The Chief Executive Officer (CEO) and Executive Director (ED) of the Royal Insurance Corporation of Bhutan (RICBL) have been relieved from service starting Wednesday.
The relieving order was issued after the RICBL board received a letter from the Anti-Corruption Commission (ACC) on December 29, 2017 to take disciplinary administrative actions against CEO Namgyal Lhendup, Executive Director Sonam Dorji, and other officials of the RICBL based on the investigation findings of the ACC.
According to ACC’s investigation, the management of RICBL had invested Nu 100 million at an interest rate of 9 percent per annum in Nubri Capital on February 5, 2013. But ACC found out that immediately after three days, Nubri Capital deposited Nu 108M at an interest rate of 11.75 percent with RICBL. This was approved and done despite RICBL neither having an investment policy approved by the board for such a scheme nor having constituted an investment committee.
“As the senior most executives of RICBL, the Board is of the view that they have breached the trust and responsibility entrusted on them by the Board, violated the code of conduct and ethics of the institution,” a press release issued by RICBL Board stated.
It is also stated that the Board during its sittings held on January 16 and 17 this year deliberated on the ACC’s findings particularly on the administrative issues.
Keeping in view the best interest of the company and to address the leadership gap, the Board decided to take immediate action which includes recruitment of the CEO and strengthening of the management, formation of Board’s Sub-Committee to identify, recommend and implement all the administrative measures/actions to be taken as reflected in the ACC letter.
Following its decision, the Board also received application for voluntary resignation on moral grounds by the CEO and ED. According to the RICBL Board, the application submitted to the Board will be discussed at the earliest.
Chencho Dema from Thimphu