Sanlam Life Insurance Uganda has dismissed as “malicious”, allegations, that its Chief Finance Officer, Anthony Gitonga Kirimi, fraudulently transferred money, amounting to UGX3.5 billion for his private benefit, as has been alleged by some local news websites.
In a 13th August 2021 statement received by CEO East Africa Magazine from the Sanlam Group’s communication, the pan-African financial services group said that after an audit into Sanlam Life Uganda’s books by the Group auditors, there was no evidence of the alleged fraud.
“The Sanlam Group Internal Audit team conducted an audit to determine the veracity of recent unverified media reports alleging impropriety by a senior executive of Sanlam Life Insurance Uganda. Additionally, the executive was placed on special leave pending the outcome of the audit. According to the independent findings of the internal audit, there is no evidence to support the aforementioned allegations,” read part of the statement.
The statement further added that the “management of Sanlam is cooperating with authorities in their investigation of these malicious allegations.”
The malicious allegations
Over the last two weeks, some online news websites have published stories, claiming that an unnamed whistle-blower, had reported to police an alleged fraud to the tune of USD1 million (UGX3.5 billion). The said media houses further quoted the whistle-blower, as having said that the alleged crime was orchestrated via a series of transactions to accounts held in the names of Gitonga and other companies allegedly associated with him in Stanbic Bank, dfcu Bank and Standard Chartered Bank. Based on these claims, police officers attached to Kira Division arrested but later released Mr. Gitonga, after making a statement. A general enquiry file, GEF45/2021, was then opened.
However, upon release Gitonga, reported an extortion case against some police officers who have since been arrested, apparently on the orders of the Deputy Inspector General of Police.
Analysis by CEO East Africa Magazine
The statement by Sanlam, who ideally should have been the complainant, if indeed there was any fraud, should put to rest the matter that has raised eyebrows within the financial services industry.
Ugandan enterprises urged to explore regional oil and gas opportunitiesCEO East Africa Magazine finds the whistle-blower claims rather peculiar, especially that the so-called whistle-blowers, who ideally should be insider sources and or knowledgeable sources, chose to report to the police first, instead of Sanlam, the owners of the money. Secondly, under a strict financial reporting and anti-money laundering regime that obligates insurance companies and banks, amongst other statutory reporting agencies to regularly report big transactions, to the Financial Intelligence Authority (FIA), such transactions would have been easily spotted.
Section 6 (2) b of The Anti-Money Laundering Act 2013, and amended in 2017, all financial institutions, law firms’ real estate agents, casinos, brokerage firms, investment bankers, registrar of companies, registrars of land, Uganda Investment Authority, NGOs and all Licensing Authorities to report to the Financial Intelligence Authority (FIA), all transactions equal to, or above the amount of 5,000 currency points (UGX100,000,000).
In the statement, Sanlam said, they uphold the highest levels of integrity and held all its people to the same standards of accountability. The insurer also said that they were coordinating with the mentioned organisations on the matter.
“Sanlam has a zero-tolerance policy for violations of its ethical and governance standards. We uphold a high standard of corporate governance and are constantly working to ensure that these principles are followed,” Sanlam said in the statement.
About Sanlam Group
Sanlam is a pan-African financial services group listed on the Johannesburg, Namibian and A2X stock exchanges. Through its clusters: Life and Savings encompassing Retail Mass, Retail Affluent and Corporate business units; Sanlam Emerging Markets; Sanlam Investment Group; and Santam, the Group provides comprehensive and bespoke financial solutions to institutional clients and consumers across all market segments. Sanlam’s areas of expertise include life and general insurance, financial planning, retirement, investments, and wealth management.
Established in 1918 as a life insurance company, Sanlam has evolved into the largest non-banking financial services group in Africa through its diversification strategy. Headquartered in South Africa, Sanlam has a direct stake in financial services entities in Namibia, Botswana, Swaziland, Zimbabwe, Mozambique, Mauritius, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, and Nigeria. The Group also has a footprint of insurance operations in Morocco, Angola, Algeria, Tunisia, Ghana, Niger, Mali, Senegal, Guinea, Burkina Faso, Cote D’Ivoire, Togo, Benin, Cameroon, Gabon, Republic of the Congo, Madagascar, Burundi, and Lesotho.
Sanlam also has business interests in India, Malaysia and the United Kingdom and a niche presence in selected developed markets.
