More insurers painfully turn in legacy funds, assets to PTAD

Ekeazor

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Chuks Udo Okonta

As the December deadline given to insurance companies to return the over N25 billion legacy funds and assets in their custodies draws nearer, some of them have complied with the directive, Inspen has learnt.

The Pension Transitional Arrangement Directorate (PTAD) has threatened to take legal action including the involvement of the Attorney General of the Federation and agencies such as the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices Commission (ICPC) to recover over N25 billion legacy funds and assets owed by nine Insurance companies

Assistant Director, Pension Admin, PTAD, Jibrin Idris, told Inspenonline that some insurance firms had recently returned funds and assets to the Directorate, stressing that the returned assets and funds are presently being evaluated to ensure they tally with what the firms owed.

According to the PTAD’s Executive Secretary, Sharon Ekeazor, the Directorate has been mandated under the Pension Reform Act, to take over the administration of Legacy Funds and assets in the custody of insurance companies and has directed the concerned insurance companies to transfer all Legacy Funds and assets in their custody to PTAD.

Ekeazor noted that an amount well over N25 billion is still being owed by some insurance companies, stressing that PTAD had given the insurance companies one year in which to repay the monies owed taking into consideration the fact that the monies have been with them since 2015 and they knew they were to hand over to PTAD since then.

“While some of the affected companies complied, some of them said they will not be able to meet the deadline of December 2017. Among Companies that have complied are, Leadway Assurance with full payment of N33.3 million, AIICO Insurance complied in the form of transferring properties and investments worth N1.5 billion and NICON Insurance substantially complied transferring fixed assets worth N13 billion to PTAD.

“The value placed on them are yet to be verified and reconciled. The Federal Ministry of Works and Housing is carrying out the valuation of those assets to determine their actual value,” she added.

She posited that as at 31st August, 2017, the sum of N6,422,695,461 is in the Legacy Fund (e-payment) with the Central Bank of Nigeria, adding that PTAD has entered the enforcement stage in the recovery process against defaulting insurance companies.

According to her, the final Demand Notice was served last month and that PTAD is liaising with the National Insurance Commission (NAICOM) for regulatory support.

She said if the companies failed to comply, PTAD may be compelled to take legal action including the involvement of the Attorney General of the Federation and agencies such as the EFCC and ICPC to recover the funds.

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