CEO Jha Reappointment Decision Stopped

The Insurance Board has directed Prime Life Insurance Company to not appoint Resta Jha as the Chief Executive Officer (CEO) of the company. Though the Board of Directors (BOD) of the Prime Life Insurance had decided to reappoint Jha as the CEO of the company on September 23, the regulatory board, IB, decided to stop his reappointment last Thursday.  According to Shreeman Karki, director of the IB, there was no basis of imediate reappointment of Jha as the CEO of Prime Insurance. 

 

Likewise, the IB has also directed the company to immediately conduct its due diligence audit (DDA). The employees of the Prime Life Insurance have filed complaints of irregularities at the IB against Jha. According to IB officials, the board has ordered the company to conduct DDA after it was found that the expenses under the heading of office management were high. However, the amount of irregularities has not been ascertained yet. The IB has already taken action against Jha for violating its directive to maintain the cap on the management expenses.