Monrovia – The Central Bank of Liberia (CBL) has designated BICON Inc. a certified public Accounting and forensic examination firm to institute compulsory liquidation proceeding of International Insurance Company of Liberia (IICL).
The 199 Act creating Central Bank of Liberia, grants CBL said authority upon a ruling from a court of competent jurisdiction.
The Central Bank added, that pursuant to its authority as provided for in the New Financial Institutions Act and the repealed Insurance Act of 2014, it suspended on the 15th day of June, A.D 2017 the license of and seized and took possession of International Insurance Company (IICL) due to its insolvency and liquidity, cause by poor management and weak internal control.
The CBL in its petition before the Civil Law Court said after the dissolution of the Board of Directors of IICL and removal of the Managing Director of the Company, it immediately appointed an Acting Managing Director to ensure the continuous operations of IICL in addition to performing duties and responsibilities such a oversee the IICL’s operations to ensure productive efficiency, quality service and cost effective management of resources.
The CBL added that although the company made some gains in collection under the new management team, all the amounts collected were spent on the settlement of claims and liabilities thus leaving the company insolvent.
One of the primary reasons for the CBL takeover of the IICL was to manage the company’s assets in order to defray some of the losses of the erstwhile FIBLL.
“The company is significantly undercapitalized and is in acute state of financial stress that requires urgent supervisory intervention by the CBL.”
According to the Central Bank, the current cash asset of US$ 132, 189.64 of the company is grossly inadequate to cover its estimated liabilities of US$ 2.09 million. A provisional administrator was appointed and continued under supervision of the CBL for one year.
The CBL says prior to the seizure, it provided financial assistance but despite the assistance, the situation continues to deteriorate, thereby threatening viability of the Insurance Industry in Liberia.
As part of the liquidation exercise, BICON Inc. has commenced the establishment of all liabilities (secured and unsecured) against IICL.
BICON Inc. is a Liberian own certified public accounting and Forensic Investigation firm, The Partners are member of several international bodies. The partners have over twenty years of public practices and the staff are recruited from various Universities.
Any individual, institution or business entity having claim against the International Insurance Company of Liberia (IICL) are advised to bring along valid document(s) to substantiate their claims and should direct all claims to BICON Inc. located on Randall Street 1st Floor, Gibson Building adjacent Jeans Travis Building, beginning June 2, 2020 to July 15, from 9am to 4pm Monday to Friday or contact cell # No. 0886512681/ 0777101773 or email: [email protected] or [email protected]
The Act provides that CBL can license, regulate and supervise the activities of Financial Institutions operating in Liberia and to suspend, revoke the license of said financial institutions operating in Liberia and to liquidate and de-list same.
It can be recalled, that the International Insurance Company of Liberia limited (IICL) was incorporated and licensed in 2007 as an insurance company to carry out non-banking services life and non-life insurance business in Liberia.
The International Insurance Company of Liberia limited (IICL) was relicensed by the CBL in 2014 in line with CBL reform of the insurance sector.
On January 27, 2016 the Central Bank of Liberia (CBL) placed the International Insurance Company of Liberia limited (IICL) under the supervisory prescription as part of its actions against the First International Bank Group (former owners of FIBLL and IICL) on the basis that the group was no longer fit and proper to own or have shares in financial institutions in Liberia.
Prior to the supervisory role prescription, the International Insurance Company of Liberia Limited was a major asset of the First International Bank, the Central Bank dissolved the International Insurance Company of Liberia limited Board of Directors, dismissed the Managing Director and appointed an acting Managing Director.
The key activities of the IICL covering the periods January 27, 2016 to August 31, 2016 cover the financial and operational soundness of the company since the supervisory prescription.
A report was initiated and concluded with recommendations on the way forward. The report also indicated that the IICL’s grossly undercapitalized.
As at August 31, 2016, the company’s reported capital was US$ 2.22 million. However, based on the department’s assessment of the company’s financial which led to adjustments in receivables, unearned premium and other current assets, its net capital position declined from US$ 2.22 million to negative US$ 692, 983.98.
The report also indicated that prior to the adjustments the receivables constituted 90% of the company’s total assets and 68% after the adjustment. Total assets were also reduced by 83% from US$ 3.4 million to US$ 0. 58 million as the adjustment.
At the same time, current assets and unearned premiums were adjusted by 85% and 59%, respectively, to take into account an investment of US$ 100,000.00 in IICL Trading that no longer exists; and to reflect the actual active unearned premium policies on the books of the company.
Based on the assessment of the company CBL added that the company is no longer a viable one as such appointment of a Provisional Administrator and authorized the PA to commission an immediate Independent audit of the International Insurance Company.
Based on the result of the audit, the petitioner, CBL petition the Civil Law Court for compulsory liquidation.
The CBL decision is in keeping with section 11.4 of the New Insurance Act of Liberia and appoints the petitioner CBL as liquidator pursuant to the notice dated June 15, 2017, concerning the International Insurance Company of Liberia (IICL)
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