Fareast Islami Life Insurance’s Chairman Fakrul Islam has questioned the Insurance Development and Regulatory Authority’s (IDRA) role in regard to the embezzlement of nearly Tk 2,200 crore, which has left the company in a fragile state.
He raised the issued at a meeting with the chairmen and CEOs of all public and private life insurance companies at the IDRA office in Dhaka on Wednesday. Newly appointed IDRA Chairman M Aslam Alam arranged the meeting.
Fakrul questioned the role of IDRA during the massive corruption scandal, which spanned more than 10 years. He pointed out that the regulatory body was unable to detect such widespread corruption and, as a result, should also take responsibility for this oversight.
However, the IDRA chairman did not provide any response to the question raised.
Former Fareast Islami Life Insurance chairman Nazrul Islam, founder-director MA Khalek, and managing director Hemayet Ullah, in collaboration with one another, embezzled Tk 2,125 crore through illegal means and laundered the money abroad.
Out of this, Tk 854 crore was used for illegal land acquisition, Tk 659.67 crore was invested in various companies associated with their interests, Tk 421 crore was obtained through bank loans against the company's Mudaraba term deposits, and Tk 192 crore was embezzled through two fake social organisations.
Sources from the meeting revealed that the chairmen and CEOs of the insurance companies discussed the problems in the sector and proposed solutions.
Many CEOs stated that, between 2020 and 2024, Tk 50 crore has been misappropriated through the Unified Messaging Platform (UMP). To restore order, the sharing of company information and funds through the UMP must be stopped immediately.
The IDRA chairman emphasised the need for cooperation from everyone to restore discipline in the sector. He mentioned that the reforms initiated by student protests must now be advanced to the development stage. Additionally, he warned that if any wrongdoing occurs or if the public is deprived of their rights, the students and the masses will rise to stop it. He urged everyone to conduct business by following the law.
IDRA’s four members— Biswajit Bhattacharya Khokon (Administration), Md Dalil Uddin (Law), Nazrul Islam (Non-Life), and Quamrul Hasan (Life)—along with senior officials of the organisation, were present at the meeting.
Among the directors of the insurance companies, Meghna Life Chairman Nizam Uddin Ahmed, Fareast Islami Life Chairman Fakrul Islam, Best Life Chairman Major General (retd) Abdul Hafiz Mallik, Zenith Islami Life Vice Chairman ATM Anayet Ullah, and Meghna Life Vice Chairman and first vice-president of Bangladesh Insurance Association (BIA) Nasir Uddin Ahmed (Pavel) were present at the meeting.
Among the chief executives are, BIAF (Bangladesh Insurance Association Federation) President and Popular Life CEO BM Yousuf Ali, BIAF’s Acting Secretary-General and Zenith Islami Life CEO SM Nuruzzaman, Pragati Life CEO Jalalul Azim, MetLife Bangladesh CEO Ala Ahmad, National Life CEO Kazim Uddin, and Chartered Life CEO SM Ziaul Hoque were present.
