Lawyer and Chartered Insurer, Larry Kwesi Jiagge, has called for a complete restructuring of the State Insurance Company (SIC), emphasizing the need for forensic audits, a review of asset disposals, and a re-examination of the company’s management structure.
He made these remarks in addressing the state of SIC and recent developments surrounding the ousted Managing Director of the state-owned SIC Insurance Company, Hollistar Duah-Yentumi who is in court fighting against her sack over an alleged embezzlement of state funds. Lawyer jiagge began;
“They need to conduct some forensic audit, look at first and foremost the disposal of assets and leave the bill to see those who bought the assets. And also, there is a need for them to look at the technical capability of the technical study. Late last year, there were a lot of transfers made to the extent that a summary from the HR department was posted. Is it possible to have a technical unit of the company? I’ve never heard of that sort of management in my life.”
Larry Kwesi Jiagge Lawyer and Chartered Insurer
Mr. Jiagge believes that a significant restructuring is required to ensure SIC’s efficiency. He called for the empowerment of young and capable individuals within the company, arguing that SIC has the internal talent necessary to drive its transformation. One of the major concerns raised by Mr. Jiagge was the alleged transfer of government businesses to a particular private insurance company. He suggested;
“Whoever becomes Managing Director, or if the new Managing Director [takes over], they need to conduct some forensic audit into the operations of SIC, especially how a lot of their businesses went to a particular company.”
Larry Kwesi Jiagge Lawyer and Chartered Insurer
He further pointed out corruption scandals concerning a certain state company, however, when pressed to name the company in question, Mr. Jiagge refused to disclose its identity but hinted at a strong connection to a former government minister. He signaled;
“If I did have my own asset, and then the assets were insured somewhere else… there are a lot of businessmen who own insurance companies. Their assets are insured with their companies and not with a state company. That is an issue that should be addressed.”
Larry Kwesi Jiagge Lawyer and Chartered Insurer
Concerns Over SIC’s CEO Appointment
Another major issue raised by Mr. Jiagge was the appointment of the current SIC CEO, whom he claimed was not qualified under the provisions of the Insurance Act. He referenced Section 55 of Act 10, 61, which outlines the qualifications necessary for a principal officer of an insurance company.
According to him, this provision had always been enforced by previous regulators, and there was precedence where a government appointment was withdrawn due to non-compliance with the law. He emphasized;
“Let me state that the provision is not new. It was also in the previous Act, which is Act 724. And so, it is not a new addition to Act 10, 61. It has always been there.”
“I recall one of the past regulators was brave enough to tell the government in power then that somebody was not qualified and that she would not approve the person. And the government withdrew the appointment of the person.”
Larry Kwesi Jiagge Lawyer and Chartered Insurer
Regulatory Oversight and Market Players’ Concerns
Mr. Jiagge stated that the regulator had been informed about the CEO’s lack of qualification by concerned market players who formally petitioned the National Insurance Commission (NIC). He also revealed that the regulator had historically upheld the law in such matters, and it was only under the current administration that an exception appeared to have been made.
When asked about the current CEO and the planned handover, Mr. Jiagge reiterated that the appointment violated the law.
Mr. Jiagge concluded by emphasizing the need for a complete overhaul of SIC’s leadership and operations. He stressed the importance of enforcing existing regulations to ensure the right people lead the organization and that SIC operates efficiently in the best interest of the state.
His concerns highlight broader issues within Ghana’s insurance sector, particularly regarding government influence, asset mismanagement, and regulatory oversight. As SIC prepares for leadership changes, it remains to be seen whether these calls for reform will be acted upon or overlooked.
