Business Reporter

A FORENSIC audit into Fidelity Life Assurance’s financials been completed, group chairman Mr Fungai Ruwende has said. Speaking to the Herald Business on the sidelines of the group’s annual general meeting in Harare yesterday, Mr Ruwende said the board was scheduled to meet yesterday to deliberate on the findings prior to reporting to the regulator – the Insurance and Pensions Commission. The investigation was instituted in April.“With regards to the forensic audit, we now have the preliminary report and the board will deliberate on it. Results will be given out to stakeholders

“We cannot publish it yet but we have a board meeting today (yesterday), we will have to go back to IPEC and only then can we issue a statement,” he said.

In April, this year, former managing director Mr Simon Chapereka together with finance director Mr German Mushoma were suspended to pave way for the forensic audit, which was instigated by the IPEC.

The duo was being investigated for alleged embezzlement and fraud.

Last year, internal investigations at the insurance group exposed misappropriation of funds and a string of fradulent activities allegedly orchestrated by Mr Chapereka and Mr Mushoma. Although Mr Ruwende could not shed more light on the audit, it is believed the investigations also covered non performing loans that were given to senior management.

Meanwhile, Fidelity, which expects the release of its financial results within the next few weeks, says it has maintained 2015 levels of profitability in the seven months to July but lamented the prevailing economic challenges as they have affected business.

The economy has been battling cash constraints, declining industry capacity, depressed equities market and retrenchments as companies downsize operations.

“The liquidity crisis has affected uptake of products while the bearish market results in declines in return in equity on investment.

“Retrenchment by some of our corporate clients has to some extend resulted in increase in claims payments during that period,” said Mr Ruwende.

The group’s profitability was also affected by financing costs arising from debts assumed in 2015 although the life assurance and medical aid units recorded strong performance.

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey