The Bangladesh Financial Intelligence Unit (BFIU) has uncovered evidence of embezzlement amounting to Tk 353 crore from the funds of Sonali Life Insurance through corruption, fraud, and forgery.
According to a BFIU report, this money was siphoned off from various bank accounts and petty cash of the company. Additionally, ten directors acquired shares of Sonali Life using the company’s funds through fraudulent means.
Previously, on December 31, 2023 - the Insurance Development and Regulatory Authority (IDRA) appointed the audit firm Hoda Vasi Chowdhury & Co to investigate allegations of embezzlement at Sonali Life.
That audit had revealed evidence of Tk 187.84 crore being misappropriated.
The BFIU then wrote to IDRA to take necessary actions against the institutions and individuals involved in the embezzlement of Sonali Life’s funds. They also requested updates on the actions taken regarding this matter.
A letter signed by BFIU Joint Director Mosharraf Hossain was sent to IDRA on September 22, 2024.
The report was prepared by analyzing data collected from Sonali Life’s vouchers, ERP software, banks, finance companies, insurance companies, real estate developers, securities houses, and car dealerships.
According to the BFIU report, the embezzlement of Tk 353 crore involves the former chairman and vice-chairman of the company, along with 8 directors, the acting CEO, and two other officials.
The names of the acting CEO’s brother and aunt also appeared in the list of individuals involved in the embezzlement.
Former Chairman Mustafa Golam Kuddus allegedly misappropriated Tk 183.68 crore from Sonali Life’s funds, including Tk 139.10 crore under the pretext of selling a building.
The remaining Tk 44.58 crore was embezzled under his own name and in the name of his owned companies. This money was withdrawn between 2015 and 2023 from various bank accounts and petty cash of Sonali Life, as stated in the BFIU report.
The report notes that although Tk 139.10 crore was misappropriated under the guise of building sales, there was no approval from Sonali Life's board or the regulatory authority, IDRA.
BFIU mentioned that they took the opinion of Mustafa Golam Kuddus, who claimed the Tk 139.10 crore was for rent for the Imperial Building, but he could not provide any supporting documents.
From September 2013 to November 2023, Tk 169.09 crore was withdrawn in cash from Sonali Life’s various bank accounts. The maximum amount withdrawn in cash through a single check was Tk 8.95 crore, on June 26, 2018, from the company’s SBAC bank account.
This large amount of cash withdrawal indicates embezzlement, as indicated by the BFIU investigation report. It states that from 2020 to 2023, Rashid Bin Aman received Tk 4.06 crore from Sonali Life outside of his salary.
He withdrew this money in cash from Sonali Life’s accounts in the names of various individuals. However, the report does not comment on whether Rashid embezzled or misappropriated this money.
The report also states that in 2018, the Securities and Exchange Commission (BSEC) approved an increase in Sonali Life’s paid-up capital from Tk 18 crore to Tk 28 crore. Although the entrepreneur directors were supposed to pay the amount, they did not.
Instead withdrew Tk 8.95 crore and Tk 1.55 crore in cash from Sonali Life’s South Bangla Agriculture Bank's SOD account to issue pay orders in the names of 10 directors for share payment. These pay orders were issued on June 26, 2018.
The BFIU’s report claims that the ten directors essentially purchased shares related to the increase in capital with Sonali Life's funds, which constitutes fraud.
Furthermore, BFIU's report mentions that around Tk 44.01 crore was embezzled through Galaxy Holidays and Crown Money Changer. It indicates that Tk 37.64 crore might have been smuggled abroad through Galaxy Holidays.
Payments totaling Tk 6.46 crore were made to Crown Money Changer for various purposes including purchasing pounds, sending money to London, shopping in London, Dubai tours, providing a London card, software purchases, and medical expenses for the CEO Rashid, as mentioned in the report.
