Auditor appointed to scrutinise alleged scam by Sonali Life owners

The insurance regulator has appointed the chartered accountant (CA) firm Hoda Vasi Chowdhury and Co to conduct a special audit at Sonali Life Insurance following the fund embezzlement allegation against the company's owners.

In a letter on 31 December, the Insurance Development and Regulatory Authority (Idra) directed the CA firm to complete the audit within 30 working days from letter issuance date.

S Mohammad Danial, director of Sonali Life Insurance, told TBS, "We have learned about the special audit."

According to the letter from Idra, the directors decided to acquire Sonali Life's shares in 2018 to augment its paid-up capital. The auditor's role will include verifying the actual number of shares purchased by the directors and the corresponding monetary transactions.

The audit aims to investigate the complaint regarding the payment of a Tk8.95 crore loan from South Bangla Agriculture (SBAC) Bank and Tk1.55 crore from the company's account against the fixed deposit receipt (FDR) of the company, totaling Tk10.50 crore for the purchase of shares by four directors.

Also, the 2022 allegations of maintaining family authority on the company's board by transferring a significant number of shares for free in the names of four members of the same family will be verified.

Furthermore, claims of a Tk3 crore payment in 2023 from Sonali Life's account to Janata Bank for the loan instalments of the company's current chairman's personal business will be under scrutiny.

The audit will also scrutinise the issue of taking a loan of Tk152 crore from Social Islami Bank, SBAC Bank, and First Security Islami Bank against the company's FDR in the name of purchasing a building owned by the current chairman, with more than Tk15 crore interest paid in three years.

The audit will also verify the agreement of purchasing the building owned by Sonali Life's chairman at Tk350 crore, and the withdrawal of a total Tk61 crore from the company between 2021 and 2023 to various institutions owned by the chairman.

Other aspects to be examined include the receipt of dividends exceeding the declared dividend by the chairman and his family member directors. Additionally, the audit will verify expenses incurred by the company chairman for medical expenses abroad, travelling, shopping, and illegal expenses related to studying abroad, funded by company funds.

The allegations against Sonali Life Director Sheikh Mohammad Danial, including having a private office inside the company, receiving a substantial commission from the group insurance policy, participating in board meetings without being a director since 12 September 2020 due to defaulting on a loan, and receiving various benefits including honorarium-bonuses and being a signatory to the bank account will also undergo scrutiny.

Attempts to contact Sonali Life's Chairman Mostafa Golam Quddus over phone were unsuccessful.

However, Director Danial stated that some unscrupulous officers in the company's accounts department embezzled money by creating fake documents.

"They took advantage of our negligence. Upon discovering the situation and initiating an investigation, these individuals left their jobs and filed complaints against the company in various places, putting the company in jeopardy due to their conspiracy," he added.