Former State Insurance Company (SIC) shareholder and chartered insurer, Larry Kwesi Jiagge, has raised serious concerns regarding the company’s financial practices and the oversight role of the National Insurance Commission (NIC).
Jiagge alleged that in 2023, SIC borrowed funds to pay dividends to shareholders, thereby creating a misleading impression of profitability.
“They went to borrow money to pay that dividend. I can tell you that for a fact; I was a shareholder then,” Jiagge stated, highlighting the questionable financial decisions made by the company.
He further criticized the NIC for failing to enforce its own regulations, despite his repeated written warnings about SIC’s financial practices. “There are things you can’t talk about on air. Some of these problems had the stamp of the National Insurance Commission,” he asserted. “They don’t enforce their own law, and I had pointed this out to them in writing all the time.”
These revelations come amid recent controversies surrounding SIC’s leadership. The immediate past Managing Director, Hollistar Duah-Yentumi, initially refused to hand over to the newly appointed Acting MD, James Agyenim-Boateng, following her dismissal. Duah-Yentumi later filed a lawsuit challenging her removal but eventually withdrew it.
Jiagge also recounted his efforts to raise concerns when SIC began selling off assets, noting that the NIC took an entire year to respond to his petition. “When the response finally came, it merely reflected the position taken by SIC itself, stating that the approval of shareholders had been obtained for the asset disposals,” he noted.
He urged the regulator to strictly adhere to its own laws and warned against lax oversight in the insurance sector, emphasizing the need for stronger regulatory enforcement to restore public confidence.
These allegations have raised significant concerns about transparency and accountability within SIC and the effectiveness of NIC’s regulatory role. Stakeholders are calling for a thorough investigation into the company’s financial practices and the commission’s oversight mechanisms to ensure the integrity of Ghana’s insurance industry.
He spoke in an interview on Accra-based Joy FM
