* Government acquired ‘Nagad’ due to ownership disputes and irregularities
* Nagad digital bank operations will be suspended
Due to irregularities, corruption and mismanagement, the administrator has been placed in the digital financial service ‘Nagad’ said the Governor of Bangladesh Bank Dr. Ahsan H. Mansoor. He said, ‘There are questions about the ownership of Nagad, there are legal issues and the legal issues have been going on for years. For these reasons the government acquired it. An organization cannot run like this. We intervened so that people’s deposits are not at risk.
The governor also said that Bangladesh Bank will manage it on behalf of the Department of Posts. All previous customer benefits will remain in place. Besides, Bangladesh Bank will audit the money laundering and irregularities. And Nagad Digital Bank activities will be suspended.
In the press conference held on Thursday (August 22) at the head office of Bangladesh Bank. Ahsan H. Mansoor said, “Some people were running Nagad in the name of postal department as their own. Government acquired it in public interest. Now Nagad is a completely government institution. Bangladesh Bank will manage on behalf of the Postal Department. All previous customer benefits will remain in place. Customers have nothing to worry about. Nagad will now become a more transparent and international institution.’
The Governor said, ‘We want to build Nagad as an international institution rather than destroying it. We want Nagad to evolve. For this, competition should be increased, which would be fair competition. Nagad received benefit from Government. Most of the government allowances were paid through Nagad. So that there is no such bias, let there be parallel competition.’
All activities of ‘Nagad’ will remain as before; we will not change but it will come on a larger scale. The Governor of Bangladesh Bank said, “It will maintain international standards, where foreign investment will come.”
The governor said, ‘We want to take online transactions to a place where cash-out is not required. We want to send the cash-out system to the museum. Once the money comes in and everyone spends from there. There will be no option of cash-out and the cost will also be reduced.
He said that Nagad is not the only institution where irregularities have occurred. There have been irregularities in many other such institutions. We don’t want to look back; we want to do good things ahead.
When asked whether action will be taken against ‘Nagad has been laundered’, the governor said, ‘We will audit and see how much irregularity has happened. Whether there was money laundering or not, what was the profit and loss situation… the next board will take action against the irregulars.’
In response to a question. Ahsan H. Mansoor said, ‘For the time being, the operations of Nagad’s digital bank will be suspended. We will review it. We will see if it can come by fulfilling the conditions.’
On the question of new loans from donor agencies, the governor said, ‘We need money in the current situation. We will appeal to the IMF, ADB and the World Bank to expand the scope of scholarly loan programs. We will tell the IMF, $7 billion is being given to Pakistan; Our package is also made 7 billion.
In response to the question whether any action will be taken against the officials of Bangladesh Bank who have helped in these irregularities and corruption, the governor said that many have done a lot for fear of job, they were instructed. If we put them in jail, everything will not be alright. So, we want to ensure that no one is forced to commit irregularities by being directed. We want to move forward. I don’t want to look back too much.
