The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has cleared the Botswana Sectors of Educators Trade Union (BOSETU)-owned BOFUS Insurance Brokers, after announcing a fortnight ago the cancellation of the licence to trade.
The latest decision announced on March 10, now paves the way for the insurance broking firm to renew its annual practicing licence and continue normal trading after the renewal.
BOFUS Insurance Brokers filed a successful appeal with NBFIRA following the February 24 announcement of the cancellation of their licence. The decision would have effectively thrown tens of thousands of BOFUS members in limbo.
The earlier problem was later found to have emanated from third parties, especially the issuance of guarantee letters. “Both BOFUS insurance broker and the regulator are amicably addressing the challenge and things are normalising,” explained chairperson of the BOSETU insurance company, Mogomotsi Motshegwa, who is also the union’s deputy president.
On March 10, NBFIRA, who are the regulators issued a follow-up public notice, announcing that the cancellation made public on February 24 was now being withdrawn, adding that, “BOFUS has now been given clearance to renew its licence to trade as an insurance broker…”
A delighted BOFUS director and BOSETU national treasurer, Samuel Aboneng said the decision by NBFIRA goes on to confirm that there was nothing sinister about the broker’s status, contrary to some detractors who alleged maladministration.
“It was only established last year.
This would be its first year of reporting and renewal of licence, it was just a letter of guarantee that was delayed from the bank’s side.
We are very pleased that within a short time, NBFIRA withdrew its announcement of cancellation,” he said. The national treasurer added the establishment of the insurance broker by BOFUS, a BOSETU company, had proved to be a massive success. He said in its first year of operation, it netted P16 million as BOSETU for the first-time handled credit life cover of its members.
“One of the best things to happen for BOSETU members had been the arrangement we struck with a major local bank to allow us to provide insurance cover for the loans of our members.
In the end, we were able to negotiate comparatively low insurance cover for the loans, resulting in members benefitting a great deal.
The underwriter, Botswana Life, had also been very supportive as they ran with our vision and objective of affordable insurance cover,” Aboneng added.
BOSETU secretary-general Tobokani Rari said, “NBFIRA has lifted the suspension of BOFUS brokerage following our meeting with its CEO and consequent appeal letter that we wrote. The licence is restored, and awaiting renewal.”