Auditor finds Tk 3,687cr anomalies in Delta Life Insurance

Auditors appointed by the Insurance Development and Regulatory Authority (IDRA) found irregularities worth Tk 3,687 crore in Delta Life Insurance Company Limited, a first-generation life insurer.

The IDRA sent the report to the secretary of the Financial Institution Division on December 1, 2021 in this regard.

ACNABIN, a chartered accountant firm, revealed these irregularities in an audit they carried out in the insurer for the last few months.

After analysing the provisional interim audit report, the IDRA revealed that the management and the board of directors of Delta Life were engaged in embezzlement of Tk 3,687 crore through corruption, tax evasion and money laundering.

The insurance regulator suspended the board of directors of Delta Life Insurance and appointed an administrator to run the company in February this year.

Md. Quddus Khan, who has been appointed administrator in Delta Life Insurance, said “This is a special audit carried out in the instruction of IDRA”.

“Only IDRA can say what will be the next course of action against Delta Life. My tenure as administrator will end once the final audit report is done,” Khan, a former secretary, told the Business Insider Bangladesh.

Earlier, the VAT Audit Intelligence and Investigation Directorate of the NBR filed a case under the VAT law against the company after getting evidence of Tk 35.17 crore evasion.

On December 17, 1986 the journey of Delta Life Insurance Company began. The company provides different types of insurance services through varieties of products aiming to cater to the needs of people of different strata of lives.

Delta Life is conducting its operation through 1,000 plus offices across the country.

Despite these huge irregularities in the first generation life insurer, share price of it has been rising massively for the last one year. Dhaka Stock Exchange data shows, Delta’s share price rose from Tk 68 in December last year to Tk 208 on December 2 this year.