SIC borrowed money to pay dividends in 2023 – Ex-shareholder
A former shareholder of the State Insurance Company (SIC) and chartered insurer, Larry Jiagge, has expressed frustration over the company’s financial management and the National Insurance Commission’s (NIC) handling of regulatory breaches.
Speaking on Joy FM’s Super Morning Show on Friday, February 7, Jiagge claimed that in 2023, SIC borrowed money to pay dividends to shareholders, creating a false impression of profitability.
“They went to borrow money to pay that dividend. I can tell you that for a fact, I was a shareholder then,” he stated.
According to him, the full extent of the company’s financial issues only became apparent later, raising concerns about transparency in its operations.
Jiagge also criticized the NIC for failing to enforce its own regulations, despite his repeated written concerns about SIC’s financial practices.
“There are things you can’t talk about on air. Some of these problems had the stamp of the National Insurance Commission,” he said.
He added, “They don’t enforce their own law, and I had pointed this out to them in writing all the time.”
His remarks come in the wake of the recent controversy surrounding the immediate past SIC Managing Director, Hollistar Duah-Yentumi, who initially refused to hand over to the newly appointed acting MD, James Agyenim-Boateng, and later filed a lawsuit challenging her dismissal before withdrawing it.
Jiagge further recounted his attempts to raise concerns when SIC began disposing of assets, stating that it took the NIC an entire year to respond to his petition.
“When the response finally came, it merely reflected the position taken by SIC itself, stating that the approval of shareholders had been obtained for the asset disposals,” he noted.
He urged the regulator to strictly adhere to its own laws, cautioning against lax oversight in the insurance sector. Please follow me for more detail and drop your comments
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