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Troubled Fidelity Life suspends executives

Fidelity Life Assurance Company of Zimbabwe has sent managing director Simon Chapereka and finance director Gersham Mushoma on leave to facilitate investigations into alleged corporate governance malpractices.

BY OUR STAFF

KPMG Chartered Accountants Zimbabwe have been appointed by insurance and pensions regulator, the Insurance and Pensions Commission (Ipec) to conduct a forensic audit in terms of Section 67(2) of the Insurance Act Chapter 24:07, Fidelity board chairman Gregory Mataka said on Friday.

He said the audit was intended to clarify issues relating to business operations, and allegations of corporate governance malpractices at the company.

Mataka said following the training on corporate governance in May 2015, Fidelity embarked on a review of the company’s policies and procedures and internal processes to align them with best practice.

“While these internal processes were ongoing, Ipec requested an on-site examination,” Mataka said.

He said Chapereka and Mushoma would be on leave during the tenure of the audit. Mataka said the board had appointed Nyaradzo Matindike as the acting MD during that period.

In its financial results for the year ended December 31 2015, Fidelity Life recorded a 36% growth in revenue to $52,1 million, mainly driven by insurance premiums, sale of residential stands and interest income.

In 2014 revenue was $ 38,3 million, premium income grew by 3% to $16,6 million from $16,1 million in 2014 and the group realised a total of $27,5 million from the sale of stands which grew by 51% from $18,2 million in 2014.

In the period under review, gross written premiums were up to $17, 2 million for the year ended December 2015 from $16,5 million, while net premiums earnings grew by 3% to $16,6 million from $16,1 million in 2014.

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