Two-pronged challenge to BB governor removal, new appointment

A two-pronged challenge to the Bangladesh Bank governor's removal and a new appointment came Thursday through a write petition and from an anti-corruption watchdog.               

The appointment of Bangladesh Bank's new governor comes under judicial scrutiny as a writ petition filed with the High Court challenges both the legality of the decision and the removal of his predecessor.

The petition alleges that the government acted in violation of statutory protections governing the central bank's independence and raises concerns over the newly appointed governor's alleged links to a controversial business conglomerate.

The petition alleges that the appointment of Md Mostaqur Rahman as Governor of Bangladesh Bank was made in breach of relevant legal provisions and questions the process through which his predecessor Dr Ahsan H Mansur was removed from the post of governor. Supreme Court lawyer Abdullah Al Mamun filed the petition Thursday as public-interest litigation.

The petition has sought court rule requiring the respondents to explain why the removal of Dr Ahsan H Mansur from the office of Governor, allegedly in violation of Article 15 of the Bangladesh Bank Order 1972, and through what the petitioner describes as a "colourable exercise of power", should not be declared unlawful.

The petitioner further requests that the court seek an explanation as to why the appointment of Md Mostaqur Rahman as Governor on February 25, 2026 "should not be declared illegal and without lawful authority".

Pending disposal of the rule, the petitioner has sought a stay on the operation of the official notifications concerning both the removal of Dr Mansur and the appointment of Md Mostaqur Rahman.

M Sarwar Hossain, counsel for the petitioner, argued that the office of Governor is a statutory position protected by a fixed tenure.

"This framework was deliberately designed by the legislature to safeguard the central bank's independence from executive interference and shield it from political pressures," the pleader pleaded.

He alleged that the government removed Dr Mansur in abuse of its authority and in violation of Section 15(1) of the Bangladesh Bank Order 1972.

Article 15(1) of the Order provides that the government may remove the Governor or a Deputy Governor if he becomes permanently incapable of performing his duties, is subject to any of the disqualifications specified in clause (9) of Article 10, has committed a breach of trust, or if his continuance in office is regarded as manifestly opposed to interests of the bank.

Mr Hossain contended that the government did not state that Dr Mansur had been removed on grounds of incapacity. "If the removal was carried out without satisfying the statutory conditions," he argued, "it would amount to a clear violation of the Bangladesh Bank Order 1972."

The petition also refers to media reports alleging that the newly appointed Governor has links with S Alam Group, a conglomerate accused in various reports of siphoning substantial sums of money abroad without due process of law.

In double whammy over the issue, Transparency International Bangladesh (TIB) called for cancellation of the appointment of the newly appointed governor as the watchdog thinks the move is necessary to ensure the central bank's independence, neutrality and freedom from "conflicts of interest".

The Bangladesh chapter of the global anti-corruption watchdog also urges the government to formulate a unified strategy and roadmap to implement its commitments to good governance and corruption prevention.

The demands were made at a press conference, titled 'Implementation of Anti-Corruption and Good Governance Commitments of the BNP-led Government: Strategic Priorities Recommended by TIB', held Thursday at its office in Dhaka's Dhanmondi.

Executive Director of TIB Dr Iftekharuzzaman said a person with proven competence and relevant experience should be appointed governor of the central bank and must be capable of carrying out the responsibilities of the position without any conflict of interest.

"There have been media reports raising questions about the suitability of the person appointed as governor. To ensure Bangladesh Bank can function independently and neutrally, free from conflicts of interest, the appointment should be cancelled and a suitable candidate selected," he said.

On February 25, the Financial Institutions Division under the Ministry of Finance issued a gazette appointing Md Mostaqur Rahman as governor of Bangladesh Bank for a four-year term, replacing Ahsan H Mansur who was appointed after the regime change in 2024 uprising.

Mostaqur, a garment exporter and a cost and management accountant, also chairs the Bangladesh Garment Manufacturers and Exporters Association's standing committee on Bangladesh Bank.

At the press conference, TIB also emphasised the need for immediate action to implement the government's anti-corruption pledges. According to the organisation, a consolidated strategy and roadmap should be developed based on the BNP's 31-point State Reform Outline, electoral manifesto and the July Charter.

Dr Iftekharuzzaman suggests that good governance and anti-graft measures must be incorporated into the core of all government work plans.

"To fulfill the promise of building a well-governed and corruption-free Bangladesh, a comprehensive strategy must be formulated without delay. At the same time, potential risks and challenges must be identified and addressed through appropriate strategies."

He also stressed implementing the recommendations of the Anti-Corruption Commission (ACC) Reform Commission and removing gaps in the Anti-Corruption Commission Amendment Ordinance 2025 to ensure the commission's genuine independence and accountability.

The TIB executive director warns that alongside government's opportunities to implement its commitments, it must address the growing culture of entitlement among certain groups.

"There is a visible 'now it is our turn' culture among some political activists, sections of the bureaucracy and parts of the business community. The government must adopt a well-considered strategy to ensure that such forces do not become progressively uncontrollable," he said.

TIB also calls for the formulation of a code of conduct for elected representatives at all levels in line with international best practices.

The organisation recommends that all elected officials disclose their own and their family members' income, expenditure and asset statements within three months of assuming office and update them annually, with the information made publicly available on official websites. According to TIB, the same requirement should also apply to all public servants whose salaries and allowances are paid by the state.

Among its recommendations on corruption prevention, TIB has proposed granting the Leader of the Opposition the authority to nominate opposition representatives to the selection committee for the ACC chairman and commissioners, forming a review committee to ensure accountability of the commission, establishing an independent integrity unit within the ACC, and introducing end-to-end automation of complaint management and case processes.

The organisation also recommends bringing bribery and corruption in the private sector under the law as a separate offence, strengthening the capacity of institutions such as the Bangladesh Financial Intelligence Unit, the National Board of Revenue and Bangladesh Bank to tackle money laundering, and enacting a law on beneficial-ownership transparency.

In addition, TIB has called for a roadmap to develop and implement a business-integrity strategy in the private sector to prevent corruption, policy capture and collusion by vested groups.

It also recommends measures to ensure judicial independence, reform intelligence agencies, repeal the Police Commission Ordinance and enact a new law based on stakeholder consultation, and take visible steps to address attacks on minorities and marginalised communities.

TIB further urges the government to amend the Cyber Protection Ordinance and the Personal Data Protection Ordinance in line with international standards to better safeguard citizens' fundamental rights and privacy.

Other recommendations include abolishing the Financial Institutions Division under the Ministry of Finance to end the dual-governance structure in the banking sector, establishing a diversity commission to safeguard the rights of ethnic, religious and linguistic communities, and preparing a roadmap for implementing the Chittagong Hill Tracts Peace Accord.

The organisation also calls for an end to the practice of whitening black money, merit-based appointments in public institutions, preventing government employees from engaging in political activities, and dismantling party-affiliated professional organisations.

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