Representatives of NDK Financial Services, who were accompanied by court bailiffs, policemen and the media, invaded GLICO House at Adabraka on Thursday, 8th March, 2018.
Without notice, the party served management of the company with a writ of FiFa to seize all parked vehicles on GLICO’s yard, as well as office equipment.
They took five vehicles, a photocopier/printer and three personal computers belonging to GLICO General and other private individuals.
GLICO General subsequently reported the incident to the Criminal Investigations Department (CID) for investigations, as they follow legal procedures to correct the illegality.
On 21st February 2018, the High Court delivered its ruling in respect of GLICO General on the payment of interest on the NDK Financial Services v Kosefeld v GLICO General case; details of which are in the public domain, as it remains one of the classic cases on credit guarantees in Ghana.
The court ruled that interest on principal payments should be paid on a simple interest basis contrary to NDK Financial Services’ belief that payments be made with interest at a compounded rate.
Per the law (Court of Appeal Rules C.I.19), GLICO General has 21 days to act on the ruling, whether to pay up based on the court’s ruling or appeal further.
Lawyers representing GLICO General are in the process of appealing based on the technicalities of the case.
Explaining the issue to the media, Managing Director of GLICO General, Andrew Achampong-Kyei, indicated that GLICO General is a formidable company and pays legitimate claims promptly and would continue to cushion its clients for life.
However, where claims border on illegalities and fraud, the rule of law must always be applied, he added.
It’s important to state that GLICO General has been rated “B-” for credit worthiness by Standard & Poors (S&P) Rating Agency and to date is the only non-life insurance company to be rated in Ghana by S&P. It is also rated “A-” by the Global Credit Rating Agency of South Africa for claim payment abilities, an attribute GLICO General lives by with the tagline “we cushion you for life.”
Nana Efua Rockson, Group Head, Corporate Affairs & Marketing, GLICO Group Ltd, in a statement issued in Accra, said “GLICO General assures its clients and stakeholders that its promise to cushion clients for life is still resolute, as it has the financial muscles to pay all legitimate claims promptly.”
Instructively, GLICO General is a member of GLICO Group, a group of companies specialising in providing financial solutions to Ghanaians for over 30 years.
A business desk report