Africa Merchant Assurance Company (Amaco), which is associated with Deputy President William Ruto, risks closing its doors after a petitioner filed a fresh attempt for its liquidation which is set to be heard on April 17.
In a Gazette notice no 1929 released on March 9, the petitioner Bernard Kihiu Magothe filed filed a liquidation petition and invited others to join against the underwriter to be heard on April 17, 2020.
“The petition for the liquidation of the above mentioned company by the High Court was on March 2, 2020, presented to the said court by Bernard Kihiu Magothe, is directed to be heard by the High Court sitting in Nairobi on the April 17, 2020,” the notice read in part.
This comes barely two months after a similar attempt was withdrawn in which petitioners, Beth Wairimu Kahara and six others sought to have the company liquidated on accusations of failing to settle claims. The first petitioner, Beth Kihara, later withdrew the case to shut down the insurance company days before the January 30 hearing.
The petition filed by Bernard Magothe, through Njoroge Baiya & Company Advocates, is a fresh attempt to initiate the AMACOs liquidation process. The lawyer reiterated that a copy of the petition will be furnished by the petitioners’ advocates to any creditor of Amaco at a fee.
According to the Insurance Regulatory Authority’s (IRA) 2019 report, Amaco closed the year with several clients complaining over non settlement of their claims.
In the last Financial year, Amaco realised a Sh75 million after-tax profit mainly boosted by lower operating costs with liabilities decreasing 17 per cent to stand at Sh1.8 billion compared to Sh2.1 billion the previous year.
Despite Amaco collecting over Ksh2.1 billion in terms of customer premiums last year, which is enough to pay claims, the company fell into financial troubles that saw it delay in settling claims, pushing some creditors to use auctioneers to press for payments in mid-2019.
Mama Rael Medical Clinic raided Amaco offices over a Ksh15 million debt, and carried furniture from the offices. It is not yet clear how the case ended.
Speaking at an event set to honour fallen police officers, Interior CS Dr Fred Matiangi threatened to cancel government tenders given to insurance companies that don’t deliver as mandated by the National Police.
“In consultation with the AG, we will cancel contracts of underperforming insurance companies. We shall only deal with firms and services providers who value the work we do. Widows and widowers of police officers who have died in the line of duty will no longer be denied services they deserve,” said CS Matiang’i.
And as promised DP Ruto’s AMACO, a insurer of the National Police was caught up in the blander, AMACO allegedly failed to pay widows and orphans of police officers who lost their lives in the line of duty as contracted. AMACO insurance has not only been on the wrong side over the deal with the National Police but also a fishy tender they won with Nairobi County Government as well.