BB to seek new investors for Nagad

Bangladesh Bank (BB) Governor Ahsan H Mansur said the Directorate of Posts, which owns mobile financial service provider Nagad, does not have the capacity to run it efficiently, making it necessary to bring in new investors.

"The ownership of Nagad still lies with the Directorate of Posts. However, it is not a very functional institution anymore, and it is not really possible for the post office to run Nagad," Mansur told The Daily Star in an interview.

He said a competent institution needs to take over, suggesting the post office might retain a minority stake of 20 to 30 percent.

"The MFS should be handed over quickly to a reputed international private sector institution," he said. "A large telecom company could take it, as they have the necessary technical knowledge. Alternatively, a major financial institution could also take it over."

Discussing irregularities at Nagad, the governor said there is clear evidence that over Tk 1,600 crore, earmarked for social welfare, was embezzled at Nagad.

"Instead of distributing the money to poor and needy people, they transferred the funds to the accounts of fictitious beneficiaries and misappropriated them. This has been proven," he said.

Mansur added that Nagad had also created e-money illegally. "They generated around Tk 630 crore worth of additional e-money, meaning they did not receive the actual funds but still created the money on their system."

"Using this illegally created e-money, they paid salaries, bonuses, travel expenses, and other operational costs," said the BB governor.

RECOVERY OF LAUNDERED ASSETS MUST CONTINUE

On efforts to recover laundered assets, Mansur said the interim government is working to freeze those funds through government-to-government arrangements.

"We have had some success in the United Kingdom, and we are working on it in other jurisdictions as well. This is an ongoing process; it's not something that can be resolved easily or in a short time," he commented.

In June, Britain's serious crime agency froze UK property worth £170 million belonging to Saifuzzaman Chowdhury, the former land minister of the previous Awami League government.

In February, the agency froze £90 million in assets tied to two members of the family of Salman F Rahman, a businessman and former adviser to ousted prime minister Sheikh Hasina.

The governor said the asset recovery process usually takes three to five years. "The next government will have to carry this process forward," he said.

"The interim government has initiated the process. We might be able to reach the stage of freezing the assets, but once it moves into the legal phase, the entire process becomes more complex. In that stage, the responsibility may fall on the next government to carry the legal proceedings forward."

The governor said the central bank is setting up a new department focused on tackling money laundering. Its main role will be supporting the Bangladesh Financial Intelligence Unit (BFIU).

"We went to Dubai, where we met with the Dubai Financial Intelligence Unit. After discussions, they assured us of their support. They explained how we should send them official requests and said they would consider those and stay in touch. From my perspective, their response was quite positive."

Mansur also said the central bank plans to visit Singapore soon for similar talks. "We are working individually with each country, seeking their cooperation, and we are receiving support."

He said the United States offered strong backing in the beginning, but progress slowed following a change in government.

However, Washington has now shown renewed interest in cooperating with Bangladesh, the governor added.

BB ASSURES FULL RETURN OF DEPOSITORS' FUNDS

Amid sweeping reforms in the banking sector and talks about the merger of several troubled lenders, Mansur said the central bank is prioritising the protection of small depositors.

"Our goal is to ensure that every single taka is recovered and returned to them," he said. "It might take some time. Those with larger deposits may need to wait a bit longer."

He urged people not to resort to protests. "We are exploring how to merge these banks, inject capital, and protect your interests. Whatever we are doing, we are doing it for the sake of the depositors."