General News of Wednesday, 10 April 2013
Source: Emmanuel Opare Djan
…..WANT Ag. MD, BOARD OUT OVER MANAGEMENT STYLE
Sources close to the nation’s premier insurance company the SIC Insurance Company; say workers are threatening to embark on a strike action in protest against what they describe as bad management style, which is affecting the fortunes of the company.
The source revealed that the workers are calling for the board of directors to be dissolved and a substantive managing director appointed immediately. Information indicates that workers’ morale has been at its lowest ebb since the company was incorporated in February 1962 by Executive Instrument, E.I No.17 as a State Insurance Corporation, which was passed under the Statutory Corporation Act, 1962 (Act 232) because of developments greatly affecting the fortunes of the company.
According to them, the board of directors by way of meetings’ allowances are enriching themselves with over 14 meetings alone in the first quarter of the year plus numerous sub- committee meetings with all of them drawing about twenty million old cedis each per sitting.
The workers averred that the board under the chairmanship of Mr. Max Cobbina is wasting scare resources needed to fulfil pressing commitments like claims payments leading to drop in share price.
According to them, the poor management style of the company has been detrimental to the extent that it has resulted in its share prices dropping from 34 to 28 pesewas per share
Dissatisfied and saddened by the turn of events, some experienced top level management personnel have either resigned or gone on voluntarily retrenchment. Some key personnel who have done so include the general manager of technical operations, head of medical services, head of corporate planning, head of risk management dept., head of retail relations dept., head of non-motor claims, head of motor claims and deputy head of retail relations among others.
The source alleged that the company’s properties in prime areas are being sold indiscriminately.
SIC Insurance Company Limited is one of the oldest non-life (general business) insurance companies in Ghana. It was incorporated in February 1962 by Executive Instrument (E.I) No.17, as State Insurance Corporation which was passed under the Statutory Corporation Act, 1962 (Act 232). It was established as a corporate body by L.I. 424 of 1964 with an initial paid-up capital of GH¢1 million. On August 28, 1995, the Corporation was converted into a Public Limited Liability Company and renamed State Insurance Company of Ghana Limited. It was re-registered under the Companies Code, 1963 (Act 179) and currently has a paid up capital of GH¢25 million.