SIC faces collapse over massive fraud

Fraudulent schemes and reckless mismanagement of funds at SIC Insurance, has led to the near collapse of the premier state-run insurance company.

Documents available to Economic Tribune show heightened agitation among workers of the company who are fingering Acting Managing Director; Mrs. Doris Nkani, as collaborating with the Board Chairman and the Deputy MD (A&F) to perpetrate fraudulent activities on the company and are therefore; “calling on all staff who care about the company and their future to rise to the occasion”.


The aggrieved workers, in communications among themselves latter part of last year, indicated that Dr. Kofi Amoah, who was the biggest individual shareholder of SIC suddenly sold off all his stakes in the company.


They attributed Dr. Amoah’s move to; “the grand plan by the owners of two insurance companies and some finance houses who are pushing seriously for the declaration of SIC as bankrupt so that they would take over the company.”


Numerous fraudulent deals alluded to include US$426,000 paid out to Janet Annan for her bogus KPI consultancy services, which amount did not include her taxes, lodging, internal travels, use of official vehicle, among other benefits.


Another consultant was allegedly paid a whopping US$74,000 for a four-page report on the Bob Freeman Clinic.

Another fraud cited was the payment, in November 2012, of GHC 127,000 to SSNIT as Social Security Fund (SSF) contribution for the former MD, Benjamin Acolatse. Contract terms of the top three executives of the company, the workers claimed, stated clearly that they would be responsible for the payment of their SSF, for which reason the money was added to their monthly fees.


“Board members are grabbing company vehicles anyhow. The Board Chairman picked a salvaged Toyota Land Cruiser V8, which was neatly repaired together with the company’s Nissan Urvan Mini Bus, all for free,” the workers said in a document cited by Economic Tribune.


Another Board member allegedly took the company’s Toyota Avensis and two others took a Toyota Land Cruiser and Nissan Patrol all for free, while the Board Chairman of SICLife also took a Lexus 450 for free.


“Can you believe that this year alone, the Board of Directors has sat 13 times as against the four times they are supposed to sit with a few emergency meetings?” the workers asked, adding that, these sittings excluded the sub-committee sittings and estimated what huge amounts Board members would have received for the year alone.


The workers disclosed that after fraudulent misrepresentation and falsification of the company’s account to read profit instead of so-called loss, not only were dividends paid to shareholders, but bonuses were given to the Directors including the former MD.

“Where is the bonus for the staff who made the money?” the aggrieved workers queried.


The National Insurance Commission (NIC) in a letter dated November 20, 2012 had given the management of the insurance company January 31, 2013 as an ultimatum to correct the anomaly in its operations and also address the weaknesses in the company’s internal control or risk losing its licence.


Efforts to get any official of the state insurance company to comment on the matter proved futile as they are tight-lipped on the matter.


Economic Tribune will update readers on on-going developments in subsequent issues.