ACC files another case over Fareast Islami Life embezzlement

Staff Correspondent: Bangladesh’s Anti-Corruption Commission (ACC) has filed another case over alleged financial irregularities and embezzlement involving Fareast Islami Life Insurance Company Limited.

The case was filed on Monday (March 2) at the ACC’s Integrated District Office in Dhaka-1. ACC Deputy Director Md. Sajib Ahmed filed the case as the complainant.

According to the case statement, six former officials of the insurance company have been accused of embezzling Tk 13.71 crore. The accused include the company’s former chairman and director Nazrul Islam and former chief executive officer Hemayet Ullah. Others named in the case are former deputy managing director and company secretary Syed Abdul Aziz, former chief engineer and chairman of the Investment and Real Estate Development Committee Amir Mohammad Ibrahim, former senior executive vice president and head of the investment and banking division Sheikh Abdur Razzaq and former head of the internal audit and compliance department Kamal Hossain Howlader.

The accused have been charged under several sections of the Penal Code, including those related to criminal breach of trust, cheating, forgery and conspiracy. Charges have also been brought under the Prevention of Corruption Act, 1947 and the Money Laundering Prevention Act, 2012.

According to the ACC, the alleged irregularities are linked to civil and electro-mechanical retrofitting work at Fareast Tower-2 located on Topkhana Road in Dhaka. The issue was reportedly presented during the 264th meeting of the company’s Investment and Real Estate Development Sub-Committee held on January 13, 2016. The meeting agenda included a proposal to provide advance payment to National Development Engineers Limited for the project’s supply and construction work.

However, the ACC’s investigation found that the agenda notice issued on January 12, 2016, for that meeting did not include any proposal for advance payment. Investigators alleged that the accused later issued a fake work order, forged bill applications and prepared fabricated vouchers. Using these documents, they allegedly withdrew and transferred Tk 13.71 crore from the company’s funds under the guise of advance payments.

The investigation also found that there were no valid bills, vouchers or documents confirming the completion of the project work. According to the case statement, the accused individuals acted in collusion to prepare false documents and misappropriate the company’s funds.

The complaint further states that the money was withdrawn through cheques issued from various bank accounts. A portion of the funds was later transferred to the bank account of Fareast Islami Properties Limited. Investigators believe attempts were made to conceal the origin of the funds and legitimise them through financial transactions.

According to the ACC, the accused abused their positions of authority and worked together to embezzle funds from the insurance company and launder the proceeds. The commission is continuing its investigation into the matter.