Bangladesh’s Anti-Corruption Commission (ACC) has initiated a new case of financial misconduct against Fareast Islamic Life Insurance Company Limited, highlighting ongoing concerns over corporate governance in the country’s insurance sector. The case was filed on Monday, 2 March, at the ACC’s Dhaka-1 consolidated district office, based on a complaint submitted by Deputy Director Md. Sajib Ahmed.
The complaint alleges that six former senior officials, including ex-Chairman and Director Nazrul Islam and former Chief Executive Officer Hemayet Ullah, colluded to embezzle 137.151 million taka from the company’s funds. The legal proceedings invoke multiple sections of the Penal Code (406, 409, 420, 467, 468, 471, and 109), as well as Section 5(2) of the Prevention of Corruption Act, 1947, and Sections 4(2) and 4(3) of the Money Laundering Prevention Act, 2012.
The other accused officials include:
Syed Abdul Aziz, former Deputy Managing Director and Company Secretary
Amir Mohammad Ibrahim, former Chief Engineer and Chairman of the Investment and Real Estate Development Committee
Sheikh Abdur Razzak, former Senior Executive Vice President and Head of Investment & Banking Branch
Kamal Hossain Howlader, former Head of Internal Audit and Compliance
Alleged Method of Embezzlement
The ACC’s investigation revealed that on 13 January 2016, the company’s Investment and Real Estate Development Sub-Committee (IRDC) convened its 264th meeting to discuss civil and electro-mechanical retrofitting works at Fareast Tower-2, located on Topkhana Road, Dhaka. A proposal was raised to advance funds to National Development Engineers Limited, despite this item not being included in the official meeting agenda.
Investigators allege that the accused subsequently fabricated work orders, falsified bills, and created vouchers to withdraw and transfer the full amount of 137.151 million taka. Essential project documentation, including invoices, vouchers, and completion certificates, were reportedly missing. A portion of the funds was also allegedly transferred to Fareast Islamic Properties Limited via multiple bank accounts. The accused are said to have attempted to obscure the origin of the money in a bid to legitimise it.
Accused Officials and Alleged Embezzled Amounts
| Accused Official | Designation | Alleged Amount (Taka) | Allegation |
|---|---|---|---|
| Nazrul Islam | Former Chairman & Director | 13,71,51,000 | Embezzlement & Money Laundering |
| Hemayet Ullah | Former Chief Executive Officer | 13,71,51,000 | Embezzlement & Money Laundering |
| Syed Abdul Aziz | Former Deputy MD & Company Secretary | 13,71,51,000 | Embezzlement & Money Laundering |
| Amir Mohammad Ibrahim | Former Chief Engineer | 13,71,51,000 | Embezzlement & Money Laundering |
| Sheikh Abdur Razzak | Former Senior Executive VP | 13,71,51,000 | Embezzlement & Money Laundering |
| Kamal Hossain Howlader | Former Head of Internal Audit & Compliance | 13,71,51,000 | Embezzlement & Money Laundering |
This case is considered one of the largest corporate frauds in Bangladesh’s insurance sector. It has prompted renewed calls for stricter oversight and regulatory vigilance across both banking and insurance industries, underlining the critical importance of transparency and accountability in financial institutions.