Court Orders SK Macharia to Wire Back KSh 400m He Transferred from Directline

 

SK Macharia

The court has ordered Kenyan businessman SK Macharia to wire back KSh 400 million he transferred from Directline Assurance Company Limited. The court ordered businessman SK Macharia to return Directline funds.  Why court ordered SK Macharia to return funds Justice Alfred Mabeya declared the withdrawal of funds as illegal and unlawful as it was intended to cripple the firm financially.  

Business Daily reported that the judge ordered Macharia to return the money to the account it was taken from. "This is in order to meet the ends of justice and to secure the interest of the policyholders of the plaintiff and the claimants for compensation," Mabeya ruled. According to Tech Cabal, the money was transferred from Directline's Diamond Trust Bank account to Toy and Suna Holdings Ltd on May 16. The Insurance Regulatory Authority (IRA) noted the transaction was a scam meant to defraud the company's beneficiaries and policyholders. 

Why SK Macharia stopped Directline operations On Monday, June 10, SK Macharia announced that he had ceased the operations of Directline Assurance Company. Macharia, who chairs Royal Credit Limited, which owns the insurer, said all employee contracts had been terminated. The tycoon announced that the company's board of directors would dissolve immediately and Royal Credit Limited would acquire all of Directline's assets. Citizen TV reported that while shutting down the insurer, Macharia accused the Insurance Regulatory Authority (IRA) of freezing Directline Assurance Company's bank accounts.

by  Japhet Ruto