Following
the allegations of fraud by KPMG against former directors of Goldlink
Insurance Plc, the National Insurance Commission (NAICOM) may prosecute
those indicted, The Nation has learnt.
NAICOM on November 1, 2012 took over the management of Goldlink when it became clear that there were anomalies and misstatements in the audited financial statements of the company for the year ended December 31, 2011.
The commission reconstituted a seven-man interim Board of Directors headed by James Ayo to oversee the affairs of the company.
It also engaged KPMG to carry out forensic investigation on the true financial position of the company.
Unveiling the report of the forensic investigation at the company’s Annual General Meeting (AGM) 2011 to 2014, Ayo said the investigation confirmed the observation of NAICOM that various abnormalities identified in the 2011 financial statement were attempts to conceal the company’s true financial position.
He disclosed that some irregularities were perpetuated by the former
executives and staff of the company, adding that there was a breakdown
of corporate governance typified by the former non-executive chairman’s
presence in the office.
He explained that the interim management board instituted a share capital audit, which revealed that about 2.5 billion shares were inappropriately issued to selected shareholders without considerations into the company.
He said: “To support the creation of these bubble shares, the Head Office Building and other assets were revalued and inflated by about N1.5 billion. The revaluation surplus was used in part to create these shares against sound accounting standards and principles.
“Currently, the interim management board has recovered 1.2 billion shares through voluntary surrender and about 134 million shares by way of forfeiture.
“The interim board also found out that about 1.2 billion share unit have been disposed of by some of the beneficiaries, and that the interim management board has commenced the process of recovering the disposed shares and associated dividends of about N125 million.”
The Commission’s spokesman, Rasaaq Salami, in an interview, said the Commission prompted the company to hold its AGM.
He said they were sure the shareholders had been informed of developments in the company.
Salami stressed that the Commission would not treat any issue that has to do with fraud with levity.
“NAICOM will not treat any issue that has to do with fraud with levity. Rather it will ensure that the interest of policyholders are protected. The Commission ensured the company held its annual general meeting so that shareholders and the general public can know what is going on with the company.
“The report has been forwarded to the appropriate department of the Commission to determine the next line of action. What we want to achieve is to ensure the company gets better than we met it,” he said.
Culled from Nation
NAICOM on November 1, 2012 took over the management of Goldlink when it became clear that there were anomalies and misstatements in the audited financial statements of the company for the year ended December 31, 2011.
The commission reconstituted a seven-man interim Board of Directors headed by James Ayo to oversee the affairs of the company.
It also engaged KPMG to carry out forensic investigation on the true financial position of the company.
Unveiling the report of the forensic investigation at the company’s Annual General Meeting (AGM) 2011 to 2014, Ayo said the investigation confirmed the observation of NAICOM that various abnormalities identified in the 2011 financial statement were attempts to conceal the company’s true financial position.
He explained that the interim management board instituted a share capital audit, which revealed that about 2.5 billion shares were inappropriately issued to selected shareholders without considerations into the company.
He said: “To support the creation of these bubble shares, the Head Office Building and other assets were revalued and inflated by about N1.5 billion. The revaluation surplus was used in part to create these shares against sound accounting standards and principles.
“Currently, the interim management board has recovered 1.2 billion shares through voluntary surrender and about 134 million shares by way of forfeiture.
“The interim board also found out that about 1.2 billion share unit have been disposed of by some of the beneficiaries, and that the interim management board has commenced the process of recovering the disposed shares and associated dividends of about N125 million.”
The Commission’s spokesman, Rasaaq Salami, in an interview, said the Commission prompted the company to hold its AGM.
He said they were sure the shareholders had been informed of developments in the company.
Salami stressed that the Commission would not treat any issue that has to do with fraud with levity.
“NAICOM will not treat any issue that has to do with fraud with levity. Rather it will ensure that the interest of policyholders are protected. The Commission ensured the company held its annual general meeting so that shareholders and the general public can know what is going on with the company.
“The report has been forwarded to the appropriate department of the Commission to determine the next line of action. What we want to achieve is to ensure the company gets better than we met it,” he said.
Culled from Nation
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