Tk 848 crore vanished from Prime Islami Life’s funds through embezzlement and manipulation

Abdur Rahman Abir: Through embezzlement and manipulation, Tk 848 crore has vanished from the funds of Prime Islami Life. This process of siphoning money from the company’s funds began in 2011. Although these incidents of embezzlement came to light at various times, no effective measures were taken to recover the embezzled money. Even the regulatory body did not take any steps. As a result, the company has lost the financial capacity to settle customers’ liabilities. This picture of Prime Islami Life’s financial condition has emerged from an investigation by Insurance News BD.

The investigation shows that Tk 510 crore 6 lakh was directly embezzled from Prime Islami Life’s funds by showing illegal investments; Tk 184 crore was siphoned off from the funds through accounting manipulation; and Tk 154 crore 67 lakh left the funds due to overvaluation of land.

In this investigation, a comparative review was conducted of the company’s current assets against the liabilities to customers involving the embezzled money. In this regard, the financial reports from 2015 to 2025, special audit reports and related documents were examined and reviewed.

This review shows that Prime Islami Life has liabilities of Tk 1,455 crore 79 lakh. Of this, customers’ dues amount to Tk 1,346 crore 91 lakh, and other liabilities are Tk 108 crore 88 lakh. Assets shown for settling the liabilities amount to Tk 889 crore 17 lakh. If the embezzled Tk 510 crore 6 lakh is deducted from the asset account, the amount of assets stands at Tk 379 crore 11 lakh. On this calculation, the deficit stands at Tk 1,076 crore 68 lakh.

However, this calculation of the deficit does not end here. Of Prime Islami Life’s assets of Tk 889 crore 17 lakh, land and buildings account for Tk 278 crore 63 lakh. This figure is also not accurate. Here, the value of land has been shown higher by Tk 154 crore 67 lakh. Moreover, Tk 184 crore has been embezzled through manipulation.

Consequently, if the manipulation and excess land valuation are taken into account, the amount of assets will decrease further and the deficit in settling liabilities will increase even more.

The investigation shows that the heads under which money was directly embezzled include: embezzlement of Tk 141 crore 82 lakh 86 thousand 149 by investing in the subsidiary company Prime Islami Life Securities; embezzlement of Tk 188 crore 11 lakh 13 thousand 662 by giving illegal loans in the name of investment in another company, PFI Securities; embezzlement of Tk 152 crore 52 lakh in the name of land purchase and development of that land; embezzlement of Tk 23 crore 5 lakh 58 thousand in the name of investment in other institutions; and Tk 4 crore 55 lakh 55 thousand taken by former Chairman M.A. Khalek.

The investigation shows that the company’s life fund was inflated by Tk 184 crore through accounting manipulation. In other words, this money was siphoned off from the funds. This accounting manipulation was done by providing false information and jugglery under heads such as outstanding premium, Tabarru fund and collection balance. In addition, money was embezzled by showing land purchases at higher prices in Goran Chatbari and Banglamotor.

Investment in Prime Islami Life Securities: Embezzlement of Tk 141 crore 83 lakh

According to information in the financial reports, in 2015 Prime Islami Life gave a loan of Tk 34 crore 48 lakh to Prime Islami Life Securities. Thereafter this loan continued to increase every year. In 2024 the amount of this loan stood at Tk 84 crore 71 lakh. Of this, in 2025 Prime Islami Life Securities repaid Tk 1 crore 4 lakh. At the end of 2025 the amount of this loan stood at Tk 83 crore 67 lakh.

Insurance News BD’s investigation shows that the capital of Prime Islami Life Securities was Tk 100 crore. Of this, Prime Islami Life held Tk 65 crore. The subsidiary company incurred a loss of Tk 48 crore 2 lakh 40 thousand 169 over the six years from 2019 to 2025.

Despite being in loss, the directors and shareholders withdrew dividends of Tk 15 crore 52 lakh 85 thousand 600. In other words, after deducting the loss and the dividends withdrawn by the directors from the capital, the actual equity of Prime Islami Life Securities stands at Tk 36 crore 44 lakh 74 thousand 231.

On this calculation, after deducting the actual equity from the capital, the equity deficit of Prime Islami Life Securities stands at Tk 63 crore 55 lakh 25 thousand 769, or 63.55%. Consequently, as a 65% shareholder, Prime Islami Life’s loss amounts to Tk 41 crore 30 lakh 91 thousand 750.

The investigation shows that from its investment in the subsidiary Prime Islami Life Securities, Prime Islami Life showed dividend income of Tk 19 crore 29 lakh 99 thousand 999 from 2018 to 2025. Of this, Tk 2 crore 45 lakh 5 thousand 600 was realised from 2022 to 2024. The remaining Tk 16 crore 84 lakh 94 thousand 399 was not received by Prime Islami Life.

In addition, Prime Islami Life is owed Tk 83 crore 67 lakh as loan by Prime Islami Securities and Tk 16 crore 84 lakh 94 thousand 399 as dividend. These amounts have not yet been received by Prime Islami Life. Altogether the dues stand at Tk 100 crore 51 lakh 94 thousand 399. Moreover, due to the losses incurred by Prime Islami Life Securities, Prime Islami Life has suffered a loss of Tk 41 crore 30 lakh 91 thousand 750 from its investment. On this calculation, the deficit in Prime Islami Life’s funds due to the investment in Prime Islami Life Securities amounts to Tk 141 crore 82 lakh 86 thousand 149.

On the other hand, Prime Islami Securities currently has equity of Tk 36 crore 44 lakh 74 thousand 231. In other words, even if the deficit in Prime Islami Life’s funds is adjusted against the equity, a deficit of Tk 106 crore 1 lakh 12 thousand 149 will remain.

According to the special audit of the Bangladesh Securities and Exchange Commission, Prime Islami Life Insurance gave a loan of Tk 111 crore 92 lakh. There was no approval of the Board of Directors for giving this loan. This loan was given by mortgaging the MTDR of Prime Islami Life. Later, as Prime Islami Securities did not repay the bank loan, the bank adjusted the loan by realising it from Prime Islami Life’s MTDR.

Subsequently, on 25 January 2019, Prime Islami Life Insurance entered into an agreement with PISL by showing it as a short-term investment.

On the other hand, Prime Islami Securities repaid Tk 32 crore 35 lakh to Prime Islami Life. But it did not return the remaining Tk 79 crore 56 lakh.

The Bangladesh Securities and Exchange Commission conducted a special audit of Prime Islami Life from 2018 to 2021.

According to the financial reports, Prime Islami Life’s share in Prime Islami Life Securities was 51%. Of the remaining shares — Taslima Islam held 5%, Wahid Mohammad Yusuf 10%, Fareast Islami Life Insurance 10%, Khandaker Mohammad Muntasir 10%, Fareast Life Securities 4%, and Tariq Ikramul Haque 10%.

However, according to information in the financial reports, Prime Islami Life’s investment in Prime Islami Securities is Tk 65 crore, or 65%.

Embezzlement of Tk 188 crore 11 lakh by giving loans to PFI Securities

A review of Prime Islami Life’s financial reports in Insurance News BD’s investigation shows that in 2017 Prime Islami Life gave a loan of Tk 35 crore 5 lakh 73 thousand 65 to PFI Securities. From the following year this loan amount continued to increase. In 2018 the amount of this loan stood at Tk 157 crore 91 lakh 42 thousand 826. In the following year, i.e., 2019, the amount of this loan stood at Tk 167 crore 80 lakh 45 thousand 201. And interest receivable on this amount stood at Tk 9 crore 78 lakh 38 thousand 4. In other words, including principal and interest, Prime Islami Life is owed Tk 177 crore 58 lakh 83 thousand 205 by PFI Securities.

In addition, for share trading Prime Islami Life gave a further Tk 10 crore 52 lakh 30 thousand 448 to the BO account of PFI Securities.

Consequently, altogether Prime Islami Life’s dues from PFI Securities stand at Tk 188 crore 11 lakh 13 thousand 662. PFI Securities has not returned a single taka of these amounts.

In other words, by making illegal investments in the name of loans to PFI Securities, Tk 188 crore 11 lakh 13 thousand 662 was embezzled from Prime Islami Life’s funds.

Prime Islami Life filed Company Matter Nos. 109/2020 and 164/2020 in the High Court for recovery of this money. Yet the Insurance Act provides for filing a case under Section 136 for the recovery of any money or property illegally held. This case is to be filed in the High Court.

On the other hand, in 2024 the Bangladesh Securities and Exchange Commission suspended the licence renewal of PFI Securities.

Consequently, altogether Prime Islami Life’s unrealised dues from PFI Securities stand at Tk 188 crore 11 lakh 13 thousand 662. Prime Islami Life has not been able to recover a single taka of these amounts. Yet this money was added to the life fund as income and the life fund was inflated. Moreover, by illegally inflating the life fund, the directors and shareholders also took dividends.

The special audit report of the Bangladesh Securities and Exchange Commission brought out the information of embezzlement of money by giving loans to PFI Securities.

According to information in the special audit report, in 2012 Prime Islami Life Insurance placed Tk 120 crore as MTDR with Social Islami Bank, First Security Islami Bank and Shahjalal Islami Bank. By mortgaging this MTDR money, PFI Securities took loans of Tk 113 crore 20 lakh from the three banks. According to the special auditor’s information, this MTDR was placed specifically for the purpose of giving loans to PFI Securities.

PFI Securities did not repay this loan. Consequently, the banks adjusted the loan from Prime Islami Life’s MTDR. The loan adjustment took place in 2017, 2018 and 2019. On the other hand, PFI Securities did not return the money to Prime Islami Life.

Including interest against the MTDR, Prime Islami Life’s dues from PFI Securities stood at Tk 164 crore 56 lakh, of which Tk 9 crore 78 lakh was shown. In addition, a further loss of Tk 3 crore 24 lakh was incurred due to premature encashment of the MTDR. Consequently, Prime Islami Life’s total investment in PFI Securities stood at Tk 167 crore 80 lakh. In the 2018 financial report, Prime Islami Life showed this money as a short-term investment in PFI Securities.

According to information in the BSEC special audit report, the giving of loans to PFI Securities began in 2011. But this loan information was concealed and not disclosed in the financial reports.

According to the special auditor’s information, Prime Islami Life Insurance opened a BO account with PFI Securities for trading in listed company shares. But on 29 June 2017 all the shares in that BO account were sold and the balance was shown as Tk 15 crore 37 lakh. PFI Securities also did not return this money to Prime Islami Life.

Embezzlement of Tk 152 crore 52 lakh by purchasing land in Goran Chatbari: Fareast Life took Tk 71 crore

In the name of purchasing land in Goran Chatbari, Tk 152 crore 52 lakh was embezzled from Prime Islami Life’s funds. Of this, by showing land development expenses — Tk 35 crore 96 lakh 80 thousand 794 was embezzled in the name of Prime Life, and Tk 71 crore 14 lakh 72 thousand 332 in the name of Fareast Islami Life. And in the name of the purchase price of the land, Tk 45 crore 40 lakh was taken in the name of the Prime Islami Life Employers’ Society.

The investigation shows that to embezzle money from the funds by purchasing land, the Prime Islami Life Co-operative Society was formed in the name of employees. Later, Prime Islami Life illegally gave a loan of Tk 50 crore 38 lakh to this society. With this loan money, land was purchased in Goran Chatbari in the name of the society. This land was purchased jointly with the Fareast Islami Life Co-operative Society. 763.482 decimals of land were purchased for Tk 14 crore 49 lakh 750. Of this, 381.741 decimals of land belonged to the Prime Islami Life Co-operative Society. As the price of half the land, the Prime Islami Life Co-operative Society paid Tk 7 crore 24 lakh 50 thousand 375.

In May, June, August, September and October of 2013 and in April, May and July of 2014, the land was registered in the names of the two societies through 26 sub-kabala deeds jointly.

After purchasing the land, Prime Islami Life’s legal adviser Barrister A.S.M. Abdur Razzak gave the opinion that there is no legal validity in opening an Employees’ Society and giving loans to it from the main company. On the basis of this opinion, Prime Islami Life Insurance Company demanded the return of the loan money from the society.

Instead of returning the money, the society registered 381.741 decimals of land in the name of Prime Islami Life through a saf kabala to repay the loan. This time the value of the 381.741 decimals of land was fixed at Tk 4 crore 97 lakh 81 thousand in the deed. In other words, a loan of Tk 50 crore 38 lakh was repaid with land valued at Tk 4 crore 97 lakh 81 thousand. The society did not return the remaining Tk 45 crore 40 lakh 42 thousand 450. There is also no account of this money in Prime Islami Life’s financial reports.

Moreover, in the name of development of the same land, expenses of Tk 214 crore 55 lakh 45 thousand 250 were shown. Of this, half — Tk 107 crore 11 lakh 57 thousand 125 — was supposed to be spent by Prime Islami Life. But Prime Islami Life spent Tk 35 crore 96 lakh 80 thousand 794. Fareast Islami Life claimed to have spent the remaining Tk 71 crore 14 lakh 72 thousand 332 on land development.

Subsequently, Fareast Islami Life demanded the return of this money spent in the name of land development from Prime Islami Life. Instead of returning the money, Prime Islami Life registered 237.157 decimals of land in Goran Chatbari in the name of Fareast Life. By fixing the value at Tk 30 lakh per decimal, Prime Islami Life paid Tk 71 crore 14 lakh 72 thousand 332 as the dues of Fareast Islami Life for land development.

In other words, the land that was purchased for Tk 4 crore 50 lakh 9 thousand 873 (Tk 1 lakh 89 thousand 789 per decimal) was registered in the name of Fareast Islami Life at a value of Tk 71 crore 14 lakh 72 thousand 332 (Tk 30 lakh per decimal).

Yet no development was done on the land. This development was shown only on paper. Moreover, Prime Islami Life did not show the account of this land registered in favour of Fareast Islami Life in its financial reports. Fareast Islami Life also did not deposit any money into Prime Islami Life’s funds in the name of the land value or development expenses.

On this calculation, Tk 152 crore 51 lakh 75 thousand 576 was embezzled from Prime Life’s funds in the purchase of land in Goran Chatbari. Of this, Tk 45 crore 40 lakh 42 thousand 450 was embezzled by giving a loan to the Co-operative Society in the name of land purchase; Tk 71 crore 14 lakh 72 thousand 332 was taken by Fareast Islami Life in the name of land development expenses; and Tk 35 crore 96 lakh 80 thousand 794 was spent directly from Prime Islami Life’s funds in the name of land development. Altogether this amounts to Tk 152 crore 51 lakh 95 thousand 576.

The value of land shown as Tk 278 crore is now Tk 123 crore 95 lakh

The investigation shows that according to information in Prime Islami Life’s financial reports, the total value of land and buildings has been shown as Tk 278 crore 63 lakh. Of this, the value of the Banglamotor land has been shown as Tk 196 crore 64 lakh, the Rajshahi land as Tk 12 crore 72 lakh, the Sylhet land as Tk 5 crore 7 lakh, the Goran Chatbari land as Tk 62 crore 77 lakh, and other expenses related to land purchase as Tk 1 crore 42 lakh.

In 2017 Prime Islami Life purchased 21.89 katha of land at 112, Kazi Nazrul Islam Avenue in Banglamotor for Tk 196 crore. In 2022 Prime Islami Life had this land valued. In the valuation report the value of this Banglamotor land was stated as Tk 102 crore. In other words, the land value was shown higher by Tk 94 crore 64 lakh. This valuation was done in June 2022.

Moreover, in April 2024 IDRA invited tenders for the sale of this land. However, no one submitted a tender for purchasing the land. No buyer was found either.

The investigation shows that in its financial reports Prime Islami Life showed the value of 144.591 decimals of land in Goran Chatbari as Tk 62 crore 77 lakh 34 thousand 407. But at the rate of Tk 1 lakh 89 thousand 789 per decimal, the actual purchase price of this land is Tk 2 crore 74 lakh 26 thousand 408. In this case the land value was shown higher by Tk 60 crore 3 lakh.

On this calculation, the value of the Banglamotor and Goran Chatbari land has been shown higher by a total of Tk 154 crore 67 lakh. In other words, this money was also siphoned off from the funds in the name of land purchase. According to the calculation, Prime Islami Life currently has land worth Tk 123 crore 95 lakh.

What Prime Islami Life says about the embezzlement and manipulation

Regarding the vanishing of Tk 848 crore from Prime Islami Life’s funds, the company’s current Chief Executive Officer Md. Samsul Alam told Insurance News BD that these incidents of irregularities are from a long time ago. However, necessary investigations and legal steps are being taken in all the cases. We are making concerted efforts to recover these embezzled amounts and properly settle all dues of the customers.