Directline Assurance demands removal of suspended shareholders from CR12 form

In a demand letter issued by lawyer Danstan Omari, the company warned Kiptum that failure to comply would result in legal action against him personally.

Omari accused the commissioner of facilitating fraudulent individuals in an attempt to take over the company, resulting in financial losses.

"Your actions have completely disregarded court orders issued by Justice Mabeya and instead installed non-shareholders as directors. These individuals are fraudsters whose aim is to plunder the company’s assets and divert contributions," reads part of the letter.

The current CR12 contains fraudulent shareholders.The legal shareholders are Royal Credit and Samsoni Plc.

The company says it has  have incurred losses in excess of KSh 7 billion and insists that shareholdings be returned to Dr. S.K. Macharia.

Directline has also notified the Ethics and Anti-Corruption Commission (EACC) to investigate Kiptum and other IRA officials for alleged abuses of office.

"This is a matter of determining the rightful directors of the company. Court orders have been issued, but there are still individuals purporting to hold these positions. Commissioner Kiptum must ensure the correct beneficiaries are reflected in the CR12 form," added lawyer Shadrack Wambui.

Earlier this month, four senior management staff were placed on compulsory leave for allegedly refusing unauthorized payments.

Meanwhile, Directline Chairman Dr. S.K. Macharia has urged Commissioner Kiptum, the Cabinet Secretary, and the Principal Secretary of Finance to intervene and prevent the alleged asset stripping by a partially constituted board of directors.

The board in question includes Kenneth Ndura, Maina Mwangi, and Titus Karanja, who assumed office on October 4, 2024.

Directline maintains that urgent action is needed to safeguard the company's assets and restore compliance with court directives.