Garissa governor, county ordered to pay insurance firm Sh221.3m
Garissa Governor Ali Korane and his administration has suffered a major blow after the High Court ordered him to pay over Sh 221.3 million to an insurance company.
The court ordered the Garissa county government, county secretary and the county chief finance officer to pay the Takafur Insurance of Africa limited Sh 221,365,643 cash for insurance services rendered to the county government.
The direction comes after the insurance company filed a commercial suit against the Garissa county government last year seeking the county to settle the debt.
The company says that it was awarded a contract tender no. CGG/T/001/2015-2016 which was renewed from time to time by the county government to prove the insurance cover for the general staff of the county.
Among the insurance provide included Work Men Injury Benefits Act, Group Personal accident, Employers' Liability, motor vehicle insurance cover for all types of motor vehicles owned by the county government and medical insurance cover for the medical benefit of the employers.
According to court documents, the county government of Garissa have defaulted in the payment of premiums owing to the insurance company over aforesaid and the insurance company is counting losses.
The outstanding motor vehicle insurance balance is Sh 119,799,426 while Workmen Injury benefits and employer's liability is at Sh 77,991,818.
At the same time,the medical insurance cover debt is at Sh 23,574,39 totaling to whooping Sh 221,365,643.
Allegedly, the county government has failed, neglected and refused to pay the insurance company in fragrant breach of the terms and conditions of the services rendered by the insurance company.
This is in-spite of the insurance providing the much need services in the various sectors as requested for by the same Garissa county government from time to time.
"Despite demand to pay the monies owing and notices to sue duly issued to the county government, they have refused, failed and neglected to heed to the call for the money owed,"said Takaful insurance company.
However, the insurance company seeks to attach eight vehicles belonging to Garissa county government including fire engines and other assets.
The company has further hired the services of Recovery Concept Auctioneers to carry out the the attachment of the said county government assets for the recovery of their money.