Annual general report of the controller and - Parliament of Tanzania

manager who also indicated in his recommendation
to the management that the PII was obtained from
Specialised Risks Underwriters (SRU) of South Africa.
However, ultimately the PII Policy given to the Bank
after about a year and half since payment of
premium was from a local insurance company M/S
Alliance Insurance Corporation Limited.
Additional inconsistency regarding PII policy is with
regards to payments of insurance premium in which
insurance premiums of US$ 1,798,888 in respect of
PII cover was paid to the broker on 17 March 2005
with the Policy document issued on 26 July 2006
(about a year and a half since payment of premiums
were made). Furthermore, this policy was
retroactive from 14 March 2005 and not from 24
February 2003 as advised to the management.
(vi) Inconsistent information on identity of insurers
Whereas the named insurers in the original CAR
Policy was M/S Nova Risks Partners Ltd of South
Africa, and for PII was M/S Alliance Insurance
Corporation Ltd of Tanzania, subsequent letters and
invoices from the broker and which form the basis
for subsequent payments made by the Bank
indicated different insurers. For example;
• Invoice from the broker No. 6458 for US$ 441,916
for additional premium in respect of CAR and PII
policies due to escalation of value of insured
property indicated that the insurer was M/S
Scintilla Insurance Company of South Africa and
not Nova Risks Partners Ltd.
• Another Invoice No. 6459 for similar reasons for
US$ 432,000 indicated that the insurer was M/S
Santam Insurance Company of South Africa.
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Office of the Controller and Auditor General PA&oBs 2007/08 148