Former RICBL CEO files case against the board

The former Chief Executive Officer (CEO) of the Royal Insurance Corporation of Bhutan Limited (RICBL) has filed a case against the board’s decision to relieve him.

Aggrieved with the board’s decision, the former CEO is also seeking an injunction order against the appointment of the new CEO.

The former CEO and the Executive Director of the RICBL were relieved from their duties in January by the board over various administrative lapses and other alleged charges against them by the Anti-Corruption Commission (ACC).

The two have been charged in an irrational financial case involving eight other individuals.

The former Executive Director had also filed a case against the board’s decision last month. He is seeking the court to either treat the board’s decision to force him to resign compulsorily as illegal or order the corporation to pay him gratuity and other retirement benefits.

The Anti-Corruption Commission began investigations into the case after receiving an anonymous complaint in April 2015.

According to the ACC investigation report, the RICBL’s former Chief Executive Officer and Executive Director should refund close to Nu 3 m to the institution.

Investigation report states that the RICBL invested Nu 100 m in Nubri Capital Private Limited at an interest rate of nine per cent on 5th February, 2013.

Three days later, Nubri Capital reinvested Nu 108m in RICBL at an interest rate of 11.75 per cent.

These investments were carried out without approval of the board or the investment committee.

Nubri Capital Private Limited is a private Fund Management company.

The report also says the former Executive Director was one of the promoters of the company and holds 10 per cent of the total shares.

The ACC investigation report adds the investment is against the Regulation for Issue of Corporate Bond 2012. Bond Redemption Fund cannot be invested in a fund management company.

All ten individuals are also charged with failure to declare conflict of interest, forgery, commission and omission amounting to abuse of function and participation in offence as per ACC Act 2011.

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