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Yar’Adua orders minister to return NICON to Jimoh

Posted by By ISAAC ANUMIHE, Abuja on 2008/03/14 | Views: 586 |

Yar’Adua orders minister to return NICON to Jimoh


Following the long-drawn battle between the Ministry of Finance and Mr Jimoh Ibrahim which culminated in the takeover of NICON Insurance Plc by the Ministry, President Umaru Yar’Adua at the weekend directed that the company be given back to Jimoh.

Following the long-drawn battle between the Ministry of Finance and Mr Jimoh Ibrahim which culminated in the takeover of NICON Insurance Plc by the Ministry, President Umaru Yar’Adua at the weekend directed that the company be given back to Jimoh.

In a memo dated February 28, 2008 and addressed to the Minister of Finance, Dr. Shamsudeen Usman and the Minister of Justice, Chief Michael Aondoakaa asking the parties to resolve the matter out of court, the presidency said it recognised that the “ownership and re-capitalisation of NICON Insurance Plc is no more a contentious issue,” saying that the National Insurance Commission should, as a way of resolving the matter, “communicate to NICON, details of all infractions that might have been identified in the course of work of the Interim Management, as well as, the findings of the auditors, looking into the books of the company, to enable it address them.”

According to the terms of settlement signed on behalf of the Federal Government by Aondoakaa, NICON Insurance Plc and Nigeria Re, it said it “shall at all times subject themselves to the supervisory powers of National Insurance Commission(NAICOM) as a regulatory authority as prescribed by law.”
“These terms of settlement are irrevocably binding on all parties and their privies, assign, servants and agents”,the statement said.But the Ministry of Finance was said to have stalled the agreement based on its opposition to some aspects of the MOU.

According to the statement, some of the items in the agreement, which the Ministry of Finance rejected, include that in furtherance of the desire to amicably settle the issues in contention, the government hereby returns the management and Board of NICON Insurance and Nigeria Re-Insurance Corporation to the status quo ante and forthwith dissolve the managements and interim boards constituted by government for these companies. “That these terms of settlement are irrevocably binding on all parties and their privies, assign, servants and agents.”

Already, there are moves by some banks to take over NICON. In a a letter by a first generation bank to the Interim Management of the insurance firm seeking to act as financial adviser/issuing house to an alleged recapitalisation exercise being planned by NICON, it said it would put at NICON’s disposal “our investment banking expertise to assist in raising its required financing based on optimum terms.”

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.