Insurance expert Larry Jiagge is pushing for an emergency general meeting to remove the entire board members of SIC to prevent the company from collapsing.

Joy Business gathers that savings and loans company, Ivory Finance is moving to recover some GHȼ138 million debt from SIC.

This was after construction firm, ITAL failed to settle a loan it took from Ivory Finance that SIC guaranteed.

The development has resulted in the board asking the Managing Director, Doris Nkani to step aside. 

But Mr. Jiagge, who is also a shareholder and with over 30 years' experience in the industry, says the board cannot excuse itself from the rot at the company.

“Some of the things happening in the SIC should have been known to the Board. We have raised these issues about bonds in the past at one of the AGM. But nothing has been done up to today. Those, who wrote the huge credit guarantees in the past, are still working with the SIC, they have just been moved, they have been circulated around and they are still writing the bonds, and that is the reason for the ITAL situation we have.”

He said asking the Managing Director alone to step aside would not solve the issue, and demanded that even the deputy, who has been made to act as the Managing Director, who is responsible for underwriting, as well as the entire board, should be removed.

Meanwhile, President of the Ghana Insurers Association, Ivan Avereyireh says the Association will be writing to the board of the SIC to quickly take measures to address problems at the firm because of its impact on the industry.

Financial consultant Charles Mensah said the state insurer ought to be bold and issue a statement to allay the fears of shareholders that they are putting things right.

This short-term measure would ensure that the share price of SIC does not depreciate soon, which could seriously affect the investments of  all its shareholders.

In a related development,  Joy Business has gathered  that SIC is working to quickly pay some of the GHȼ138 million debts owed  Ivory Finance to enable it have access to its accounts and also  prevent  the possible  sale of  its  assets  to defray the debts.