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{
"id": 1121611,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1121611/?format=api",
"text_counter": 27,
"type": "speech",
"speaker_name": "Tharaka, DP",
"speaker_title": "Hon. George Gitonga",
"speaker": {
"id": 13491,
"legal_name": "George Gitonga Murugara",
"slug": "george-gitonga-murugara"
},
"content": " Thank you, Hon. Deputy Speaker. Allow me, on behalf of Hon. Muriuki Njagagua, Member of Parliament for Mbeere Constituency, to present this Petition. It is a Petition regarding interferences in the matter of revival of the United Insurance Company Limited. I, the undersigned, on behalf of concerned shareholders, policyholders and employees of the United Insurance Company Limited and statutory management, draw the attention of the House to the following: THAT, United Insurance Company Limited (UIC) was incorporated on 28th April 1983 as an insurer to carry out all type of insurance business, which business the company undertook until 2004 when its fortunes dwindled; THAT, in 2005, the Commissioner for Insurance put the company under statutory management and appointed Kenya Reinsurance Corporation (Kenya Re) as a statutory manager to facilitate the company’s winding up; THAT, following an audit of UIC, Kenya Re recommended its liquidation on account that the company was insolvent with an approximate value of Kshs1.2 billion in debt and unsettled claims which it was incapable of settling; THAT, shareholders disputed the findings by Kenya Re which they accused of being conflicted and subjective because Kenya Re owed UIC about Kshs160 million; THAT, subsequent to the shareholder’s complaint, the court ordered an independent audit and Deloitte Kenya was appointed to conduct the audit; THAT, contrary to the findings by Kenya Re, the audit by Deloitte established that UIC was indeed solvent by approximately Kshs1.3 billion and, hence, it could be revived; THAT, following the High Court’s nullification of Kenya Re’s statutory management, the Commissioner for Insurance appointed Mr. Evanson Munene Waruhiu as the new statutory manager in 2014; THAT, a subsequent audit conducted by the new statutory manager re-affirmed the findings of Deloitte that UIC was solvent as it was not necessary to liquidate it as previously recommended by Kenya Re; THAT, on the strength of the positive audit returns by Deloitte and Mr. Evanson Munene Waruhiu, the company’s shareholders and the statutory manager agreed on a joint settlement proposal on statutory management to the effect that the company was capable of being revived and its liquidity enhanced through careful partial disposal of its assets; THAT, a roadmap for reviving the company was developed through a joint proposal on revival strategy for UIC, which was adopted in court and a settlement committee consisting of the receiver manager and the representatives of claimants, service providers, staff and shareholders; THAT, in January 2021 the Solicitor-General having noted that the company could be revived, advised that the Insurance Regulatory Authority (IRA) facilitates the claims settlement committee to execute its functions as ordered by the court on 8th March 2018; THAT, in total disregard of the revival strategy recommendations by successive statutory managers that the company can be revived, the advisory by the Solicitor-General and the court orders, the IRA has been persistently pursuing the winding up course to liquidate the company; THAT, in unclear circumstances perceived as frustration of justice on three occasions, three judges to whom relief had been sought have recused themselves at very critical stages of the case, in some instances barely six days to the judgement day; The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}