Business News of 2013-12-24

Insurers threaten strike over new Mahama's directive

The Ghana Insurers Association says it might turn to the courts if government does not rescind its directive to all Ministries, Department and Agencies to insure with insurance companies that are partly or wholly owned by the state.
A statement signed by Executive Secretary to the President Dr Raymond Atuguba earlier this month directed that with immediate effect all government businesses should be insured with insurance companies that are partly or wholly owned by the state.
The statement also indicated that all ministries should ensure that institutions that are under their supervision comply with this directive.
But speaking with Joy News, president of the Ghana Insurers Association, Kwame Gazo Agbenyadzie says the directive goes against government’s own laws on procurement and competition.
He said people outside the insurance industry are even against the directive because chances are that if this directive is allowed to stand, it may be replicated in other sectors.
He hoped that the "listening" government will listen to their plight but if that fails they would have no choice but to go to court.