Former Invesco Assurance executives sued over Sh309M fraud
Seven directors and former directors at Invesco Assurance Company Limited and Compliant Insurance Agency who have been under investigation for suspected insurance fraud have today been arraigned at the Chief Magistrate's court, Milimani, says DCI.
Seven senior officials and former executives of Invesco Assurance Company Limited and Compliant Insurance Agency have been charged with orchestrating a fraud scheme of up to KES309 million in client premiums.
In a statement on Wednesday, May 21, the Directorate of Criminal Investigations (DCI) said the accused were arraigned at Milimani law courts following months of investigations that was carried out by the Insurance Fraud Investigation Unit at the DCI.
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The seven include Albert Karakacha Muhavani, former Director, Invesco Assurance Company Limited; Daniel Wekesa Nyalyanya, former Chief Finance Officer, Invesco Assurance Company Limited; Michael Ngángá Kibara, former Accountant, Invesco Assurance Company Limited, and Ruth Wangari Mwasalu, director, Compliant Insurance Agency.
Others are Antony Githinji Ngerere, director, Compliant Insurance Agency; Hildah Wambui Karanja, director, Compliant Insurance Agency, and Lameck Gisore Ongere, director, Compliant Insurance Agency.
"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 KES309 million through their respective M-PESA accounts," reads part of the statement from the DCI.
The Policyholders Compensation Fund (PCF), while taking over the company’s assets under statutory management, discovered the existence of a secret bank account. It was established that all insurance premiums collected from 27 Invesco branches across the country were channeled into the secret account.
“Through a letter to the investigators by Policyholders Compensation Fund (PCF), IRA 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,” the DCI statement added.
According to the DCI office, investigations started in September 2024 when officials at the Insurance Regulatory Authority (IRA) discovered a broad fraudulent scheme implicating the suspects.
The Office of the Director of Public Prosecutions (ODPP) preferred several charges including insurance fraud, after reviewing the investigation file.
PCF was granted approval to continue to serve as the Statutory Manager during the period, ensuring that regulatory and operational matters are addressed as required by law.
“The Public is hereby notified that the Commissioner of Insurance, in exercise of his powers under Section 67C (2) of the Insurance Act, Cap 487, has extended the Statutory Management period for Invesco Assurance Company Limited for a further six (6) months, effective from 14th February 2025,” reads the notice in part.
