The Central Investigation Bureau (CIB) of Nepal Police on Thursday held Kewal Krishna Shrestha, the suspended chief executive officer of Everest Insurance on charge of misappropriating over Rs 25 million from the company.
The CIB arrested Shrestha from his residence in Dolahiti, Lalitpur after the preliminary investigation found him guilty of embezzling the public’s money. This is the first time that an executive of an insurance company has been arrested for embezzling the insurer’s money.
“Shrestha spent the Everest Insurance’s money under different headings for his individual purpose. He also received reimbursement for personal expenses. The fraudulent action has directly affected the company’s customers as well as its shareholders,” reads a CIB’s statement. After taking over the Everest Insurance management about two months ago, the Insurance Board (IB) had suspended Shrestha and the entire board over the embezzlement charge at the time. The CIB began its investigation into the matter after the three-member IB team handed over the case to police.
Although the IB suspended Shrestha last year, the Everest Insurance board reinstated him as company secretary. The regulator, however, had suspended Shrestha from the position and asked the CIB for further investigation.
Everest Insurance got into trouble after its management paid a claim worth Rs 40 million to Himalayan Snax, the manufacturer of Mayos noodles, without receiving the final report from the surveyor. The IB then slapped a monetary fine on the company and stopped the company from issuing fire insurance. In response, the company shut down its entire business.
The IB initially barred Everest Insurance from issuing new insurance policies after an investigation found that the company had settled the claim illegally. Following protests from the employees, the restriction was relaxed, barring the company only from issuing fire insurance.
source: the kathmandu post,13 Dec 2013
LINK
The CIB arrested Shrestha from his residence in Dolahiti, Lalitpur after the preliminary investigation found him guilty of embezzling the public’s money. This is the first time that an executive of an insurance company has been arrested for embezzling the insurer’s money.
“Shrestha spent the Everest Insurance’s money under different headings for his individual purpose. He also received reimbursement for personal expenses. The fraudulent action has directly affected the company’s customers as well as its shareholders,” reads a CIB’s statement. After taking over the Everest Insurance management about two months ago, the Insurance Board (IB) had suspended Shrestha and the entire board over the embezzlement charge at the time. The CIB began its investigation into the matter after the three-member IB team handed over the case to police.
Although the IB suspended Shrestha last year, the Everest Insurance board reinstated him as company secretary. The regulator, however, had suspended Shrestha from the position and asked the CIB for further investigation.
Everest Insurance got into trouble after its management paid a claim worth Rs 40 million to Himalayan Snax, the manufacturer of Mayos noodles, without receiving the final report from the surveyor. The IB then slapped a monetary fine on the company and stopped the company from issuing fire insurance. In response, the company shut down its entire business.
The IB initially barred Everest Insurance from issuing new insurance policies after an investigation found that the company had settled the claim illegally. Following protests from the employees, the restriction was relaxed, barring the company only from issuing fire insurance.
source: the kathmandu post,13 Dec 2013
LINK
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