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CIC Group Insurance Used Fake Brokerage Firms to Loot Ksh 350million from the Government

By kahawa / Published on Wednesday, 14 Dec 2016 12:13 PM / No Comments / 2920 views
CIC Group CEO Nelson Kuria
In government business, there is no brokerage business. When the government takes up insurance, it does take it directly from the companies and so doesn’t have to deal with brokers.
 
In a unique case at CIC insurance, a total of Ksh 350million was looted through the creation of fake brokerage entities and used to siphon money from the government. A forensic analysis of the transactions unearths a massive scheme of looting where fake Insurance Agencies were formed to siphone money from the treasure as business acquisition costs or brokerage fees. 
The massive fraud paints a picture of a country being killed through corruption by greedy individuals who are in position of influence.
 
1. Judiciary
 
The judiciary paid a total of Ksh 135million in brokerage fees to Arm Insurance Agency, Ambrose Mnyamwezi, Paul Nyanjui and Mambro Insurance Agency. The judiciary contracted CIC at a cost of Ksh 1.2billion to offer insurance services.
 
2. Kenya Forest Service
 
A total of Ksh 72million was paid to Goldfield Insurance brokers as brokerage fees from the total of Ksh 522million insurance business taken to CIC from KFS.
 
3. Teachers Service Commission
 
A total of Ksh 52million was paid to Joel Wanjau Ngundo, The Arm Insurance Agency and Universal Marketing for the Ksh 569million insurance business taken to TSC.
 
4. National Drought Management Authority
A total of Ksh 6.3m went to was listed as Business Acquisition Cost (brokerage fee) for the Ksh 71million insurance business handled. Transnep Insurance Agencies and Jackline Nyawira Kibuchi were the conduits in the fraudulent scheme.
 
5. Kenya Urban Roads Authority (KURA)
Paid a total of Ksh 5.1 million as brokerage fees to Ronken Insurance Agency and Samuel Muhindi for the Ksh 145million CIC insurance business.
 
6. Salaries And Remuneration Commission
Paid a total of Ksh 2million to Nevas Africa Insurance Agency as brokerage fees for the Ksh 22million worth of insurance cover from CIC insurance
 
The people who oversaw the massive looting of government money through CIC insurance are
 
Nelson Kuria – former CIC Group CEO
David Rono – Former MD CFC Life Assurance
Joel Gatune – Former CIC Group Finance Manager
Kenneth Kimani – MD General Insurance
Milcah Kinyua – AGM CIC General Insurance
Edward Rukwaro – GM Medical Deivision
Stanley Kitur – Former Group ICT Manager
Paul Nyanjui – Former Cashier CIC Group
 
President Uhuru must reign in on the fraud being supervised by his close associates. There is no reason why the country should be looted in this way.
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