IDRA appoints external auditor for Sonali Life

The Insurance Development and Regulatory Authority (IDRA) has appointed an external auditor for Sonali Life Insurance, a listed insurance company in Bangladesh.

The auditor was appointed to investigate allegations of various financial irregularities, such as how Mostafa Golam Quddus became chairman of the company without making any investment.

As per regulations of the Bangladesh Securities and Exchange Commission, any individual looking to become the chairman of a local insurer must hold a minimum 2 percent share of the company.

It was also found that there are discrepancies in the value of the company's life fund, said an IDRA official on condition of anonymity.

On Sunday, Hoda Vasi Chowdhury & Co was appointed as the auditor, said SM Masudul Haque, director of the life department at the IDRA.

The auditor was asked to complete its investigation into a total of 17 issues related to Sonali Life within 30 days of being appointed, he added.

Among other allegations, the means and manner through which directors of Sonali Life purchased shares in the company to boost its paid-up capital in 2018 will also be investigated.

Similarly, the auditor was asked to find out why Sonali Life paid tax of Tk 13.75 lakh owed by Dragon Sweater and Spinning Ltd in 2021, despite the latter being a separate company owned by Quddus.

Likewise, it will also look into the purchase of a luxury car valued at Tk 1.70 crore for the company's chairman as well as its huge expenses on maintenance from 2021 to 2023.

Mir Rashed Bin Aman, chief executive officer of Sonali Life, said: "The fact that an auditor has been appointed is a good initiative for the interest of customers and the company."