The interim government will form a new independent board to operate mobile financial service provider Nagad, Finance Adviser Salehuddin Ahmed has said.

This decision was made at a high-level government meeting held at the secretariat on Sunday.

Bangladesh Bank Governor Ahsan H Mansur, Special Assistant to the Chief Adviser Faiz Ahmad Taiyeb, and Attorney General Md Asaduzzaman attended the meeting among others.

Salehuddin said Nagad would be restructured and handed over to a separate independent board. It would no longer be operated by the Bangladesh Bank or the Postal Department, he added.

According to the finance adviser, Md Shafayet Alam, who took on the role of CEO at Nagad, must resign since the takeover was illegal.

BB Governor Ahsan H Mansur said the Nagad's CEO committed fraud and has no right to hold that position.

‘Miscreants’ regain control of Nagad

The Bangladesh Bank said “miscreants” have regained control of Nagad following a recent High Court order that curtailed the regulatory authority of the central bank over the company.

The development has raised serious concerns about the resurgence of financial irregularities, including the illegal creation of electronic money, the central bank said.

At a press conference on Saturday, Arief Hossain Khan, executive director and spokesperson of the Bangladesh Bank, confirmed that sweeping changes had taken place within Nagad’s management in the wake of the court’s decision.

On Thursday, the High Court stayed the appointment of the administrator, who had been installed after the fall of the Awami League-led government on 5 August 2024.

Following the court’s order, the Bangladesh Postal Department officially took over the responsibility of Nagad. Notably, 23 officials of the central bank were dismissed for their involvement in a forensic audit of the company.

A full bench hearing of the Appellate Division is scheduled for 19 May, where the Bangladesh Bank is set to appeal the High Court’s suspension of the administrator appointed by the interim government.

After the court’s order, both the Bangladesh Bank and the Postal Department have lost their oversight roles, prompting renewed concerns over governance at Nagad.

A senior official at the central bank expressed alarm over the appointment of Md Shafayet Alam—a former director of Nagad and an accused in a Bangladesh Bank case—as the company’s new chief executive officer.

Since assuming leadership, Alam has reportedly initiated major changes, including appointing a new head of human resources and removing 23 senior employees.

Two other individuals named in the central bank’s case have also been appointed to key roles within the organisation.

These abrupt changes have created a climate of uncertainty within Nagad.

According to findings from a forensic audit, the company had previously engaged in large-scale financial misconduct, including the unauthorised creation of e-money and manipulation of records using fictitious agents and distributors.

The irregularities reportedly caused a financial shortfall of Tk2,356 crore. During the previous government’s tenure, Nagad allegedly benefited from preferential treatment in customer onboarding and the distribution of government allowances—often bypassing standard regulatory protocols.

In response, the Bangladesh Bank has filed cases against 24 individuals, including eight current and former director generals of the Postal Department, Nagad’s former chairman, and its former CEO.

“It is the responsibility of the Bangladesh Bank to safeguard public funds,” said spokesperson Arief Hossain.

“Nagad was previously operating without accountability, which is why we intervened after the change in government. However, due to the court order, we’ve been forced to step back. We hope the judiciary will reconsider its decision so we can resume our efforts to protect citizens’ money,” he said.