Business News of Monday, 9 February 2015
Workers of SIC Insurance Company Limited say the company will fold up in the event a court rules that it pays Ghc91 million to Ivory Finance Limited.
According to them, over 500 workers and 600 intermediaries will become jobless if the company folds up.
Executives of the various workers’ groups in the company known as Identifiable Groups, led by Michael D. Biney, Secretary of SIC Professional & Managerial Staff Union, made this know when they called on the Commissioner of Insurance, Ms Lydia Lariba Bawa.
SIC Insurance Company Limited issued a Credit Guarantee insurance bond of Ghc19.3 million in 2013 to ITALCONSTRUCT International Limited to access a loan from Ivory Finance Limited.
ITALCONSTRUCT International Limited defaulted on the loan repayment and Ivory Finance Limited is now claiming the outstanding loan of Ghc19.3 million to be in excess of Ghc91 million.
As a result of this situation, Ivory Finance Limited is demanding that SIC Insurance Company Limited pays the full amount, but the company is unable to honour.
According to the leaders of the workers, how a bond value of Ghc19.3 million issued in 2013 for six months insurance period translated into the alleged Ghc91 million as at 2014 “seems to be a mystery” that needs serious investigation.
The workers’ leaders explained that the case is in court and if there is no intervention, and should the court rule that SIC pay the money, SIC will become insolvent.
Members of the Identifiable Groups, therefore, pleaded with the Commissioner of Insurance to urgently intervene to save SIC, as the Commission in previous years has saved other insurance companies from similar challenges.
They appealed to the Commissioner to protect the insurance company and to save its over 500 workers and 600 intermediaries and their families from the unpleasant situation.
They also requested that the Commission takes a holistic review of the Credit Guarantee Bond situation.
In her reaction, the Commissioner, Ms Lydia Lariba Bawa said she will do her possible best as the law permits her to resolve unpleasant situation.
She revealed that the Commission and stakeholders in the industry are working hard to find an amicable settlement to the predicament.
Executives of the identifiable Groups were made up of SIC Managers’ Association, SIC Professional Managerial Staff Union (PMSU), SIC Senior Staff Association (SSA) and Local Union.