Ban on emigration by the court
Three directors of National Life involved in financial scam
Staff Reporter | Published: 2022-11-12 20:20:46
INSURANCEDAILY.NET, Three directors of National Life Insurance Limited have been accused of involvement in the financial scam of Uttara Finance and Investments Limited. In this case, the court has already banned them from leaving the country.
According to the source, Anti-Corruption Commission (ACC) has found actionable evidence against them in investigating the allegations of irregularities and corruption that occurred in Uttara Finance and Investment Limited.
Following the application of the commission, on September 26, Dhaka Metropolitan Senior Special Judge Md. Asaduzzaman gave this order to prohibit them from leaving the country.
The ACC application submitted to the court stated that the crime of concealing information about large amounts of liabilities and assets, money transactions in favor of the directors and organizations related to their interests, collection of a large number of funds without reflection in the financial statements and tax evasion are being investigated against accused Matiur Rahman and Mujibur Rahman and others.
Apart from this, offenses related to the Prevention of Money Laundering Act including the issue of TDR in favor of directors and their related establishments, hiding of loan classification and suspicious transactions are under investigation.
Those directors are - Matiur Rahman, the Vice-Chairman of Uttara Finance and Uttara Automobiles; Mujibur Rahman, former director of Uttara Finance and S M Shamsul Arefin, former Managing Director of Uttara Finance. Among them, Matiur Rahman and Mujibur Rahman are brothers.
The Insurance Act says that anyone convicted by a court or involved in fraudulent activities, economic crimes, and other criminal activities is ineligible to be elected or nominated, or hold office as a director of an insurance company.
According to the financial report of National Life Insurance, Uttara Finance and Uttara Automobiles’ vice chairman Matiur Rahman owns 29 lakh 99 thousand 771 shares of the insurance company, and his younger brother Mujibur Rahman, former director of Uttara Finance, has 22 lakh shares.
According to the calculation, the total number of shares of these two brothers Matiur Rahman and Mujibur Rahman is 51 lakh 99 thousand 771. Which is 4.79 percent of the total share of National Life Insurance Company.
However, the law says that if the number of directors in one's family is 2 but the amount of shares held is less than 5 percent, they will be considered ineligible to hold the directorship of the insurance company. The matter has been mentioned in Form Beunik-B of Insurers Registration Regulations-2013.
According to the information in National Life's financial report, SM Shamsul Arefin is the representative director of Uttara Finance and Investments. The number of shares of Uttara Finance in the insurance company is 22 lakh 27 thousand 390.
In the meantime, Shamsul Arefin has been removed from the post of Managing Director (MD) of Uttara Finance for the crime of involvement in widespread financial irregularities and harmful activities for depositors. The Financial Institutions and Markets Department of Bangladesh Bank removed him on June 23.
The total amount of shares held by Motiur Rahman and others in National Life Insurance by individuals and family organizations is 2 crores 5 million 28 thousand 580.
Which is 23.06 percent of the total share of the insurance company. Uttara Automobiles, Uttara Motors, Uttara Finance & Investments, and Uttara Apparels Limited are their family companies.
Meanwhile, as per the Insurers’ Registration Regulations- 2013 Form Beuniq-B, a person convicted by a court or involved in fraudulent activities, economic crimes, and other criminal activities is ineligible to be elected or nominated, or appointed for the post of entrepreneur or director of an insurance company.
Apart from this, even if he is a director of any other bank company or insurance company or financial institution of the same category, he is not eligible to be elected or nominated, or appointed for the post of entrepreneur or director of the insurance company.
Section 75 of the Insurance Act, 2010 states that notwithstanding anything contained in any other law for the time being in force, a director of an insurer shall not be a director of any other insurer or of any banking company or financial institution registered for the same class of insurance business.