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RICBL CEO and ED claim to have resigned but RICBL now says they were relieved first

The Royal Insurance Corporation of Bhutan Limited (RICBL) CEO Namgay Lhendup and Executive Director (ED) Sonam Dorji on Wednesday had claimed they are stepping down from their post taking ‘moral responsibility’ for what they said were ‘alleged operational lapses’ under their tenure.

They said that they submitted their resignation in writing on Thursday to the Chairman of the RICBL Board Topgyal Dorj to project the image of the company.

However in an update to the story a day later  on Friday the RICBL board in a press release made it clear that the board had decided to relieve the CEO and ED a day before on Wednesday.

The press release said that the RICBL Chairman had conveyed the decision to relieve them both on Thursday only after which they submitted their resignation letter to the Chairman.

The RICBL release said that the two had breached the trust and responsibility entrusted to them by the board and violated the code of conduct and ethics of the organization.

The CEO and ED along with other employees will now be charged in the court of law as the ACC has forwarded criminal elements of the case to the OAG.

The Anti Corruption Commission (ACC) on 7th July 2017 had suspended the CEO and ED as part of an investigation at the time into issues first flagged by a Royal Audit Authority (RAA) Report in 2015, over an investment of Nu 100 mn to Nubri Capital which the RAA said was lent back to RICBL at higher interest rates.

The RAA had said that this led to an avoidable interest expense of Nu 2.44 mn. The RAA forwarded the case to the ACC which had also received an anonymous complaint letter alleging several malpractices at RICBL.

The ACC apart from the Nubri investment also went into other areas in the RICBL pointing out issues of investments made in Neethsel Pvt Ltd,  Sherab Reldi Higher Secondary School and paying of false insurance claims and embezzlement.

The ACC on 29th December forwarded some of its investigation findings for prosecution to the OAG while it also forwarded six administrative issue for administrative action by the RICBL board. The ACC also wrote to the Royal Monetary Authority (RMA) to take action.

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