Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)

Section: 33

Law: Insurance Ordinance, 2000

Section: 11(1)(f)

THIS ORDER PASSED BY: TAHIR MAHMOOD, COMMISSIONER (SCD):---.--- This Order shall dispose of Appeal No. 84 of 2016 filed under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 against the Order dated 24/08/16 (the Impugned Order) passed by the Respondent under section 11(1)(f) and section 12(1) read with section 158 of the Insurance Ordinance, 2000 (the Ordinance). 2. Brief facts of the case are that the Board of Directors (the BOD) of Pak Kuwait Takaful Company Limited (the Company) in their meeting dated 01/12/14 appointed M/s. Ernst Young (EY) to carry out assessment of reserves against claims, examination of paid claims, identification of potential phantom agents and assessment of adequacy of bad debts of the Company. The management of the Company carried out an analysis of the EY report dated 06/03/15 and identified certain irregularities with respect to contribution due but unpaid, understated claims and reversal of endorsements etc. The statutory external auditor of the Company has also observed in letter dated 24/04/15 that in order to show positive results and to maintain solvency requirements, the Company is practicing incorrect reporting since 2012. In view of aforesaid contraventions, the Respondent issued a Show Cause Notice (the SCN) dated 27/04/16 to the following persons/directors; S.No Name 1. Mohd Tarmidzi Bin Ahmad Nordin, Chairman 2. Mr. lmtiaz Ahmed Bhatti, Chief Executive Officer 3. Mr. Rana Ahmed Humayun, Director 4. Mr. Zaharudin Daud, Director 5. Mr. Osman Kassim, Director 6. Mr. Mansur Khan, Director 7. Mr. Kamal Uddin Khan, Director 8. Syed Amir Ali, Director 9. Mr. Nazawawe Bahari, Director 10. Mr. Talal BAKHAI-Mesallam, Director 11. Pak Kuwait Takaful Company Limited 3. In response to the SCN, Mr. Ijaz Ahmed, Advocate Supreme Court (the Counsel) submitted a reply vide letter dated 25/05/16 on behalf of the persons mentioned at serial Nos. 1, 3, 4, 5, 6, 8, 9 and 11, in para above (the Directors and Company). The SCN was not responded by the Appellant and two other directors mentioned at serial Nos. 7 and 10 in para above. The Counsel submitted that the aforesaid persons (except mentioned at serial number 11)…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492