Panel to investigate ‘irregularities’ against Fareast’s Nazrul

The Insurance Development and Regulatory Authority (IDRA) has formed a panel to investigate the alleged corruption and irregularities against former Fareast Islami Life Insurance Chairman Nazrul Islam.

The four-member panel led by IDRA Deputy Director Shah Alam has been asked to report back in next 10 days, according to a letter sent to CEO of the insurer on Monday.

Earlier, the insurance company failed to comply with IDRA rules and regulations of Insurance and Bangladesh Securities and Exchange Commission (BSEC).

On September 5, IDRA removed Fareast Chief Executive Officer Mohammad Hemayet Ullah for his involvement in mismanagement and financial irregularities and activities that went against the interests of policyholders.

On September 1, the BSEC dissolved the board of directors of the insurance company and appointed 10 new independent directors to protect its investors, and policyholders.

The securities regulator found discrepancies in the financial report of the company after checking the company’s financial statements of several years. According to the findings, an influential director misappropriated the funds from the customers’ fixed deposit accounts.

The company has not been able to settle the customers’ life policies and premium. The life insurance policies of the company have also declined and investment also decreased.