Reps to probe malpractices in capital market, insurance sectors
The House of Representatives Committee on Capital Market and Allied Institutions will next Wednesday begin investigation into “noticeable sharp practices” in the sector and its insurance counterpart.
Chairman of the committee, Tajudeen Yusuf (PDP, Kogi), who disclosed this yesterday while briefing newsmen in Abuja, also noted that the investigative public hearing would feature industry players, experts stakeholders.
Affirming that the capital market remains the engine room of economic growth and development, the lawmaker admitted that the sector currently suffers from confidence problem, arising from poor regulation over the years, which has often shortchanged investors of their hard-earned resources.
“What drives the economy is not investment from outsiders who can withdraw their resources at any time and other but the investment from citizens themselves. But the problem is confidence. How do we regulate this sector such that shareholders get commensurate value for their shares,” Yusuf queried.
Earlier, Rep Tony Nwulu (PDP, Lagos), who had informed journalists of a shift in the date of the investigative hearing, said concerned insurance companies and other industry players have been adequately notified.
Nwulu said the investigation stemmed from persistent public outcry on numerous fraudulent activities being perpetrated by most chief executive officers (CEOs) and executive directors of some public liability companies (Plcs).
“There have been several public outcries over the fraudulent activities of most CEOs in Nigerian companies.
“So, this is an industry-wide exercise intended to wipe off all such malpractices in order to restore and boost confidence so that when investors are investing, they would be sure that they are investing in a company that can guarantee their investments,” Nwulu assured.
He added that the committee had hired experts and insiders to look into the documents, during which they uncovered several sharp practices by concerned companies.
He said the investigation is for the interest of Nigerians who are shareholders in some companies, “to protect their investments and guarantee their safety.”