The interim government on Sunday decided to form an independent board to run mobile financial service provider Nagad following mounting concerns over alleged irregularities, unauthorised control and institutional overreach in the MFS provider, officials said.
The decision was made at a high-level meeting attended, among others, by finance adviser Salehuddin Ahmed, Bangladesh Bank governor Ahsan H Mansur, attorney general Md Asaduzzaman and ICT policy adviser Faiz Taiyeb Ahmed.
Representatives from the government and the Bangladesh Bank said that a group of people had suddenly taken control of Nagad without authorisation, bypassing regulatory protocols.
In response, the government planned to take legal and administrative action against those responsible.
Although Nagad was launched under the umbrella of the postal department, the officials said that the department would no longer manage the service.
Instead, an independent board will be formed to oversee its operations, they said.
Following the meeting, Bangladesh Bank governor Ahsan H Mansur told reporters that Shafayet Alam had retained the CEO position through fraudulent means.
鈥楬e has certainly committed fraud. He is certainly guilty and has no right to hold that position. He cannot assume the responsibilities of CEO,鈥� the governor said.
Responding to a question how a person facing a central bank lawsuit could return to a top executive role, Mansur said that such actions did not reflect the government鈥檚 stance.
鈥楾he government will not accept it. The government鈥檚 position is aligned with that of the Bangladesh Bank. However, as the matter is under judicial review, further comment will not be appropriate,鈥� he added.
Bangladesh Bank executive director and spokesperson Arief Hossain Khan at a press briefing on Saturday warned that Nagad could face further fraudulent activities, as individuals previously accused of financial misconduct were now running the platform.
The situation escalated after the High Court on May 7 stayed the activities of the central bank-appointed administrator, Motasem Billah, following a petition filed by one of the Nagad鈥檚 former directors.
In the administrator鈥檚 absence, Shafayet assumed the CEO position despite being under investigation in a fraud case filed by the central bank.
The Bangladesh Bank has appealed against the stay order, and a hearing is scheduled in the Appellate Division today.
