Osei Kwame Despite, a prominent Ghanaian businessman, has refuted allegations of acquiring state-owned properties belonging to the State Insurance Company (SIC). These properties were reportedly sold under questionable circumstances by SIC management. This denial follows SIC management and board’s disregard for a court injunction obtained by a shareholder, Daniel Ofori, aimed at preventing the election and ratification of Dr. Rauf Audu as Board Chairman and Hollister Duah-Yentumi as Acting Managing Director at the company’s 2024 Annual General Meeting (AGM). The sale of the properties, along with controversial appointments and promotions within SIC, are cited as key reasons for defying the court order, despite an existing agreement between the John Mahama and Akufo-Addo transition teams.
Daniel Ofori, the third-largest individual shareholder of SIC, challenged a board decision declaring him ineligible for re-election, a decision he argues contradicts regulations set by the National Insurance Commission (NIC). Despite, through his son Kennedy Asante Osei, clarified that he declined an offer to purchase the SIC properties, primarily due to his aversion to acquiring state assets. The properties in question, advertised in the Daily Graphic newspaper, included residential and commercial properties in Kumasi and Accra, offered for outright sale or joint venture arrangements. Despite’s refusal, according to his son, aligns with his general practice of declining offers for state-owned assets, preferring to avoid politically charged transactions.
Kennedy Osei emphasized his father’s disinterest in state properties, highlighting that the offer was made around the same time SSNIT offered to sell its stake in six hotels to Bryan Acheampong, an action that prompted an investigation by CHRAJ. He reiterated that Despite does not engage in such transactions, either directly or by proxy, and that all his assets are clearly and legitimately owned. The SIC properties were advertised for sale by KOA CONSULT, a company registered in the name of Kafui Agbosu. Despite receiving the offer through an agent, the businessman declined, reinforcing his stance on avoiding such acquisitions.
Despite the court injunction, the SIC AGM proceeded, ratifying the appointments of Dr. Audu and Ms. Duah-Yentumi. However, the legitimacy of these appointments has been questioned due to concerns about their qualifications and lack of approval from the NIC, the insurance industry regulator. Ms. Duah-Yentumi’s appointment by the Akufo-Addo government earlier this year lacked both shareholder ratification and approval from the Securities & Exchange Commission, contingent upon NIC approval. Her subsequent internal reshuffling within SIC has reportedly led to further internal discord, contributing to the overall instability within the company.
The internal turmoil within SIC extends beyond the leadership appointments. Allegations include strategically targeted transfers, unwarranted promotions, and direct interference in specialized areas, causing widespread unrest among staff members. There are calls for legal action to overturn the board resolution through another AGM, aiming to restore stability and address the concerns raised by shareholders like Daniel Ofori. The controversial sale of SIC assets, including executive residences in Kumasi and even a property in London, adds another layer of complexity to the ongoing issues.
The situation at SIC underscores the importance of transparent governance and adherence to regulatory frameworks within state-owned enterprises. The disregard for a court injunction, the questionable appointments, and the disposal of assets raise serious concerns about the company’s future. The actions of the management and board, along with the broader context of political influence, necessitate a thorough investigation to address these issues and ensure the long-term stability and viability of SIC. The refusal of Osei Kwame Despite to engage in the purchase of the SIC properties further highlights his commitment to ethical business practices and his desire to avoid entanglement in potentially controversial dealings involving state-owned assets.
