Royal Media Services owner S.K Macharia has written to the Insurance Regulatory Authority CEO Godfrey Kiptum over failure to rectify the directorship of Directline Assurance Limited.
Through lawyer Danstan Omari and Shadrack Wambui, the tycoon wrote a demand to the CEO on 17th December 2024 threatening legal action for failing to rectify the company’s directorship in the CR12.
Macharia accused Kiptum of using his position to interfere with the management of Directline Assurance.
“You have consistently and unabashedly used your position to interfere with and commingle in the leadership and management of our client’s company, Directline Assurance Company Limited,” Omari stated.
It is alleged that the interference results from an informal meeting requested by their client (Macharia), whose details are well within Kiptum’s knowledge given that he was present at the said meeting and promised to rectify the directors’ names in the Company’s CR12, and include the names submitted to him by Macharia and as nominated and approved by other shareholders in the company.
However, Kiptum proceeded to appoint a fifth audit team to do the same job that four audit teams prior to it had done, at the expense of Directline Assurance Company Limited, and in blatant abuse of his mandate and prerogative as the Commissioner of Insurance & Chief Executive Officer.
According to the letter, the findings by the Insurance Regulatory Authority establishing fraudulent acquisition of shares by the four directors appointed on 4th October 2024 by AKM and Janus was not legally acted upon, despite being a glaring criminality.
“This move, thus, locked out Royal Credit, a major shareholder in the company, from proposing for appointment, its share of directors to the management of the company. By the letter sacking the four legitimately appointed directors, the company’s finances and remissions being made by the stakeholders thereto are hereby left at a limbo and unaccounted for, a move understood to further misappropriate and facilitate the embezzlement of funds from the company,” Omari added.
He added, “Our instructions are that notwithstanding the numerous audits in light of establishing who the legitimate directors and shareholders of Directline Assurance Company Limited are, you, by dint of your position as the Commissioner of Insurance and & Chief Executive Officer, averted and saw into the doctoring of the findings of the audit reports, with the aim to put in place illegitimate directors at the helm of Directline Assurance.”
It is further stated that vide a letter by Sammy Kanyi, the Acting Principal Officer dated 6th December 2024, Kiptum crafted a means of kicking out four of the six directors at the helm of Directline Assurance Company Limited, with the aim of replacing them with other rogue directors, in furtherance of an ill-informed motive to strip the company of its assets through fraudulent diversion of payments and remission to the company.
The businessman questions what merit the audit Kiptum intended to undertake will have, if any, given that four of the of the legitimately appointed directors were fraudulently and hastily hurled out of the office without justifiable cause.
