CEO of Doves Group and 3Sixty Life, Khandani Msibi, has once again accused Prudential Authority (PA) and the governor of the South African Reserve Bank (SARB), Lesetja Kganyago, of unfairly continuing the curatorship of the insurance company.
3Sixty Life was placed under curatorship over solvency and liquidity more than 24 months ago, after the company, which serves members of the National Union of Metalworkers of SA (Numsa), was placed under curatorship in December 2021 by PA on allegations of an unconvincing liquidity of its business.
In an open letter to the governor and his deputy, Fundi Tshazibana, penned on the second anniversary of the curatorship (December 21), Msibi laments the effects of the prolonged curatorship, saying if indeed the company was not properly managed, its curatorship should not have lasted more than six months.
“You placed 3Sixty Life on curatorship on 21 December 2021, making certain allegations about solvency and liquidity, ordinarily, 3Sixty Life should not have existed beyond six months if your assertions were true.
“It has been 24 months of 3Sixty curatorship, and we have, during this period, disputed your assertions and I would like to believe that this 24 months of curatorship has vindicated us. If you were regulating with honesty and integrity, you would have retreated by now and lifted 3Sixty Life from curatorship,” Msibi asserted.
Msibi also accused the governor of intentionally destroying black banks and insurance companies through the same modus operandi of effecting a ban on new businesses.
“Lesetja Kganyago and Prudential Authority have destroyed black banks and insurance companies and how they frustrate the licensing of black people who want to enter this industry, including mine. Actually, I should write a whole book … How you intended to kill 3Sixty Life is the same script you have used on all other black insurance companies, to deny its growth by placing a moratorium on new businesses, which you have done for 24 months now.
“Secondly, increase its costs whilst revenue declines through chum, which is why you approved a fee of R2.4 million per month for three people in a company you first accused of a liquidity crisis,” he said.
He added that the excuse of protecting policyholders as the reason for curatorship does not hold water as facts have proven otherwise.
“The idea that you place companies under curatorship to protect policyholders is disproved by the mayhem you have allowed the curators to unleash on policyholders who are serviced by Doves Group. You cannot, in good faith, claim that your actions are in the interests of policyholders,” Msibi added.
Msibi added that the reason 3Sixy Life has been treated unfairly was due to the competition 3Sixy Life was making in certain forbidden areas.
“Lesetja Kganyago does not care if you lose your house and car but somehow cares about policyholders and shows it by destroying insurance companies that have served them.
“3Sixty Life was beginning to compete in forbidden areas and despite two years of curatorship that failed to prove things are wrong the governor is not retreating.
“You have to see the quality of the report of the curator, school kids would do better. I once told Lesetja that he has forgotten why he placed us under curatorship,” he said.
However, spokesperson for SARB, Thoraya Pandy, told “The Star” that the Reserve Bank has in the past communicated its position on the matter, which remains unchanged.
“We have previously given your news group the same comment as before on the matter. The reasons for proposing the curatorship can be found in the court papers. The courts placed 3Sixty Life under curatorship. Any questions on the entity should be directed at the curator. Any requests for comment about the curatorship to be ended must be submitted to the courts,” Pandy said.
Pandy would not be drawn into addressing allegations of unethical behaviour against Kganyago, who has been repeatedly accused of running black businesses down.
The Star