Seven directors and former directors at Invesco Assurance Company Limited and Compliant Insurance Agency, who have been under investigation for suspected insurance fraud, have been arraigned at the Chief Magistrate’s court, Milimani.
The seven include; Albert Karakacha Muhavani, Daniel Wekesa Nyalyanya, Michael Ngángá Kibara, Ruth Wangari Mwasalu, Antony Githinji Ngerere, Hildah Wambui Karanja and Lameck Gisore Ongere.
The suspects were arrested and charged following meticulous investigations conducted by DCI’s Insurance Fraud Investigation Unit, which commenced on September, 2024 when officials at the Insurance Regulatory Authority discovered a broad fraudulent scheme implicating them.
“Through a letter to the investigators by Policyholders Compensation Fund (PCF), ARA stated that in the course of taking over assets of Invesco Assurance Company Limited (under statutory management), they uncovered that the insurer was using a secret bank account registered in the name of Compliant Insurance Agency domiciled at M Oriental Bank (Sameer Business Park Branch) opened on 1st May, 2024, with signatories to the said account being top management of Invesco Assurance Company Limited,” DCI stated.
According to DCI, all the collections of insurance premiums from 27 branches across the country were being remitted into the said bank account.
Detectives launched investigations, and statements were recorded from relevant witnesses, and all relevant documents were collected.
The evidence pieced together revealed that the then top management of Invesco Assurance Company Limited (Directors, Chief Finance Officer and an Accountant), between 1st May, 2024 and 15th August, 2024, siphoned a total of Ksh 309 million through their respective Mpesa accounts from the said account.
A case file accompanied by all the evidence was forwarded to the Office of the Director of Public Prosecution (ODPP), who on perusal advised that the seven be charged with the offence of Insurance Fraud Contrary to Section 204B(2) as read with Section 204B(5) of the Insurance Act.
Additionally, accused number four (4) to seven (7) were to face another charge of Stealing by Directors contrary to Section 282 of the Penal Code.
