When the National Insurance Commission (NAICOM) on 18th May, 2015 dissolve the former Board of International Energy Insurance Plc (IEI) due to Corporate governance failures and appointed an Interim Management Board (IMB), the thinking was that the newly appointed board will correct the wrongs of the past and reposition the company for greater shareholder’s value. Unfortunately, the performance of the Interim Management Board has been very poor and has worsened the situation of the company.

Virtually all the indices to measure performance in the last one year are in the negative. The premium income has fallen by over 50% within the period the IMB has been in charge. Loss after tax is in the negative by over 900% just as the shareholder’s fund is also in the negative by over 2000% within this one-year period.

These negative indices can be attributed to the management style of the Interim Management Board and the Interim Managing Director, Peter Irene; Mr. Peter Irene who prefers the title of Managing Director/CEO runs the company like a sole administrator without regards for constructive engagements. Most Brokers who hitherto the coming of the Interim Management Board (IMB) were still doing business with the company despite it challenges have all left as the company’s performance indicators all point south.

As shareholders, we are concerned that the Interim Managing Director has not been able to use his position to generate any business for the company one year after holding the position despite all the pecks of his office. At the moment, the company struggles to pay claims and meet other obligations. Staff salaries and pensions are usually in arrears yet all allowances are paid to the IMB who meet every two weeks for Committee and Board meetings with board expenses of a three-man board almost equaling the expenses of the previous 7-man board within a corresponding period. All the monies saved by the previous board/management has been frittered away with little or nothing left in the company’s account.

Rather than run a transparent management style that will engender confidence amongst stakeholders and bring businesses for the company, Peter Irene chose a vindictive approach of victimization and employment of relations and associates without the involvement of the Human Resources department thereby violating the same corporate governance ethics he is supposed to correct.

Peter Irene has reduced staff morale to its lowest ebb. Staff who has put in several years in the company are laid off “as Services are no longer Required” without any redundancy benefits paid against any know labour laws. Our investigations revealed that several staff are already in court with the company fighting for their rights just as there is no motivation to go out and prospect for business for other staff in the company.

NAICOM shares part of the blame for the poor performance of the Interim Management Board. The IMB was initially appointed for a period of six months and was later extended by another three months to February, 2016. It was again extended for another six months to August 18, 2016. August 18 has come and gone and yet no word from either the regulator or the IMB on the state of the company. They all forget that IEI is a Publicly Quoted company with various stakeholder’s interest.

Our investigation revealed that the docile attitude of the regulator is partly as a result of the relationship between NAICOM’s Deputy Commissioner for Finance and Administration, George Onekhena who is currently due for retirement in the Commission, a very close ally of Mr. Peter Irene such that he Irene passes the night in his house whenever is in Abuja.

The Chairman of the Interim Board Muhammed K. Ahmad is reputed to be a man of integrity and should not allow the poor performance of the Interim Managing Director (Mr. Peter Irene) rubbish his good name.

In all of the extensions, NAICOM has never engaged other stakeholders to get an independent view on the performance of the Interim Board. They depend solely on what the IMB tells them which justifies the extension they always seek. Any wonder the company’s performance has gone further down than where the IMB met it.

CONCERNED SHAREHOLDERS

The same Peter Irene whose career in insurance is well known to be a stellar one



Which relative did he employ? 419 news


Probably sponsored by some staff in the company that are not eating what they used to eat before Irene came in to sanitize the place

Besides even first bank recorded loss, its a recession for Christ sake