Home ›› 25 Jul 2022 ›› Front
The Insurance Development and Regulatory Authority (IDRA) has resumed an investigation into allegations of corruption totalling Tk 3,255 crore against Md Nazrul Islam, former chairman of Fareast Islami Life Insurance Company Ltd, and its board members who were affiliated with the company from 2010 to 2020.
On September 12 last year, the Finance Ministry directed the IDRA to investigate and submit a report within 15 working days. However, the then IDRA chairman, Mosharraf Hossain, did not take any action, it was alleged.
On June 14, Musharraf Hossain, who once served as the managing director of Fareast Islami Life Insurance, resigned from his position as the IDRA chairman, following which a new chairman was appointed.
The regulatory body has now resumed the investigation into Fareast’s alleged corruption, documents related to which have reached The Business Post.
It was found that the directive of the Financial Institutions Division (FID) under the finance ministry was sent to IDRA on June 22, 2021.
When contacted, IDRA Executive Director SM Shakil Akhtar said he was aware of the matter but declined to comment at the time. In September last year, the Bangladesh Securities and Exchange Commission (BSEC) dissolved the board of directors after allegations of corruption surfaced against Nazrul Islam, chairman of Fareast, a listed company. According to the allegations, the irregularities took place from 2010 to 2020.
The BSEC initially hired an audit firm to look into the alleged irregularities, but the FID later asked the IDRA to look into the situation again, citing incomplete information provided by the audit firm. It recently nominated Bangladesh Insurance Association President Sheikh Kabir Hossain as the chairman of the newly formed board of directors of Fareast Islami Life Insurance.
When asked whether he would take any action against the former chairman Nazrul Islam, Sheikh Kabir Hossain told The Business Post that he was nominated to this position to neither investigate nor punish any individual.
“Now, it is my job as the chairman of the board of directors to settle all debts and turn this company around,” he said. The board shall only take action if the IDRA instructs it based on its investigation, he added.
The corruption allegation against Farest
The Tk 3,255 crore in alleged corruption includes the theft of Tk 1,682 crore from the company’s fixed deposit account, Tk 686 crore in fraud under the guise of investing in one’s own business, Tk 277 crore in fraud under the guise of land purchase and land development, Tk 319 crore in fraud by buying land at exorbitant prices, Tk 191 crore in fraud through cooperative societies, and Tk 100 crore in fraud under the guise of mortgaging MTR.
Both Nazrul and Mosharraf could not be contacted despite repeated attempts. It was learnt that Nazrul had already left the country to escape arrest.
