Three agencies looking into Sadharan Bima's fund misappropriation

Three agencies have been separately investigating the fund misappropriation in the state-run Sadharan Bima Corporation (SBC). They are the Anti-Corruption Commission (ACC), the Insurance Development and Regulatory Authority (IDRA) and SBC itself.

Led by the head of audit and compliance department at SBC’s head office, Abul Kashem, a ring of fraudsters misappropriated huge amount money from the insurer. Prothom Alo ran a report 'Sadharan Bima Corporation: 10 yrs of fraud, Tk 260m misappropriated' on Tuesday.

This criminal ring opened a bank account in SBC’s name and deposited Tk 277.8 million (27.78 crore). Later on, they withdrew Tk 261.5 million (26.15 crore). And Tk 16.3 million (1.63 crore) remained deposited in the bank. Officials of Bangladesh Power Development Board (BPDB), Bangladesh Council for Industrial and Science Research (BCSIR), Bangladesh University of Engineering and Technology (BUET) and the bank are allegedly involved in the fraud.

After the report was published, SBC said on Tuesday they have been looking into the fund misappropriation after learning about the matter. Preliminary investigations found the allegations to be true. Abul Kashem has been suspended from his position following the probe body’s recommendations. The ACC has also been informed.

Managing director of SBC Syed Shahriyar Ahsan told Prothom Alo that SBC has formed a new committee for detailed investigation and it is working on the matter.

Sources at the ACC said the agency has filed a case against Abul Kashem. The investigating officer of the case and deputy director of ACC, Md Serajul Islam, told Prothom Alo that information has been gathered and the report is near completion. Properties owned by Abul Kashem are likely to be seized, according to ACC officials.

In the meantime, the IDRA formed a three-member probe body led by it executive director SM Shakil Akhter on 21 January following instructions from the Financial Institutions Division of the finance ministry. Shakil Akhter told Prothom Alo on Tuesday night the committee is working on the matter. Investigations will be completed by the first week of May, he added.

Besides, the High Court on Tuesday directed the SBC to inform the court of the details on allegation of misappropriation against Abul Kashem.

As per the rules, a government official facing suspension is required to attend office, but Abul Kashem isn’t doing so. Having been served with a show cause notice, he issued a written reply. Sources at the SBC said Abul Kashem denied the allegations of misappropriating the money.

However, no internal committee has been formed in BPDB, BCSIR and BUET over the alleged involvement of their employees in the fraud ring.