The interim government will form a new independent board to operate mobile financial service provider Nagad, Finance Adviser Salehuddin Ahmed said today.
The decision came from a high-level meeting of the interim government.
For all latest news, follow The Daily Star’s Google News channel. The finance adviser, along with Bangladesh Bank Governor Ahsan H Mansur, Attorney General Md Asaduzzaman, and ICT Policy Adviser Faiz Taiyeb Ahmed, was present at the meeting held in Dhaka today.
“We identified the irregularities at Nagad, and all of a sudden, a group took over the MFS provider. The government is going to take action against them,” the finance adviser told The Daily Star.
The postal department will not manage the MFS, despite being Nagad’s parent entity; instead, an independent board will run the service, he added.
Md Shafayet Alam, who assumed the role of CEO of Nagad, will have to step down because the takeover was illegal, according to the finance adviser.
On the other hand, Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan said at a press briefing on Saturday that Nagad is likely to face further fraud, as individuals previously accused in fraud cases are now operating the platform.
The High Court stayed the activities of the central bank-appointed administrator, Motasem Billah, on May 7 this year, following a petition by one of Nagad’s former directors.
Bangladesh Bank has since sought to overturn the stay, and a hearing is scheduled for May 19 in the Appellate Division, the central bank spokesperson said.
In the absence of the administrator, former Nagad director Md Shafayet Alam assumed the role of CEO, despite facing fraud charges in a case filed by Bangladesh Bank.
