The Colombian government has intervened to take control of health insurance company SaludCoop while alleged financial irregularities are investigated, according to local reports.

A routine inspection of the health insurer earlier this year uncovered irregular transactions in relation to its debt payments and investments. The Health Superintendency stepped in last week to seize control in the interests of policyholders, and the company’s president, Carlos Palacino, resigned. The Superintendency has since reported that it is looking into 8,000 bad checks that SaludCoop may have used to pay contractors, with a value of 360 billion pesos (approximately US$200 million). The regulatory body is also reviewing the activities of six other health insurance companies that may have engaged in illicit transactions.

SaludCoop provides cover to around 4 million people and has grown to be one of the largest companies in Colombia. After opening its first clinic in 1998, it now has 36 clinics throughout the country and is estimated to control over 30% of the health insurance market.