NBFIRA lifts Botsogo suspension
Staff Writer | Tuesday August 1, 2017 15:55
In a statement, the regulator said Botsogo, which was banned three weeks ago for compliance issues, might now issue new business to clients.
“Please note that the effect of this lifting of the temporary closure is that Botsogo may now take new clients and issue new medical aid covers,” read a statement from NBFIRA.
Medical aid schemes Botsogo and Itekanele along with insurance company, Phoenix of Botswana Assurance Company were three weeks ago temporarily suspended by the regulator in terms of Section 57 of the NBFIRA Act.
Although NBFIRA did not specify the specific reasons for the closure, Section 57 of the NBFIRA Act states that the regulator may temporarily close the business or freeze the bank accounts of a prudentially regulated non-bank financial institution upon reasonable suspicion that the company is not complying or is not likely to comply with a financial services law. For its part, Botsogo said it has acted accordingly and fully cooperated with the regulator authority.
“Our scheme is held in high regard by our members. We are committed to providing excellent service whilst adhering to statutory requirements, following our recent closure imposed by the regulator, we duly regret the incident and have since rectified our status,” the company said.
The High Court also recently conditionally suspended a decision by NBFIRA to place Phoenix of Botswana Assurance Company under temporary closure.
Justice Leatile Dambe set aside NBFIRA’s July 6 decision to freeze Phoenix’s business, allowing the general insurance company to continue writing new business, but only on condition that the regulator approves all transactions.
Justice Dambe also ordered Phoenix to submit its audited accounts for the period ending December 31, 2016 to NBFIRA by July 27, 2017 with the insurance company allowed to continue with the process of recruiting adequate personnel.
The two parties are to also agree on the issue of recapitalisation of the company, after the insurance firm submits its financial accounts.