Reps Summon Customs Over N640m Paid To Unlicensed Brokers

Barely a week after Finance Minister Kemi Adeosun accused
the Nigerian Customs Services (NCS) of fraud in under-remitting of revenue, the
House of Representatives Committee at the weekend summoned the

It was over the payment of N250million commission paid to an
unlicensed broker.
The House ad-hoc committee investigating return on premium
paid to government officials by insurance companies at the weekend uncovered
the N640 million paid as commissions to the two unlicensed brokers by  insurance companies which provided service
for some Ministries Department and Agencies (MDAs). 
The unlicensed brokers are
Chrome Insurance  and Standard Insurance
Speaking at the resumed hearing of the committee at the
weekend, the Chairman, Hon Adekunle Akinlade,said documents presented to the
committee revealed that Guinea Insurance, which provided cover for NCS paid
N250 million as commission to Chrome between 2013 and 2015, while Staco
Insurance, which provided cover to the Nigeria Ports Authority (NPA) paid
N390million to Standard Insurance consultant as commission for 2014 and 2015.
When confronted, the Managing Director of Guinea Insurance,
Isioma Okokuku, admitted that her company erred by doing business with Chrome
Insurance, in contravention of the Insurance Act which bars insurance companies
from engaging brokers that are not licensed by the National Insurance
Commission (NAICOM). 
She said her company was moved by desperation to keep the
Customs’ account.
On his part,  the
Managing Director of Staco Insurance, Sakiru Oyefeso, who claimed to be a
seasoned professional, said it was the duty of the regulatory agency to bring
to the knowledge of his company the fact that Standard Insurance was not
licensed at the time the transaction took place.

After being grilled by the committee, Oyefeso admitted that
his company may have committed an infraction and pleaded for leniency.


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