Former Chief Executive Officer (CEO) for the National Health Insurance Authority (NHIA), Mr. Sylvester Mensah, has said the previous administration, did due diligence before investing GHc17.5 million with All-Time Capital.
He has admitted that the NHIA under his watch initiated the investment with All-Time Capital.
Speaking to Kwabena Agyapong on Rainbow Radio 87. Fm, the former CEO indicated that the decision to invest at All-Time Capital, was not poorly done as speculated by the current leadership under the ruling New Patriotic Party (NPP).
Mr. Mensah said, managing the health insurance requires that you invest some of the funds and consistent with international best practice to have an investment cover for a minimum of nine months and a maximum of 18 months.
He said, what that means is that the health insurance as an institution, is obliged to have investments with a minimum of 9 months claims and that what we called the investment cover.
He described the investment as legitimate and within the confines of the law.
”Investing in All-Time was not an offense but was a legitimate investment. But what is not clear is the fact that any investment must be preceded by a risk assessment and due diligence. Besides, there must be some advice also from the fund management directorate of the Health Insurance Scheme. And this is what actually informed the decision to invest,” he told the host.
Mr. Mensah insisted the investment with All Time was a ”successful investment”.
”There was risk assessment, due diligence that assured management that the investment was,” good.
He also admitted the investment was reinvested in 2014 and was legitimate and legal.
He was of the view that although the investment could be reinvested or money added, it must be done with all the risk assessment done.
In his view, if that has been done, the current management would not have reinvested at All-Times Capital.
”It is absurd to make reference to an investment done in 2012 as a basis for reinvestment in 2017. The circumstances of an institution in 2012 would be completely different from the circumstances in 2018. It doesn’t make financial sense”
He said because it is not everybody who understand finance and investments, it is easy for them to buy into the misleading information by the NPP.
He noted that the current management took the decision to reinvest without due diligence and ”that cannot be related in any way to a decision taken in 2012”.
To him, the current boss of NHIA could be excused because she lacks the understanding of financial matters hence the position she took.