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On 19 November this year, after completing the thorough audit, this industry-leading audit service provider submitted the due diligence report, which confirmed a clean slate for Nagad.
According to the audit report, the allegations, which included allegations of undue influence and other irregularities, were found to be baseless. This significantly boosted Nagad's reputation as a compliant and transparent organization.
Confirming a clean chit for Nagad, Deloitte's Director, Md. Muiz Tasnim Taqui stated, "Nagad consistently upholds proper compliance in its business operations. It has implemented comprehensive policies and procedures to ensure adherence to regulatory requirements and the industry's best practices. This approach reflects Nagad's dedication to transparency, accountability, and ethical business conduct. By prioritizing compliance, the company strengthens its operational framework and fosters trust and confidence among stakeholders, including customers, regulators, and partners."
This development marks a pivotal moment for Nagad, which has rapidly established itself as a leader in the mobile financial services sector. Nagad authorities are now optimistic that the Bangladesh Bank will clear it of all the accusations in its comprehensive investigation.
Niaz Morshed Elite, executive director of the disruptive mobile money carrier, said, "The audit findings reaffirm our commitment to transparency, compliance, and serving the people of Bangladesh. This marks the beginning of an exciting new chapter for our company."
The company has also received approval to launch Nagad Digital Bank PLC, marking another milestone in its mission to promote financial inclusion in Bangladesh.
In discussions with journalists at different times, Bangladesh Bank appointed administrator at Nagad Muhammad Badiuzzaman Dider said Nagad holds a strong financial position.
"Nagad will continue its usual operations as it has been doing for five years or more. We will only see structural changes," he said several times while talking to the journalists.
Launched in 2019 by Tanvir A Mishuk, Nagad has become a powerhouse in the mobile financial services sector, becoming a unicorn within five years. With a customer base exceeding 90 million and a 40% market share, Nagad has consistently challenged competitors through its innovative technologies and customer-focused services. Its success comes with a unique revenue-sharing model, with 51% of its earnings contributed to the government.
Its meteoric rise has come with obstacles. Reports suggest that a rival company, allegedly backed by political influence, orchestrated a campaign to tarnish Nagad's reputation. The campaign reportedly relied on smaller, paid media outlets to circulate false claims, aiming to disrupt Nagad's operations.
Nagad's leadership countered these allegations through legal channels, standing firm throughout the investigation.