Sources: National assembly loses insurance cover over N2bn debt

The national assembly has lost its insurance cover for staff and properties over a N2 billion debt.

Sources told TheCable on Wednesday that the debts began piling up from the time Bukola Saraki, former senate president, was chairman of the national assembly.

In the 2020 budget, the lawmakers budgeted N37 billion for the renovation of the assembly.

The source said this might be connected to the fact that if there is a fire outbreak at the assembly, there is no insurance cover to take care of the damage.

The federal lawmakers have been criticised for allocating that amount for the renovation of the National Assembly Complex.

In a memo to the leadership, the management said there is no longer cover for fixed assets, vehicle and life policy because the assembly is owing insurance service providers.

“Your Excellencies are also invited to note that by provisions of Section 9 (3) of Pension Reform Act, 2004 all employers (including the National Assembly) are required to maintain Group Life Insurance Policy in favour of Public Servants for a minimum of three times the total annual emolument of the employee,” the memo read.

“Similarly the National Insurance Act 1997 makes it mandatory for all owners of Public Buildings to insure against the hazards of collapse, fire, earthquake storm and flood.

“In addition, Section 68 of the Insurance Act also provides that no vehicle, inclusive of Government vehicles shall be used on a road unless a liability which may thereby incur in respect of damage to property of third parties is insured with a registered insurer.

“Unfortunately, the National Assembly is presently owing Insurance Service Providers in terms of Premium on vehicles, fixed assets and life policy. Technically, this entails that we no longer have insurance cover based on the policy of ‘no premium, no cover’.”

Liabilities for vehicles of the senate, house of representatives and management are; N716 million, N430 million and N170 million respectively.

The memo said group life insurance scheme for staff has amounted to N736 million.

When contacted, Yahaya Danzaria, director public affairs of the national assembly, said inquiries should be directed to the Federal Capital Development Authority (FCDA).

“Please make your inquiries from FCDA because I am made to understand all public buildings in Abuja are owned and managed by FCDA,” Danzaria said in a text message.

“Curiously too, that’s the main reason why they are to handle the upcoming repairs in the national assembly.”

Efforts to get comments from Richard Nduul, a spokesman of the FCDA, were not successful.

Yusuph Olaniyonu, spokesman of Saraki, refused to comment on the matter when TheCable reached him on Wednesday afternoon.