Idra bans appointment of former Fareast Life Insurance CEO in other companies
The ban was imposed by the insurance authority following allegations that Hemayet Ullah was working as an advisor to another insurance company
Insurance Development and Regulatory Authority (Idra) on Tuesday imposed a prohibition on the appointment of Md Hemayet Ullah, former chief executive officer (CEO) of Fareast Life Insurance, to any other insurance company.
The ban was imposed by the insurance authority following allegations that Hemayet Ullah was working as an advisor to another insurance company.
In the ban order, the insurance regulator said it has found proof of many allegations of financial and other irregularities and mismanagement against Hemayet, which hurt the interest of the policyholders and the insurer itself.
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The Anti-Corruption Commission (ACC) had earlier sued Hemayet for accumulating wealth beyond the known sources of income and submitting false asset statements. The once-an-influential executive in the life insurance industry is under a travel ban too.
The banned order also read that he will not be appointed to any other company until the allegations against him and the ongoing activities of the ACC are resolved.
Earlier, the regulatory authority removed Hemayet Ullah from the post of CEO at Fareast Islami Life Insurance Company over the same ground.
The Insurance Act 2010 empowered Idra to oust CEOs and directors of insurance companies to protect the interest of policyholders alongside saving the companies from any deterioration.
Earlier this month, the Bangladesh Securities and Exchange Commission (BSEC) restructured Fareast Islami Life's board of directors by ousting all the existing directors and appointing 10 renowned professionals as independent directors.
The new board has been assigned to set up an audit committee comprising independent directors as per corporate governance code 2018, take initiatives to reform the top management, and try to bring back its embezzled money within six months.
Besides, the new board will take steps against those who committed financial crimes and embezzled money from the company in the last 10 years.
A year ago, the stock market regulator appointed A Wahab & Co Chartered Accountants as a special auditor to look into the company's financial statements for 2016, 2017, and 2018.
BSEC found that around Tk2,700 crores had been embezzled by the company's controlling directors.
Also, there are allegations that the company does not meet the claims of its customers duly. As a result, customers suffer even after their policies mature.
