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Last Updated: Sep 8, 2008 - 8:52:49 AM |
Especially
with the accompanying razzmatazz of media blitz and all, typical of him
to hoodwink the undiscerning public to the true state of the extent to
which he has met the very steep conditions of the terms of settlement
that he single-handedly manipulated through the courts. We the
concerned former staff of NICON have decided to take this announcement
with a serious pinch of salt because of the way the whole exercise was
stage-managed. THIS IS BECAUSE
The terms of settlement insist amongst other terms and conditions that
"an immediate INJECTION of N17.3billion (as recommended by KPMG
external auditors) by the shareholders to meet the financing
(financial) GAP AND RECPITILIZATION THRESHOLD TO OBTAIN LICENCE FOR THE
COMPANY AS A COMPOSITE INSURER. What took place on the 23th July 2008
and captured by the media on the 24th was Jimoh handing over an
instrument to Jegede one of his numerous sidekicks and loyal major domo
as opposed to the correct and most appropriate thing of paying this
amount into the CBN account as other insurance companies were forced to
do. Well except as we are forced to adduce that there are two sets of
rules to this game one for all other insurance companies and the other
for Jimoh Ibrahim.
Secondly, what the terms of settlement said unambiguously is"
RECAPITILIZATION AND MEETING THE FINANCIAL GAP" created by Jimoh after
he had a field day emptying the London and Nigerian accounts and
selling off strategic properties to meet his personal obligations. The
million dollar question is has this money hit NICON's account and not
NICON's INVESTMENT (a slush fund created by Jimoh solely to stripe
NICON of its assets) accounts to which Jimoh is the sole signatory.
This action which is contrary to the insurance Decree of 1997, which
also amounts to gross abuse of processes and procedures as captured by
the famous KPMG REPORT.
Thirdly, if these monies (N25 billion) are actually raised by the
shareholders from the BANKS as purported by the interloper core
investor, i.e. Global fleet as personified by Jimoh Ibrahim.. Will the
Global Fleet total assets be sufficient to cover such a heavy exposure?
Because investigations carried out on this hitherto unknown company
have reveal an outfit that owns a handful of non-active filling
stations scattered across some innocuous locations in the southwest,
whose total capital base is estimated at some few hundreds of millions
of naira. Also whose physical assets is heavily encumbered by numerous
Banks that have lend large sums of money estimated at last count to be
far in excess of forty billion Naira. It therefore, beats ones
imagination where Jimoh was able to come up with such vast requisite
collateral security as a sufficient lien to back up this gargantuan
loan.
Fourthly, except of course Jimoh was clever by half to have used
NICON's vast properties located both here in Nigeria and abroad
estimated at tens of Billion of Naira to secure the loan. Equally on
this note the insurance decree is quite clear on the depletion of an
Insured's assets or encumbering it.
This is because it runs foul of INSURANCE DECREE (NO.2)1997 section
83(subsections1&2) which reads in part…. an insurer who encumbers
or disposes of investments or does any other thing whatsoever which
results in diminishing the security offered by any investments made
pursuant to this decree is guilty of an offence and liable to a fine of
N500,000.00 or to imprisonment for a term of 5 years or both…
Fifthly, Jimoh being a trained lawyer(?) (as he boasted at every given
opportunity) should know and appreciate the meaning of a caveat. There
is an existing caveat slapped on all NICON's properties, assets and
other instruments. This means these properties should not be an
instrument of trade or collateral until and unless the courts have
vacated such caveat. Unfortunately, this self professed Harvard trained
lawyer has habitually disregarded court orders and injunctions except
those that are in sync with his disposition. All banks that have
accepted NICON's properties to secure this loan are doing so in
flagrant breach of the laws. As far as the laws are concerned, their
loans are not properly and adequately secured, thus they are running
counter to the banking guidelines which stipulates quite clearly of the
need to secure ADEQUATELY all loans.
It is not for us to tell these consortiums of banks that were purported
to have raised these monies to look at each of these assets pledged to
ascertain their genuiness, proper values etc because the NDIC and the
CBN will be interested to know how a huge facility of twenty five
Billion Naira was raised in such a short period without looking
adequately at all the ramifications. Equally of interest to these
Regulatory Bodies is the mode of amortization which according to Jimoh
Ibrahim will be liquidated within 36months. As former staffers of
NICON, we know this is not possible. This is because an insurance
company whose total earnings since Jimoh took over have witnessed
plummeting incomes from a healthy N17billion naira PA to less than
N3billion last year. From this very lean earnings, the company is
expected to pay off all outstanding claims, well in excess of N6billion
Naira, suppliers, commissions and Reinsurance fees, and other utilities
and service charges which are in the region of several billions of
Naira and service an existing outstanding loan of Jimoh which is now by
default tied to the company well in excess of N40 billion Naira
according to the KPMG report. Adding the two loans together brings the
total net liability to over 70 billion Naira. There is no insurance
company in Nigeria that could survive on this huge liability. Not even
a combine strength of all the Insurance companies in Nigeria could
survive the loan because their incomes would be insufficient to meet
their existing liabilities and save enough to meet the huge commitments
to this loan.
Also, the haste at which this facility of Twenty Five Billion Naira was
arranged is very questionable indeed. Because it is either these Banks
did not carry out sufficient due diligence as required by law or Jimoh
in his usual questionable and sharp business practice did not pay this
twenty Five billion. What might have transpire on 23rd of July was
merely a symbolic handover of a dud cheque to his major domo in the
full glare of press to buy for time to enable him shop around for money
to meet this obligation. This was exactly what he did to the ten
percent (10%) down payment for the purchase of NICON Insurance where he
paid N650 Million Naira before the full glare of the press only for it
to turn out be a dud cheque.
Sixthly, borrowing is not synonymous to increase in EQUITY from the
shareholders. Because further borrowing to NICON which in the last
KPMG's report clearly shows the company to be insolvent to the tune
over N200 Million Naira only increases its liability. An insolvent
company now borrowing further 25Billion Naira clearly shows the
interloping core investor had no interest in the business of insurance.
Insurance like banking, the insurer is obligated to the Insured to
settle all claims. An insolvent company can not meet its primary
obligations to its Insured not talk of paying back this loan. What is
glaringly clear is except what Jimoh is after is asset striping not
INSURANCE BUSINESS. In that case we would state without any fear of
contradiction that NICON INSURANCE would cease to exist on or before
December 2008, thus fulfilling Jimoh's prophesy that nobody who succeed
in taking over NICON from him will inherit a viable organization. Also
as stated above, asset stripping is in flagrant violation of the
insurance Decree of 1997.
Since his comeback, Jimoh has either sacked or caused a host of staff
to leave. Today, of the over 70 professional insurers (Holders of
ACII) which Jimoh met, there is less than 5 left, though he brought yet
about 5. How would a hitherto giant insurance company like NICON,
supposedly run a Life and General with less than 10 professionals with
an illiterate Group CEO? NAICOM need to do staff audit to ascertain
whether the 'new' NICON meets the minimum staff requirement to carry on
business. It is even more curious to note that there is no qualified
Life person in the whole of the organisation today.
Also the terms of settlement states further that the PLAINTIFFS shall
FORTHWITH SETTLE ALL THE CLAIMS AND OUTSTANDING LIABILITIES IT OWES
INDIVIDUALS, CORPORATE BODIES, GOVERNMENT PARASTATALS, INSURANCE
COMPANIES, BROKERS, LOSS ADJUSTERS, REINSURANCE COMPANIES, AND OTHER
CREDITORS. The above condition is very unambiguously clear that the
interloping core investor, Jimoh Ibrahim, must pay up all outstanding
liabilities as stated thereto. Alas as we write these conditions were
only there to fill the dotted lines of the so called terms settlement.
Because not one kobo has been paid to the various claimants whose
claims have been confirmed to be genuine processed and awaiting cheque
writing as the time Jimoh took over, or other creditors in their
hundreds and owing the organization tens of Billions of naira.
It is pertinent to state at this juncture, that claim settlement had
been one of our very strong points amongst other sterling qualities
that have endeared the pre Jimoh NICON INSURANCE to our numerous
clienteles as personified by the above lists. Our words became our
bond.. Unfortunately since the advent of this interloping core investor
with his questionable business practices, media driven insurance, where
fake settlements were advertised in the papers to the chagrin of these
claimants and creditors. They all became disillusioned as billions were
purported to have been paid with humungous sums being bandied as claims
settled ( from a liability of N25b to less than N13b et ala
Aondoaakaa's letter to the president). This disillusionment was further
confirmed as all our insureds decided to vote with their feet by
deserting NICON INSURANCE to other lesser insurance companies in
droves. This was further translated by the flagging earnings from a
hitherto healthy premium income of well in excess of N17 Billion Naira
in 2005, just on the eve of his takeover, to less than N3 Billion as at
last year December.
NICON INSURANCE became a shadow of its former self, as Jimoh threw out
very qualified staff who had preached to him the wisdom of honouring
all liabilities especially as it concerns insurance claims settlement
which invariably is the backbone of any underwriter. These staff were
highly qualified professionals in the some the most technical fields in
insurance. NICON INSURANCE CORPORATION did invest heavily to train
these staff both here and abroad. They were quickly gobbled up by other
insurance companies that offered mouth watering salaries and chauffeur
driven cars as against the slave wages that Jimoh was paying them. As
we write most departments are currently manned by highly unqualified
staff who cannot even issue out renewal notices not to talk of common
endorsements nor prepare a policy document.
Since his comeback, Jimoh has either sacked or caused a host of staff
to leave. Today, of the over 70 professional insurers (Holders of
ACII) which Jimoh met, there is less than 5 left, though he brought yet
about 5. How would a hitherto giant insurance company like NICON,
supposedly run a Life and General with less than 10 professionals with
an illiterate Group CEO? NAICOM need to do staff audit to ascertain
whether the 'new' NICON meets the minimum staff requirement to carry on
business. It is even more curious to note that there is no qualified
Life person in the whole of the organisation today yet he clamours for
a life insurance licence.
Meanwhile, one is left in no doubt that the Attorney General of the
Federation misguided Mr. President in endorsing out-of-court
settlement. The case would have been allowed to run its full course
with regard to the administration's trumpeted rule of law and due
process. Those members of the present cabinet, who, due to experience
and hindsight opposed to return of NICON to the incompetent Jimoh, will
definitely have their last laugh. Indeed the remaining staff of NICON
will suffer (as they are already suffering) while the Nation would be
worse for it as they watch hopelessly as the paramount insurance
company in Nigeria is in the final throes of death right before their
eyes and they could practically nothing about it. They watch helplessly
as their businesses are snatched before their eyes, their most
experienced staff whom have left them for greener pastures are ripping
them apart in the insurance market, while their healthy financial
incomes which use pour in torrents now comes in tiny trickles. Right
now as we write NICON insurance certificates are no longer LEGAL
tender. Any body foolish enough to purchase one is on his own. Even
NICON's official and staff vehicles are not using NICON's certificates
but had to use that of other insurance companies.
It is just a matter of time for the obvious collapse of NICON Insurance
to manifest and the indictment/jailing of Jimoh for his numerous
financial atrocities and managerial incompetence.
The NICON INSURANCE PLC (more appropriately called JICON i.e. Jimoh
Insurance Company of Nigeria) is the most favourable poaching ground
for all insurance Companies that have been constrained because of
qualified manpower to venture into technical insurance business. They
are now doing so with relative ease. Because what Jimoh gladly
regurgitates other insurance companies quickly gobble up saving them
lengthy expensive training programmes with all it attendant
uncertainties. There is no more qualified staff left in JICON. As a
matter of fact immediately after the so called Terms of Settlement was
suspiciously conjured by Aondoakaa and ratified, 60% of the hitherto
120 staff remaining gladly took their exit. From the remaining 40%
Jimoh threw over 50% of them out under one pretext or another while the
remaining 50% that are left are living on a knife edge. They all do not
have any letter of employment but were verbally employed without any
clear cut and tangible conditions of service. They are also not
affiliated to any labour organisations as Jimoh is keeping them under
very tight leash, with dissension attracting immediate sack. This is
contrary to our labour laws which encourage employers with 5 or more
employees to form associations. The depletion finally hit home to Jimoh
when two weeks after the so called Terms Settlement was signed, he
decided to summon all staff to vent his spleen on them as he is wont to
do. To his consternation and greatest surprise there were no more than
twenty (20) staff in attendance he now had to inquire stupidly "where
is everybody?" Of course no one could muster the courage to tell him
that they left on his account. From the foregoing, there is no doubt
that on or before December 2008 JICON would cease to exist.
As if all these are not enough, JICON Insurance Plc is a no go area to
all Insurance Brokers, all manners of suppliers and of course
Government and non Governmental clienteles. They all avoid JICON
INSURANCE Plc like plague.. Like the proverbial King Midas who when he
touches every thing it turns to Gold, the reverse is the case with
Jimoh Ibrahim for whatever he touches WITHERS and DIES. His Global
Fleet, his Median Hotel at Lekki, his so called VGC communications, his
Failed escapades into the Banking Sector (Trade Bank, purported shares
in Oceanic Bank and others) his ownership of Federal Government Guest
House, Le meridian Hotel(Christened JICON Luxury) Great Nigeria
Insurance Plc ( until the Odua Group finally heed the plea of the
workers and relieve them from their misery by repossessing it from
Jimoh ) his failed attempt at owning AP petroleum which he still owes a
lot money, Jicon Airways etc etc, the list is endless. Some of these
businesses are subject of litigation that involves fraud,
embezzlements, or out right snatching as the case of Trade Bank plc and
AAL respectively currently portrays. We the former staff of NICON
INSURANCE CORPORATION dares Jimoh Ibrahim to point to any of his so
called businesses that today can boast of a healthy profit after tax
N5,000,000.00(five million Naira only). Yet this is the man that is
notorious for all kinds of shady businesses that was glorified by the
attorney General of the federation with a very questionable so called
terms of settlement instead of prosecuting him to the full extent of
the Law for gross embezzlement and total breach of the laws. As we
speak now arrangements are being made (if not already made) to transfer
all NICON Property assets to the already moribund Global Fleet to be
known as Global Fleet Properties. This is in clear violation of the
laws setting up NICON and those of the Insurance Act of 1997 as
amended. All these are clear pointers to the fact that from inception
Jimoh had no interest in the business of but asset striping. Also Jimoh
is busy shopping around for buyers of this huge carcass left after this
asset striping instead of him devoting his time and energy into bring
this comatose giant to life.
In conclusion, while hitherto unknown Insurance companies are posting
tremendous post after tax profits and paying very fat dividends to
their shareholders. This was what NICON INSURANCE was doing pre Jimoh,
paying over N350 million Naira yearly to it shareholder MOFI for a
prolong period spanning over a decade. On the contrary, JICON (JIMOH
INSURANCE COMPANY OF NIGERIA) have record heavy financial losses(less
than N3bn from N17bn), terrible incomes and accounting procedures, (see
KPMG report with an insolvency of over N200m) bad and sharp business
practices, hostile customers, demotivated staff, truancy, heavy debt
portfolio of Jimoh Ibrahim as at last count heading to over N70 Billion
and rising, no patronage from fellow insurance companies for risk
sharing agreement (coinsurances/reinsurance). If we should catalogue
the problems bedevilling JICON it will be a topic for a PhD thesis and
a very useful case study that will serve as working manual for Irene
Chigbue's BPE and Aaondoakaa's justice department on how not return an
already saved company back to its destroyer.
Source:Ocnus.net 2008
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