Forensic Freedom for 'Nagad': High Court Clears Audit Obstruction
The High Court has dismissed a writ petition that sought to halt a forensic audit of mobile financial service provider ‘Nagad’. With this rejection, there is no legal barrier to investigating financial irregularities within the company, according to state counsels.
The bench of Justice Fatema Najib and Justice Shikdar Mahmudur Razi delivered the order on Wednesday, May 21, following a preliminary hearing on the writ petition filed on behalf of a shareholder of Nagad.
Barrister Naushad Zamir appeared on behalf of the petitioner, while the state was represented by Additional Attorney General Barrister Anik R Haque, Deputy Attorney General (DAG) Barrister Osman Chowdhury, Assistant Attorney General (AAG) Imrul Kayes Rana, AAG Tamanna Sultana, and AAG Imamur Mushfiqur.
A forensic audit is a comprehensive review of an institution's financial transactions, capable of uncovering fraud and misconduct. Findings from such audits often form the basis for legal proceedings. In Bangladesh, forensic audits in the financial sector remain rare.
Nagad's ownership has reportedly involved several influential figures from the former ruling party, the Awami League, including Rezwana Noor (wife of former Prime Minister’s Deputy Press Secretary Ashraful Alam Khokon), former MP Nahim Razzaq, and Razi Mohammad Fakhrul. Consequently, no regulatory action was taken against the company during the previous administration.
Following the fall of the Awami League government on August 5, the Bangladesh Bank decided to appoint an administrator to oversee Nagad's operations. On August 21, the central bank appointed its Director, Muhammad Badiuzzaman Didar, as administrator, alongside six supporting officials. On August 23, officials from Bangladesh Bank and the Postal Division took control of Nagad’s office.
According to officials, Nagad is now operating normally. Employees previously appointed by the company continue to perform their duties, with the exception of former CEO Tanvir Ahmed, Executive Director Niaz Morshed, and senior official Maruful Islam—all of whom were reportedly involved in the company’s ownership.
To uncover potential irregularities and identify all beneficiaries, the administrator has sent a letter to the Directorate of Posts requesting a full forensic audit of Nagad's operations for the fiscal year 2023–24, as well as a review of previous fiscal years. The letter emphasizes the need for both regular audits and in-depth forensic examination of financial and operational activities.
Following the letter, discussions were held between the Postal Division and the Bangladesh Bank, where both parties agreed on the necessity of the audit. “Everyone is in agreement that a forensic audit will reveal the true picture,” said Mezbaul Haque, Executive Director and spokesperson for Bangladesh Bank.
In a related development, the newly appointed administrator of Nagad has lodged a general diary (GD) with Banani Police Station, alleging that he received a threatening message from the company’s former CEO, Tanvir Ahmed Mishuk. The GD states that on September 4, a WhatsApp message was sent to Badiuzzaman Didar from a phone number linked to Mishuk, which he interpreted as “a form of threat.”
Mishuk has also been accused of disrupting Nagad’s activities, though no public comment has been received from him. Reports indicate he was abroad at the time the administrative changes were implemented and has yet to return to the country.
