Bangladesh Bank Governor Moshtaqur Rahman has indicated that the central bank-appointed administrator at Nagad may be withdrawn, with the Postal Department expected to continue overseeing the mobile financial services (MFS) provider.
The indication came during a meeting on Wednesday (March 4) between the Governor and Nagad’s administrator team, according to Bangladesh Bank spokesperson Arif Hossain Khan.
Speaking to TBS, the spokesperson said the Governor told Nagad’s current administrator and Bangladesh Bank Director Md. Motasem Billah that it is not appropriate for a central bank official to serve as an administrator in another institution. In response, the administrator stated that he had been assigned the responsibility by the central bank and would return whenever instructed.
Widespread Irregularities Uncovered
The spokesperson also addressed Nagad’s current situation, stating that a special inspection by Bangladesh Bank uncovered widespread irregularities. He noted that members of the previous board are currently absent and that Nagad is owned by the Postal Department, which will continue to manage the institution. The department may also transfer the company to new investors if it deems appropriate.
It was further revealed that Nagad has not yet received a full-fledged license from Bangladesh Bank and has been operating under an interim license. Given the security concerns surrounding transactions of approximately 40–50 million customers, the administrator was initially appointed to safeguard the system.
However, due to significant irregularities committed by stakeholders outside the Postal Department, the company’s net assets have reportedly turned negative, eliminating any possibility of their return.
Administrator Appointment and Forensic Findings
Following the fall of the Awami League government on August 5 last year, Bangladesh Bank decided on August 21 to appoint an administrator at Nagad. Initially, on August 22, Bangladesh Bank Director Muhammad Badiuzzaman Dider was appointed to the role.
Subsequent inspections by Bangladesh Bank and a forensic audit conducted by KPMG revealed severe financial fraud.
Investigations found that fake distributors and agents were used to commit financial irregularities, and excess electronic money (e-money) was created. A total discrepancy of BDT 2,356 crore was identified. Additionally, evidence was found that BDT 1,711 crore was withdrawn through 41 distributor accounts opened without approval—funds that had been allocated for the distribution of government allowances.
Earlier in June last year, Bangladesh Bank had reported that Nagad issued at least BDT 645 crore in excess e-money without corresponding cash deposits, causing substantial financial losses to the government.
Dismissal of Top Executives
After August 5, Nagad’s then Chief Executive Officer Tanvir Ahmed and several top officials reportedly went into hiding. Following their absence, the administrator dismissed CEO Tanvir Ahmed, Executive Directors Niaz Morshed (Elite) and Maruful Islam (Jhalak), Deputy Chief Marketing Officer Khandaker Mohammad Solaiman (Solaiman Shukhon), and HR official Anik Barua, among others. Several of the dismissed officials were also linked to the ownership structure of the company.
The central bank maintains that its actions were taken to protect customer funds and ensure stability in the country’s rapidly growing mobile financial services sector.
