Prime Islami Life Insurance Limited (PILIL) is under investigation by the Insurance Development and Regulatory Authority (IDRA) for making risky investments totaling Tk 198.31 crore, circumventing regulations that mandate investments in government securities. The investigation found that PILIL directed funds into questionable ventures, including Zero Coupon Bonds, short-term investments, and accounts with entities such as Banglalion and Sterling Group. Additionally, the company underinvested Tk 217 crore in government securities, contrary to IDRA guidelines that require insurance companies to invest 30% of their paid-up capital in such securities.
The investigation raised concerns over PILIL’s Tk 4.99 crore investment in a Zero Coupon Bond issued by Banglalion, which has not been redeemed as of 2023. Furthermore, PILIL’s short-term investment of Tk 178.32 crore in PFI Securities lacks formal documentation, leading to doubts about its legitimacy and recoverability. Legal cases have been filed against PFI Securities and Sterling Group to recover these funds.
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