Transparency International Bangladesh (TIB) has expressed serious concerns over the independence and impartiality of newly appointed Bangladesh Bank Governor, Mostaqur Rahman, warning that his background in business and political affiliations could compromise his ability to manage the central bank effectively.

In a statement on Thursday, TIB Executive Director Iftekharuzzaman questioned whether Mostaqur Rahman would be able to ensure inflation control, financial sector stability and good governance free from corporate or political influence.

The concerns stem from his prior experience as a readymade garment and real estate entrepreneur, as well as his record as a borrower and loan defaulter who benefited from loan rescheduling.

“His banking sector experience primarily involved being a borrower, later a loan defaulter and subsequently benefiting from special rescheduling arrangements,” said Iftekharuzzaman.

Mostaqur Rahman FCMA was appointed governor for a four-year term, replacing Ahsan H Mansur, with the appointment confirmed through a gazette notification issued by Financial Institutions Division of finance ministry on February 25.

Currently, he serves as chairman of BGMEA Standing Committee on Bangladesh Bank and is managing director and CEO of Hera Sweaters Limited. He was also a member of BNP’s election steering committee during the 13th national election held earlier this month.

The TIB statement highlighted his links to influential business lobbies in the readymade garment and real estate sectors, as well as business associations including ATAB and Dhaka Chamber of Commerce.

It questioned whether the governor could uphold public expectations of restoring the banking sector, which TIB says was destabilised under the previous regime, without succumbing to the influence of business lobbies and politically connected borrowers.

“If the central bank’s leadership is entrusted to a businessperson with potential conflicts of interest and political ties, it risks serving vested interests rather than safeguarding national economic priorities,” Iftekharuzzaman said.

TIB also noted the broader context, pointing out that nearly 60% of MPs and 62% of cabinet members are businesspersons, with roughly half having outstanding defaulted loans.

The organisation warned that appointing a loan-defaulting entrepreneur to lead the central bank could undermine regulatory oversight and send the wrong message both nationally and internationally.

The statement stressed the importance of an independent and impartial central bank, particularly in the wake of July Uprising of 2024, when citizens demanded stronger governance, transparency, and accountability in financial institutions.

TIB urged the government to consider these concerns carefully to restore public trust, maintain financial stability and attract foreign investment.