The High Court has intervened to halt the initiative by IDRA to appoint an Administrator at Sonali Life Insurance Company, issuing a stay order on Monday in response to a writ petition filed by the insurance company a day prior.
In a significant development, the High Court Division of the Supreme Court has temporarily suspended the appointment process by issuing a rule, as detailed in a press release issued by Sonali Life on Monday. This action follows an audit conducted by IDRA, the regulatory body of the insurance sector, prompted by a report submitted by the former Chief Executive Officer (CEO) of Sonali Life, Rashed Bin Aman, conducted by the reputable audit firm ‘Hoda Vasi Chowdhury & Co Chartered Accountants.’
The press release elucidated on the allegations against the former CEO, who was suspended on charges of corruption, forgery, and ethical misconduct. Specific accusations include data manipulation and fraudulent acquisition of the CEO position through falsified academic credentials, all substantiated by evidence.
It has been asserted that IDRA’s decision to suspend the board and install an Administrator stemmed from its reliance on a report submitted by Rashed Aman, currently embroiled in legal proceedings and accused in multiple cases. Notably, Sonali Life contends that this report was submitted with malicious intent.
Ghalib Hassan, Head of Public Relations at Sonali Life, expressed dissatisfaction with IDRA's decision, highlighting the lack of transparency in the process. He cited one of the primary allegations involving financial transactions between Sonali Life Director and former Chairman Mostafa Golam Quddus and the company, clarifying that these transactions were legitimate rental payments for the fully furnished company's headquarters and campus.
The press release emphasized Sonali Life's recent achievements, including a remarkable 30 percent growth over the last quarter and the prompt settlement of over Tk 114 crore in insurance claims. These accomplishments underscore the company's strong reputation and credibility among its clientele.
There are concerns within Sonali Life about the potential negative impact of IDRA's decision on the company's growth trajectory and customer trust. Consequently, the company urges IDRA to reconsider its actions in the best interest of both the company and its extensive customer base.
Furthermore, Sonali Life reaffirms its unwavering commitment to serving its clients' interests diligently, ensuring timely claims processing and rectifying any past discrepancies under the guidance of regulatory authorities.