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Bangladesh - February 8, 2022

Tk 3,000 cr of Delta Life grabbed?

Tk 2513.64 cr taken as extra dividend

Staff Correspondent: The special audit team of IDRA has mentioned that the listed life insurer-Delta Life InsuranceCompany former management with the connivence of board members havegrabbed about Tk 3000 crore in various ways. Among them, the loss of Tk 2,513.64 crore has been highlighted by the company by taking extra dividend by showing less claim provision through manipulation.
Delta Life Insurancehas come up with a special audit alleging irregularities of around Tk 3,000 crore. The audit was conducted by the auditing firm Eknabin Chartered Accountants after the insurance regulatory body Insurance Development and Regulatory Authority (IDRA) appointed an administrator to the company.
However, Adiba Rahman, former chief executive officer (CEO) of Delta Life, has claimed that the audit report was incorrect. His allegation was that the purpose of appointing an administrator in Delta Life was to bring some false allegations against us. Now the report is being prepared to defend IDRA.
Delta Life is one of the largest life insurance companies in the country. However, there has been a conflict between the owners of the company for a long time. Recently, the insurance regulator has also clashed with Delta Life. In this context, three dozen cases have also taken place. The life insurance company has been running with the administrator for almost a year due to IDRA’s dispute with a part of the owners of Delta Life.
The conflict between IDRA and Delta Life became public in 2020. On September 22 of that year, Adiba Rahman applied for re-appointment as CEO. But on November 17, IDRA rejected his application.
On December 6 of the same year, Delta Life lodged a complaint with the Anti-Corruption Commission (ACC) alleging that IDRA chairman M Mosharraf Hossain had demanded a bribe of Tk 50 lakh. The same allegation was made at a press conference on February 8, 2021 after the ACC was accused. Former CEO of Delta Life Adiba Rahman was present at the press conference. IDRA appointed an administrator to the company on February 11, a week after allegations that Delta Life held a press conference. Former IDRA member Sultan-ul-Abedin Mollah was appointed the first administrator. Less than four months later, in June last year, his appointment was canceled and a new administrator was appointed. The second administrator was appointed by the former joint secretary of the government Rafiqul Islam.
However, showing personal reasonsRafiqul Islam resigned from the post of administrator on October 10 last year. Then in the last week of October a third administrator was appointed to the life insurance company. Another former member of IDRA Quddus Khanwas appointed as administrator at this stage.
A case is also pending in the court regarding the appointment of this administrator in Delta Life. In the meantime, the administrator Quddus Khansubmitted a report to the IDRA about Delta Life. In this report, the information of the report of the audit firm has been presented and the information of various irregularities in Delta Life has been highlighted.
On the basis of the audit report, IDRA has prepared a report highlighting the irregularities of Tk 2,917.62 crore in Delta Life in various ways. Among them, the loss of Tk 2,513.64 crore has been highlighted by the company by taking extra dividend by showing less claim provision through manipulation.
Besides, it has been said that Tk 5 crore 14 lakh 72 thousand has been embezzled through fake agent commission and fake vouchers. Delta Life’s former chairman Manjurur Rahman’s personalcompany ‘Roma T’ has used Delta Life’s car worth Tk 1.42 million. The maintenance cost of the car wasTk 90 lakh 13 thousand. Although some officers work in Manjurur Rahman’s private company, they have taken salary from Delta Life. There have been irregularities of Tk 4 crore 42 lakh 8 thousand rupees.
The other irregularities found in Delta Life are:

  • Transfer of funds of Taka 6 lakh to the company through formation of trust against insurance law.
  • Tk one crore 46 lakh 98 thousand taka cash balance fabrication.
  • Cash payment to different people without account and Tk 6 lakh 4 thousand suspicious transactions.
  • The director has wasted Tk one crore 10 lakh 8 thousand of the company through foreign travel.
  • CEO’s salary of Tk 15 lakh 94 thousand without the approval of the authorities.
  • The company lost Tk three crore 80 lakh 63 thousand by buying IT system.
  • In order to evade income tax, management expenditure has to be accounted in wrong sector and income tax arrears are Tk 365 crore 72 lakh 34 thousand.
  • Bangladesh Securities and Exchange Commission (BSEC) imposed personal fines of Tk six lakh 6 thousand from the company.
  • Financial loss for buying delisted and OTC shares, the average balance of the shares is Tk one crore 33 lakh 40 thousand.
    Meanwhile, the administrator of Delta Life in a recent letter informed the chairman of IDIA about the special audit of Eknabin Chartered Accountants. He said that in the interim report of the special audit on Delta Life, irregularities, inconsistencies and embezzlement of Tk 3,006 crore have been mentioned.
    Now, the interim report of Eknabin Chartered Accountants has raised clear objections to massive irregularities, inconsistencies and embezzlement of Tk 2,500 crore. Eknabin Chartered Accountants completed 35 of the 154 serious audit objections. The company submitted the report on December 30, 2021.
    When contacted, Adiba Rahman, former CEO of Delta Life, told that Eknabin Chartered Accountants has not yet submitted its final report. They have made provisional reports. That was submitted to the court, we saw. There they did not mention any embezzlement. “We have seen these things, we need to look into them,” he said.
    He said that the life fund of Delta Life is Tk 4,000 crore, how can Tk 3,600 crore be embezzled there. Because we have over Tk 1,500 crore in government securities. There is an FDR of about Tk one and a half thousand crore. There are over Tk one thousand crore in the capital market. There are three buildings. If you add these, you will get Tk four thousand crore. How did the embezzlement happen here?
    Adiba Rahman further said that the purpose of appointing an administrator in Delta Life was to bring some false allegations against us. Now a report is being prepared to defend IDRA. In 11 months (after the administrator took charge) he took out Tk 2.5 crore from the company for legal bill. In a hearing where the company is not a party, the company can’t spend money. Here is the case of shareholders with IDRA. Why would the company spend there? Who paid the bill?
    Delta Life Administrator to talk about these things. When contacted, Quddus Khan told that the auditor has been appointed by IDRA. IDRA will be able to say better in this regard. We can say that the steps that can be taken according to the law will be taken.
    IDRA chairman M Mosharraf Hossain was neither holding his mobile calls nor respond of short message in the cellular phone, regarding the issue.

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