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New Vision pays NIC sh39m dividend

By Vision Reporter

Added 30th January 2010 03:00 AM

THE New Vision on Thursday delivered a sh39m cheque to the National Insurance Corporation (NIC) as dividend payments for the year ended 2009. NIC is one of the largest minority shareholder of New Vision.

THE New Vision on Thursday delivered a sh39m cheque to the National Insurance Corporation (NIC) as dividend payments for the year ended 2009. NIC is one of the largest minority shareholder of New Vision.

By David Mugabe

THE New Vision on Thursday delivered a sh39m cheque to the National Insurance Corporation (NIC) as dividend payments for the year ended 2009.

NIC is one of the largest minority shareholder of New Vision that has today listed over 40% of its stakes on the Uganda Securities Exchange.

Segun Akinwale, the NIC managing director, said the insurance firm, which is in the final days of its initial public offer (IPO) is a stable company with value.

He was speaking at a meeting attended by Robert Kabushenga, The Vision Group’s chief executive officer and other staff, held at the media group’s headquarters in industrial area in Kampala on Thursday.

The Government of Uganda is selling 40% of its shares in NIC through an IPO that ends on February 5, 2010.

Reports indicate that there is a steady interest in the IPO with most market analysts saying the shares on offer totaling 161,552,000 ordinary shares at sh45 each will be completely snapped up because it is a small offer for major institutions.

Responding to complaints from Akinwale about the “negative publicity” that surrounded its dealings with Makerere over MUK’s pension funds, Kabushenga advised NIC to always seek dialogue and redress if they feel they are wrongly represented.

Akinwale refuted claims that NIC has refused to pay Makerere University it’s provident funds saying NIC had on a yearly basis paid off pensions to those who had qualified for them.

Akinwale wondered why MUK had never gone to court for redress.

“If someone owes you money and they have refused to pay, take them to court,” Akinwale said.

He said NIC was opposed to conducting the debates in the media adding that the matter was a normal contractual issue which some MUK officials were using for their political agenda.

Makerere stopped contributing to the Deposit Administration Plan fund in June 2005. NIC managed the funds that belong to Makerere University staff members on behalf of the university.

From 1996 to 2005, NIC says Makerere’s contribution had amounted to sh13.7b and during the same period, the insurance company has paid total claims amounting to sh4.6b. Makerere on the other hand puts the figure at sh17.1b as at December 31, 2008.

New Vision pays NIC sh39m dividend

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