Nepal Insurance Authority Warns of Takeover of Rastriya Beema Company Amid Fraud Allegations
Kathmandu – The Nepal Insurance Authority (NIA) has issued a strong warning to Rastriya Beema Company, a government-owned insurance firm, over alleged financial irregularities, operational mismanagement, and violations of regulatory provisions. The authority has threatened to take over the company’s management if immediate corrective actions are not implemented.
The NIA has raised serious concerns about the company’s governance and financial practices, describing its current state as chaotic. During a discussion with the company’s board of directors and senior officials, NIA Chairman Madan Dahal emphasized the severity of the situation. He criticized the preparation of flawed audit reports and the lack of accountability in the company’s operations.
Chairman Dahal stated that Rastriya Beema Company cannot continue to operate outside regulatory compliance while receiving government funding. He warned, “The authority cannot keep shielding a company that consistently violates regulatory standards. An audit must be conducted as required, or the authority will be compelled to take over its management.”
The company has been given a seven-day ultimatum to conduct a proper audit and address its governance issues. In the meantime, the NIA is closely supervising the company’s activities and has indicated that it will take decisive action once the deadline expires.
The warning comes after the discovery of multiple discrepancies in the company’s audit reports for fiscal years 2073 to 2075. These reports, approved under questionable circumstances, were found to have been prepared without reconciling accounts worth millions of rupees. Instances of significant financial mismanagement were uncovered, including bearing insurance risks worth millions without collecting premiums and issuing policies on credit without proper accounting.
The situation has further escalated due to allegations that the flawed audits were approved under the direct instructions of Finance Minister Bishnu Poudel. These approvals have raised concerns about oversight and accountability, both within Rastriya Beema Company and the Ministry of Finance.
Chairman Dahal has made it clear that exemptions for such practices will no longer be tolerated. He stressed the importance of compliance and transparency in restoring the company’s credibility. “The company’s governance weaknesses and history of fraud have placed it in a financially precarious position. Recovery is possible only through immediate and significant reforms,” he remarked.
Rastriya Beema Company, once regarded as a key player in Nepal’s insurance sector, now faces an uncertain future as it struggles to address these issues.