Serious allegations of power abuse and unethical personal gain have surfaced against Saika Mahzud, the former Independent Director and Chairperson of Navana Pharmaceuticals PLC. It is alleged that she exploited her position for personal benefit, violating the regulations of the Bangladesh Securities and Exchange Commission (BSEC) and committing a severe breach of corporate governance. Investors and industry stakeholders have expressed deep concern over the BSEC's perceived inaction, viewing it as a troubling sign for the capital market. Investigations indicate that Saika Mahzud allegedly concealed vital information since the time of her appointment. According to the BSEC Corporate Governance Code 2018, an Independent Director is strictly prohibited from having any financial or business relationship with the company. However, during her appointment on April 15, 2025, she submitted a formal declaration claiming no direct or indirect business ties with Navana Pharma.

An internal company investigation has exposed a different reality, showing that Saika Mahzud maintained long-term business dealings through her partnership firm, "Swift Link Solution." This firm had been an enlisted vendor for Navana Pharma long before her appointment, rendering her declaration void ab initio under the law. Records indicate that her firm transacted a total of 94,147,931 BDT with Navana Pharmaceuticals. Most alarmingly, 36,208,233 BDT of this total was billed between 2023 and 2026, while she held the influential positions of Chairperson and Independent Director. This blatant violation of BSEC regulations undermines the ethical and legal foundation of her tenure. The investigation further uncovered a conflict of interest involving family ties; Saika Mahzud is reportedly the maternal cousin of Dr. Junaid Shafiq, the former Managing Director of Navana Pharma who has faced criticism over financial scandals. Under the Corporate Governance Code, relatives of directors cannot serve as Independent Directors. It is alleged that with the direct support of Dr. Junaid Shafiq, she secured the Chairperson position to facilitate a family-led syndicate aimed at treating the company as personal property.

While the current Board of Directors has taken action following the discovery of this fraud, the BSEC's response has drawn scrutiny. Investors argue that instead of seeking "new applications," the regulator should have initiated criminal proceedings for the fraudulent affidavits. The current board claims that previous meetings involving the controversial director were detrimental to the company's assets. Consequently, the board has declared Saika Mahzud’s appointment ineffective and her position vacant. Javed Kaiser Ali, a Pre-IPO Shareholder Director, has been appointed as the new Chairman. Formal applications were sent to the BSEC, DSE, and CSE on February 5, 2026, to appoint a new Independent Director with a transparent track record. The current board has submitted evidence—including trade licenses, invoices, and bank statements—to the regulators and filed a writ petition in the High Court to protect shareholder interests.

Navana Pharmaceuticals remains a profitable entity, consistently providing 14% dividends and recently stabilizing its finances by repaying 200 million BDT in bank loans. Market analysts warn that any attempt by the previous leadership to regain control could jeopardize the livelihoods of 5,000 employees. Nurul Haque, Senior Vice President of the Bangladesh Capital Market Investors United Forum, stated that Saika Mahzud’s presence on the board was illegal and that the commission must take strict action. Similar sentiments were echoed by Md. Shakil Rizvi of Shakil Rizvi Stock Ltd. and Minhaj Mannan Emon, Director of DSE, both of whom emphasized that her business dealings and appointment were entirely illegal. BSEC spokesperson Abul Kalam confirmed the matter is under investigation, stating that the enforcement department will take necessary action if non-compliance is proven. He added that the BSEC has maintained a neutral stance and declined further comment while the investigation is ongoing.