Business News of 2013-12-21

Mahama directs MDAs to insure with state-owned insurance companies

President John Mahama has directed all ministries, agencies and departments to with immediate effect purchase or renew their insurance cover strictly with insurance companies that are wholly or partly owned by the state.
The 13 December directive is contained in a letter signed by the Executive Secretary to the president, Dr. Raymond Atuguba, Joy Business has learnt.
The notice added that any MDA which finds it necessary to insure with an insurance company that is not wholly or privately state owned must obtain the requisite permission before doing so.
Meanwhile, Joy Business has gathered the directive has not gone down well with most of the private insurance companies.
According to them, the directive is discriminatory and is against government's own policy of encouraging the private sector as the engine of growth.
Sources say the insurance companies are planning to collectively register their protest.