A financial scandal has erupted at Sonali Life Insurance Company Ltd (SLICL), embroiling former CEO Rashed Bin Aman in serious allegations of embezzlement and a calculated scheme to execute a hostile takeover of the rapidly growing insurance firm.
Initially perceived as a case of internal mismanagement, investigations have revealed a complex web of deceit involving top management and regulatory figures, a director of the company confirmed this information on condition of anonymity.
At the center of the storm is Rashed Bin Aman, the ex-son-in-law of SLICL’s founder, Mostafa Golam Quddus, according to a Bangladesh Financial Intelligence Unit (BFIU) report, which has recently been submitted to the Insurance Development and Regulatory Authority (IDRA).
The allegations stem from an investigation conducted by an international audit agency, which uncovered that Rashed had been engaging in fraudulent activities to undermine Quddus and seize control of the company, he added.
SLICL, founded in 2013, quickly emerged as a leader in the life insurance sector, lauded for its innovative use of enterprise resource planning (ERP) technology that allowed policyholders real-time access to their accounts.
The company reported astonishing annual growth rates of 100 per cent to 300 per cent, driven by its efficient claims processing, which saw approvals completed within just seven days.
However, this success was marred by Rashed's alleged misconduct. The BFIU report indicates that Rashed played a central role in a secret meeting involving key figures from the IDRA, where plans to oust Quddus were allegedly discussed.
Rashed had reportedly embezzled significant funds from SLICL and secretly acquired over 12% of the company’s shares, positioning himself to execute a hostile takeover, said a director.
In November 2023, the severity of Rashed's actions prompted SLICL to enlist the help of PricewaterhouseCoopers (PWC) for a forensic audit.
Findings revealed that Rashed had manipulated financial records, forging digital signatures and erasing crucial data to hide his embezzlement activities. His machinations were allegedly supported by former SLICL chairperson Nur-E-Hafsa, further complicating the scandal.
Despite these serious allegations, the audit conducted by Hoda Vasi Chy & Co—appointed by the former IDRA chairman—failed to address critical issues, including rental expenses and the ongoing embezzlement claims.
This biased audit raised questions about the integrity of the oversight process and further fueled suspicions regarding a coordinated effort to destabilize SLICL.
In April 2024, in a move widely criticized as an attempt to facilitate the takeover, the former IDRA chairman dissolved SLICL’s board and appointed an administrator. This decision led to chaos within the company, resulting in the firing of 13 top executives and drastic salary cuts. Such actions precipitated a staggering 60-80% decline in business within just two months. Although a court later reinstated the original board, the damage to SLICL's reputation and operations had been significant.
The situation took a turn for the better in July 2024 when an interim government dismissed the former IDRA chairman and reinstated the original board, allowing SLICL to begin its recovery. However, recent developments suggest that the conspirators have regrouped and are once again attempting to undermine Quddus and regain control of the company.
Quddus has publicly urged for an independent investigation into the actions of Rashed and his associates, calling for accountability and transparency to restore SLICL’s standing in the industry. He stated, “We will fight to protect Sonali and ensure that the truth comes to light.”
As this scandal unfolds, Rashed Bin Aman faces mounting scrutiny and pressure as both SLICL and the regulatory bodies investigate the full extent of his alleged crimes. The future of Sonali Life Insurance hangs in the balance, with stakeholders keenly watching for accountability and justice in this troubling saga.
