Directline Assurance owner SK Macharia has issued a 24-hour ultimatum to the Insurance Regulatory Authority (IRA) demanding the removal of four company shareholders from the CR12.
In a letter directed to the IRA’s Chief Manager Godfrey Kiptum, SK Macharia’s lawyer Danstan Omari warned that failure to remove the names of the four shareholders from the document could attract legal action.
Omari, while addressing the press outside the court in Nairobi, accused the IRA chief manager of allegedly aiding the four accused persons embezzling the company funds that resulted in the firm’s huge loss.
According to the lawyer, the alleged mismanagement by the four suspended shareholders resulted in a Ksh7 billion financial loss by the company.
Lawyer Danstan Omari at the Milimani Law Courts.
Danstan Omari
Omari further claimed that despite initial calls by SK Macharia for the revocation of the CR12, Godfrey Kiptum was yet to take any action.
“What we have done to Kiptum is to write to him in the following terms, one, Mr Kiptum held an informal meeting with SK Machari and govt operatives and it was agreed that CR12 be rectified,” Omari said.
“This was a decision that was also conveyed to Treasury Cabinet Secretary John Mbadi and other relevant government officials,” he added.
The lawyer maintained that the company, which controls up to 65 per cent of Public Service Vehicles (PSVs) in the country, legally belongs to the Royal Media Services (RMS) boss.
While issuing the ultimatum, SK Macharia called on the Treasury CS John Mbadi and Principal Secretary Chris Kiptoo to intervene and stop control of the company assets from the said shareholders.
In September this year, SK Macharia moved to court to stop the takeover of the company by people who the RMS boss claimed wanted to own the company forcefully without requisite approval.
Represented by his lawyer, Danstan Omari, Macharia alleged that the company ownership had been transferred to people who were not the original investors of the insurance firm.
Macharia’s lawyer alleged that the fraudulent owners reportedly used the company’s looted funds to purchase luxurious cars and houses in Garden City.
Treasury CS John Mbadi during a consultative discussion with representatives from the National Gender and Equality Commission on December 5, 2024.
National Treasury