Nagad CEO committed ‘fraud’, unfit to hold office, says Bangladesh Bank governor

“Of course, he is guilty and has no right to assume the responsibility," the governor says

Bangladesh Bank Governor Ahsan H Mansur has accused Shafayet Alam, the newly-appointed CEO of mobile financial service provider Nagad following a court order, of “committing fraud”, asserting that he has no legitimate right to remain in office.

While speaking to journalists after a meeting with Finance Advisor Salehuddin Ahmed at the Secretariat on Sunday, he said: “Of course, he (Shafayet) committed fraud. He is certainly guilty and has no right to hold this position.”

Responding to a journalist’s remark that the individual against whom a case was filed by the central bank has now been made Nagad CEO, the governor said: “The government will not accept this as its position aligns with Bangladesh Bank’s stance.”

Nagad issued a press statement last week saying that the Appellate Division’s chamber judge had announced the administrator’s appointment to the company as unlawful. Following that, Shafayet Alam officially took over as CEO last Monday.

The Bangladesh Bank dissolved Nagad’s previous board and appointed its director Badiuzzaman Dider as an administrator on Aug 21 last year after the Awami League government’s fall in light of the mass movement.

While Badiuzzaman was serving as administrator, the Anti-Corruption Commission (ACC) conducted a raid at Nagad on Feb 12 over alleged irregularities. On that day, Badiuzzaman’s car came under attack in Dhaka’s Banani.

Within 15 days of the incident, Badiuzzaman was replaced with Motasem Billah, director of Bangladesh Bank’s Chattogram office.

Nagad later initiated a legal fight over the administrator’s appointment.

Earlier, the central bank filed a case against Nagad over embezzlement charges, accusing 24 individuals, including the company’s former chairman Syed Mohammad Kamal and ex-CEO Tanvir Ahmed Mishuk.

Since taking office, Mansur has repeatedly alleged that irregularities occurred within Nagad, including the unauthorised creation of excessive electronic money.

Nagad launched its mobile financial services on Mar 26, 2019, and was later granted a licence to operate as a digital bank.

bdnews24.com is trying to reach Shafayet for his comment on the governor’s allegations.