The report was based on a show-cause letter to the company by the IDRA and it does not reflect the perspective of the reporters
Delta Life Insurance Company Ltd in a rejoinder to a report headlined "Delta Life Insurance awaits an administrator" published in The Business Standard on 21 January said that there are no irregularities in the company.
Following is the text of the rejoinder
Out of the 22 audit observations by Howlader Yunus and Co and 25 by Fames and R, most are in common. Most are subjective being minor issues on accounting treatment and some out of miscommunication between the auditors and the company.
The 10 issues that Fames and R suggests need further investigation are completely baseless and unprofessional. They have addressed these issues as 'anomalies without proof'. Such observation cannot be the language of a professional auditor and is misconceived and with an ulterior motive. The company has been under audit for over 15 months and not a single evidence of misappropriation or embezzlement has been found.
A company of the stature of Delta Life should never have been under audit in the first place but this has happened due to a former disgruntled employee of Delta Life who has joined the Insurance Development and Regulatory Authority (IDRA) in a senior position. This person routinely asked the company for illegal gratification for which the company along with audio and documentary evidence has filed a complaint with the Anti-Corruption Commission (ACC). The whole purpose of appointing an administrator is to intimidate and pressurise the directors and the staff from pursuing the complaint with the ACC. The company will make all the evidence public if compelled to do so.
The company has not been able to hold its AGM since 2019 as IDRA for long did not approve the basis of actuarial valuation for calculating actuarial surplus required to declare dividends. When IDRA did so, they drastically reduced the rate prescribed by the consulting actuary. This would bring down our business volume as well as reduce actuarial surplus to pay good dividends. The company was compelled to move to the honorable court to address this ill motive.
In the meantime, we will address all the audit findings with IDRA and hope to see that just and fair treatment is given to the company. The company, its directors and employees stand by the zero-tolerance policy towards corruption by Prime Minister Sheikh Hasina and further hope that corruption does not prevail over our honesty and integrity.
Delta Life has been rated AAA for the past 5 years. It has the highest paid-up capital amongst listed insurance companies and pays one of the highest cash dividends every year. The company also pays the highest policy bonus to policyholders amongst both local and foreign companies.
Delta Life also regularly appoints a top audit firm to undertake its statutory audit every year. The chairman of the Board of Directors is General Nuruddin Khan p.s.c., former Chief of Army Staff and a former minister. The Chairman of the Audit Committee is a former Attorney General, Salahuddin Ahmad. The Chief Executive Officer, Adeeba Rahman is highly qualified and the first woman chartered insurer in Bangladesh with an illustrious career in the sector.
The report was based on a show-cause letter to the company by the IDRA and it does not reflect the perspective of the reporters.
The reporters also called the chief executive officer of Delta Life Insurance Company for his version but they did not get any response.