IEI shareholders petition House of Reps over audit report, questionable loans

SHAREHOLDERS of International Energy Insurance, IEI, Plc have petitioned the House of Representatives over the failure of the interim Board and management team appointed by the National Insurance Commission, NAICOM, in 2015 to audit the company’s 2012, 2013, 2014 and 2015 accounts to publish and implement the audit report before conducting an Annual General Meeting, AGM.

The shareholders also sought the intervention of the House in investigating the utilisation of N4.46 billion loans advanced to the company by a Japanese firm, Daewoo International, as well as its relationship with Heritage Banking Corporation, the parent company of Heritage Bank Plc, which allegedly enjoyed investment to the tune of N7 billion from IEI.

A copy of the petition addressed to the Chairman, House of Representatives Committee on Capital Market & Institutions, Hon. Tajudeen Yusuf, dated February 16, 2017, obtained by Vanguard, among other things appealed to the Committee to wade into the proposed AGM of the company slated for February 23, 2017, saying that the report of the forensic audit of the company’s accounts ought to be published and implemented before the AGM.

The letter titled: “Call for Intervention in the Matter of International Energy Insurance Plc – Save our Investment”, signed by representative of the shareholders, Amb. Olufemi Timothy, enjoined the House chair to use his good offices to bring justice to the company and save its shareholders’ investment especially retail shareholders who have invested their hard-earned income.

Annual reportsand accounts

The letter reads in part: “There are indications that our company incorporated Heritage Banking Corporation (Heritage Bank) with N146 million and that our company invested in the bank to the tune of about N7 billion. We hereby call on you to investigate the relationship of our company with Heritage Bank and the report of forensic audit.

It was reported in the annual reports and accounts also, that our company took loan from a Japanese company, Daewoo International, but till date, we do not know what happened to the loan collected.

The company till today, still owe Daewoo up to N4.46 billion as reported by the financial Statement for 2015. We want you to look into this Daewoo loan issue which has put the company’s balance sheet in negative position and in precarious situation, that has resulted in loss reserves of about N13.6 billion.”

NAICOM had on 15th May, 2015, sacked the entire Board and management of IEI and put in place an interim Board, Management led by Alhaji M.K Ahmad to run the affairs of the company with a clear mandate to conduct forensic audit of the affairs of the company, stabilise the company and return it to path of profitability.


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