Alleged Insurance Breach: Reps. probe failed $500m NigComSat satellite, insurance premium, others

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The House of Representatives Committee on Insurance and Actuarial on Tuesday commenced investigation into the N180.9 million insurance premium allegedly paid for the failed Satellite 1 project which was launched in 2011 as well as Satellite 1-R for which Nigeria obtained $500 million Chinese loan. The Committee has given 7days ultimatum for NigComsat to submit all documents on insurance transactions.

Chairman of the Committee, Rep. Darlington Nwokocha who presided over the hearing, also quizzed two Managing Directors of Fasahal Insurance and A & G engaged by NigComSat management over alleged irregularities surrounding the unilateral appointment of the insurance brokers without recorded to due process. According to the chairman, the committee’s investigation was premised on about 6 petitions written by concerned Nigerians within the insurance industry and those working within some of the organization invited.

He added that the investigative hearing was aimed at unravelling issued bothering on infractions, impunity perpetuated by the operator who alleged influenced the contract as well as financial recklessness entrenched in the multi-million dollar satellite contract(s). Other lawmakers who spoke during the exercise, frowned at the blatant breach of extant regulatory laws, demanded for relevant documents on various transactions carried out among the parties.

While responding to questions on the appointment of the Lead insurance company, NigComSat Managing Director/CEO, Abimbola Alale, argued that the Chinese company which manufactured the satellite unilaterally nominated the UK based insurance firm to insure NigComsat 2 which was launched in 2014.

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