Under current Nepalese regulations, life insurers must deal directly with local reinsurers (Himalayan Reinsurance or Nepal Reinsurance Company) and are strictly barred from using third-party brokers.
However, investigators allege that Himalayan Reinsurance fabricated paperwork to involve Alicent Broker in their direct business, secretly routing nearly Rs 294.14 million in illegal brokerage commissions. This is backed by Himalayan Re's own annual reports, which show brokerage expenses exploding from a mere Rs 916 in FY 2077/78 to over Rs 336 million by FY 2080/81.
Although all 14 insurance companies initially submitted written statements denying any business ties to Alicent, the DMLI escalated the probe. Investigators suspect that a portion of the offshore commissions may have been kicked back secretly to the insurance executives.
During questioning, investigating officers confronted the CEOs with concrete ledgers detailing the exact transactions. In response, the CEOs maintained their innocence, stating they had no operational knowledge of Alicent and shifting the blame entirely onto internal maneuvers at Himalayan Reinsurance.
The scam is tied to controversial businessman Deepak Bhatt and his syndicate, who are already in police custody for market manipulation and insider trading. Alicent Broker is reportedly registered in the name of Bhatt's mother-in-law.
Meanwhile, growing public and political pressure is mounting for a separate investigation into the leadership of the regulator, the Nepal Insurance Authority (NIA), over their abnormal silence and failure to flag these massive financial discrepancies during routine audit approvals.
