Bangladesh Bank (BB) has suspended nearly all services of the mobile financial service provider Nagad, retaining only cash-in and cash-out operations, amid serious allegations of financial irregularities.

BB Governor Dr Ahsan H Mansur at a press briefing on Monday stated that the current management and board members of Nagad would no longer have access to the company’s existing funds.

He alleged that a syndicate within Nagad had embezzled Tk26.6 billion, including Tk6.6 billion in fake funds and misappropriation of Tk20 billion meant for public distribution from various government programmes.

The government, in response, has decided to appoint an independent board to oversee Nagad’s operations.

This decision came during a high-level meeting at the Ministry of Finance on Sunday evening, chaired by Finance Adviser Dr Salehuddin Ahmed. Other participants included Dr Ahsan H Mansur, ICT Division’s Special Assistant Fayez Ahmed Tayyab, and Attorney General Md Asaduzzaman.

Dr Salehuddin stated that the irregularities at Nagad, which occurred under the previous government, have already come to light. He alleged that “a new group suddenly took control of Nagad,” and asserted that those implicated in ongoing legal cases would not be allowed to return.

Governor Mansur specifically accused newly-appointed CEO Shafayet Alam, who assumed the role following a court directive, of “fraudulent activities” and declared that he had no legitimate authority to lead the company.

The adviser further clarified that Nagad would be restructured under an autonomous board, separate from the BB and the Postal Department. On Saturday, BB Executive Director Arif Hossain Khan disclosed that Nagad’s previous board was involved in significant financial misconduct.

Meanwhile, an official from Nagad, speaking on condition of anonymity, told the Daily Sun that the office remains operational. “We are aware that the board may be reshuffled with representation from the Postal Department,” the official said.