SIC borrowed money to pay dividend while paying 'fat' salary to MD - Former shareholder narrates

Read Comments Comments (14)

• Hannan 10 months ago

  ;)))))) Welcome to the best adult dating site ->> www.Sexy24.mom

  ;)))))) Welcome to the best adult dating site ->> www.Sexy24.mom

  reply
• Justrac Africa Ltd 10 months ago

  TRACK your vehicle/motorbike with ease. With Justrac GPS Tracker one can Shutdown engine remotely, Real-time tracking, Voice monitoring, playback route by your phone etc. PRICE: GHS750. Call/WhatsApp: 0501796870 for more info ...
  read full comment

  TRACK your vehicle/motorbike with ease. With Justrac GPS Tracker one can Shutdown engine remotely, Real-time tracking, Voice monitoring, playback route by your phone etc. PRICE: GHS750. Call/WhatsApp: 0501796870 for more info. I88888

  reply
• Abugre 10 months ago

  His comment is borne out of ignorance. Dividends are paid based on profit level.
  Profit is different from cash or liquidity
  So borrowing to pay dividends is not strange at all.

  His comment is borne out of ignorance. Dividends are paid based on profit level.
  Profit is different from cash or liquidity
  So borrowing to pay dividends is not strange at all.

  reply
• Reason 10 months ago

  Your comment is borne out of ignorance. While profits and liquidity are indeed distinct concepts, dividends are ideally paid from retained earnings (profits) rather than borrowed money. Companies distribute dividends as a way ...
  read full comment

  Your comment is borne out of ignorance. While profits and liquidity are indeed distinct concepts, dividends are ideally paid from retained earnings (profits) rather than borrowed money. Companies distribute dividends as a way of sharing their successful financial performance, which is reflected in their profit levels. Borrowing money to pay salaries and dividends is indeed quite problematic. It's unethical. I'm sure that is something else they didn't teach you when they poorly instructed you about finance.

  reply
• Joe Pike 10 months ago

  You are rather ignorant of the key facts. You are right on the theory. For the year ended 2022 six paid no dividend per their financial statements.
  In 2023 their profit after tax fell significantly. They claimed this was du ...
  read full comment

  You are rather ignorant of the key facts. You are right on the theory. For the year ended 2022 six paid no dividend per their financial statements.
  In 2023 their profit after tax fell significantly. They claimed this was due to impairment of their assets as a result of the domestic debt exchange.
  If you read their annual report for that year, SIC used unaudited financial reports of it's subsidiary to prepare it's consolidated FSs. They also failed to to take account of their subsidiary's associate company. So this earned them a qualified audit opinion.
  Its possible if they had fully accounts t for their subsidiary you would see very little profitability.
  So in the year they made a lot of profit no dividend but after more than 40m impairment and reduced profit they paid dividend?
  
  Do you know the MD base pay of 840000 a year is 6.4percent of the group profit after tax for the year ended just 3 months before her appointment? Add all jer emoluments and she alone will take home about 10 to 15 percent of profit after tax. Her deputy, mgt committee and board wages are not part.
  Go and read their annual repot

  reply
• DEEVINITY 10 months ago

  You, @Abugre make no sense at all. Your submission is painfully self-contradictory. In one breath you agree that, "Dividends are based on profit level". Why borrow money to pay dividends if an institution makes profit?? Are d ...
  read full comment

  You, @Abugre make no sense at all. Your submission is painfully self-contradictory. In one breath you agree that, "Dividends are based on profit level". Why borrow money to pay dividends if an institution makes profit?? Are dividends and their payments not indexed to profitability??? Why would any sane profit making venture borrow money to meet shareholder obligations when it had not met profit thresholds??? Is that not criminal and a complete reversal of good corporate governance???

  reply
• Kwaku 10 months ago

  It is not rocket science. Those oversight bodies are formed to create positions for colleagues and cronies. They all join the gravy train and not to over see nothing.
  Change them and let new set of people come and also "c ...
  read full comment

  It is not rocket science. Those oversight bodies are formed to create positions for colleagues and cronies. They all join the gravy train and not to over see nothing.
  Change them and let new set of people come and also "chop". That's the Ghanaian way. Don't feign any outrage, we all know it.

  reply
• True Ghanaian 10 months ago

  NIC woll not mind u bcos ken ofori attah was the cause of the problems at SIC. Criminal ken took all the govt businesses to enterprise insurance. While the state owned sic was making losdes due to lack of businesses, enterpr ...
  read full comment

  NIC woll not mind u bcos ken ofori attah was the cause of the problems at SIC. Criminal ken took all the govt businesses to enterprise insurance. While the state owned sic was making losdes due to lack of businesses, enterprise was making huge profits bcos all govt entities were forced to do business with enterprise insurance

  reply
• James 10 months ago

  How were you expecting SIC to be making good profits when the State under Ofori was diverting all government businesses to his own Enterprise Insurance?? Moreover liquidity is a different issue.. A company can declare dividen ...
  read full comment

  How were you expecting SIC to be making good profits when the State under Ofori was diverting all government businesses to his own Enterprise Insurance?? Moreover liquidity is a different issue.. A company can declare dividends, and borrow money to pay it.. Mahama’s Reset agenda must be applied here ; Reverse all those businesses given to Enterprise Insurance..

  reply
• DEEVINITY 10 months ago

  That is bad industry practice. You must pay dividends only if you make profit...genuinely. There's too much crookery going on. That it is done does not make it right. Common sense should tell you that you can't eat your cake ...
  read full comment

  That is bad industry practice. You must pay dividends only if you make profit...genuinely. There's too much crookery going on. That it is done does not make it right. Common sense should tell you that you can't eat your cake and have it.

  reply
• Timede 10 months ago

  Mr. Jiagge become emotional about issues. I can see that he was affected by the debt exchange too. But Slow down a bit and help your professional association to grow. You are a very good professional and can champion the grow ...
  read full comment

  Mr. Jiagge become emotional about issues. I can see that he was affected by the debt exchange too. But Slow down a bit and help your professional association to grow. You are a very good professional and can champion the growth of the insurance industry

  reply
• Biggy 10 months ago

  Serious allegation. How can one borrow to pay dividend without being profitable. So you mean Shareholders did not see the audited accounts?

  Serious allegation. How can one borrow to pay dividend without being profitable. So you mean Shareholders did not see the audited accounts?

  reply
• Bionic Man 10 months ago

  Thank you Biggy. Simple common sense explains it all. In this country, it seems that people only seek to get educated to cheat, lie and steal or defend such obnoxious conduct.
  
  People pompously turn up bragging that they h ...
  read full comment

  Thank you Biggy. Simple common sense explains it all. In this country, it seems that people only seek to get educated to cheat, lie and steal or defend such obnoxious conduct.
  
  People pompously turn up bragging that they have attained ACCA, PhD, several years at the Bar and so on and so forth. Meanwhile, the institutions they work at or work for with huge salaries and fees, regularly fall victim to the highest levels of fraud and theft, perpetrated by common office clerks or, themselves.
  
  The revelation of criminal salaries at the SIC, is in perfect parallel with the heinous acts of thuggery that those who comically refer to themselves as "learned brothers" presented to the dumbstruck Ghanaian public. Those MPs in parliament should cease referring to themselves with undeserved titles such as "honorable" and "respected colleague" etc, because the whole world has seen that they are only making a mockery of themselves and underestimating the intelligence of Ghanaians.

  reply
• Kan 10 months ago

  All they have is lack of common sense and greediness. How can you make all this money and demand compensation for dismisal. Go and enjoy your bounty as you don't deserve anything.

  All they have is lack of common sense and greediness. How can you make all this money and demand compensation for dismisal. Go and enjoy your bounty as you don't deserve anything.

  reply