Wafa Insurance refuses to discharge board members on pending contracts

Shareholders of Saudi Indian Company for Cooperative Insurance (Wafa Insurance) on Wednesday refused to discharge the company’s board members from liability for their activities during the 2014 fiscal year.

Wafa said the shareholders had declined to approve insurance certificates worth SAR 61,960 signed between the company and Saleh bin Abdullah Alhanky, according to its statement to Tadawul.

Meanwhile, the members approved a board of directors’ report, an audit report, and all financial statements for 2014. An external auditor was selected for 2015, while board bonuses for the 2014 fiscal year were approved.

The decisions came during the insurer’s general assembly meeting.

Earlier this year, Wafa’s external auditor had cast substantial doubt on the company’s ability to continue as a going concern after it reported mounting losses and weak financial results in 2014.

The insurer’s accumulated losses reached SAR 70.8 million, or 70.8 percent of its capital by the end of December.