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APRA bans former FAI executive

APRA has disqualified former FAI senior executive Ashraf Kamha for his role in producing fraudulent company accounts.

Mr Kamha, who was GM of FAI’s corporate and professional division (from 1994 to 1998), was also banned from being a director or senior manager of a general insurer by the Australian Securities and Investments Commission (ASIC) last year after an investigation into HIH.

APRA has found that between July 1997 and July 1998 Mr Kamha instructed an internal FAI actuary not to disclose certain draft valuation results and data to FAI’s external actuaries PricewaterhouseCoopers and later provided them with data that was inaccurate.

He was also instrumental in reducing his division’s case estimates by $24.78 million, which led to an inflated profit being reported.

“This conduct contributed to the misrepresentation of FAI’s true financial position and misled FAI shareholders, the market and the relevant regulators,” APRA said.