New Embezzlement Case Hits Fareast Islamic Life

The Anti-Corruption Commission (ACC) of Bangladesh has filed a fresh case of financial embezzlement against Fareast Islamic Life Insurance Company Limited, signalling ongoing concerns over corporate governance in the country’s insurance sector. The case was lodged on Monday, 2 March, at the ACC’s Dhaka-1 consolidated district office, following a complaint by the company’s Deputy Director, Md. Sajib Ahmed.

According to the complaint, six former senior officials of the company, including ex-Chairman and Director Nazrul Islam and former Chief Executive Officer Hemayet Ullah, are accused of misappropriating a total of 137.151 million taka. The legal proceedings cite multiple sections of the Penal Code, including 406, 409, 420, 467, 468, 471, and 109, alongside 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 are:

• 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 and Banking Branch

• Kamal Hossain Howlader, former Head of Internal Audit and Compliance Department

The ACC’s case alleges that on 13 January 2016, the company’s Investment and Real Estate Development Sub-Committee (IRDC) held its 264th meeting to discuss civil and electro-mechanical retrofitting works at Fareast Tower-2 on Topkhana Road, Dhaka. During the meeting, a proposal was made to advance payments to National Development Engineers Limited.

ACC investigators found that this advance payment was not included in the official agenda. Subsequently, through forged work orders, falsified bill applications, and fabricated vouchers, the accused allegedly extracted and transferred the full amount of 137.151 million taka. Critical documentation, including project bills, vouchers, and work completion records, were reportedly missing.

Further investigations revealed that the money was withdrawn through various bank accounts and part of it was transferred to Fareast Islamic Properties Limited. Attempts were made to obscure the source of the funds to legitimise them. The ACC alleges that the accused abused their positions to embezzle company funds and launder money through multiple financial channels.

Accused Officials and Alleged Embezzled Amounts

The case is regarded as one of the largest financial frauds in Bangladesh’s insurance sector and underscores the need for heightened vigilance and regulatory oversight within both banking and insurance industries.