SIC pays 10 billion cedis dividend to Government

Accra, May 29, GNA - The management of State Insurance Company (SIC) on Monday presented a cheque for 10 billion cedis to the Ministry of Finance and Economic Planning as Government's dividend for the 2005 fiscal year.

The dividend represented an increase of 150 per cent of the four billion cedis presented by the company last year.

Professor Isaac Mensah Ofori, Board Chairman of SIC who presented the cheque, said the increase was the result of prudent management, fiscal discipline and strategic redirection exhibited by both the board and management.

He said the company, achieved success despite huge claims it accumulated last year due to some disturbing events such as the Good Friday fire outbreak at the Tema Oil Refinery (TOR). "Indeed, as a result of these and other incidents, claims that were settled by the company went up from 45.2 billion cedis in 2004 to 92.36 billion cedis in 2005, an increase of 102.4 per cent. There is no doubt at all that any other insurance company would have gone into distress," he added.

Prof. Ofori indicated that since its inauguration in 2000, the Board had paid a total of 25.2 billion cedis dividend to its major shareholder.

The Board Chairman further noted that SIC was focusing on staff training, customer care, and decentralization of its operations to ensure it remained the dominant insurer.

Mr Kwadwo Baah-Wiredu, the Sector Minister, who received the cheque, congratulated the board, management and staff for the improvement and consistency in paying dividend to Government. He said Government had received only 32.1 billion cedis at the end of April this year, as against 169.3 billion projected in the 2006 Budget to be received as dividend from State Owned Enterprises (SOEs) and Joint Venture Companies (JVCs).

Mr Baah-Wiredu therefore, appealed to SOEs/JVCs who had not yet paid their dividend to do so and to Ministries, Departments and Agencies (MDAs) who received monies on behalf of Government to ensure that those funds were promptly lodged into the Consolidated Fund. He said mobilizing more resources had become more urgent given the unstable situation in the Middle East resulting in high oil prices, agitation by workers for improved salaries, and the need to reduce poverty and improve infrastructure.

Mr Baah-Wiredu pledged Government's continuous support to provide a stable macro environment to make the insurance industry more profitable. 29 May 06