BEXIMCO Group takes control of Faraest Islami Life Insurance – newagebd.net

Beximco Group has taken control of board of scam-hit Fareast Islami Life Insurance Company Limited by purchasing 19.81 per cent shares of the insurance company.

On February 3, the Bangladesh Securities and Exchange Commission gave its nod to the group to nominate representative of the BEXIMCO Group for the board of Fareast Life, BSEC officials said.

The new board of directors can start activities after taking consent from shareholders at upcoming annual general meeting of the company.

Besides, the new board must comply with individually 2 per cent and jointly 30 per cent shareholding rules of the BSEC.

Tradenext International Limited and Jupiter Business Limited, two associate companies of BEXIMCO, purchased 9.91 per cent and 9.9 per cent shares of Fareast Life respectively in recent days.

On January 30 this year, both companies applied to the commission to be directors of Fareast Life.

As per the approval, the companies namely Tradenext International Limited and Jupiter Business Limited who hold more than 2 per cent shares each in Fareast Islami Life Insurance Company may nominate one or more individuals against their shareholding in the company.

Tradenext International proposed Beximco Group executive director Mostafa Zamanul Bahar and Shanta Asset Management vice-chairman Arif Khan to be directors of the insurance company while Jupiter Business recommended Beximco Pharmaceuticals chief financial officer Ali Nawaz, Beximco Textiles general manager Masum Mia and businessman Jahurul Islam Chowdhury.

Apart from them, the BSEC also allowed Sheikh Kabir Hossain, Lafifa Jamal, Mozammel Haque, Ibrahim Hossain Khan, Sheikh Mamun Khaled and Rafiqul Islam as independent directors of the board.

Besides, Fareast Life sponsors Md Helal Miah and Fareast Securities was made directors of the company.

The Group wants to revive the image and business of the company, the BSEC officials said.

On September 1, 2021, the BSEC restructured the board of directors of Fareast Islami Life Insurance Company and nominated 10 independent directors for the company.

The new directors would replace them.

The media reported that an investigation of the BSEC found that the owners of Fareast Islami Life Insurance Company Limited embezzled and laundered more than Tk 2,125 crore from the company in the past decade.

The BSEC shared its investigation report recently with finance ministry and the Bangladesh Financial Intelligence Unit to look into the matter.

Former FILICL chairman Md Nazrul Islam, managing director Md Hemyet Ullah and sponsor MA Khaleque were ‘particularly found to have actively planned and executed the related party transactions, forged documents and ultimately laundered corporate resources to their private gains’, the report said.