On Wednesday, the management of Northlink Insurance Brokers Plc has been quizzed by the House of Representatives for insuring two beached aircraft owned by the Nigerian Immigration Service.
The aircraft, a 14-seater Dornier 228-101-5N-AUZ (FER) and 228-101-5N-AUW (FER) was insured for N198.5m and a renewal premium of N13,409,800 was paid.
It was learnt that the insurance had covered 2015 to 2016.
The House Committee on Public Accounts particularly interrogated the insurance’s Head of Technical Department, Mr Nse Nya, who informed the panel that the company only carried out physical inspection of the planes without technical inspection to determine their airworthiness.
The Accounts committee then asked for the certificates of the airworthiness issued on the aircraft but Nya told the committee that the pilot of the aircraft only confirmed the airworthiness to him verbally.
The aircraft pilot was an employee of the Nigerian Immigration Service and was present during the physical inspection.
Nya said, “To enable us effect the cover, we visited Dana Airways premises, old Kaduna Airport, Kaduna State, where the aircraft were parked.
“We carried out a physical inspection with the help of the pilot, Kiena, who took us round the aircraft and confirmed to us that the aircraft were airworthy and that he just came back from a border patrol with one of the aircraft.”
Members of the committee who were annoyed by the submission stated that it was against aviation regulations as it was unprofessional to have carried out the policy without following due process.
The lawmakers alleged that it was clear that the insurance company received the N13.4m premium under false pretence, with this defrauding of the Federal Government of the amount.