Turmoil at mobile money giant Nagad as corruption allegations swirl
News Desk
Bangladesh’s top mobile financial services provider Nagad is facing a fresh wave of public scrutiny following reports of alleged embezzlement, irregular hiring, and internal power struggles, now linked not only to figures from the former Awami League government but also to members of the interim administration.
A report published by the Daily Manabzamin on Friday titled "How hundreds of crores were siphoned off from Nagad" alleged that over Tk 1.5 billion had been misappropriated.
The report named Atik Morshed, a personal aide to Faiz Ahmad Taiyeb, the interim government's special assistant for posts, telecommunications and ICT, as being involved in both financial misconduct and irregular recruitment, including reportedly appointing his wife to a managerial position at Nagad.
Social media backlash followed swiftly, prompting both Faiz and Atik to issue separate denials on Facebook.
Faiz demanded evidence from the Manabzamin, while Atik refuted all allegations, including claims of misuse of funds and nepotism.
The current crisis stems from a leadership dispute that erupted after the fall of the Awami League government on Aug 5, 2024.
On Aug 21, the Bangladesh Bank dissolved Nagad’s previous board and appointed Badiuzzaman Didar, a central bank director, as administrator.
A six-member interim board was also installed, chaired by KAS Murshid, a former BIDS director and brother of interim government advisor Sharmin Murshid.
However, former Nagad director Shafayet Alam challenged the appointment in court.
On May 13, Nagad claimed the court had declared the administrator and board appointments illegal.
The following day, Shafayet assumed charge as CEO, a move that Bangladesh Bank Governor Ahsan H Mansur later called “fraudulent.”
The Manabzamin report alleged that Tk 1.5 billion had been removed from Nagad accounts over two months, and that Atik Morshed, previously associated with another high-level advisor in the former government, had become an influential figure at Nagad.
The report also said Atik appointed multiple relatives, including his wife, as manager of Compliance.
In response, Faiz claimed on Facebook that administrative instability began when a stay order was issued against the central bank-appointed administrator.
He alleged that Shafayet and his associates began a round of unauthorised hiring and dismissals, destabilising operations.
Atik also claimed that Shafayet, wanted in a case filed by the central bank, had multiple passports and fled from law-enforcing agencies despite being under surveillance. “CID was preparing a raid when he escaped,” he wrote.
Faiz also clarified that Tk 430 million had been withdrawn from Nagad accounts during the disputed period, covering salaries, vendor payments, and operational costs.
He challenged the Tk 1.5 billion figure and called for a tripartite forensic audit.
ATIK MORSHED’S DEFENCE
In his statement, Atik said he had only visited the Nagad office twice, on May 18 and 20, and only for official meetings attended by posts and telecom ministry staff.
He denied holding any operational authority and dismissed the claim about appointing his wife, saying that she was selected for a temporary role through a competitive process based on merit.
Atik also denied the claims that funds had been siphoned and said all expenditures during the two-month period were properly recorded and related to operating costs.
MINISTRY CONFIRMS TRANSFER OF CONTROL
In a separate statement issued Thursday, the Ministry of Posts and Telecommunications acknowledged holding an official meeting with Nagad on May 27 to address management instability.
During the meeting, acting CEO Shyamal B Das handed over control of Nagad’s operations and ownership to the director general of the Postal Department.
Abu Taleb, a director at the postal department, was appointed interim CEO.
His appointment was endorsed by Deputy CEO Muiz, who pledged full cooperation and assured that no staff would be dismissed.
All salary and bonus payments would be made ahead of Eid-ul-Azha, he added.
The ministry added that Nagad’s operational instability, impacting over 90 million users, warranted urgent intervention.
It also confirmed that the Postal Department was now in charge of preparing a detailed report on all spending from the last three months and would publish findings on past irregularities.
FORENSIC AUDIT, WIDER FRAUD ALLEGATIONS
According to the ministry, a forensic audit initiated under the interim administration has already uncovered evidence of large-scale financial fraud at Nagad. The findings include alleged creation of fake agents and accounts, unlawful issuance of e-money, links to online gambling and money laundering, and misappropriation in favour of former owners.
The audit estimates that over Tk 23.56 billion remains unaccounted for.
The Bangladesh Bank has already filed cases naming 24 individuals, including former MPs and influential political figures from the Awami League era, for their roles in the alleged fraud.
