Holiday Post Report: A syndicate led by Smart Technologies, backed by former finance minister AHM Mustafa Kamal’s daughter Nafisa Kamal, has allegedly siphoned off millions of dollars from a foreign-funded project of the Insurance Development and Regulatory Authority (IDRA).

Despite the $67 million project aimed at developing Bangladesh’s insurance sector, no tangible improvement in financial security has been observed, according to a media investigation. A few companies, including Smart Technologies and eGeneration, have reportedly misappropriated project funds, with Nafisa Kamal positioned as the frontwoman, sources confirmed. The World Bank-funded IDRA project was designed to enhance the administrative and documentation capacities of insurance institutions by increasing the use of technology.

A source revealed that the Implementation Monitoring and Evaluation Department (IMED) of the planning ministry could not take any action on the project due to Smart Technologies’ association with Nafisa Kamal. Consequently, most of the funds from the insurance development project were smuggled abroad in a ‘very systematic way’.

The Smart Technologies-led syndicate in the insurance sector development project included Nafisa Kamal’s NK Solutions, China-based Sinosoft, CNS, and Shameem Ahsan’s eGeneration. Project sources revealed that project management specialist Nazrul Islam Bhuiyan coordinated the entire process from IDRA to extract dollars.

Project Director Md Kamruzzaman reportedly refrained from opposing the syndicate, allegedly due to his ambition for a promotion in government service. He seemingly operated as a close ally of Nafisa Kamal. Project documents reveal that Nafisa Kamal got the IDRA project approved by showing joint ownership with almost every participating institution.

On 22 May 2023, project officials approved a contract for $1.21 million for a joint venture between NK Solutions and eGeneration, led by BASIS’s former president Shameem Ahsan.

In addition to this, Shameem and Nafisa’s syndicate received a further Tk17.7 million in local currency. Despite this substantial withdrawal, there has been no visible improvement in the research facilities at the Bangladesh Insurance Academy in Mohakhali.

On 30 March 2022, Project Director Kamruzzaman approved Smart Technologies as the second-lowest bidder (L-2) for the supply of IT and supporting network infrastructure, servers, and storage for the first phase of $10.3 million. In this phase, an additional Tk 26.3 million was allocated to Smart Technologies, which has flourished over the past decade with backing from the Awami League.

In February 2023, a further $9.68 million was awarded to Smart Technologies for IT infrastructure support for IDRA, general insurance, and life insurance. Again, Smart Technologies was the second-lowest bidder (L-2). According to project sources, Smart Technologies secured the entire sum despite completing less than 20% of the technical support required.

At the end of the last fiscal year, on 20 June, Smart Technologies signed a joint venture agreement with NK Solutions and Sinosoft, valued at $76 million. An additional Tk 23.1 million was allocated to the project in local currency.

On 21 August 2022, Chinese company Sinosoft received $11.1 million for developing the project’s website, customer relationship management system, and call centre. On the same day, Sinosoft was awarded an additional $9.17 million for insurance management software known as RegTech.

On 31 May 2022, another technology company, Computer Network System (CNS), was awarded Tk230.4 million for enterprise resource planning (ERP) software and email management. However, CNS failed to provide the original software licenses, contributing to the misappropriation of project funds.

On 24 May 2022, a joint venture between India’s Xerox India and Bangladesh’s IOE was approved for a $54 million contract to supply a ‘Document Management System’. In this phase, the syndicate received an additional Tk173.6 million.

It has been discovered that this money from the insurance project was invested by Shameem Ahsan, who is favoured by Salman F Rahman, in capital market generation. Gaining proximity to Hasina as the president of BASIS, he eventually became a director of the state-owned Agrani Bank.

According to project documents, on 21 December 2023, Project Director Kamruzzaman approved a $1.71 million contract for the supply of cybersecurity, ransomware, and endpoint protection products to Nafisa Kamal’s joint venture company NK Solutions, Express Systems, and Aspire Tech Services, with a 28-day deadline. In this phase, the syndicate received an additional Tk5.8 million.

Although official figures indicate lower amounts, investigations suggest that Tk8 billion from this project was diverted to Smart Technologies and Nafisa Kamal’s NK Solutions. Despite the three-year duration of the insurance development project, officials from IDRA confirm that the state of the financial security sector remains unchanged.

Following the fall of the Awami League government on 5 August 2024, Mustafa Kamal, also known as Lotus Kamal, and his daughter Nafisa Kamal moved to Singapore with their family. “The World Bank project for insurance development has not progressed, but the funds are being withdrawn. Additionally, foreign software firms are involved, meaning money is being siphoned out of the country,” said a former president of the Bangladesh Association of Software and Information Services (BASIS), on condition of anonymity.

This former BASIS president suggested that if domestic firms were responsible for the technical support and software development for the insurance sector, the equivalent of $30 million could have been saved.

Nafisa Kamal and Smart Technologies Chairman Mazharul Islam did not respond to phone calls regarding the irregularities in the project.