Liquidator orders forensic audit on collapsed Jupiter Insurance, says directors uncooperative

Liquidator orders forensic audit on collapsed Jupiter Insurance, says directors uncooperative

By Chipo Musoko, HARARE, March 81 (The Source) – The liquidator of the collapsed insurance firm, Jupiter Insurance Company on Wednesday said he will carry out a forensic investigation to recover the firm’s assets for liquidation because its directors are refusing to cooperate.

The Insurance and Pension Commission (IPEC) suspended its licence in 2012, saying it was insolvent.

“I am concerned about the limited cooperation of directors in submitting assets. I am going to carry out an inquiry and forensic investigation,” the liquidator, Cecil Madondo of Tudor House Consultants told creditors during a meeting at the High Court.

He said he had also established that a commercial stand belonging to the company in Gweru where offices had been built had been sold six months prior to liquidation for $300,000 and was seeking to either reverse the deal or  recover the money.

“I have written to our lawyers to give us their opinion on the recovery or to declare the sale null and void,” he said.

The company’s liabilities are worth $1,2 million, with Windmill owed $880,000 while employees are owed $248,000 with assets valued at around $20,000.

One of the creditors, told the court that in terms of the law, they were entitled to funds from the motor insurance pool estimated around $500,000 which could be used in liquidation.

During the meeting, claims worth close to $300,000 were presented while Madondo, who was appointed the final liquidator, said he would compile a comprehensive report for creditors stating the exact value of assets and liabilities.

Since dollarisation in 2009, IPEC has deregistered several insurers which include Agricultural Insurance Company, Altfin, SFG Insurance Company and Suremed Health Insurance Company.