Nepal Police’s Central Investigation Bureau (CIB) today arrested another top official of Everest Insurance Company on the charge of misappropriating company’s funds.
The CIB arrested the non-life insurer’s assistant general manager Anil Dhungel for aiding and abetting ex-CEO Kebal Krishna Shrestha in siphoning off Rs 25.09 million from the company’s account.
Dhungel’s arrest comes less than a week after the arrest of its former CEO Shrestha.“Anil Dhungel was arrested based on findings of the investigation on embezzlement at the insurance company,” said Superintendent of Police at the CIB Pitamber Adhikari.
Dhungel was rounded up from his office premises located at Hattisar’s Laxmi Complex.On December 12, the CIB had arrested the company’s former CEO Shrestha for embezzling company funds. He was found to have illegally collected payments from the company’s account for expenses made under different headings.
The CIB has also seized a desktop computer and documents related to Shrestha’s transactions from the insurance company.
Since Dhungel was in-charge of the company’s finance as assistant general manager, the police have charged Dhungel of aiding Shrestha in his fraudulent and unauthorised transactions.
Everest Insurance is currently being run by a team deployed by the insurance sector regulator —Insurance Board (IB). The IB had suspended the then CEO Shrestha, the company’s board and former chairman Rajendra Khetan in October. The management team had, however, retained Dhungel and he was given the responsibility of looking after the company’s financial and administrative dealings.
The company —which used to be the biggest non-life insurer in Nepal till two years ago —has been facing the wrath of the regulator since the last one and a half years. The misdoings at the insurance company started to unravel after the regulator found the company had made payment against an insurance claim without receiving surveyor’s final report. The company had paid Himalayan Snax Rs 40 million before the surveyor submitted the final report.
Since Himalayan Snax and Everest Insurance are promoted by Khetan Group, the regulator became suspicious and launched an investigation into the matter. Subsequent investigations also revealed that the company had settled claims related to directors swiftly and compensation payments were extended to many parties without obtaining premium from them.
The regulator then suspended the company’s fire portfolio and asked it to correct 18 mistakes, while slapping a fine on it.
As the management and directors did not make attempts to make necessary corrections, the company’s employees picketed the firm demanding ouster of CEO Shrestha. The regulator then stepped in and suspended the board of directors and CEO from insurance business for next five years.
source: the himalayan times,16 Dec 2013
LINK
The CIB arrested the non-life insurer’s assistant general manager Anil Dhungel for aiding and abetting ex-CEO Kebal Krishna Shrestha in siphoning off Rs 25.09 million from the company’s account.
Dhungel’s arrest comes less than a week after the arrest of its former CEO Shrestha.“Anil Dhungel was arrested based on findings of the investigation on embezzlement at the insurance company,” said Superintendent of Police at the CIB Pitamber Adhikari.
Dhungel was rounded up from his office premises located at Hattisar’s Laxmi Complex.On December 12, the CIB had arrested the company’s former CEO Shrestha for embezzling company funds. He was found to have illegally collected payments from the company’s account for expenses made under different headings.
The CIB has also seized a desktop computer and documents related to Shrestha’s transactions from the insurance company.
Since Dhungel was in-charge of the company’s finance as assistant general manager, the police have charged Dhungel of aiding Shrestha in his fraudulent and unauthorised transactions.
Everest Insurance is currently being run by a team deployed by the insurance sector regulator —Insurance Board (IB). The IB had suspended the then CEO Shrestha, the company’s board and former chairman Rajendra Khetan in October. The management team had, however, retained Dhungel and he was given the responsibility of looking after the company’s financial and administrative dealings.
The company —which used to be the biggest non-life insurer in Nepal till two years ago —has been facing the wrath of the regulator since the last one and a half years. The misdoings at the insurance company started to unravel after the regulator found the company had made payment against an insurance claim without receiving surveyor’s final report. The company had paid Himalayan Snax Rs 40 million before the surveyor submitted the final report.
Since Himalayan Snax and Everest Insurance are promoted by Khetan Group, the regulator became suspicious and launched an investigation into the matter. Subsequent investigations also revealed that the company had settled claims related to directors swiftly and compensation payments were extended to many parties without obtaining premium from them.
The regulator then suspended the company’s fire portfolio and asked it to correct 18 mistakes, while slapping a fine on it.
As the management and directors did not make attempts to make necessary corrections, the company’s employees picketed the firm demanding ouster of CEO Shrestha. The regulator then stepped in and suspended the board of directors and CEO from insurance business for next five years.
source: the himalayan times,16 Dec 2013
LINK
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