SIC to fold up over GHS 91m debt?

Workers of SIC Insurance Com­pany Limited say the company will fold up in the event a court rules that it pays GHS 91 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 GHS 19.3 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 GHS 19.3 million to be in excess of GHS 91 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 GHS 19.3 million issued in 2013 for six months in­surance period translated into the alleged GHS 91 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.

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