Directline gives insurance regulator 24-hour ultimatum to remove 'illegal' directors
Directline had written to the IRA listing the directors including SK Macharia's wife as a shareholder.
Directline Assurance Company has given the Insurance Regulatory Authority (IRA) Chief Executive Officer (CEO) Godfrey Kiptum 24 hours to remove four individuals "fraudulently" appointed as directors of the firm and holding such offices "illegally".
The firm has directed Kiptum, who is the Commissioner of Insurance, to effect changes agreed upon during a meeting held over the issue on December 6, in which he was present.
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In the letter by lawyer Danstan Omari, Directline accuses Kiptum of consistently using his position to interfere with and commingle in the leadership of the company. Omari wrote the letter on instructions of businessman Samuel Kamau alias SK Macharia.
In the letter, he reminds Kiptum that he promised to rectify the directors' names in the company's CR12 and include the names submitted and approved by the company's shareholders.
CR12 is the document at the Registrar of Companies that identifies owners and directors of a registered company. The document was allegedly altered to replace four directors appointed by the shareholders of the company.
Embezzlement of funds
Omari now says the company's finances and remissions being made by the shareholders are left in limbo and unaccounted for, a move understood to further misappropriate and facilitate the embezzlement of funds from the company.
Directline had written to the IRA listing the directors including SK Macharia's wife as a shareholder.
"However, you proceeded to appoint a fifth audit team to do the same job that four audit teams before it had done, at the expense of Directline Assurance Company Limited and in blatant abuse of your mandate and prerogative as the Commissioner of Insurance and CEO," states Omari in the letter.
"Vide a letter by Sammy Kanyi, the acting principal officer dated December 6, 2024, you crafted a means of kicking out four of the six directors at the helm of Directline Assurance Company Limited, 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 the fraudulent diversion of payments and remission to the company."
Omari says Kiptum used his position to oversee the doctoring of the findings of audit results to put in place illegitimate directors at the helm of Directline Assurance Company.
He also says that Kiptum was given the list of those appointed as directors by the shareholders during the meeting which upheld that the four directors were not properly appointed.
"The findings by the IRA establishing fraudulent acquisition of shares by the four directors appointed on October 4, 2024 by AKM and Janus was not legally acted upon, despite being a glaring criminality. This move, thus, 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 lawyer says this is happening because of a letter sacking the four legitimately appointed directors.
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