Chief Executive Officer (CEO) for Bramer life Botswana, Regina Sikalesele-Vaka, has assured their clients that the troubles at their Mauritian parent company will not affect the local insurance company.
Addressing the media on Friday, Sikalesele-Vaka said that the developments in their parent company, BAI group in Mauritius, do not have a direct impact on the operations or the financial stability of Bramer Life. “Bramer life is an autonomous legal entity with its own local investments. I can assure you that all shareholder monies and policyholder funds invested in Bramer Life are held in Botswana Financial institutions and managed separately from investments in sister companies,” she said. Last week, the Bank Of Mauritius revoked the banking licence of Bramer Banking Corporation (BBCL) which is a sister company of BAI Co, the parent company of Bramer Life.
BBCL was found by authorities to be involved in a P6.7 billion Ponzi scheme scandal.
Sikalesele-Vaka also noted that NBFIRA has appointed Nigel Dixon-Warren of KPMG as the statutory manager to protect the interests of the policyholders. Dixon-Warren has the powers to override the board and will ensure that independent decisions can be made that protect the policyholder.
Dixon-Warren was appointed by NBFIRA less than 48 hours after the scandal went viral, which Sikalesele-Vaka said demonstrated a high level of resolve to protect the public interest in the market.
“We will work closely with the statutory manager to insulate the company from any contamination and restore market confidence through various strategies, review shareholder agreements to eliminate any aspects that may pose a risk to the financial economy of Botswana,” she said. Bramer Life was launched in Botswana eight months ago amid optimism that Sikalesele-Vaka, an old hand in the insurance business, would utilise her experience to up competition in the market, which was dominated by a few firms.
BAI co-owns 80 percent of Bramer Life having invested P40 million into Bramer Life as initial capital investment.