Dhaka, Friday


29 March 2024


Business Insider Bangladesh

Fareast Insurance CEO fired on charge of irregularities

BI Report || BusinessInsider

Published: 03:09, 16 September 2021   Update: 03:32, 16 September 2021
Fareast Insurance CEO fired on charge of irregularities

Md Hemayet Ullah. Photo illustration: Business Insider Bangladesh

The insurance regulator has removed Md Hemayet Ullah, chief executive officer of Fareast Islami Life Insurance Company, for at least six counts of irregularities, including financial fraud.

The Insurance Development and Regulatory Authority (IDRA) issued an order in this regard on Wednesday.

The IDRA said the decision will come into effect from Thursday. Someone immediate after the CEO will take the current charge before appointing a full-fledged CEO in three months.

The IDRA said it has found evidence of irregularities, including financial frauds, mismanagement and anti-policyholder activities against Hemayet Ullah.

Moreover, there are allegations that he amassed wealth unlawfully and hid it, for which the anti-corruption commission filed a case, the IDRA said.

Under these circumstances, the IDRA has removed Hemayet Ullah under section 50 of the Insurance Act 2020, from the post of CEO of Fareast Islami Life for the sake of the policyholders’ interests.

Earlier in June this year, the Bangladesh Securities and Exchange Commission formed a committee to probe financial irregularities into the Fareast Islamic Life Insurance, which is a publicly listed company.

Just two weeks ago BSEC ordered to dismiss the board of directors of Fareast Life Insurance Company and reconstitute the board with independent directors.

Accordingly, the board of directors of Fareast Islami Life Insurance was reconstituted on September 05, 2021 with 10 independent directors where Dr Md Rahmat Ullah, a professor and the dean of the faculty of law, University of Dhaka, has been appointed as the chairman.

Fareast’s paid up capital is Tk 74.7 crore and the market capitalisation was Tk 506 crore as its share was traded last at Tk 67.40 on Wednesday.

Nagad
Walton