Seven current and former directors at Invesco Assurance and Compliant Insurance were yesterday arraigned at the Milimani law courts over alleged insurance fraud that resulted in a Ksh 309 million loss.
Albert Karakacha Muhavani (former director of Invesco), Daniel Wekesa Nyalyanya (former CFO of Invesco), Michael Ngángá Kibara (former accountant of Invesco), Ruth Wangari Mwasalu, Antony Githinji Ngerere, Hildah Wambui Karanja, and Lameck Gisore Ongere (all directors of Compliant Insurance Agency) face multiple charges stemming from months-long investigations led by the Directorate of Criminal Investigations (DCI).
In a statement, the DCI said that the seven have been under the radar of the DCI Insurance Fraud Investigation Unit since September last year after they got a tip off from the Insurance Regulatory Authority (IRA).
The investigation by the DCI unit was triggered after the Policyholders Compensation Fund (PCF), which had taken over the management of Invesco Assurance under statutory management, unearthed a hidden bank account held at M Oriental Bank’s Sameer Business Park branch.
Details indicated that the account was registered under Compliant Insurance Agency, had been opened on May of last year and was allegedly being used to divert funds from Invesco.
The sleuths revealed that premium collections from Invesco’s 27 branches nationwide were funneled into this undisclosed account.
Between May and August 2024, detectives say the accused siphoned approximately Sh309 million into their individual Mpesa accounts.
After compiling witness statements and documentary evidence, the DCI submitted a case file to the Office of the Director of Public Prosecutions (ODPP), who approved the charges leading to their arraignment yesterday.
The seven now face charges of Insurance Fraud contrary to Section 204B(2) as read with Section 204B(5) of the Insurance Act.
Additionally, the four directors from Compliant Insurance Agency, Mwasalu, Ngerere, Karanja, and Ongere have been charged with Stealing by Directors, in violation of Section 282 of the Penal Code
