Sonali Life CEO urges BSEC to halt current board’s operations
Aman claims that his removal from the CEO position was a result of his interference with the activities of the auditor appointed by the insurance regulator
Mir Rashed Bin Aman, the chief executive officer (CEO) at Sonali Life Insurance, has called upon the securities regulator to suspend the activities of the current board, citing various allegations against its members.
In a letter addressed to the Bangladesh Securities and Exchange Commission (BSEC) on 8 January, Aman highlighted concerns about the dominance of Mostafa Golam Quddus and his family members on the board. Quddus, the current chairman of the company, and his family face allegations of significant irregularities and corruption, including the embezzlement of life insurance funds.
The insurance regulator has responded to these accusations by appointing a special auditor to investigate the matter.
Aman further noted in his letter that the current board has prevented him from accessing the company's office and has changed all passwords for online operations. He claims that his removal from the CEO position was a result of his interference with the activities of the auditor appointed by the insurance regulator.
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When contacted by The Business Standard, Mir Rashed Bin Aman stated, "I have written to BSEC, urging them to take necessary measures in the interest of the clients and to prevent corruption within the current board."
In response to these allegations, Sonali Life Director Sheikh Mohammad Danial stated that there are numerous complaints against Aman, leading to an ongoing internal investigation within the company. He clarified that the CEO has not been terminated and is choosing not to come to the office voluntarily.
Earlier, the insurance regulator 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.
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.
Also, the 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 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.
