Consortium of CSOs Highlights Fraud in Insurance Industry
The Consortium is shocked to hear that Sheku Mattia, the Deputy Commissioner of the Sierra Leone Insurance Commission interviewed on Culture Radio aired this morning as he was economical with the fact of the case reported to the commission.
The Consortium wrote to the Commission in 2021 with series of issues regarding International Insurance Company SL Limited and subsequently on the invitation of the Deputy Commissioner Members of the Consortium met with the Commission to tender relevant evidence to substantiate their positions.
The issues and evidence given are as follows;
- Advertisement -
1. IIC Managing Director Approving a Loan of 200,000 USD to himself. The Consortium gave the Commission an Internal Memo from Group Managing Director that he calls himself to Assistant General Manager Finance and Account dated 23rd June 2015 with the subject Housing Loan for Nduka O. Anyaso, sign by Mr. Nduka Anyaso Approving a load on Two Hundred Thousand Dollars Housing loan to himself. The Loan was reported in 2017 Audited Financial Statement of IIC by David Berting and Partners Chartered Accountants on page 52.
2. The loan was taken from a life Assurance Funds belonging to Sierra Leoneans Life Assurance Policy Holders. The Consortium presented IIC Transfer Instruction Letter dated 15 December 2015 transferring 146,250,000 from the company Life and Pension account with account No 101040391-01 to Nduka O. Anyanso Account No 101-01153-01 with FIBank now Vista bank as second instalments housing loan.
Does Sheku Mattia need five months to request for the two Bank statements to verify his transaction? Rather than do the needful, he comes on Radio to tell the public that he is yet to confirm that the loan was taken. Is he aware that External Auditor David Berting and Partners had confirmed the load and reported same in 2017 Audited Financial Statement on page 52 Mr. Regulator, please stop lying and do the needful. So, if the External Auditor Reported the Loan in 2017 and Chief Regulator is yet to confirm the load in 2022, is something not fishy?
3. Non-disclosure of the Loan in the Financial Statement of International Insurance Company for 2015 and 2016. Sheku Mattia failed to know that all Insurance Companies send annual Audited Financial statement to SLICOM for review and approval. So, all he needed to do was check IIC Financial statement in his custody for the 2015 and 2016 to see if the Loan was reported. But he chooses to come on air to lie to Sierra Leoneans.
🔥 Join Sierraloaded WhatsApp group for Latest Sierra Leone News, Sports & Entertainment Updates - CLICK HERE
🔥 Follow Sierraloaded on Facebook | Facebook Group | Twitter | Instagram | TikTok | Telegram | YouTube | LinkedIn
4. Issue of International Insurance publishing 2 sets of Financial statement in a year. The Consortium presented Sheku Mattia with two set of finance statement, one set as published by SLICOM in its Annual Report and the second set as contained in a copy of International Insurance Company Public Financial Statement. Is it not criminal offence to publish two set of financial statements? More so, as a regulator is he not supposed to insist that only approved financial statement by the Commission be published of circulated? Sheku Mattia was silent on his point in the radio interview
5. Failure to provide for Actuarial Valuation Deficit of 2.4 Billion Leones. The Consortium gave Sheku Mattia HR Nigeria Limited Actuarial Valuation Letter confirming the deficit. The report stated on the last line “We will await plans or structures being put in place to fund the huge deficit’’. Sheku Mattia was silent on this too. All he needs to do is to check the financial statement of IIC from 2015 till date of provision made for this in the financial statements. This report was as at 2013, long before the loan of 200,000 USD was granted but up till now no arrangement is made to fund the deficit. So, is Sheku Mattia protecting the poor Sierra Leoneans Policy Holders or the Perpetuators of this crimes?
6. The Claim that these things happened in 2015 before he and his Boss came to Office. Sheku Mattia should be remained that when you take over an office you are taking over assets and liabilities. These are the liabilities of his office he needs to deal with absolutely or allow it t sweep him out of office. The Consortium is challenging him to avail us of Approved Audited Financial Statement of Insurance Companies in the current Five Years and we will point out more serious lapses covered up under his watch to him. More so, recent financial statement of international insurance approved by SLICOM without addressing these issues is far from showing the true financial position of the company or reporting accurate Life Assurance Liabilities position.
7. Fear of High Court Sheku Mattia fails to understand that he who comes to equity must come with clean hands. If International Insurance Company is clean, the MD would have taken the matter to court by now.
Our expectation if for Sheku Mattia and SLICOM to act as directed in Section 60 sub section 3 thus;
(3) Where any event occurs giving rise to circumstances the existence of which at the grant of any subsisting loan would have made such grant a contravention of this section, such loan shall, notwithstanding any contract to the contrary, be repaid within three months from the occurrence of such event; and in case of a default, the director, managing director, general manager or principal office by whatever name called shall, without prejudice to any other penalty which he may incur, cease to hold office with the insurer granting the loan on the expiry of the three months.
Secondly, subject the company to detail forensic audit to establish the level at which life funds have been abused.
The consortium will not rest on its determination to expose the corrupt practice in the industry for the protection of interest and rights of policy holders.
Heritage Newspaper reports that, Sheku Mattia should be properly guided and stop making flimsy excuses of fooling himself around, else we will boldly call for his immediate resignation on grounds of incompetency.