Nagad in New Hands: Postal Department Assumes Control Amidst Legal Limbo
The Bangladesh Post Office has officially taken over the management of mobile financial service provider Nagad, following a legal stalemate surrounding the appointment of administrators by Bangladesh Bank. This development comes after the Supreme Court's Appellate Division suspended the High Court’s order on the central bank’s appointed administrators, leaving Nagad’s governance in uncertainty.
In response, the Post Office formed an eight-member oversight committee on Thursday, led by its Director, Abu Taleb. Officials from the department have already assumed responsibility at Nagad’s corporate office in Banani.
Previously, the High Court had suspended the decision to appoint administrators to Nagad. Following the fall of the Awami League government, the administrators placed by Bangladesh Bank lost their authority. Meanwhile, one of the individuals previously accused in a misappropriation case filed by the central bank—former director Md. Safayet Alam—was appointed as the company's new Chief Executive Officer (CEO). Under his leadership, sweeping changes have been initiated, including the termination of 19 top officials and the recruitment of two more individuals named in the financial misconduct case. These moves have stirred fresh concerns over instability in Nagad’s leadership.
In an official order issued Thursday, the Post Office stated: “Following the Appellate Division’s stay order on the administrator appointments by Bangladesh Bank, Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser, instructed the Post Office to assume comprehensive responsibility over Nagad’s operations.” Consequently, the oversight committee was formed to inspect the company’s main office and other facilities, and to submit periodic reports.
Committee members include Post Office Directors Md. Abu Taleb and Md. Aminur Rahman, along with Postal Attaché S.M. Wadudul Islam, Programmer Md. Moniruzzaman, DPMG Sanjit Chandra Pandit, Md. Shaheduzzaman Sarkar, Khondaker Shahnoor Sabbir, and A.K.M. Moniruzzaman. The committee has the authority to include additional members as necessary for effective supervision.
Meanwhile, Bangladesh Bank has filed a petition seeking reversal of the stay order issued by the Appellate Division. A hearing on the matter is scheduled for May 19 in the court's regular bench.
The controversy surrounding Nagad intensified after the fall of the Sheikh Hasina government on August 5 last year. The interim government appointed administrators to the company, and subsequent audits revealed significant financial irregularities. Investigations uncovered the creation of fake agents and distributors, the generation of excessive electronic money (e-money), and fraudulent transactions totaling approximately BDT 2,356 crore. During the previous administration, Nagad reportedly received exclusive privileges in client onboarding and government allowance distribution, allegedly bypassing standard regulatory processes.
Several influential figures, including members of parliament from the former ruling party, were reportedly involved in Nagad’s management during the period when these irregularities occurred. In light of these developments, Bangladesh Bank filed legal charges against 24 individuals.
