IEI shareholders petition to NA spurs board action on results
… Retail shareholders call for transparency
The action taken by shareholders of Internal Energy Insurance by forwarding a petition to the House of Representatives against the interim board and management of the insurance company appointed by National Insurance Commission (NAICOM) in 2015.
The interim board and management team were accused of breaching corporate governance by reneging to audit the company’s 2012, 2013, 2014 and 2015 accounts and to publish and implement the audit report before conducting an Annual General Meeting, AGM.
However, International Energy Insurance (IEI) Plc has said the submission of its full year 2016 audited results to the Nigerian Stock Exchange (NSE), due for filing on the 31st of March 2017 will be delayed till the end of second quarter, 30th of June 2017.
The company in a statement filed with the NSE recently, explained that the volume of reviews to be undertaken by its newly appointed auditors will make it impossible to meet the scheduled deadline.
IEI recently appointed EY following the issue of elapsed tenure of the former Auditors (BDO Professional Services) that was brought to the notice of the company’s interim board.
BDO professional services had served the company for five years and in compliance with the NAICOM Code of corporate Governance the Interim Board of Directors deemed it fit to change the Company’s auditors.
Consequently, the firm of Ernst and Young was duly selected by the interim Board and as required by law, their appointment and approval for fixing their remuneration was done by the Shareholders at the recently concluded Annual General Meeting (AGM) in Kano on the 23rd February 2017, IEI also stated.
The statement signed by IEI’s Chief Financial Officer, Emmanuel Bassey and Interim managing Director and CEO, Peter Irene respectively, noted that interim Board appointed by NAICOM met the company in a dire shape and since their appointment in May 2015 took steps to ensure that the outstanding accounts of 2012-2015 were audited, approved and filed with the various regulators.
The company expressed confidence that its application to the NSE for an extension of time till the 30th of June 2017, would be met with receipt of approval of the company’s audited accounts from its primary regulator (NAICOM),adding that it regrets any inconvenience the delay may have cost its stakeholders and investors.
Meanwhile, petition by shareholders to the National Assembly among other issues , asked for the House intervention sought the intervention and investigation on 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 Nigeria , which allegedly enjoyed investment to the tune of N7 billion from IEI.
The petition titled “Call for Intervention in the Matter of International Energy Insurance Plc – Save our Investment” addressed to the Chairman, House of Representatives Committee on Capital Market & Institutions, Hon. Tajudeen Yusuf, dated February 16, 2017, and was signed by Mr. Olufemi Timothy.
