Ownership row of Directline Assurance Company Limited escalate
The Chairman of Royal Media Services Dr. SK Macharia has written a letter to the Commissioner of Insurance and Chief Executive Officer, Insurance Regulatory Authority (IRA) Godfrey Kiptum for refusal to rectify directorship of Directline Assurance Company Limited.
Through his lawyers Danstan Omari and Shadrack Wambui, Macharia accused Kiptum of failure to rectify the directors name in the company’s CR 12 and include the names submitted to him by Macharia.
According to the lawyers during a press conference at Milimani law court, the two had agreed that the names submitted were as nominated and approved by other shareholders in the company.
However, Kiptum proceeded to appoint a fifth audit team to do the same job that four audit teams before to it had done at the expense of the Directline Assurance Company Limited.
He is being accused of abusing his mandate and prerogative as the commissioner of insurance and Chief Executive Officer.
In the letter dated December 17, 2024, they are accusing him for “consistently and unabashedly useing his position to interfere with the leadership of Directline Assurance Company Limited.”
The findings by Insurance Regulatory Authority had established a fraudulent acquisition of shares by the four directors who were appointed on October 4, 2024.
The move locked out Royal credit, a major shareholder in the company from proposing for appointment its share of directors to the management of the company.
The sacking of the four directors who were legitimately appointed, the company’s finances and remissions made by stakeholders thereto are hereby left at risk and unaccounted for, a move understood to further misappropriate and facilitate the embezzlement of funds from the company.
The company’s shareholding table shows the legitimate directors and shareholders of the company and it specifically outlines the allocation of shares including the wife to Macharia who is also a shareholder.
Kiptum is accused of crafting a means of kicking out four of the six directors at the helm of the company with the aim of replacing them with other rogue directors, in furtherance of an ill-informed motive to strip the company of its assets through fraudulent diversion of payments and remission to the company.
Macharia claims that no merit audit will be undertaken that the four of the legitimately appointed directors were fraudulently and hastily hurled out of the office without justification cause.
