Yar'Adua orders return of NICON to Jimoh Ibrahim - We didn't oppose out-of-court settlement, says Minister

Okey Muogbo, Abuja - 10.03.2008

THERE are indications that President Umaru Yar’Adua may have directed that NICON Insurance be returned to its owners and the interim management set up by the Ministry of Finance to stop running the company.

However, the Minister of State for Finance, Mr. Remi Babalola, is said to be insisting that the presidential directive would not be implemented until he made an input. Investigations by the Nigerian Tribune revealed that President Yar’Adua, acting on memos on the dispute between NICON Insurance and the Ministry of Finance, directed that the company be returned to the owners.

It was gathered that Yar’Adua acted on memos from the Attorney-General of the Federation, Mr. Mike Aondoakaa and that from his Chief of Staff, Major-General Mohammed Abdullahi (rtd). According to information, both had recommended, based on their investigations, that the ownership of NICON Insurance was not in doubt and that the claim that the insurance giant was recapitalised after its privatisation by the new owners was also true.

The AGF was said to have even gone further to advise the government against holding on to NICON as the case of contempt instituted by the company would not likely be favourable to government if it was allowed to be concluded.

It was on the strength of the two memos, sources revealed, that Yar’Adua approved that the case between NICON and the Federal Government be settled out of court. In furtherance of this, lawyers to the Federal Government and NICON agreed to settle the matter out of court and terms of the settlement were already filed at the Federal High Court, Abuja.

Sources said it was the insistence of the Minister of State for Finance that the settlement would not take place without his input that stalled the adoption of the settlement, raising questions as to how a minister can stop a directive by the president.

Highlights of the out of court settlement which the minister of state stalled included, “ that the matter of ownership of and recapitalisation (of NICON) is no longer in doubt. “The parties hereby acknowledge the irrevocable tripartite Share Purchase Agreement dated 11th December, 2005 as a binding document amongst them at all material time.

“That in furtherance of the desire to amicably settle the issues in contention, the government hereby returns the management and Board of NICON Insurance Plc and Nigeria Re-Insurance Corporation to the status quo ante and forthwith dissolve the managements and interim boards constituted by government for these companies.

“That these terms of settlement are irrevocably binding on all parties and their privies, assigns, servants and agents.” Based on these, Yar’Adua was said to have directed, in the letter dated 28th February, 2008, to the Ministers of Finance and Justice that the implementation of the settlement be done “quickly.”

However, when the parties were about to adopt the terms of settlement, counsel for the Minister of Finance objected on the grounds that its staff must make an input before the terms were adopted.

This made the court to adjourn the case to March 14. In his reaction, Babalola said the Ministry of Finance did not flout President Yar’Adua’s directive and that the ministry was not opposed to the out of court settlement. He, however, said that the ministry wanted due process to be followed so that the settlement would be done in the best interest of the nation and the insurance industry.

Babalola said the ministry saw the terms of settlement only after it had been filed in court. When contacted, Special Adviser (Media) to Ambassador Kingibe, Mrs. Dupe Ajayi-Gbadebo, said she was not aware of such development.