Staff Reporter :
The Insurance Development and Regulatory Authority (IDRA) has suspended the board of directors of Sonali Life Insurance Company Limited, a listed insurance sector company, and appointed a new administrator.
On April 18, IDRA Director (Law) Mohammad Abdul Majid issued an order in this regard, which came into effect on Sunday (April 21), according to the directive.
IDRA appointed Brig Gen (retd) SM Ferdous as administrator of Sonali Life Insurance, and after taking charge, Ferdous has to submit a report to the IDRA and conduct a full audit by a qualified local or foreign auditor as soon as possible, according to the Insurance Act 2010.
The administrator will manage the insurance business and related activities, including the issuance of policies, as per the 95(3) clause of the Insurance Act 2010.
He will also be able to appoint one or more consultants if needed, as the letter issued to the new administrator also states.
Zahangir Alam, spokesperson for IDRA, informed the journalists that Sonali Life’s board was dissolved due to corruption and irregularities.
“Besides, an administrator for Sonali Life has been appointed, and he already joined the company today,” Zahangir Alam said yesterday.
The administrator’s appointment was made over two weeks after an audit found Sonali Life’s former chairman Mostafa Golam Quddus and his six family members’ involvement in embezzlement of around Tk 187.84 crore from the company.
On December 31, last year, the insurance regulator appointed audit firm Hoda Vasi Chowdhury & Co. to investigate 17 claims of irregularities, including the appointment of Quddus as chairman in 2023.
The audit found that Quddus and his six family member directors embezzled funds in different ways, including by issuing shares for themselves, making illegal payments to companies owned by Quddus, and paying the salaries of his family members.
Huge amounts of money were also pocketed through the illegal purchase of luxury cars and the payment of additional dividends to the directors, as well as foreign travel and treatment bills.
They also took a large sum of money through illegal commissions from group insurance policies.
Established in 2013, Sonali Life has 204 branches with 26,693 agents across the country, according to IDRA data.
The company settled 99.9 percent of its total claims in 2020, 99.92 percent in 2021, and 99.98 percent in 2022.
In 2023, the company settled almost all its claims, worth Tk 122.26 crore.
