Homeland Life run by interim board amid graft, irregular recruitment allegations

Staff Correspondennt: The Homeland Life Insurance Company Limited, once regarded as a promising player in Bangladesh’s insurance industry, is now being run by an interim board appointed by the High Court amid serious allegation of corruption, illegal recruitment and financial mismanagement. Despite the court’s intervention, several controversial officials accused of embezzlement and irregularities continue to occupy vital managerial positions- casting doubt over the interim board’s capability to reform the institution.

For years, Homeland Life has faced allegation of embezzling policyholders’ money, issuing fake share certificates and failing to settle insurance claims. Internal conflict between directors based in Dhaka and London have further deepened the crisis. With mounting complaint from clients and shareholders, the High Court on September 3 dissolved the existing board and formed a five-member interim committee to restore order and ensure legal management of the company.

The newly formed board is headed by retired District and Sessions Judge Md Abdul Majid. Other members include former chairman of the Department of Management at the University of Dhaka Professor Ali Ahsan; retired Additional Secretary Md Zakir Hossain; chartered accountant Mohammad Shakil Chowdhury (FCA), partner at Ahmmed Hoq Siddiqui & Co.; and Uzma Chowdhury, Director (Finance) at Pran-RFL Group and Chairperson of Meghna Bank Limited.

The High Court directed the board to take full control of the company’s management, ensure compliance with insurance laws, safeguard the interest of shareholders and policyholders and strengthen Homeland Life’s financial foundation.

However, despite these directives, two senior officials accused of corruption- Shahadat Hossain and Zakir Hossain Sarkar- remain in powerful positions.

Shahadat Hossain currently serves as the company’s acting Chief Executive Officer (CEO) and Additional Managing Director. His journey in  the company has been riddled with controversy. Initially appointed as Deputy Managing Director in July 2024, Shahadat was dismissed only three months later on charges of ethical misconduct, data leakage and keeping large premium amounts unpaid. Yet, within another three months, he was replaced and promoted to Additional Managing Director and Acting CEO by the then-chairman Jamal Uddin, allegedly without approval from the board.

Documents reveal that during Jamal Uddin’s chairmanship, irregular withdrawal was made from the company’s accounts, with Shahadat Hossain’s signature appearing on several transaction notes. Allegation also suggests that he personally received funds through IO slips, though Shahadat denies the accusation, claiming the signature was part of routine administrative procedure.

Another controversial figure, Zakir Hossain Sarkar, serves as Deputy Managing Director and Head of Marketing. Widely known as an ally of Jamal Uddin, Zakir faces several accusation of embezzlement and unauthorised collection of fund from branch managers across the country. Although several insiders have made verbal complaint against him, no written complaint has been filed out of fear of losing employment.

Court record shows that Zakir Hossain is named in two separate criminal cases for alleged embezzlement of company fund, both pending before the High Court. In response, Zakir maintains that these cases were fabricated after he refused unethical proposal made by a former management team.

Meanwhile, two senior officials named Abdul Matin and Lutfun Nahar Alo, were illegally terminated by Jamal Uddin before the interim board was formed. Both challenged their dismissal in the High Court, which subsequently suspended the termination order and temporarily halted the appointment of Shahadat and Zakir. The court instructed the interim board to review all cases and make independent decision in the best interest of the company.

Yet, months after the High Court’s directive, no action has been taken. Shahadat and Zakir continue performing their duties and signing official documents, while Abdul Matin and Lutfun Nahar remain unable to return to work due to pending cases filed against them.

Adding to the tension, the interim board has reportedly initiated the process of appointing a new CEO, even though the Appellate Division has ordered that the company’s existing management status remain unchanged. Sources inside Homeland Life claim that a candidate, Ajit Chandra Aich, has already been selected for the position- raising legal and ethical concern regarding whether this move defies the court’s status quo order.

When asked about the issue, Interim Board Chairman Abdul Majid said The Insurance News BD that the board is working cautiously to comply with all legal instruction. “We are operating under strict court supervision. The company is not yet fully stable, but we are reviewing all documents and laws carefully before making any final decision,” he added.