An insurance company associated with Deputy President William Ruto is on the spot over allegations of hiding assets to evade auction by an NGO, which is claiming an unpaid debt of Sh19 million in a court dispute that has now entangled a commercial bank.
The NGO, Mama Rael Memorial Foundation, says the insurer — Africa Merchant Assurance Company (Amaco) — has concealed both assets and money in bank accounts.
The two are embroiled in a court dispute that has also entangled a commercial bank, Access Bank (formerly known as Transnational Bank Kenya Plc), which has been accused of aiding the insurer to conceal the actual bank balances.
The High Court will rule on the matter on August 1, 2022.
The healthcare organisation claims that Amaco and the bank submitted contradictory statements in court during proceedings of a protracted legal dispute that involves the settlement of the debt.
Court papers indicate that one statement showed the accounts had a balance of Sh44.2 million and another indicated the balance was nil.
The NGO has written to the Commissioner of Insurance and the Insurance Regulatory Authority complaining that Amaco’s move has made it difficult to execute a court order dated January 31, 2022, which allowed it to demand the money.
“Amaco failed to pay our client, contrary to the court judgment, provisions of the Insurance Act and Regulations. The directors and officials of Amaco have unlawfully concealed their assets and proceeds in bank accounts, thus making it difficult to execute against it,” says the NGO in the letter.
In court, the NGO is seeking orders allowing it to attach bank accounts of the insurer so as to recover the debt.
In addition, the organisation wants the court to summon the chief executive officer of Access Bank PLC, Herbert Wigwe, to confirm the accounts and the available cash.
It also wants Mr Wigwe to confirm the authenticity and details of the statement tendered in court by Amaco and declare details of any other account the lender has with the insurer.
Court papers indicate that on December 7, 2021, the High Court directed the bank to show cause why an order should not be made upon it for the payment of the amount of debt owed by Amaco to the NGO.
