The National Insurance Corporation, the fourth largest insurer in the country, is at risk of losing its business licence for failing to submit its audited accounts to the Uganda Insurance Commission, officials said yesterday.
Mr Ibrahim Kaddunabi Lubega, the chief executive officer of the commission said
“The law is very clear. We can suspend them from insurance, we can revoke their licence and we can fine them. We will have to sit and agree,”
Mr Sam Njoroge, NIC’s chief executive officer, said the company will submit the accounts within the set deadline. “All those deadlines will be met,” he said in an interview yesterday.
Mr Lubega was speaking in the aftermath of the suspension of trading of NIC’s shares by the Uganda Securities Exchange (USE) last Friday. The Exchange or stock market is where shares of listed companies such as DFCU Limited and Stanbic Bank Uganda are sold.
The USE management had given NIC until July 14 to publish its results but the insurer failed to meet the deadline. The management then suspended the trading of shares on the NIC counter until it publishes its audited accounts according to a notice issued by Mr Joseph Kitamirike, the chief executive officer of the USE, on Friday. Under the Insurance Act, NIC must seek the prior approval of its audited accounts by the Commission before they are published.
Ms Josephine Aguma, the spokesperson of NIC, last week said the company was finalising its audited results in line with the decision reached during a meeting with the commission on June 30. “The finalised audited financial statements will be submitted to the UIC and following UIC’s approval, will be submitted to Uganda Securities Exchange for direction before publication,” Ms Aguma said.
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