DPP wants police to finalise fraud investigation against insurance boss
What you need to know:
Mr Justice Charles Kariuki allowed Mr Makove to file the proceedings after the IRA board resolved on April 18 to have Blueshield Insurance wound up.
Part of the duties of the statutory manager included collection of rent from tenants at Blue Shield Towers, which is one of the assets of the insurance firm.
The Director of Public Prosecutions (DPP) has requested the police to conclude investigations into alleged fraud which an insurance firm has raised against Sammy Makove, the Insurance Regulatory Authority (IRA) chief executive.
Blue Shield Insurance Company Ltd, which is currently under statutory management, has accused Mr Makove of failing to account for over Sh400 million rent collected from a building owned by the insurer.
In a letter addressed to the Director of Criminal Investigations dated yesterday, the DPP said that the allegations made by Blue Shield Insurance Company Ltd, through Apollo and Company Advocates, against Mr Makove are serious and call for thorough investigations.
“We request you to urgently conclude the investigations and forward the file for our perusal and further directions,” said Mrs Dorcas Oduor, deputy DPP, in the letter to the Director of Criminal Investigations.
The request for thorough investigations comes at a time when the court last month allowed Mr Makove to commence winding up proceedings of Blueshield Insurance within two months after its shareholders failed to deposit Sh600 million to revive it.
Mr Justice Charles Kariuki allowed Mr Makove to file the proceedings after the IRA board resolved on April 18 to have Blueshield Insurance wound up.
Apollo and Company Advocates said the shareholders were of the view that prolonging the statutory management period of BlueShield Insurance Company Ltd from September 2011 to date had facilitated the alleged misappropriation of the rental income.
Further, that upon learning he is a suspect in the ongoing investigations, Mr Makove had caused a hurried resolution to be made for the winding up of the insurer in an attempt to frustrate the investigations.
BlueShield was placed under statutory management on September 16, 2011, by the Commissioner of Insurance and a statutory manager appointed.
Collection of rent
Part of the duties of the statutory manager included collection of rent from tenants at Blue Shield Towers, which is one of the assets of the insurance firm.
“The shareholders on several occasions requested Mr Makove and Mr John Michael Sifa Keah (Statutory Manager) to account for the rent collected estimated to be over Sh400 million without success,” said Apollo and Company Advocates.
The failure to account necessitated the shareholders to make a report to the Directorate of Criminal Investigations on February 2, 2016, to investigate the misappropriation of the said rental income.
