Bangladesh Bank’s Executive Director and Spokesperson Arif Hossain Khan has accused criminals of regaining control over mobile financial services (MFS) provider Nagad, raising serious concerns about its operations.
Speaking at an emergency press conference at Bangladesh Bank headquarters on Saturday, Khan alleged that an individual implicated in a major financial fraud case filed by the central bank has been illegally appointed as Nagad’s Managing Director (MD).
Khan claimed that the previous Nagad board was embroiled in significant financial irregularities, prompting Bangladesh Bank to temporarily assume control due to the company’s vast reach – serving millions of customers with deposits worth hundreds of crores of taka.
However, he revealed that in the absence of the bank’s legal representation, a court granted an eight-week stay on the administrator appointment decision.
Exploiting this delay, the accused individual was illicitly instated as CEO. “This undermines the integrity of the institution,” Khan warned.
He further alleged that the criminals have seized Nagad’s IT department, cutting off all communication links with Bangladesh Bank.
This disruption has left the central bank in the dark about current activities, fuelling fears of a resurgence in money laundering and other illegal practices that plagued the company previously.
“We are deeply concerned about the potential misuse of funds and the safety of customer deposits,” Khan said.
The spokesperson highlighted that the Supreme Court, led by the Chief Justice, is set to deliver a final ruling on Nagad’s status on May 19, a decision that could determine the company’s future.
Khan also criticised the lack of police action, questioning, “Why are the authorities not pursuing the accused in the case filed by Bangladesh Bank?”
He expressed additional bewilderment over the Postal Department’s role, noting that while it received a cash operation license from Bangladesh Bank, it subsequently transferred control to a third party, raising questions about oversight and accountability.