial performance and its cash flows for the year then ended in accordance with the Statement of Accounting Standards issued by the Nigerian Accounting Standard Board and the relevant International Financial Reporting Standards.”

Meanwhile, the GMD said government’s unlawful intervention in the running of the affairs of a private company might have affected the 2007 account as government might have ran the company aground in their usual characteristics manner. The GMD said that the account for 2007 cannot be prepared since the Board and management were driven out of the premises by 50 Mobile Policemen with AK47.

“The Board has not authorize any Auditor to verify or audit her books for 2007, this can only be done by reappointment of auditors and fixing of their remunerations by the Annual General Meeting of the company in accordance with Company and Allied Matters Acts. Any other form of audit carrred out by 30 per cent owners is in itself fraudulent, void and of no effect,” he said.

Meanwhile, a Federal High Court in Abuja has said that the Federal Ministry of Finance having participated in the terms of settlement Agreement filled before her cannot resile from it. According to Justice Chikere, “I agree with learned SAN, Chief Akin Olujimi that the acquiesce of Counsel to 2nd defendant binds him and he cannot resile from it. I hold therefore that the 2nd defendant participated in the deliberations through counsel.”

The court held that both the Finance Ministry counsel, Chief Ayorinde, SAN participated in the deliberations and are bind by it. The court cited Minister of State for Finance presence in the meeting of January 21, 2008 and accordingly binds by the terms.
The Group Managing Director, Barrister Jimoh Ibrahim said that he may soon commence another action for specific performance since those terms are binding on Finance Ministry as contract according to the court.

Ibrahim said he holds unto the brainbox of NICON Insurance and might be difficult to move the company forward without the presence of both the management and Board. “Staff resignation has been the greatest problem since the take over and the general public is also reacting in favour of Ibrahim and has refused to give NICON new business, resulting to very low patronage as the company may go aground with time if government continue to run it,” he said.