Kathmandu: In a recent investigation, financial irregularities have surfaced at Garima Development Bank, where Director Dr. Anand Prasad Shrestha is allegedly involved in misusing funds intended for the establishment of a new insurance company.
The bank initiated a call for proposals in Ashoj 078, inviting interested parties to invest in and establish a new insurance company. A special committee, including key figures such as Founder Chairman Jaleshwar Pande and Former Chandrakant Baral, was formed to oversee the establishment process.
During the 14th annual general meeting held on Magh 30, 078, the founder shareholders formed a study committee under the chairmanship of Jaleshwar Pande. This committee aimed to examine the coordination of Dr. Anand Prasad Shrestha in the establishment process. Following the study, Garima Development Bank’s executive committee established a committee under the coordination of Dr. Shrestha.
The investigation has revealed that a substantial amount of the proposed capital for the Garima General Insurance Company, totaling NPR 2 billion, was misused. The bank disclosed that NPR 1.4 billion, constituting 70% of the capital, was established as founder shares. It was also mentioned that funds were raised from interested parties, with a commitment fee of 2% collected from potential investors.
Former Finance Minister Bishnu Prasad Paudel’s office had previously prepared for the establishment of life and non-life insurance companies. However, licenses were only granted to Himalayan Reinsurance, and other companies were left without approval.
After the establishment of the insurance company, it was found that Dr. Anand Prasad Shrestha and other individuals had opened a joint account. The Nepal Rastra Bank’s supervisory division disclosed the collection of application amounts from founders and financial institutions. The report on expenses incurred from this account has also been made public.
In response to these findings, the Nepal Rastra Bank issued a cautionary notice to Dr. Anand Prasad Shrestha. The bank’s inadequate monitoring of business activities has raised concerns, prompting the Central Bank to urge caution and oversight in the conduct of Development Bank CEO Govind Prasad Dhakal. The revelation of these financial irregularities has sparked concerns within the financial sector and calls for a thorough investigation into the matter.
