No irregularity in IB: Probe team

KATHMANDU, Sept 12:

A probe panel formed to investigate into irregularities in Insurance Board (IB) has found no substantial evidence of irregularities in the insurance sector regulator.

The panel, which was led by Joint Secretary Nawaraj Bhandari, submitted its report to Finance Minister Ram Sharan Mahat recently. Sources say that the panel found no substantial evidence of wrongdoing in IB.

The panel was formed on July 20. It had been given six mandates.

The first mandate was to study whether or not IB incurred losses by depositing money in a call account instead of investing it elsewhere. Sources say the probe team concluded that the amount was not meant for investment.

From the amount, IB purchased a land plot worth Rs 500 million to construct an insurance training academy.

Similarly, the probe team also did not find any foul play in the appointment of three chartered accounts. The team has concluded that the chartered accountants were appointed by following the due procedure.

When Republica approached joint secretary Bhandari to know details of the report, Bhandari said the report was yet to be made public.

The report, however, is silent on the appointment of Binod Aryal as the executive director of IB.  Aryal was later sacked by IB on corruption charges.

The decision to form probe panel had surprised many as IB has been lauded by many as the organization maintain good governance. Some say Finance Minister Ram Sharaan Mahat initiated investigation to oust IB Chairman Fatta Bahadur KC.

KC had taken necessary action against Rajendra Khetan, a renowned industrialist and chairman of Everest Insurance Company (EIC), in an insurance fraud case. Later, a team designated by KC had taken reins of EIC until the situation in general insurance company turned normal. Some EIC officials are still on trial on corruption charges.

Before the probe team was formed, an employees´ union at IB had launched protest demanding rise in pay and perks. It had also lodged a complaint at the finance ministry, saying that a huge amount of money had been kept in the call account through bidding.

Sources also say Minister Mahat had repeatedly turned down the request of KC to have a one-to-one meeting.

KC couldn´t be reached for comment despite Republica´s repeated attempts.

Meanwhile, Gajendra Bista, press advisor to the finance minister, said a separate committee will be formed to implement the report. He too denied to divulge details of the report.

Source: Republica