SIC Board Chairman Caught In Risky Dealings

Boards of companies and corporations do not only become problematic to entities when they attempt to do otherwise, but pose a great danger to the survival of institutions, when they try to usurp the role of management and tend to become deeply involved in the day-to-day affairs of these bodies.

It is against this background that if instantaneous steps are not taken to liberate the State Insurance Company (SIC) from the dodgy transactions of the Board Chairman, Mr. Max Cobina and his cartel, the company will end up in an intensive care unit.

The over seventy (70) year old Max Cobina, according to credible documents intercepted from the corridors of the aforementioned institution, and for reasons best known to him and without the knowledge of Managing Director (MD), Mr. Benjamin K. Acolatse, utterly ignoring the due process, ordered that two guarantee bonds (i.e. performance and advance payment guarantees) totaling US$38million be issued to a construction firm, without full reinsurance support; therefore, exposing the company to great danger.

Assuming the role of a Managing Director, Mr. Max Cobina, per documents in this paper’s possession, has instructed the MD’s (Acolatse’s) two deputies, Mrs. Doris Nkani, Deputy Managing Director (DMD) -Technical, and Mr. Yaw Ofori-Kuragu, General Manager (GM) Technical, to issue the said bond covers to Amandi Holdings Limited, awarded a contract by Ghana Railway Development Authority for the “Planned Redevelopment of the Sekondi-Takoradi via Kojokrom infrastructure, which includes supply of diesel multiple units” in the sum of US$159,214,461.00, for completion in eighteen (18) months.

The Amandi Holdings Limited applied to SIC Insurance Company for Advance Mobilisation guarantee, in the sum of US$25, 451, 222.20 and Performance Bond in the sum of US$12, 725,611.10, which they honoured upon instruction of the Board Chairman, when no adequate Reinsurance arrangement has been completed, thereby, over-exposing the company to risk.

According to a memo with reference number GM/Tech. Ops/A/2 dated March 2012, duly signed by the General Manager in-charge of Technical, Mr. Yaw Ofori-Kuragu currently in our possession, the arbitrary use of power by the Board Chairman, is exposing the SIC Insurance Company to risk.

Justifying why it was decided that the bonds be issued without due diligence and prior approval from the Managing Director, Mr. Benjamin Acolatse, as required by the laid down procedure, the GM in his memo for some strange reasons, chose to praise the said construction firm for its records as part of his recommendations and also stating the involvement of the Board Chairman in the deal, even though he has no technical background to do such transaction.

“We recommend that the bonds be issued based on the clients previous experience on the Accra-Tema rail line. The Chairman of our Board of Directors gave his blessings for the business, when he met Mr. Gaisie, the Financial Controller of Amandi Holdings Limited today, shortly after the Board Committee Meetings”, the GM stated in his memo.

“In fact, the Chairman chaired a meeting involving Superlock Technologies Limited and the sister company and SIC, at which, we agreed to issue the Advance Mobilisation for the Biometric Regisgration Equipment for Electoral Commission in June 2011, which eventually went to Vanguard Assurance Company Limited”, he further indicated.

However, it came to light during this paper’s in-depth investigations that, all frantic efforts by the Managing Director, Benjamin Acolatse to get the deal reversed following the danger it poses to the company and how risky it is to shareholders, prove futile.

Seeing the Board Chairman, Max Cobina as their superior and not Acolatse, the two deputies ignored two memos written by the MD, demanding the immediate withdrawal of the bonds since the transaction was not done according to the laid down insurance provision and was injurious to the company.

Whether it is the responsibility of the Board Chairman to broker a deal on behalf of the company when the Managing Director is alive, he is the best person to explain. However, further search by The Informer as regards the activities of Mr. Max Cobina is so stinking that he must, with immediate effect, be relieved of his post as a Board Chairman.

Clearly stepping beyond his boundary as a board chairman, Max Cobina is on record to have engaged in some stinking dealings with subordinates of the MD, particularly the Estate Manager, to get contracts for companies he introduces.

Presently, a contractor he introduced to supply Computers and Accessories for the upgrade of systems at SIC has failed to deliver on time and have not delivered at all.

Also, some of the printers supplied by the contractor the Board Chairman introduced, according to sources at the IT department, are not compatible with the systems at SIC; thus causing the Company extra funds to customize.

The effect of this default, The Informer has learnt, has been the delay of some projects scheduled to be rolled out by the company but these have affected the company’s strategic plan.

As a result of this, SIC, according to this paper’s reliable source, is under investigation by the Economic and Organized Crime Office (EOCO).

We are, therefore, calling on the appropriate authorities to dissolve the SIC board, for its total misconduct and unnecessary interference into the day-to-day affairs of the company, as reported earlier; and particularly investigate the Chairman on the issues raised above.

Stay tuned for more juicy updates on Mr. Max Cobina and why he was dismissed just eighteen (18) months in office as the MD of the Ghana Reinsurance Company by ex-President Rawlings.