ACC raids Nagad HQ, claims to find evidence of Tk2,356cr in irregularities

• ACC finds preliminary evidence of Tk2,356 crore in corruption, money laundering at Nagad
• Nagad Administrator Didar confirms allegations of scams, including e-money irregularities worth Tk600 crore
• BB sues Nagad's former chairman Syed Mohammad Kamal, ex-MD and CEO Tanvir Ahmed Mishuk, and 22 others
• Nagad came under increased scrutiny after AL govt's fall in August

The Anti-Corruption Commission (ACC) claims to have found preliminary evidence of Tk2,356 crore in corruption and laundering at the mobile financial service prodder Nagad, following a raid at its Banani headquarters today (12 February).

The raid came just over a week after the Bangladesh Bank had initiated legal action against Nagad's former chairman Syed Mohammad Kamal, ex-MD and CEO Tanvir Ahmed Mishuk, and 22 others.

On 3 February, Sarkar Mohammad Amir Khasru, joint director of the central bank's Payment Systems Department, filed a case with Motijheel Police Station, accusing them of embezzling Tk645 crore through fraudulent e-money issuance without maintaining the required currency reserve.

Other accused include former Nagad directors Shafayet Alam, Maruful Islam Jhalak, Aminul Haque, Niaz Morshed, and Faisal Ahsan Chowdhury.

Earlier, on 12 January, Bangladesh Bank Governor Ahsan H Mansur, addressing a seminar in Dhaka, said the central bank had detected irregularities amounting to Tk2,300 crore including excess creation of e-money worth Tk600 crore in Nagad.

ACC Assistant Director Md Ruhul Haque, who led today's operation, told The Business Standard, "We have found preliminary evidence of the allegations against them."

ACC officials said the raid followed allegations that Nagad created Tk645 crore in additional e-money and transferred Tk1,711 crore.

Commenting on the matter, Nagad Administrator Mohammad Badiuzzaman Didar told journalists, "There are allegations of scams involving the creation of additional e-money, fund transfers, and shareholding. Initial evidence of laundering Tk1,700 crore and e-money irregularities worth Tk600 crore has been found."

ACC Assistant Director Tanzir Ahmed, who participated in the operation, said, "We will investigate whether Nagad's relationship with the Postal Department has been abused and if money laundering occurred through its shares in companies based in the British Virgin Islands and Hong Kong.

"We have collected documents and will submit a detailed report to the commission after verification," he added.

Meanwhile, a group of unidentified youths attacked the car of Nagad Administrator Didar on Road-12 in Banani as he was returning home from the Nagad Headquarters in Kamal Ataturk Avenue today.

"I left Nagad's head office at around 4:30pm. After driving for a few minutes, three or four young men suddenly stood in front of my car. They shouted at me and broke the front glass of my car with hammers," he told The Business Standard in the evening.

Nagad under BB scanner since AL's fall

Nagad came under the Bangladesh Bank's increased scrutiny after the fall of the Awami League government on 5 August amid a student-led mass uprising.

On 21 August, the central bank appointed its director, Muhammad Badiuzzaman Dider, as the administrator of Nagad for one year. In addition, six other central bank officials were appointed to assist the administrator.

With the appointment of the administration team, Nagad's previous board was dissolved, and Tanvir A Mishuk lost his position as MD. He was later dismissed from his CEO position by the new administrator

Nagad, which began operations as a mobile financial services (MFS) provider in 2019, faced controversy over its branding as a digital service of the Directorate of Posts, despite the government having no equity stake. Instead, it shared revenue with the Directorate of Posts.

A day after appointing the administrator at Nagad, Bangladesh Bank Governor Ahsan H Mansur in a press conference announced the suspension of the licence for Nagad Digital Bank PLC, stating that the central bank would review the process.

On 17 September, the Bangladesh Bank formed a management board – headed by KAS Murshid, former director general of the Bangladesh Institute of Development Research – to determine the future action plan and strategic management of Nagad.