Sonali Life staffers demand IDRA chief's resignation after directors faced fund embezzlement charges

Some 200 officials of Sonali Life Insurance Company, whose former chairman and family members were earlier found to have embezzled at least Tk 187.84 crore, staged a demonstration today bringing corruption allegations against the insurance regulator's chairman and demanding his resignation.

Chanting slogans on the premises of the Insurance Development and Regulatory Authority (IDRA), they also demanded the withdrawal of an administrator, who the regulator appointed earlier to improve the health of the insurer.

This was the second time Sonali's employees demonstrated at the IDRA headquarters after August 11, when protesters hurled abusive words at IDRA Chairman Mohammad Jainul Bari, a senior IDRA official told The Daily Star.

The situation had turned so volatile that Bari had to request the army to escort him back to his home that day, the official said.

The demonstration took place after Sheikh Hasina resigned from the post of prime minister on August 5 following a mass uprising.

Mohammad Rabiul Hassan Rasel, a manager of Sonali Life, confirmed that he and his colleagues were present at the demonstrations.

"He [Bari] is a corrupt chairman. He was appointed as an administrator [at Sonali Life] with ill intentions, due to which the company's business is decreasing day by day," he said.

"Therefore, we demanded the removal of the administrator and chairman. Also, we demanded the withdrawal of a case filed by the Anti-Corruption Commission against company directors," he added.

Contacted, Bari said the demonstrators have created a chaotic situation.

"I did not go to work on August 12 and 13 for this reason," he added.Bari also said the protestors should provide some evidence to prove their allegations.

The IDRA had appointed Brig Gen (retd) SM Ferdous as administrator of Sonali Life last April following an audit commissioned by the insurance regulator in December 2023.

Hoda Vasi Chowdhury and Co, a chartered accountancy, was appointed for the audit. The auditor had examined 17 allegations of irregularities, including the appointment of Mostafa Golam Quddus as chairman in 2023.

It found that Quddus and six of his family members, who were also directors of Sonali Life, embezzled at least Tk 187.84 crore, according to the IDRA.

Quddus, also a former president of the Bangladesh Garment Manufacturers and Exporters Association, earlier denied any wrongdoing.

As per the IDRA, the audit found evidence of fund embezzlement through different means, including illegal payments to companies owned by Quddus.

A huge amount of money was also pocketed through the illegal purchase of luxury cars and payment of additional dividends to said directors as well as travels abroad and medical bills, according to the IDRA.

The ACC filed a case on July 25 this year against Quddus, his six family members and one other relative over the embezzlement of Tk 187 crore.

Established in 2013, Sonali Life has 204 branches with 26,693 agents across the country.
Golam Quddus could not be reached for comment.