Investigation Into alleged corruption against Rupali Life CEO stalls

The case has become one of the latest controversies to emerge in Bangladesh's insurance sector, which has long faced criticism over weak governance, regulatory failures and financial irregularities

An investigation into serious corruption allegations against the chief executive of Rupali Life Insurance Company Ltd. has made little visible progress despite a directive from Bangladesh's Finance Ministry, raising concerns over the effectiveness of the country's insurance regulator and the safety of policyholders' funds.

The allegations, which include the use of forged academic credentials, financial misappropriation, abuse of authority, fraudulent business practices and the formation of an influential internal syndicate, target the company's Chief Executive Officer, Md. Golam Kibria.

The case has become one of the latest controversies to emerge in Bangladesh's insurance sector, which has long faced criticism over weak governance, regulatory failures and financial irregularities.

According to documents reviewed by The Investor and information provided by complainants, several of the allegations have also been reflected in investigation reports prepared by the Insurance Development and Regulatory Authority (IDRA).

Despite this, Golam Kibria continues to serve as the company's chief executive while the investigation remains unresolved.

Finance Ministry Ordered Action

The controversy began after Md. Jahirul Islam, Deputy Manager of Rupali Life's Audit Department, submitted a formal complaint on 22 July last year to the Financial Institutions Division under the Ministry of Finance, the Anti-Corruption Commission (ACC), and the then financial adviser to the government.

The complaint alleged that senior management had been involved in prolonged financial misconduct under the leadership of the CEO.

Among the allegations were:

• Misappropriation of company funds;

• Creation of fictitious insurance business;

• Illegal withdrawals from the Life Fund;

• Personal use of corporate assets;

• Abuse of authority and financial misconduct.

Following the complaint, the Financial Institutions Division instructed IDRA to take appropriate action.

However, according to complainants and officials familiar with the matter, the investigation has since stalled with no publicly visible outcome.

Reappointment Before Investigation Concludes?

One of the most controversial developments concerns Golam Kibria's reappointment.

According to board documents, Rupali Life's Board of Directors reappointed him as Chief Executive Officer during a special meeting held on 8 July, approving a monthly salary of Tk550,900.

The appointment file was subsequently forwarded to IDRA on 11 July for regulatory approval.

The move has prompted questions from industry observers over why a CEO facing serious unresolved allegations would be considered for another term before completion of the investigation.

Questions Over Academic Credentials

The complaint also challenges Golam Kibria's academic qualifications.

Complainants allege that he used an MBA certificate issued by the controversial Darul Ihsan University, claiming inconsistencies between the graduation year and information contained in official records.

According to the complaint, he claimed to have completed his MBA in 2010, while the certificate reportedly bears the year 2011.

The Investor has not been able to independently verify the authenticity of the academic certificate.

Allegations of Large-Scale Financial Misconduct

The complaint further alleges that a well-organized syndicate systematically diverted company funds through various methods over many years.

The allegations include:

• Misappropriation of undistributed sales commissions;

• False overseas travel expenses;

• Personal vehicle fuel and garage bills totaling approximately Tk1.55 million;

• Fraudulent medical reimbursement claims;

• Withdrawal of nearly Tk6 million from the company's Life Fund;

• Creation of fictitious insurance policies through "dummy codes" with the assistance of information technology personnel.

The complaint also alleges that company funds were used for private construction projects, apartment purchases and other assets accumulated in the names of the CEO and his associates.

These allegations, however, have not yet been proven in court, and no final determination has been issued by any judicial authority or investigative agency.

IDRA Under Scrutiny

The prolonged delay has also placed Bangladesh's insurance regulator under increasing scrutiny.

Complainants allege that senior officials within IDRA have influenced the investigation and facilitated the CEO's proposed reappointment.

One IDRA member, Apel Mahmud, rejected the allegations.

"I am not involved in any irregularities. Government intelligence agencies regularly monitor our activities. If any evidence of wrongdoing emerges, it will certainly be investigated," he told The Investor.

The publication has not independently verified claims suggesting that officials attempted to influence or delay the investigation.

Political Influence Alleged

The complaint also alleges that Golam Kibria retained his position for more than 26 years with the backing of former ruling-party figures, including a former chairman of the company who previously served as a member of parliament.

The complainants claim that political influence enabled him to remain in office despite repeated allegations of financial misconduct.

These claims remain unverified.

Company Declines to Respond

The Investor repeatedly attempted to obtain comments from Golam Kibria at Rupali Life's headquarters in Dhaka. But company officials said the CEO was unavailable.

Multiple telephone calls and text messages sent to his mobile phone also went unanswered. As a result, his response to the allegations could not be included in this report.

IDRA Chairman was also contacted in writing regarding the delayed investigation, implementation of the Finance Ministry's directive and the CEO's proposed reappointment. No response had been received yet.

Growing Concern Among Policyholders

The controversy has heightened concerns among Rupali Life's approximately 1.2 million policyholders, many of whom fear for the security of their savings.

Industry analysts say the case highlights broader governance weaknesses within Bangladesh's insurance sector and underscores the need for stronger regulatory oversight, greater transparency and timely investigations.

Policyholders interviewed by The Investor said that restoring public confidence would require a swift, impartial and transparent investigation.

"If the allegations are true, those responsible must be held accountable under the law," one policyholder said. "If they are false, the matter should be resolved quickly so uncertainty does not continue."

For now, attention remains focused on the government's next steps and whether regulators will complete the investigation in a manner that restores confidence not only in Rupali Life Insurance but in Bangladesh's insurance industry as a whole.