B Mirror Report: Global Insurance PLC, a listed insurance company on Bangladesh’s stock market, has denied allegations of embezzling Tk 104 crore, saying there is no evidence or regulatory document establishing such misappropriation.

The company acknowledged that its operating expenses exceeded regulatory limits in some years but said it was misleading to portray the excess expenditure as embezzlement.

The disclosure was published on the websites of the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Monday, October 12.

According to the CSE disclosure, an online news portal published a report on August 30 titled “Tk 104 crore embezzled at Global Insurance”. The DSE subsequently sought an explanation from the company in a letter dated August 31. In response, Global Insurance sent its explanation to the DSE on October 8.

In a letter signed by Chief Executive Officer Md Jamirul Islam, the company said some figures on its historical gross premium income and operating expenses cited in the report were consistent with its audited financial statements. However, it described the claim that excess operating expenses amounted to Tk 104 crore in embezzlement as incorrect and misleading.

Global Insurance admitted that its operating expenses exceeded the limits set by the Insurance Development and Regulatory Authority (IDRA) in some years between 2020 and 2024, for which the regulator imposed fines.

According to the company, it was fined Tk 250,000 for 2020 and Tk 500,000 each for 2021, 2022, 2023 and 2024. The total fines amounted to Tk 2.25 million, all of which the company said it had paid in full, with no outstanding dues against the orders.

The company further said the operating expenses were recorded as part of its regular business activities and supported by bank statements, vouchers and other relevant documents. It added that these records were available for verification by the appropriate authorities if required.

Global Insurance also maintained that the alleged Tk 104 crore was not an amount currently payable by the company and that IDRA had not imposed any liability of that amount on it.

Therefore, the company argued, regulatory penalties for exceeding operating expense limits should not be equated with allegations of embezzlement.

Global Insurance reiterated its commitment to complying with applicable laws and regulatory directives and maintaining transparency in disclosures to stock exchanges, regulators and shareholders.