malvernmugadzikwa
Enacy Mapakame
Listed insurance giant, First Mutual Holdings Limited (FMHL) deferred holding of its annual general meeting (AGM) due to an Insurance and Pensions Commission (IPEC) probe into one of the group’s subsidiaries.
IPEC began investigations on First Mutual Life Assurance Company on September 05, 2022 on allegations of misconduct. According to a circular to shareholders, the investigation is expected to be completed in four months.
“First Mutual Holdings Limited (FMHL) has been unable to conduct its Annual General Meeting (AGM) within twelve months of the previous AGM as the external auditors are yet to issue their audit opinion for the year ended 31 December 2021,” said FMHL in a notice to its shareholders.
“The delay arises following the appointment of a forensic investigator by the Insurance and Pensions Commission (IPEC) to conduct an investigation into First Mutual Life Assurance Company (Private) Limited, a subsidiary of FMHL.
The auditors will only issue their opinion once that investigation has been concluded.
“The investigation, which began on 5 September 2022, is expected to take 4 months to complete. Hence it will not be possible to conduct the AGM before the end of 2022.
“Shareholders will be advised of the date of the AGM as soon as these processes have been finalised,” said FMHL.
Meanwhile, the largest banking group by assets and deposits CBZ recently announced it completed the acquisition of 31 percent of FMHL, giving the bank a strong grip in the insurance sector after reaching an agreement with NSSA for the FMHL stake.
“Further to the cautionary statements issued on 30 May 2021, 28 July, 1 September and 5 October, the directors of CBZ Holdings Limited wish to advise shareholders that, following conclusions of negotiations, the company has now executed an agreement for the acquisition of 31,22 percent shareholding in First Mutual Holdings from the National Social Security Authority (NSSA),” said CBZ in a cautionary last month.
Bongani Ndlovu