Fidelity bosses suspended

HARARE - Fidelity Life Assurance Zimbabwe (Fidelity) has suspended its managing director Simon Chapereka and finance director German Mushoma following a probe by the Insurance and Pension Commission (Ipec) into various corporate governance infractions.

However, the group’s acting chairman, Gregory Mataka, said the duo was sent on leave “to facilitate the swift execution” of an audit requested by the insurance commission.

“Following the training on corporate governance in May 2015, the board embarked on a review of the company’s policies and procedures and internal processes to align them with best practice,” he said, adding that preliminary results of the internal audit review were leaked to the press.

“While these internal processes were ongoing, Ipec requested an on-site examination. To conclude their report, Ipec has appointed KPMG Chartered Accountants (Zimbabwe) to conduct a forensic audit in terms of Section 67(2) of the Insurance Act..,” Mataka said.

“This audit is intended to clarify issues relating to business operations, and allegations of corporate governance malpractices at the company.”

In February, the industry regulator’s chairperson Marnet Mpofu confirmed to the Daily News that it was “conducting an on-site inspection of Fidelity Life... following allegations of breaches of the Insurance Act and possibly other statutes,” although she would not disclose more information as investigations were still underway.

Chapereka, who was previously sent on a month-long forced leave late last year, stands accused of, among other transgressions, amassing no less than 12 residential stands at Fidelity’s Manresa and Harare South projects — with the later scheme meant for low income earners — as well as advancing himself hefty loans, which he has neglected to service adequately.

Chapereka is credited for transforming Fidelity into one of the most successful insurance companies in the country offering both life and non-life insurance products. Under his supervision, the Zimbabwe Stock Exchange firm also diversified into the property sector resulting in the launch of Fidelity Southview Park in 2013.

But the company’s fortunes are taking a downward path after Fidelity continues to lose ground to other competitors such as First Mutual Holdings, Old Mutual, Nyaradzo and Zimnat.

In the full year to December 2015, Fidelity’s expenses increased by 35 percent from $31,8 million to $43 million while underwriting surplus achieved remained unchanged at $6,7 million.

The group’s profit for the year grew by 3 percent to $5,2 million at a time when total comprehensive income for the period was $2,6 million, a 30 percent decrease from prior year.

Fidelity said this was affected by exchange differences arising from translation of foreign operations amounting to $2,4 million.

Meanwhile, Fidelity has appointed Nyaradzo Matindike as the company’s acting managing director to preside over the insurance giant’s day to day operations during the tenure of the audit.

Comments (6)

Yeah!!! At least I'm success to EARN $4820/WEEK .I heard about it last 3months and I have made such a great cash. X It is very beneficial for me and my family.My relatives wondered to see how i settle my Life in few days thank GOD to you for this...You can also try..B---06 START HERE--> http://H­o­m­e-j­o­b­s­9­0.T­­­k

phachimeso - 11 April 2016

Zvakaoma. So that's why the insurance companies don't pay out their policy holders good returns, because the management is busy looting . It's sounds like the Chairman has a hand in this looting as well as his statement has a tone of defiance against the regulator . I hope that the KPMG forensic auditors will leave no stone unturned to deal with these thieves

Kuipa - 11 April 2016

At last these thieves have been exposed. Chapereka has been looting for many years and he has fired a lot of Finance Managers from Fidelity to ensure that corporate memory is erased . The Finance Director , Mushoma, is the biggest thief the insurance sector has ever witnessed . Watch what the Forensic Auditors will unmask . Ah, what a joke this board has appointed Chapereka's small house to be the acting CEO . She also has a lot of skeletons . I hope the KPMG will talk to most of us staff in the system privately to give them the detail.

Bob - 11 April 2016

Chabvondoka ! These chaps must be arrested for stealing from policy holders. This Chairman, G. Mataka seems not know how much has been looted or he is pretending. Perhaps he has benefitted from the stolen properties , cash, vehicles hidden in various family members names. Disgusting. KPMG must not rush this audit. It is complex. The theft involved is a real web.

Mandionerepi - 11 April 2016

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