Fareast Islami Life Insurance CEO removed

The Insurance Development and Regulatory Authority has removed Fareast Islami Life Insurance’s Chief Executive Officer Mohammad Hemayet Ullah from his position for committing financial irregularities, mismanagement, and being involved in activities against the interests of policyholders.

On Wednesday, IDRA issued a letter signed by its Director (Deputy Secretary) Mohammad Shah Alam directing Hemayet’s removal.

He was removed under the Insurance Act, 2010, effective from September 16, the letter said.

The letter also mentioned Hemayet Ullah would be fully responsible if further irregularities are unearthed in future that took place during his tenure.

IDRA directed the insurance company to take all necessary steps to appoint a new CEO within the next three months.

The regulatory body also directed the company to temporarily hand over Hemayet Ullah’s responsibilities to a deputed officer until the new CEO is appointed.

The letter states that IDRA has proof of Hemayet Ullah’s financial irregularities in the management of the company, and various activities harmful to the interests of policyholders.

The letter further said the Anti-Corruption Commission (ACC) had filed a case against Hemayet Ullah alleging him of acquiring assets illegally and filing false financial information.

The ACC has also banned him from travelling abroad, it further said.

Mohammad Hemayet Ullah refused to comment on the development.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) dissolved the board of directors of Fareast Islami Life Insurance and appointed 10 new independent managers to protect investors, policyholders and the capital market.

Dr Mohammed Rahmatullah, the dean of the University of Development Alternative’s (UODA) Faculty of Life Sciences, was made the chairman of the reconstituted board.

The regulator decided to investigate allegations brought against some persons, including an entrepreneurial director of the company. BSEC officials said the commission found some irregularities and there were many allegations against the insurance company for not settling claims.

BSEC said the reconstituted board would restructure the company’s top management within the next six months, bring back corporate cash and assets, and take legal action against those who committed financial crimes and money laundering in the insurance company in the past 10 years.

The company was listed on the Dhaka Stock Exchange in 2005. It belongs to the “A” category and has a paid-up capital of Tk 75 crore.