An investigation into the continued use of a valuation company which may have led to Christchurch City Council's assets being woefully underinsured has been put on the back burner.
A report into why the city council continued to use valuers Good Earth Matters despite a damning review by Audit New Zealand in 2008 was ordered in September.
But city council staff told The Star the report had not been completed.
A spokeswoman said: "The new council has other priorities they are focusing on''.
Councillor Yani Johanson, who highlighted the the Audit New Zealand 2008 report, said he was unaware of the development until told by The Star this week.
"It is an important piece of work. Just because there is now a new council it does not mean work from the previous city council is stopped.''
Many of the city's assets have been underinsured, including the Sumner Community Centre, which was only insured for $1.4 million when it was estimated to cost $10.3 million to repair.
The 2008 Audit New Zealand report said Good Earth Matters did a "poor job'' and said they had a numbers of areas of concerns associated with the valuation completed by the company.
It highlighted an example that stormwater and artwork valuations were incomplete and did not include $9.2 million of council's addition since a previous valuation.
The city council's finance committee chairman, Raf Manji, said the city council's investigation into why staff continued to use Good Earth Matters was not urgent.
But he would likely give it more consideration before the city council's insurance policy coming up for annual review July 1.
Source Otago Daily Times
Tuesday, 28 January 2014
Ghanaian Multi-National Group Of Companies To Share Success With Community
One
of the most successful and long-lasting business families has pledged to share
its successes with the communities it operates in, employees and other
stakeholders.
Groupe Nduom a multi-national company of Ghanaian origin has held its annual strategy meeting recently to confirm goals and objectives for 2014. The meeting held over a three-day period, was also used to reward deserving units and employees for exceptional work done in the year 2013.
A total of 185 management personnel participated from 17 companies. Groupe Nduom companies include recognizable brands such as Coconut Grove Hotels, First National, Spyder Lee Entertainment, Ahomka FM and Gold Coast Fund Management.
The companies include new ones such as FreshPaK and GN Quarry & Concrete Products.
Groupe Nduom is into real estate, hotel management, banking, media, fund management, technology, production of food packaging materials and investment banking. In 2014, the lines of business will be expanded to include quarry and concrete products and will also pursue opportunities in the pension fund management. The companies can be found in Ghana, Liberia and the USA with plans this year to begin operations in Sierra Leone, Togo, Zimbabwe and Cote d”Ivoire.
Senior Vice-President of Groupe Nduom, Mrs. Yvonne Nduom has reminded management of the need to earn and maintain a reputation of high ethics and integrity; make sound business investments; and take a long-term view of success. She confirmed the resolve of the company to share success with employees, community, and shareholders. On behalf of Groupe Nduom directors and management, she led the company to give thanks to God, the Almighty for His protection, forbearance and supreme leadership; health and opportunities granted by His Grace.
Mrs. Nduom announced the creation of an Nduom Foundation that will give priority to providing scholarships to students from the Junior High School level through university or polytechnic level in addition to providing dormitories, classrooms and libraries for selected schools in the country. Groupe Nduom also aims to become a “best employer” through plans such as giving regular training to all employees and starting a programme to build housing units for employees.
While the group of companies recognized the difficult business environment and high cost of operations, management resolved to find innovative solutions to strengthen the ability to compete and serve customers with excellence. It is the hope of the Groupe Nduom to serve a minimum of one million customers in 2014. Groupe Nduom will meet all obligations to regulators of its businesses at home and abroad including tax payment.
Groupe Nduom a multi-national company of Ghanaian origin has held its annual strategy meeting recently to confirm goals and objectives for 2014. The meeting held over a three-day period, was also used to reward deserving units and employees for exceptional work done in the year 2013.
A total of 185 management personnel participated from 17 companies. Groupe Nduom companies include recognizable brands such as Coconut Grove Hotels, First National, Spyder Lee Entertainment, Ahomka FM and Gold Coast Fund Management.
The companies include new ones such as FreshPaK and GN Quarry & Concrete Products.
Groupe Nduom is into real estate, hotel management, banking, media, fund management, technology, production of food packaging materials and investment banking. In 2014, the lines of business will be expanded to include quarry and concrete products and will also pursue opportunities in the pension fund management. The companies can be found in Ghana, Liberia and the USA with plans this year to begin operations in Sierra Leone, Togo, Zimbabwe and Cote d”Ivoire.
Senior Vice-President of Groupe Nduom, Mrs. Yvonne Nduom has reminded management of the need to earn and maintain a reputation of high ethics and integrity; make sound business investments; and take a long-term view of success. She confirmed the resolve of the company to share success with employees, community, and shareholders. On behalf of Groupe Nduom directors and management, she led the company to give thanks to God, the Almighty for His protection, forbearance and supreme leadership; health and opportunities granted by His Grace.
Mrs. Nduom announced the creation of an Nduom Foundation that will give priority to providing scholarships to students from the Junior High School level through university or polytechnic level in addition to providing dormitories, classrooms and libraries for selected schools in the country. Groupe Nduom also aims to become a “best employer” through plans such as giving regular training to all employees and starting a programme to build housing units for employees.
While the group of companies recognized the difficult business environment and high cost of operations, management resolved to find innovative solutions to strengthen the ability to compete and serve customers with excellence. It is the hope of the Groupe Nduom to serve a minimum of one million customers in 2014. Groupe Nduom will meet all obligations to regulators of its businesses at home and abroad including tax payment.
EU mergers and takeovers (Jan 28)
The following are mergers under review by the European Commission and a brief guide to the EU merger process:
APPROVALS AND WITHDRAWALS
None
NEW LISTINGS
-- Investment fund Apollo Group and Spanish financial services fund Fondo de Garantia de Depositos de Entidades de Credito to acquire joint control of air parts maker Synergy (notified Jan. 24/deadline Feb. 28/simplified)
-- U.S. food packager Crown Holdings to buy Spanish food-can maker Mivisa Envases from investment funds the Blackstone Group, N+1 Mercapital and management (notified Jan. 24/deadline Feb. 28)
-- Canadian investment fund Canada Pension Plan Investment Board to acquire joint control of Luxembourg-based property developer Parque Principado from real estate developer Intu Holding S.a.r.l (notified Jan. 24/deadline Feb. 28/simplified)
EXTENSIONS AND OTHER CHANGES
None
FIRST-STAGE REVIEWS BY DEADLINE
JAN 29
-- Spanish bank Santander to acquire a 50 percent stake in Spanish consumer finance company El Corte Ingles E.F.C. from Spanish retailer El Corte Ingles (notified Dec. 13/deadline Jan. 29)
JAN 30
-- Private equity firm Lloyds Development Capital, which is owned by British bank Lloyds, and Dutch mail group ptnlPostNL to acquire joint control of holding company TNT NN1 Ltd which is now solely controlled by PostNL (notified Dec. 16/deadline Jan. 30)
-- Mexican frozen food producer Sigma Alimentos to acquire Spanish meat processor Campofrio (notified Dec. 16/deadline Jan. 30/simplified)
FEB 4
-- German vehicle importer Frey Automobil Holding Deutschland GmbH and Mitsubishi Motors Europe B.V. to acquire joint control of Mitsubishi Motors Deutschland GmbH, currently 100 percent owned by Mitsubishi Motors Europe (notified Dec. 19/deadline Feb. 4/simplified)
FEB 5
-- Dutch mining holding company Metinvest to indirectly acquire joint control of Ukrainian iron ore company Southern GOK by replacing one of Southern GOK's existing shareholders. It will jointly control the firm with Cypriot holding firm Lanebrook Ltd, parent of Evraz plc (notified Dec. 20/deadline Feb. 5)
FEB 6
-- Japanese trading house Mitsui & Co Ltd and ArcelorMittal Gonvarri Brasil Produtos Siderurgicos S.A., a joint venture between Gonvarri and ArcelorMittal, to acquire joint control of M Steel Industria e Comercio de Produtos Siderurgicos Ltda, which will operate a steel service centre in the state of Rio de Janeiro, Brazil (notified Dec. 23/deadline Feb. 6/simplified)
-- Pension funds USS Nero Limited of Britain, OPSEU Pension Plan Trust Fund of Canada and PGGM N.V. of the Netherlands, together with Spain's Global Vía Infraestructuras, to acquire joint control of Globalvía Inversiones, S.A., which is currently jointly controlled by OPTrust, PGGM and Global Vía Infraestructuras (notified Dec. 23/deadline Feb. 6/simplified)
-- Germany's Sales & Solutions GmbH, a unit of EnBW Energie Baden-Wuerttemberg AG, and Austria's Verbund AG to acquire joint control of a new joint venture to sell electricity from renewable energy sources to resellers and large customers in Germany (notified Dec. 23/deadline Feb. 6/simplified)
FEB 7
-- Japan's Mitsubishi Heavy Industries and Danish wind turbine manufacturer Vestas Wind Systems A/S to set up a joint venture to carry out global sales, manufacturing, installation, research and development and maintenance of offshore wind turbine generators (notified Jan. 3/deadline Feb. 7/simplified)
-- Singapore's sovereign wealth fund GIC to become British Land's new partner in London's Broadgate office and retail complex, buying out U.S. private equity group Blackstone for around 1.7 billion pounds ($2.8 billion) (notified Jan. 3/deadline Feb.7/simplified)
-- U.S. private equity fund Advent International to take Dutch business software firm UNIT4 private (notified Jan. 3/deadline Feb. 7/simplified)
-- State-controlled Finnish utility Fortum to sell its local power distribution grid to a group of institutional investors led by First State Investments and Borealis Infrastructure for 2.55 billion euros ($3.5 billion) (notified Jan. 3/deadline Feb. 7/simplified)
FEB 12
-- Swiss energy group Axpo to buy a 49 percent stake in a group of French wind farms from EDP Renewables France , a unit of Portuguese group Energias de Portugal (notified Jan. 8/deadline Feb. 12/simplified).
-- Japan's Mitsubishi Corp and Mitsubishi Electric Corp to acquire joint control of International Elevator& Equipment Inc., a Philippines-registered elevator company (notified Jan. 8/deadline Feb. 12/simplified).
-- Japan's Mitsubishi Corp and Mitsubishi Electric Corp to acquire joint control of Mitsubishi Elevator (Thailand) Co. Ltd, a Thailand-registered elevator company (notified Jan. 8/deadline Feb. 12/simplified).
-- Finnish steelmaker Outokumpu to sell Acciai Speciali Terni, a large Italian stainless steel mill, and specialty high-performance alloy unit VDM to ThyssenKrupp , their previous owner (notified Jan. 8/deadline Feb. 12)
-- Japanese trading company Marubeni and private equity firm INCJ to acquire joint control of AGS, a Portuguese water company (notified Jan. 8/deadline Feb. 12/simplified)
-- U.S. private equity firm JLL Partners and Dutch chemicals company DSM to set up a joint venture (notified Jan. 8/deadline Feb. 12/simplified)
-- Chesapeake Services Limited and Multi Packaging Solutions, Inc., portfolio companies of the Carlyle Group and Madison Dearborn partners respectively, to merge, creating a large print-based specialty packaging firm (notified Jan. 8/deadline Feb. 12/simplified)
FEB 18
-- Cintra Infraestructuras, Abertis Autopistas Espana and Itinere Infraestructuras to set up joint venture to market and distribute electronic equipment to pay on Spanish toll motorways (notified Jan. 14/deadline Feb. 18)
-- U.S. grain trader Archer Daniels Midland <ADM.N and ATR Landhandel to acquire joint control of newly founded RGL. ADM Hamburg is contributing its silo facility in the deep-sea port of Rostock to the joint venture (notified Jan. 14/deadline Feb. 18/simplified)
FEB 20
-- Irish building materials producer CRH Group and Luja Group to combine their concrete business in Russia (notified Jan. 16/deadline Feb. 20/simplified)
FEB 24
-- Qatar Petroleum International, Greek construction company GEK Terna and French gas and power utility GDF Suez to acquire joint control of Greek power plant operator Heron II which is now jointly controlled by GEK Terna and GDF Suez (notified Jan. 20/deadline Feb. 24/simplified)
FEB 26
-- French bank BPCE and Belgian private equity company GIMV to acquire joint control of Veolia Transport Belgium (notified Jan. 22/deadline Feb. 26/simplified)
MARCH 21
-- Switzerland-based INEOS and Belgian chemicals company Solvay to form a joint venture (notified Sept. 16/deadline extended for the second time to March 21 from Nov. 5 after the European Commission opened an in-depth investigation)
MARCH 31
-- Swiss cement maker Holcim to buy some of Mexican peer Cemex's assets in Europe . (notified Sept. 3/deadline extended for the second time to May 2 from March 31)
APRIL 24
-- Hutchison 3G UK to acquire Telefonica Ireland, a unit of Spanish telecoms provider Telefonica (notified Oct. 1/deadline extended to April 24 from March 24)
MAY 14
-- Spanish telecoms provider Telefonica to buy Dutch peer KPN's German unit (notified Oct. 31/Commission opened in-depth probe on Dec. 20, new deadline May 14)
GUIDE TO EU MERGER PROCESS
DEADLINES:
The European Commission has 25 working days after a deal is filed for a first-stage review. It may extend that by 10 working days to 35 working days, to consider either a company's proposed remedies or an EU member state's request to handle the case.
Most mergers win approval but occasionally the Commission opens a detailed second-stage investigation for up to 90 additional working days, which it may extend to 105 working days.
SIMPLIFIED:
Under the simplified procedure, the Commission announces the clearance of uncontroversial first-stage mergers without giving any reason for its decision. Cases may be reclassified as non-simplified -- that is, ordinary first-stage reviews -- until they are approved.
Source Reuters
The Hartford School Of Insurance Launches Small Commercial School
Program designed to help new agency professionals respond to unique needs of small business owners
The Hartford School of Insurance has introduced a small commercial training program to help new agency professionals gain technical insurance and sales knowledge to address the unique needs of a small business owner.
"Small business is big business - there are about 28 million small businesses in the United States,1"
"Small business is big business - there are about 28 million small businesses in the United States,1" said Rick Newell, vice president and head of Small Commercial sales at The Hartford. "The Hartford School of Insurance is helping to position and differentiate agents in the small business arena by equipping them with the insight and skill set needed to engage with small businesses and serve them effectively."
Through a combination of self-paced and classroom learning, the Small Commercial School will provide agents a thorough review of a business owners policy, auto and workers’ compensation policies, as well as demonstrate how to effectively position the best products and services for their small business clients. Participants will develop an understanding of the unique needs of small business owners throughout the business lifecycle, whether an emerging business, growing company or a company in transition.
"The Hartford School of Insurance has been educating agents through cost-effective training on a wide variety of insurance topics for more than 15 years and agents expressed a need for a curriculum focused on small business," said Marie Alvarado, assistant vice president of agent education and consulting, and head of The Hartford School of Insurance. "Small businesses have been a focus for The Hartford for 30 years and we are excited to offer agents the tools they need to fully understand the mindset of small business owners and to help position them for success in this market."
Agents who participate in this program may be eligible for Continuing Education (CE) credit hours and the Small Business Coverage Specialist (SBCS) Designation. For more information about the Small Commercial School and other training offered by The Hartford School of Insurance, visit www.hartfordschoolofinsurance.com.
About The Hartford School of Insurance
The Hartford School of Insurance offers property and casualty and group benefit insurance agents and customer service representatives across the country a wide array of technical insurance and sales training courses - from in-depth programs to shorter courses and webinars focused on a single topic. Programs are available to agents at all levels, whether they are just starting their insurance career or have years of experience. The school has trained more than 6,000 students to date, including producers from the top insurance agencies in the U.S. For more information, visit www.hartfordschoolofinsurance.com or call 800-772-0208.
About The Hartford
With more than 200 years of expertise, The Hartford (NYSE: HIG) is a leader in property and casualty insurance, group benefits and mutual funds. The company is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at www.thehartford.com. Join us on Facebook at www.facebook.com/TheHartford. Follow us on Twitter at www.twitter.com/TheHartford.
HIG-M
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2012 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.
From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at http://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at http://ir.thehartford.com.
1 Small Business Administration Office of Advocacy, "Frequently Asked Questions about Small Business," September 2012
Contacts
The Hartford
Media Contacts:
Michelle Symington, 860-547-5385
michelle.symington@thehartford.com
or
Debora Raymond, 860-547-4611
debora.raymond@thehartford.com
Source BUSINESS WIRE
The Hartford School of Insurance has introduced a small commercial training program to help new agency professionals gain technical insurance and sales knowledge to address the unique needs of a small business owner.
"Small business is big business - there are about 28 million small businesses in the United States,1" said Rick Newell, vice president and head of Small Commercial sales at The Hartford. "The Hartford School of Insurance is helping to position and differentiate agents in the small business arena by equipping them with the insight and skill set needed to engage with small businesses and serve them effectively."
Through a combination of self-paced and classroom learning, the Small Commercial School will provide agents a thorough review of a business owners policy, auto and workers’ compensation policies, as well as demonstrate how to effectively position the best products and services for their small business clients. Participants will develop an understanding of the unique needs of small business owners throughout the business lifecycle, whether an emerging business, growing company or a company in transition.
"The Hartford School of Insurance has been educating agents through cost-effective training on a wide variety of insurance topics for more than 15 years and agents expressed a need for a curriculum focused on small business," said Marie Alvarado, assistant vice president of agent education and consulting, and head of The Hartford School of Insurance. "Small businesses have been a focus for The Hartford for 30 years and we are excited to offer agents the tools they need to fully understand the mindset of small business owners and to help position them for success in this market."
Agents who participate in this program may be eligible for Continuing Education (CE) credit hours and the Small Business Coverage Specialist (SBCS) Designation. For more information about the Small Commercial School and other training offered by The Hartford School of Insurance, visit www.hartfordschoolofinsurance.com.
About The Hartford School of Insurance
The Hartford School of Insurance offers property and casualty and group benefit insurance agents and customer service representatives across the country a wide array of technical insurance and sales training courses - from in-depth programs to shorter courses and webinars focused on a single topic. Programs are available to agents at all levels, whether they are just starting their insurance career or have years of experience. The school has trained more than 6,000 students to date, including producers from the top insurance agencies in the U.S. For more information, visit www.hartfordschoolofinsurance.com or call 800-772-0208.
About The Hartford
With more than 200 years of expertise, The Hartford (NYSE: HIG) is a leader in property and casualty insurance, group benefits and mutual funds. The company is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at www.thehartford.com. Join us on Facebook at www.facebook.com/TheHartford. Follow us on Twitter at www.twitter.com/TheHartford.
HIG-M
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2012 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.
From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at http://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at http://ir.thehartford.com.
1 Small Business Administration Office of Advocacy, "Frequently Asked Questions about Small Business," September 2012
Contacts
The Hartford
Media Contacts:
Michelle Symington, 860-547-5385
michelle.symington@thehartford.com
or
Debora Raymond, 860-547-4611
debora.raymond@thehartford.com
Source BUSINESS WIRE
Ten million dollar insurance scam exposed at Air Zim
By Tererai Karimakwenda
A financial audit company, hired by new management at Air Zimbabwe, has uncovered an insurance scam that netted about $10 million for senior staff, according to the state-owned Herald newspaper.
The report alleges that Air Zim's company secretary, Grace Pfumbidzayi, authorised fraudulent payments to Navistar Insurance Brokers in a four-year aviation insurance scam.
Pfumbidzayi is alleged to have acted in cahoots with Air Zim's acting group chief executive officer Innocent Makore. and together they are accused of having prejudiced the company of millions of dollars. Other senior staff members have also been implicated.
The money was allegedly paid out to Navistar "for services rendered", and invoices were provided, but no services were rendered.
The Secretary for Transport and Infrastructural Development, Munesu Munodawafa, is also alleged to have acted to protect Pfumbidzayi, who is said to be his niece. But Munodawafa is not named as a beneficiary of the scam.
The audit report, dated December 28th 2013, was compiled by BCA Forensic Audit Services after a new board at Air Zim became suspicious of insurance premium payments made between April 2009 and April 2013.
According to the Herald, Pfumbidzayi switched insurers in that period and ditched Marsh Insurance brokers for Navistar, who then charged nearly 10 times what Marsh had been charging for insurance. In addition, the switch by Pfumbidzayi was done "unprocedurally, illegally and in violation of the tender procedures".
The BCA auditors are reported to have described some of the payments made to Navistar as "outrageous" and recommended that those involved be prosecuted. They also suggested that President Robert Mugabe be informed of the scam, "due to its magnitude".
The former Mayor of Harare and MDC-T shadow Minister for Transport, Elias Mudzuri, told SW Radio Africa that he was shocked at the magnitude of the theft at Air Zim, as it almost equalled the budget of an entire ministry.
"Sometimes you think that civil servants are professionals who are there to serve the nation. But this shows that some of these people at parastatals are there to milk the companies instead of making them run. But these people never get arrested. Instead it's the small criminals that are prosecuted," Mudzuri said.
He explained that in Zimbabwe there exists a culture of not holding public officials accountable for their actions. This is how they are able to get away with stealing millions and not be prosecuted.
Mudzuri added: "There is no order and I always get annoyed when people cry about corruption but they are doing nothing to ensure there is proper accountability and transparency. Look at ZBC and the Medical Society where all MPs get insured."
Mudzuri was referring to recent revelations that Cuthbert Dube, a senior manager at the Premier Medical Aid Society, was receiving a monthly salary of over $200,000. Exorbitant salaries for senior staff were also exposed at the state-broadcaster, ZBC. Both institutions are owned by government.
Mudzuri said: "The chief executives of these companies have to answer for what is happening. It is their duty to make sure the blood of the institution runs. And government should do something to make sure that all these parastatals are accountable."
According to the Herald, Navistar chairman Patrick Chingoka told the auditors that he was not aware of the fraudulent payments made to the company and recommended a criminal investigation into dealings by management at the insurance company.
In 2013, Air Zim dealt with a series of strikes by staff who were demanding better wages and working conditions. The national airline also faced massive debts and had an airplane impounded by creditors in London. The insurance scam deals a further blow to the company at a time when government is trying to lure tourists back to the country.
Source allAfrica
A financial audit company, hired by new management at Air Zimbabwe, has uncovered an insurance scam that netted about $10 million for senior staff, according to the state-owned Herald newspaper.
The report alleges that Air Zim's company secretary, Grace Pfumbidzayi, authorised fraudulent payments to Navistar Insurance Brokers in a four-year aviation insurance scam.
Pfumbidzayi is alleged to have acted in cahoots with Air Zim's acting group chief executive officer Innocent Makore. and together they are accused of having prejudiced the company of millions of dollars. Other senior staff members have also been implicated.
The money was allegedly paid out to Navistar "for services rendered", and invoices were provided, but no services were rendered.
The Secretary for Transport and Infrastructural Development, Munesu Munodawafa, is also alleged to have acted to protect Pfumbidzayi, who is said to be his niece. But Munodawafa is not named as a beneficiary of the scam.
The audit report, dated December 28th 2013, was compiled by BCA Forensic Audit Services after a new board at Air Zim became suspicious of insurance premium payments made between April 2009 and April 2013.
According to the Herald, Pfumbidzayi switched insurers in that period and ditched Marsh Insurance brokers for Navistar, who then charged nearly 10 times what Marsh had been charging for insurance. In addition, the switch by Pfumbidzayi was done "unprocedurally, illegally and in violation of the tender procedures".
The BCA auditors are reported to have described some of the payments made to Navistar as "outrageous" and recommended that those involved be prosecuted. They also suggested that President Robert Mugabe be informed of the scam, "due to its magnitude".
The former Mayor of Harare and MDC-T shadow Minister for Transport, Elias Mudzuri, told SW Radio Africa that he was shocked at the magnitude of the theft at Air Zim, as it almost equalled the budget of an entire ministry.
"Sometimes you think that civil servants are professionals who are there to serve the nation. But this shows that some of these people at parastatals are there to milk the companies instead of making them run. But these people never get arrested. Instead it's the small criminals that are prosecuted," Mudzuri said.
He explained that in Zimbabwe there exists a culture of not holding public officials accountable for their actions. This is how they are able to get away with stealing millions and not be prosecuted.
Mudzuri added: "There is no order and I always get annoyed when people cry about corruption but they are doing nothing to ensure there is proper accountability and transparency. Look at ZBC and the Medical Society where all MPs get insured."
Mudzuri was referring to recent revelations that Cuthbert Dube, a senior manager at the Premier Medical Aid Society, was receiving a monthly salary of over $200,000. Exorbitant salaries for senior staff were also exposed at the state-broadcaster, ZBC. Both institutions are owned by government.
Mudzuri said: "The chief executives of these companies have to answer for what is happening. It is their duty to make sure the blood of the institution runs. And government should do something to make sure that all these parastatals are accountable."
According to the Herald, Navistar chairman Patrick Chingoka told the auditors that he was not aware of the fraudulent payments made to the company and recommended a criminal investigation into dealings by management at the insurance company.
In 2013, Air Zim dealt with a series of strikes by staff who were demanding better wages and working conditions. The national airline also faced massive debts and had an airplane impounded by creditors in London. The insurance scam deals a further blow to the company at a time when government is trying to lure tourists back to the country.
Source allAfrica
Wake-up call over liability insurance
TIM HUNTER
A Supreme Court ruling issued just before Christmas is a wake-up call for businesses with liability insurance, say lawyers.
The ruling had the final say on a long-running issue involving how much directors and officers, or "D and O", insurance cover was available to meet claims against directors of collapsed companies Bridgecorp and Feltex.
Directors had argued that part of the insurance cover, which had a maximum payout limit, was available to pay for the legal costs of their defences against liability claims.
Any successful claim would therefore be paid out of whatever was left from the insurance pot after funding those costs.
On December 23 the Supreme Court decided otherwise. The legal argument related to the Law Reform Act of 1936, which imposed a statutory charge over insurance money indemnifying the insured for damages or compensation payable to third party claimants.
The Supreme Court said the charge meant all the money from the policy was reserved for paying the third party claim, so defence costs would be met only if there was any money left over.
In the Bridgecorp and Feltex cases the amount being claimed by third parties vastly exceeds the policy limits (Bridgecorp directors were covered by a $20m "D and O" policy but faced claims of more than $340m), so the directors affected can no longer rely on the insurance to cover their defence, although the court left open the question of whether insurers could refuse to pay defence costs where there was a risk a successful claim would breach policy limits.
A spokesman for insurer QBE, which provided the Bridgecorp policy, declined to comment on whether it would fund the defence, citing continuing legal proceedings.
Law firm Chapman Tripp, which was on the losing side in the Supreme Court, having represented insurer AIG in the Feltex case, has advised businesses to review their insurance policies in light of the judgment. In a note published on Monday the firm said businesses should not assume the ruling affected only directors and officers liability insurance.
"It also affects professional indemnity policies (covering professional negligence), prospectus liability, employers' liability, statutory liability and general or public liability, and may extend to prevent advancement of defence costs in any prosecutions which could result in a reparations award for the victim (eg for a workplace accident)."
The ruling should particularly concern firms with low insurance limits and those with tiered insurance arrangements - "if the first layer is relatively low, a serious claim could lock up defence costs, forcing the insured to go cap-in-hand to excess layers, which may or may not respond". The firm advised businesses to consult their brokers or insurance company and check that their insurance would provide the required cover.
Murray Tingey of law firm Bell Gully, who successfully represented Bridgecorp's receivers in the case, said many businesses had already reviewed their policies after the High Court ruled on the case in 2011, but there was a straightforward solution available for those yet to do so.
"A lot of insurers and insureds changed their policies back then," he said. Generally they've entered into two policies or had two sums available. So before you'd have an amount that would cover both, but to avoid this issue, if you have, say, a $20m policy you might have a separate $5m policy covering defence costs, which means if there was a charge against the $20m on the policy, you can still draw on the defence costs because that money can never go to the claimant."
While the issue would not be a concern if a policy limit was large enough to cover both the claim and the defence costs, the key detail businesses should check is whether their policy was a single sum covering both risks, or had separate cover for defence costs.
Insurers did not like the ruling because it placed them in an awkward financial position, said Tingey.
"On the Bridgecorp case the insurers may have to pay the claim, but now they have to face a decision on whether to fund the directors' defence, because the directors can't afford it," he said.
"If you're a defendant to a claim normally you've got to choose whether to spend money defending your case. If you've got a good defence, you'd choose to spend money. If the claim is strong and you think you're going to lose, you may not think it's worth spending money defending and you'll settle it."
The Supreme Court's ruling said: "[A]llowing defence costs to diminish the sum available to third parties is tantamount to requiring third party claimants to fund an unsuccessful defence, which would normally not occur under ordinary court cost rules."
Source Fairfax NZ News
A Supreme Court ruling issued just before Christmas is a wake-up call for businesses with liability insurance, say lawyers.
The ruling had the final say on a long-running issue involving how much directors and officers, or "D and O", insurance cover was available to meet claims against directors of collapsed companies Bridgecorp and Feltex.
Directors had argued that part of the insurance cover, which had a maximum payout limit, was available to pay for the legal costs of their defences against liability claims.
Any successful claim would therefore be paid out of whatever was left from the insurance pot after funding those costs.
On December 23 the Supreme Court decided otherwise. The legal argument related to the Law Reform Act of 1936, which imposed a statutory charge over insurance money indemnifying the insured for damages or compensation payable to third party claimants.
The Supreme Court said the charge meant all the money from the policy was reserved for paying the third party claim, so defence costs would be met only if there was any money left over.
In the Bridgecorp and Feltex cases the amount being claimed by third parties vastly exceeds the policy limits (Bridgecorp directors were covered by a $20m "D and O" policy but faced claims of more than $340m), so the directors affected can no longer rely on the insurance to cover their defence, although the court left open the question of whether insurers could refuse to pay defence costs where there was a risk a successful claim would breach policy limits.
A spokesman for insurer QBE, which provided the Bridgecorp policy, declined to comment on whether it would fund the defence, citing continuing legal proceedings.
Law firm Chapman Tripp, which was on the losing side in the Supreme Court, having represented insurer AIG in the Feltex case, has advised businesses to review their insurance policies in light of the judgment. In a note published on Monday the firm said businesses should not assume the ruling affected only directors and officers liability insurance.
"It also affects professional indemnity policies (covering professional negligence), prospectus liability, employers' liability, statutory liability and general or public liability, and may extend to prevent advancement of defence costs in any prosecutions which could result in a reparations award for the victim (eg for a workplace accident)."
The ruling should particularly concern firms with low insurance limits and those with tiered insurance arrangements - "if the first layer is relatively low, a serious claim could lock up defence costs, forcing the insured to go cap-in-hand to excess layers, which may or may not respond". The firm advised businesses to consult their brokers or insurance company and check that their insurance would provide the required cover.
Murray Tingey of law firm Bell Gully, who successfully represented Bridgecorp's receivers in the case, said many businesses had already reviewed their policies after the High Court ruled on the case in 2011, but there was a straightforward solution available for those yet to do so.
"A lot of insurers and insureds changed their policies back then," he said. Generally they've entered into two policies or had two sums available. So before you'd have an amount that would cover both, but to avoid this issue, if you have, say, a $20m policy you might have a separate $5m policy covering defence costs, which means if there was a charge against the $20m on the policy, you can still draw on the defence costs because that money can never go to the claimant."
While the issue would not be a concern if a policy limit was large enough to cover both the claim and the defence costs, the key detail businesses should check is whether their policy was a single sum covering both risks, or had separate cover for defence costs.
Insurers did not like the ruling because it placed them in an awkward financial position, said Tingey.
"On the Bridgecorp case the insurers may have to pay the claim, but now they have to face a decision on whether to fund the directors' defence, because the directors can't afford it," he said.
"If you're a defendant to a claim normally you've got to choose whether to spend money defending your case. If you've got a good defence, you'd choose to spend money. If the claim is strong and you think you're going to lose, you may not think it's worth spending money defending and you'll settle it."
The Supreme Court's ruling said: "[A]llowing defence costs to diminish the sum available to third parties is tantamount to requiring third party claimants to fund an unsuccessful defence, which would normally not occur under ordinary court cost rules."
Source Fairfax NZ News
Britam in Sh1.4 bn bid for Real Insurance
By Kennedy Kangethe
British American Investment Company (Britam) has issued a circular to shareholders on the proposed acquisition of a 99 percent equity stake in Real Insurance Company Limited disclosing the price as Sh1.4 billion with Sh825 million in cash and Sh550 million in share consideration.
The shares are priced at Sh11.13, some 75 trading days preceding the share purchase agreement resulting in the issuance of 51.9 million shares.
The Extraordinary General Meeting to approve the deal is slated for February 19, 2014, with the transaction expected to be complete by 31 March 2014.
In determining the acquisition, Britam considered the strong positioning of Real Insurance in non-life insurance, long operational history and customers that comprise leading corporates in Kenya.
They also considered the growth prospects given the presence of the firm in promising frontier markets such as Mozambique, Tanzania and Malawi.
Real Insurance is considered a pioneer in the Kenyan insurance sector having started operations in 1910. It offers insurance services through its 15 branches located in Nairobi and other major towns in Kenya as well as three subsidiaries in Tanzania, Malawi and Mozambique. The firm is also a global network partner of RSA (formerly known as Royal and Sun Alliance Insurance Group).
Through this acquisition Britam should increase its market share and after completion, rank second in the market on gross premium basis.
The acquisition is also seen as a first step in the consolidation of the highly fragmented insurance industry with Kenya having 47 licensed insurance companies competing for a limited market characterized by low penetration.
The satisfactory completion of this transaction will enable Britam to implement its strategy of expanding its general insurance business and diversifying its presence into key geographical areas that include some of the most promising growth frontier markets in Africa.
Source allAfrica
British American Investment Company (Britam) has issued a circular to shareholders on the proposed acquisition of a 99 percent equity stake in Real Insurance Company Limited disclosing the price as Sh1.4 billion with Sh825 million in cash and Sh550 million in share consideration.
The shares are priced at Sh11.13, some 75 trading days preceding the share purchase agreement resulting in the issuance of 51.9 million shares.
The Extraordinary General Meeting to approve the deal is slated for February 19, 2014, with the transaction expected to be complete by 31 March 2014.
In determining the acquisition, Britam considered the strong positioning of Real Insurance in non-life insurance, long operational history and customers that comprise leading corporates in Kenya.
They also considered the growth prospects given the presence of the firm in promising frontier markets such as Mozambique, Tanzania and Malawi.
Real Insurance is considered a pioneer in the Kenyan insurance sector having started operations in 1910. It offers insurance services through its 15 branches located in Nairobi and other major towns in Kenya as well as three subsidiaries in Tanzania, Malawi and Mozambique. The firm is also a global network partner of RSA (formerly known as Royal and Sun Alliance Insurance Group).
Through this acquisition Britam should increase its market share and after completion, rank second in the market on gross premium basis.
The acquisition is also seen as a first step in the consolidation of the highly fragmented insurance industry with Kenya having 47 licensed insurance companies competing for a limited market characterized by low penetration.
The satisfactory completion of this transaction will enable Britam to implement its strategy of expanding its general insurance business and diversifying its presence into key geographical areas that include some of the most promising growth frontier markets in Africa.
Source allAfrica
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