The Anti-Corruption Commission's (ACC) investigation into allegations that millions of dollars were siphoned off from a foreign-funded Insurance Development and Regulatory Authority (IDRA) project involving companies linked to former finance minister AHM Mustafa Kamal's daughter Nafisa Kamal has effectively stalled, despite nearly two years into the inquiry.
According to ACC and project-related sources, the investigation centres on alleged irregularities in several technology development projects undertaken by IDRA during the Awami League government to modernise the insurance sector.
The projects were awarded to a group of firms including Nafisa Kamal-linked NK Soft and Smart Technologies, China-based Sinosoft, CNS, ESL and Shameem Ahsan's eGeneration. Sources alleged that a syndicate involving local and foreign firms manipulated procurement and implementation processes to divert large sums abroad under the guise of software, consultancy and technical support services.
Officials familiar with the matter alleged that Smart Technologies enjoyed political protection because of its association with Nafisa Kamal, making oversight agencies reluctant to intervene. A senior source claimed that the Implementation Monitoring and Evaluation Division (IMED) of the Planning Ministry failed to take effective action despite repeated concerns over project execution and fund utilisation.
The World Bank-funded project was intended to strengthen the administrative and documentation systems of the insurance sector through digitisation and technological upgrades. However, officials involved with the project said the sector has seen little visible improvement despite the expenditure of large sums over three years.
Project sources alleged that project management specialist Nazrul Islam Bhuiyan coordinated the implementation process within IDRA, while then-project director Md Kamruzzaman allegedly remained silent over irregularities because of political pressure. Sources further claimed that Nafisa Kamal secured influence over the project structure through joint ownership arrangements with several participating entities.
Although official expenditure records show lower figures, investigators suspect that nearly Tk 8 billion was channelled to companies linked to Smart Technologies and NK Solutions through inflated costs, questionable procurements and foreign payments, according to sources familiar with the inquiry.
Following the fall of the Awami League government on August 5, 2024, former finance minister Mustafa Kamal, widely known as Lotus Kamal, and members of his family reportedly moved to Singapore.
A former president of the Bangladesh Association of Software and Information Services (BASIS), speaking on condition of anonymity, told The Daily Observer that the insurance digitisation project produced little measurable progress despite heavy spending.
"The World Bank project for insurance development has barely progressed, yet the funds have been released regularly. Since foreign software firms were involved, a large amount of money was allegedly transferred abroad," he said.
He added that if local firms had been entrusted with the software development and technical support work, Bangladesh could have saved the equivalent of nearly $30 million.
Mohammad Zahirul Islam, managing director of Smart Technologies (BD) Limited, initially told The Daily Observer that he was in a meeting and would respond later, but did not answer subsequent calls seeking comment on the allegations.
Regarding a recent ACC request for documents linked to another government technology project titled "Capacity Building in Mobile Games and Application Development," he said all relevant documents had already been submitted to the commission.
