SIC-FSL plunged into governance turmoil

• as MD, Board Chair clash over mgt. structure
• gov’t petitioned

SIC Financial Services Ltd (SIC-FSL), one of the nation’s oldest state-linked investment firms, has been thrown into a rare governance crisis as tensions between its Managing Director and Board Chairman escalate into competing claims of authority and the emergence of two parallel management teams.

The dispute, which insiders say has disrupted normal operations, has now reached the government after the Managing Director, Dr. Sa-ad Iddrisu, filed a formal petition alleging board interference in core executive functions.

At the centre of the standoff is a restructuring exercise initiated by Dr. Iddrisu shortly after assuming office. The reset programme involved the reassignment and, in some cases, relocation of senior managers who had served under the company’s previous leadership during the former administration.

The move formed part of what the Managing Director described internally as a broader transformation agenda aimed at improving accountability, strengthening risk controls and clarifying reporting lines.

However, while the Managing Director was out of the country, Board Chairman, Jonathan Dziasu is said to have convened a board meeting in his absence, during which the Board reversed several of the restructuring decisions.

According to sources within SIC-FSL, the Board reinstated the former management team and nullified the out-of-Accra postings issued under the reset programme.

The reversals effectively created two leadership structures, one aligned with the Managing Director’s new appointments and another comprising the reinstated executives.

The episode has raised concerns about board oversight practices in a sector that has faced heightened regulatory scrutiny in recent years.

“It is not sustainable for a financial institution to function with dual management teams issuing parallel directives. It creates confusion, slows down approvals and affects our ability to meet client and regulatory obligations,” a senior staff member familiar with the situation said.

Government petitioned

A memo circulated to all staff by the Managing Director and seen by B&FT, confirms the depth of the crisis. Dated December 1, the internal directive states that the company is now confronted with a “conflicting situation arising from the actions of the Board Chairman and the Board.”

It further noted that the Managing Director has “formally petitioned the government for clarification and direction,” citing the need to protect the company’s operations and regulatory commitments.

As an interim measure, Dr Iddrisu announced the postponement of the company’s three-year strategic plan presentation, which had been scheduled for December 19 to 21.

He also suspended management’s participation in any board activities that involve the Board Chairman until the government responds to the petition.

The memo instructed staff to comply strictly with the restructuring measures already undertaken under his leadership, warning that non-compliance would attract administrative sanctions.

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