Forensic auditors uncover 2.5bn bubble shares at Goldlink Insurance

THE Chairman of the Interim Management Board of Gold- link set up by the National Insurance Commission (NAICOM) to review the financial activities of Goldlink Insurance, Mr. James Ayo, has said that the underwriter has submitted report of the forensic audit it conducted.

He said the investigation confirmed the observation of NAICOM that various abnormalities identified in the 2011 financial statement were attempts to conceal the company’s true financial position.

The Chairman who dis- closed this at the company’s 19th Annual General Meeting recently said several irregularities were perpetuated by the former executives and staff of the company, stressing that in particular, there was a complete breakdown of corporate governance typified by the former non-executive chair- man’s permanent presence in the office.

According to him, the Interim Management Board instituted a share capital audit, which revealed that about 2.5 billion shares were inappropriately issued to selected share- holders without considerations to the company.

He said, “to support the creation of these bubble shares, the head office building and other assets were revalued and inflated by about N1.5 billion. The revaluation surplus was used in part to create these shares against sound accounting standards and principles. Currently, the interim management board has recovered 1.2 billion shares through voluntary surrender and about 134 million shares by way of forfeiture,” he said.

The interim board also found out that about 1.2 billion share units have been disposed of by some of the beneficiaries and that the Interim Management Board has commenced the process of recovering the disposed shares and associated dividends of about N125 million.

Source: Sun Newspaper