The new board of directors will be Delta Life Insurance

Staff Reporter: The Insurance Development and Regulatory Authority (IDRA) will remove the administrator from Delta Life Insurance. The government and the Bangladesh Securities and Exchange Commission (BSEC) will jointly form a new board of directors for the company.

These decisions were taken at a meeting on Wednesday, January 5 at the Secretariat. According to meeting sources, the case against IDRA Chairman M Mosharraf Hossain will be withdrawn by Delta Life authorities and the cases against Delta Life will also be withdrawn by IDRA.

The meeting was chaired by Sheikh Mohammad Saleem Ullah, Secretary, Department of Financial Institutions, Ministry of Finance. Was present.

After the meeting, when Secretary Sheikh Mohammad Salim Ullah was asked on his mobile phone last night, he only said that he could not talk about it as he was ill. However, the meeting has taken place.

Delta Life Insurance Company has not had a regular board of directors for over a year. One of the insurance companies has been running for 11 months under the leadership of the administrator. So far, three administrators have been in charge for four months. IDRA is appointing one administrator after another.

The first administrator of Delta Life was appointed on February 11 last year. Former IDR member Sultan-ul-Abedin Mollah was appointed the first administrator. Four months later, the second administrator was appointed, the former joint secretary of the government. Rafiqul Islam.

In the last week of October, the third administrator was appointed. Quddus Khan. Delta Life has a life fund of Rs 4,000 crore. About two and a half thousand officers and employees of the company.

According to IDRA and Delta Life sources, the company has so far filed 34 cases against IDRA and its chairman. At present there are 21 cases. There are four cases against Delta Life on behalf of IDRA. It was decided at the meeting that both the parties would take initiative to withdraw a total of 25 cases.

According to meeting sources, the company will no longer be run by an administrator. On behalf of the government, the Department of Financial Institutions and the BSEC will jointly set up a Board of Directors. The company will run under the management and new management of those boards. However, former Delta Life chief executive officer (CEO) Adiba Rahman will not be able to re-enter the company as CEO.

There was a time when father Manjurur Rahman was chairman and daughter Adiba Rahman was CEO of Delta Life. Such incidents are rare in any financial sector company. In October 2016, the former army chief Lt. was suddenly appointed as an independent director as well as chairman of the company. General (Retd.) M Nur Uddin Khan. Adiba Rahman is still the CEO.

According to sources, Adiba Rahman had applied to IDRA for the same post on September 22, 2020. But on November 17 of the same year, IDRA rejected his application. The insurance regulator rejected Adiba Rahman’s application on various charges including revenue evasion and financial irregularities, written allegations of insurance policy subscribers and shareholders, and citing false information to become CEO.

On December 6, 2020, Delta Life accused the Anti-Corruption Commission (ACC) of demanding a bribe of Tk 5 million against IDRA Chairman M Mosharraf Hossain. A week later, the ACC was told in another application that the allegation was untrue.

Last month, the IDRA filed a 74-page letter against Delta Life’s suspended board and management authorities alleging embezzlement, corruption, revenue evasion and mismanagement of Tk 3,008 crore.

Meanwhile, Adiba Rahman, former CEO of Delta Life, thinks that it is better to run the company through regular management and management authority instead of administrator.

BSEC chairman Shibli Rubaiyat-ul Islam and IDRA chairman M Mosharraf Hossain did not agree to discuss the matter.


Source: Daily StockBangladesh by www.dailystockbangladesh.com.

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