Following a plan to place Nagad under new ownership and management, he expressed interest in bringing in foreign investors. He says he is acting as a “local coordinator” for domestic and multinational investment houses. As part of this effort, he has applied to the governor for a forensic audit of the firm, outlining his interest in a February 8 letter to the central bank’s governor.
Barrister Arman was elected as a Bangladesh Jamaat-e-Islami candidate for the Dhaka-14 constituency in the 13th parliamentary elections this year. Abducted in 2016, he was held in the so-called “Aynaghar” (a torture cell) for eight years before being released after the student-led mass uprising in 2024. His father, the late Mir Quasem Ali, was a senior Jamaat leader.
His keen interest in investing in Nagad has drawn curiosity in various quarters, with many questioning the timing of his letter to the governor, sent just three days before the national poll. Arman maintains that, mainly, the foreign investors he knows have shown interest. Financial sector experts, however, caution that such a move without relevant experience could prove risky for both the company and investors.
In the letter sent on February 8, Arman opens by thanking the governor. “First, I express my gratitude for your valuable time and constructive advice regarding Nagad Digital Financial Services,” he writes. “You are aware that the meeting was held at my request. The main purpose of the meeting was to seek your assistance in obtaining a licence to establish a digital bank. My dream and goal is to provide inclusive, digital and increasingly impactful financial services for the people of the country. To this end, some potential foreign representatives have already joined me and have expressed interest in investing in such a business.”
In the letter, Arman writes that he learned during the meeting that Nagad Digital Financial Services is under the direct supervision of Bangladesh Bank due to mismanagement during the previous government. He cited the plan to transfer it to new ownership and management following necessary due diligence. Securing such an opportunity, he adds, would be “a great honour” and “a significant opportunity” for him.
Arman also states that, based on discussions with foreign investors, they are ready to proceed to the next stage of evaluating a potential investment in Nagad. This would include a full forensic audit, which he says would provide a transparent and consolidated picture of the digital financial service’s financial, operational and business standing. It would also assess its strengths, weaknesses and risks. He therefore requests the governor’s full support in granting permission for a forensic audit to understand Nagad Digital Financial Services’ true condition and take necessary measures.
The central bank, however, appears to be keeping its distance from the proposal. Arif Hossain Khan, an executive director at Bangladesh Bank, told Bonik Barta he was unaware of any process related to a transfer of Nagad’s ownership.
“As the executive director in charge of the Payment Systems Department, if any decision were made regarding Nagad, I would know about it,” he said. “But so far, neither the governor sir nor anyone else has informed me of anything. It’s possible the matter is still at a very preliminary, discussion-only stage.”
Asked about the procedure for a transfer of ownership, Khan said any decision would require a tender. “The highest bidder would then acquire ownership — that’s the established practice,” he said. “There’s no scope for discussions about transferring Nagad’s ownership with any private individual without issuing a tender.”
The proposal has also raised questions about the funding source, according to Dr Tawohidul Haque, an associate professor at University of Dhaka’s Institute of Social Welfare and Research and a criminologist. Speaking to Bonik Barta, he said, “He [Barrister Arman] was abducted for a long time, held in Aynaghar. So questions will naturally arise about the large-scale investment by him, the source of this money, and the legal and policy issues involved. He has been elected as a member of parliament from the Dhaka-14 seat. We want any institution to become more established through an individual. But in that process, attention should also be given that neither the individual nor the institution ends up facing questions.”
Nagad, a mobile financial service (MFS), was launched in Bangladesh on March 26, 2019. From the outset, it was branded as a service of the Bangladesh Postal Department but was effectively owned by Third Wave Technologies, whose shareholders included several businessmen and leaders of the then-ruling Awami League. It began operations without a licence from Bangladesh Bank and in disregard of MFS regulations.
Following the fall of the Sheikh Hasina government in a student-led mass uprising on August 5 2024, the central bank dissolved Nagad’s board that same month and appointed an administrator. Muhammad Badiuzzaman Dider, a Bangladesh Bank director, initially took the role and was later replaced by Md Motasem Billah, another central bank director, who now serves as the administrator.
A special audit following the board’s dissolution uncovered financial irregularities, including the creation of fake distributors and agents and the generation of excess electronic money or e-money. At the time, Bangladesh Bank and the Anti-Corruption Commission said the audit failed to account for BDT 23.56 billion of Nagad’s funds, alleging embezzlement through fake e-money and fraud. Lawsuits over the irregularities have also been filed against those involved in Nagad’s management, including its founders.
According to Bangladesh Bank and Nagad sources, various domestic and international parties have made proposals over the past year to acquire a stake in the company. Offers have also been made by the interim government and the central bank governor Ahsan H Mansur to several parties. However, none of these proposals has been finalised. Nagad’s current market value has also not been determined through any audit. Meanwhile, Bangladesh Bank has commissioned KPMG for a forensic audit of Nagad’s “asset quality”.
According to sources at Nagad, the MFS handles daily transactions of between BDT 12 billion and BDT 14 billion. In January this year, total monthly transactions through the service reached BDT 403.3 billion.
A senior Bangladesh Bank official, speaking to Bonik Barta on condition of anonymity, said ongoing discussions over Nagad’s ownership have no legal basis. One hundred percent of the company’s shares remain registered in the name of Nagad Ltd, he said. The owners of Nagad Ltd, he added, are fugitive leaders of the Awami League and businessmen. Before any transfer could proceed, those shares would need to vest in the government. Only after the government or the postal department secured full ownership could the question of handing it to a third party arise.
When Third Wave Technologies was established in 2016, it was led by Tanvir Ahmed Mishuk. Its other partners included Kazi Monirul Kabir, Syed Mohammad Kamal, Syed Arshad Reza and Mizanur Rahman. However, some partners divested before Nagad began operations. After Kazi Monirul Kabir’s departure, two then Awami League MPs, Nahim Razzaq and Razee Mohammad Fakhrul, joined the ownership. Rezwana Noor — wife of Ashraful Alam Khokon, a former deputy press secretary to the deposed prime minister — also joined but later relinquished her stake.
Nagad Ltd currently has nine directors representing companies registered in Bangladesh and several other countries. Among them are one citizen each from the UK, Canada and Singapore. The remaining six are Bangladeshi.
Financial sector observers say taking ownership of, or making a fresh investment in, an entity the size of Nagad would be a substantial undertaking. The required investment could exceed BDT 10 billion. Barrister Arman’s declared assets, according to his election affidavit, total BDT 20 million. The apparent gap between his personal wealth and the scale of the proposed investment has driven intense discussion even on social media.
Asked to comment on the broader situation, Barrister Mir Ahmad Bin Quasem Arman reiterated that he is acting as a local coordinator for multinational investment houses. Confirming the authenticity of his February 8 letter to the Bangladesh Bank governor expressing interest in investing in Nagad and requesting a forensic audit, he told Bonik Barta: “We are working as local coordinators for domestic and multinational investment firms. We believe there’s no alternative to foreign investment for the country’s economic recovery.”
He added, “We were contacted by the interim government. We were told that the fallen Awami League government, through its plunder, had destroyed the financial service provider Nagad. If suitable investors could be found, management of Nagad would be handed over to them so that the firm could get back on its feet. Our main goal is to get the wheels of the economy moving again. That’s why we’re trying to identify areas where foreign investment can be attracted. I believe it’s every citizen’s duty to attract foreign investment to keep the economy dynamic.”