Idra bans the appointment of the former CEO of Fareast Life Insurance in other companies

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The Insurance Development and Regulatory Authority (Idra) on Tuesday banned the appointment of Md Hemayet Ullah, former managing director (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 adviser to another insurance company.

In the restraining order, the insurance regulator said it found evidence of numerous allegations of financial and other irregularities and mismanagement against Hemayet, which harm the interests of policyholders and the insurer itself.

The Anti-Corruption Commission (ACC) previously prosecuted Hemayet for accumulating wealth beyond known sources of income and submitting false asset declarations. The once influential life insurance executive is also banned from travel.

The banned order also said he would not be appointed to any other company until the allegations against him and the ongoing activities of the ACC were resolved.

Earlier, the regulator removed Hemayet Ullah as CEO of Fareast Islami Life Insurance Company on the same grounds.

The 2010 Insurance Act empowered Idra to oust CEOs and directors of insurance companies to protect the interests of policyholders while saving businesses from deterioration.

Earlier this month, the Bangladesh Securities and Exchange Commission (BSEC) restructured the board of directors of Fareast Islami Life by ousting all existing directors and appointing 10 renowned professionals as independent directors.

The new board has been tasked with setting up an audit committee made up of independent directors in accordance with the 2018 corporate governance code, taking initiatives to reform the general management and trying to get its money back. diverted within six months.

In addition, the new board will take action against those who have committed financial crimes and misappropriated company money over the past 10 years.

A year ago, the stock market regulator appointed A Wahab & Co Chartered Accountants as special auditors to review the company’s financial statements for 2016, 2017 and 2018.

BSEC discovered that about 2,700 crore of Tk had been embezzled by the controlling directors of the company.

Additionally, there are allegations that the company is not responding properly to customer complaints. As a result, customers suffer even after their policies expire.

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