PRESS RELEASE

GOVERNMENT’S POSITION ON THE STATE INSURANCE COMPANY (SIC)

The Ministry of Finance and Economic Planning, has followed the recent media debate on the operations of the State Insurance Company (SIC) and wishes to clarify certain issues.

When the shares of SIC were floated, a nine (9) Member Board was constituted with the authority of the National Insurance Commission (NIC). These comprised the three (3) executives (Managing Director and his two deputies) and six others.

As 40% shareholder, government occupied 2 positions on the Board, while the other shareholders numbering 13,000 private individuals and public institutions including Social Security and National Insurance Trust (SSNIT) had four (4) positions.

Government on May 19th, 2009 appointed two nominees to replace the two who had earlier resigned from the Board.

It is the position of government that certain pertinent issues must be looked at after the AGM.

These include the public shareholding position of government and other agencies such as the Social Security and National Insurance Trust (SSNIT) and Ghana Reinsurance Company.

Cumulatively, government and these agencies have over 60% shares in SIC. Given this situation, the ministry intends to seek a rationalization of the current Board representation to better reflect the blocks of shares held by government and the agencies as well as private companies and individuals. This is to be done at an extraordinary AGM to be announced shortly.

The Minister of Finance and Economic Planning, Dr Kwabena Duffuor on behalf of the government has initiated moves to resolve some other governance issues pertaining to the company, that have recently been mentioned in the media, and about which the public will be informed in due course.

Government is committed to the continued protection of the interests of all shareholders within the framework of the laws of Ghana and in particular the rules and regulations of the Ghana Stock Exchange (GSE).

Nana Juaben-Boaten Siriboe Chief Director, MOFEP
FOR: MINISTER
THE NEWS EDITOR