A former shareholder of the State Insurance Company (SIC), and chartered insurer, Larry Kwesi Jiagge has opened up about his frustrations as a former shareholder of SIC, particularly with the company's financial management and the National Insurance Commission's (NIC) response to regulatory breaches.

Speaking on Speaking on Joy FM’s Super Morning Show on Friday, February 7, Mr Jiagge claimed that in 2023, the insurance company borrowed money to pay its shareholders dividends just to create a false 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." This remark highlighted the questionable financial decisions made by the company, which reportedly involved taking loans to fulfil dividend obligations.

Mr Jiagge further explained that it was only later that the full extent of these issues became apparent to stakeholders, emphasizing that certain details were not fit for public discussion. However, his primary concern was with the role of the NIC in overseeing the operations of insurance companies in the country.

He criticized the NIC for its failure to enforce the very laws it had set, pointing out that despite raising these concerns repeatedly in writing, the NIC did not act accordingly.

The lawyer was speaking after it emerged that the immediate past Managing Director of SIC Insurance Company Limited, Hollistar Duah-Yentumi, had refused to hand over to the newly appointed acting MD, James Agyenim-Boateng, and had even filed a suit in court against her termination.

"There are things you can’t talk about on air. Some of these problems had the stamp of the National Insurance Commission," Mr Jiagge said.

Read Also: Ex-SIC MD wasn’t qualified for the role; I petitioned against her – Ex-shareholder claims

He added, "They don’t enforce their own law, and I had pointed this out to them in writing all the time."

The lawyer also recounted his attempts to raise concerns as a shareholder when SIC began disposing of assets. Jiagge explained that he formally petitioned the NIC regarding these matters, but despite his repeated requests, it took the Commission a whole year to respond. 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.

"They should abide by their own law, the law they created" he advised.

Dividends are the percentage of a company's earnings that is paid to its shareholders as their share of the profits.

Read also: Government must conduct a forensic audit into SIC’s operations – Former Shareholder