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Citizen Insurance Employees Not Paid

MZUZU: Some fifty-five employees of the closed Citizen Insurance Company Limited have not received their November salaries and there are worries of getting to Christmas penniless.

An employee who sought anonymity told Zodiak Online some of his colleagues have been evicted from rented houses.

But Mr. Ralph Tseka, spokesperson for Reserve Bank of Malawi (RBM), this is normal.

“They will not get anything until the winding up of the company,” he said.

According to letters the employees got, the staff is on paid leave.

Former Managing Director of the closed Citizen Insurance Company, Kennanson Nyirenda told to one of the dailies recently, the company failed to recover some K46 million owed brokers who could not remit money paid by policy holders.

He however, accused Reserve Bank of Malawi (RBM) of acting in “bad faith.

He is not challenging the winding-up-order because he knows after winning, will still need RBM for license renewal.

The central bank says Citizen Insurance assets amount to MK10 million only against K492 million liabilities.

But Mr. Nyirenda says Citizen assets are over K150 million.

The audit report conducted by RBM’s consultant shows that the company’s liabilities are over K492 million up from K164 million earlier assumed by RBM.

The report further says there are outstanding claims of about K168 million while claims under negotiations total about K310 million.Zodiak Online

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