25 May, 2016

Page 1

SECOND EDITION

WEDNESDAY, MAY 25, 2016

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Jyoishtha 11, 1423, Shaban 17, 1437

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Regd No DA 6238, Vol 4, No 32

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www.dhakatribune.com | 32 pages | Price: Tk10

Padma Life overspends Tk124cr in 4 years Corruption has long been endemic in the insurance sector of Bangladesh, and the lax enforcement of the new insurance act of 2010 has not helped. Shocking levels of irregularity were revealed recently when regulators audited several leading insurers. In the first of a series, Dhaka Tribune's Jebun Nesa Alo looks into what auditors found Padma Life Insurance repeatedly violated the insurance act between 2011 and 2014 by overspending around Tk124 crore above their approved limit, an audit into the private company's accounts has revealed. During these four years, the insurance company failed to comply with industry guidelines and wrote down its exorbitant expenses as management costs. Throughout this time, a large amount of cash – marked for business development purposes – was issued on unofficial white paper and without any supporting doc-

uments; in some cases, senior officials of the company withdrew money using fake bills and vouchers. The irregularities came to light when the Insurance Development and Regulatory Authority (IDRA) carried out a special audit into the company. The IDRA has served a showcause notice on Padma Life Insurance, asking the company to explain why it will not be punished for irregularities committed by its management. According to the audit report, the actual management cost of the

company was Tk69.79 crore against the approved limit of Tk32.49 crore in 2011. A similar pattern continued in the following years: in 2012, the actual management cost was Tk85 crore against an approved limit of Tk52.69 crore; in 2013, the actual cost was Tk75.34 crore against a Tk44.12 crore limit; and in 2014, the actual cost was Tk86 crore against the approved limit of Tk62.39 crore. The audit report found that the company paid Tk89.50 lakh in cash as commission and development cost during 2012 and 2014; but it did

not prepare the bill vouchers under the names of the agents concerned. In violation of the IDRA rules, all transactions were made on unofficial white sheets of paper. Also in 2012 and 2013, Padma Life Insurance spent around Tk2 crore for tour purposes. The audit report found that the money was withdrawn through unusual artificial expenditure statements. The auditor found that between 2012 and 2014, senior officials of the insurance company submitted fake bill vouchers to collaboratively withdraw Tk67.77 lakh in cash for different expenditures.

HC directives on arrests, remand upheld n Ashif Islam Shaon The Appellate Division has upheld a High Court directive with some modifications to stop the police force from making arbitrary arrests on suspicion and torturing arrestees on remand. A four-member bench headed by Chief Justice Surendra Kumar Sinha yesterday dismissed a government appeal filed challenging the High Court verdict. “The appeal is dismissed. The High Court in its observation mentioned that some matters of section 54 and 167 are contradictory to several sections of the constitution. The High Court had some directives. Now, there will be some amendments [on the directives]. We will introduce a guideline,” the top court said. Sections 54 (arrest under suspicion) and 167 (interrogation in remand) of the Code of Criminal Procedure (CrPC) of 1898 empower the police to detain any person under suspicion and question them in remand.

INSIDE

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‘Compensation can’t bring back my 13yrs’ The HC ruling on compensating Zobed Ali Biswas, who had served 13 years in prison despite being acquitted in a murder case, could not make the 59-year-old happy.  PAGE 3

THE HIGH COURT’S INSTRUCTIONS

If the detainee alleges physical torture during interrogation, the magistrate shall form a medical board to check his/her health condition. If the allegation is found to be true, the magistrate shall take action against the law enforcers responsible under Section 330 of the CrPC

Law enforcers must not arrest anyone under Section 54 to put him/her into detention

The detainee must be checked by a doctor before and after the interrogation

They shall show their identity cards while arresting the person

If law enforcers want to quiz the person in custody, they must need to take permission from a magistrate and the interrogation must take place in a glass-made room inside the prison. Relatives and lawyers of the detainee The detainee shall be can be present outside allowed to meet lawyers the room and relatives for legal assistance

They shall inform the person of the reason behind the arrest within 3 hours They must inform relatives of a person arrested anywhere outside his/her house or workplace within an hour of the arrest through telephone or a messenger

Poverty remains key reason behind missing children

The world is set to observe International Missing Children’s Day today with growing number of children missing every year. Statistics show the number of missing children is rising.  PAGE 5

ASMAUL HOQUE MAMUN/DT INFOGRAPHIC

Police defying ban on vehicle stickers It has been three weeks since the ban on the use of vehicle stickers that state the owners’ profession – i.e. doctor, journalist, lawyer, etc – came into effect in Dhaka, but its implementation is still far from visible.  PAGE 32

Padma Life's deputy managing directors Badruzzaman Badal, Mizanur Rahman, Emdadul Haque were among the accused officials. The management of the company also paid Tk73.78 lakh in cash for business collection purposes in 2012, and Tk18.71 lakh in 2014. The amount was also paid on unofficial white paper without any supporting document. The company showed expenses of Tk1.20 crore for award purposes, but the money was withdrawn without following any accounting norms.  PAGE 2 COLUMN 5

Tonu’s autopsy doctor and family given death threats n Mohiuddin Molla, Comilla Dr Kamda Prasad Saha, who led the medical board assigned to conduct the second autopsy on Victoria Government College student Sohagi Jahan Tonu, has received a death threat. The head of the forensic medicine department of Comilla Medical College Hospital received the death threat in an anonymous, hand-written letter yesterday morning, he told reporters at his office around 2pm. The letter also threatened his entire family, he told reporters. The letter reads: “Dr Kamda Prasad Saha, creating a smokescreen in Tonu murder case will prove dangerous for you. Do not try to complicate a simple case. Tonu's mother has claimed that Sergeant Zahid and Sepoy Zahid summoned her daughter out of their home.  PAGE 2 COLUMN 1


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