The current challenges at SIC has moved beyond its board and the industry regulator, National Insurance Commission, to the central bank and the Finance Ministry.

The Banking Supervision Division of the Bank of Ghana is currently looking into a loan granted construction engineers, ITAL  Construction by Ivory Finance -- which apparently is the source of the tension at the insurance firm.

Joy Business gathers that ITAL borrowed some funds from Ivory Finance, a member of the CDH Group, for the construction of some properties, which went bad.

Sources say Ivory Finance, which gave the credit to ITAL is now demanding that the loan be repaid. However since ITAL cannot pay back the amount, Ivory Finance has to fall on the loan guarantor, SIC Insurance, for the payment of the said loan.

However, because SIC is currently not in a position to make full payment of the loan it guaranteed, a court order has been secured for restrictions to be placed on the accounts of SIC making it difficult for the firm to withdraw money from its accounts.

Sources say SIC could go on its knees, if Ivory Finance goes ahead to claim its money in full from the accounts of the company. 

The then Managing Director of SIC, Doris Awo Nkani, who underwrote the credit guarantee has since been fired.

The central bank's probe into the loan agreement was at the behest of a petition by some workers of SIC to the Finance Ministry and copied to the Bank of Ghana.

The central bank's enquiry will look at concerns about two separate  credit guarantees totalling  12 million Ghana cedis  given to ITAL that has resulted in a debt of over 138 million Ghana cedis.

According to  the petitioners there are are serious issues with the nature of credit guarantees given by  the company to some firms and individuals, hence the need for the Finance Ministry  and the Bank of Ghana to step in.