Fareast Islami Life’s board dissolved, new directors appointed

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday dissolved the current board of directors of the Fareast Islami Life Insurance Company Limited over a raft of financial irregularities, and restructured it by appointing 10 new independent directors.

Dr Mohammad Rahmatullah, the dean of Dhaka University’s Faculty of Life Sciences, has been made new chairman of the reconstituted board, BSEC said in a statement.

The new directors are Mohammad Sanaullah, Dr Md Rafiqul Islam, Md Mofazzal Hossain, Col Gazi Md Khalid Hossain, Snehasish Barua, Mozammel Haque, Suzadur Rahman, Md Zakirul Hoque and Jaharul Islam Chowdhury, the statement added.

In June this year, BSEC formed a committee to probe Fareast Islami Life’s financial irregularities, including non-payment of clients’ claims and money laundering allegations. Two members of the committee are assistant directors Md Shahnewaz and Md Sirajul Islam.

The regulator decided to investigate the allegations brought against some persons, including an entrepreneurial director of the company.

Md Nazrul Islam, also chairman of Fareast Islami Properties Limited, was chairman of the dissolved board.

Other removed members of the board were -- Prof Dr Iffat Jahan, Md Helal Miah, Dr Md Mokaddes Hossain, Ayesha Husne Jahan, Nazneen Hossain, Dr Md Monowar Hossain, Mohammed Shamsul Hoque, Muslima Shireen, Mohammad Sohel Arif, Abdul Awal, ABM Hussain Ahmed, Md Nurul Islam Mollah and Md Akter Hossain Sannamat.

BSEC officials said the commission found some irregularities and there were allegations galore against the insurance company for not paying 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 have committed Fareast Islami Life Insurance’s financial crimes and money laundering 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.

In September last year, BSEC appointed a chartered accountancy firm to conduct a special audit of Fareast Islami Life Insurance to find irregularities in the insurer’s financial reports between 2016 and 2018.

Of its shares, sponsor and directors held 30.55 per cent, institutes 41.22 per cent, foreign-held 0.81 per cent and public 27.42 per cent as of July 31, 2021.

The company’s stocks were last traded at Tk 67.40 per share.