On this sad day when Bangladesh’s Anti-Corruption Commission has indicted Professor Yunus and 12 co-defendants, about which we will have more to say in the days ahead, we believe it is important to take a step back and take the long view of what is happening. It turns out that a respected Bangladeshi journalist has done this for us. The following is an English translation of a 16 minute statement made by Golam Mortoza, the editor of The Daily Star Bangla, a leading newspaper in Bangladesh, on his YouTube channel that has more than 82,000 subscribers. He addresses several recent incidents related to the persecution of Dr. Muhammad Yunus by the Bangladeshi government. Among other things, he refutes the charges made by the new chief lawyer for Grameen Bank about Professor Yunus’ role in the evolution of Grameen Bank. You can view the video of the original statement in Bengali here. It was titled, “Is Grameen Bank Becoming a BASIC Bank?” (The reference to BASIC Bank is meant to suggest that Grameen Bank is at risk of falling under a degree of maladministration by the government that it ends of degrading if not failing entirely. (This in fact happened to BASIC Bank in Bangladesh, which you can read about in this article, which includes the following, “The BASIC Bank, a state-run institution which was known as a good performing bank in 2009, is now marked as a severely weak financial institution. It is now waiting to be merged with City Bank, a private sector bank, under a recent regulatory initiative.The BASIC Bank serves as a textbook example of how the appointment of a politician as board chairman can lead to the downfall of a bank within only five years.” )
The initiative to rewrite the history of Grameen Bank is underway. A massive movement is taking place to erase the name of Dr. Muhammad Yunus from Grameen Bank from this history. Why am I saying this? I am saying this because today the Chief Legal Adviser in Grameen Bank, Masud Akhtar, made a statement making these false arguments. What he said recently is that Dr. Yunus was not involved in the establishment of Grameen Bank.
Grameen Bank was in fact founded by Dr. Yunus, but now this reality is being denied. Grameen Bank is saying that the organization began as a project of Krishi Bank, and that Krishi Bank is its originator and that the government funded it. It’s almost as if something called Grameen Bank fell from Mars or from the sky. It is not acknowledged that it took an individual to provide the thinking, planning, and vision to bring Grameen Bank into existence to benefit the nation’s poor people. Professor Yunus was this person, but this is now being denied.
The Chief Legal Adviser of Grameen Bank said all these things today. It makes me laugh because Grameen Bank has a history. How was it created? Grameen Bank was not created while researching microcredit. The initiative taken when the Grameen Bank was created, the initiative taken by Dr. Yunus, and that would evolve to be microfinance, was not the original plan. The legal adviser says that there was a project on microcredit and research was being done on that project. As a result of that research, it was converted from the Grameen Bank Project into a bank in 1983.
The credit is being given to Krishi Bank by the chief legal adviser. I can’t say anything but laugh at the fact that a legal ignoramus can give such a wrong interpretation without knowing the history due to his political bias or any other reason. If we summarize the history of Grameen Bank, if we summarize the history of Dr. Muhammad Yunus, then we need to go back to 1971, when Dr. Muhammad Yunus was in the United States.
Dr. Yunus was one of the most important figures for the liberation war of Bangladesh, and served the cause of liberation from the United States. His role has been documented in history books, such as one by Abdul Mal Muhith. Everyone knows that. This history can never be erased. When he returned to the independent country of Bangladesh, he joined the Rural Planning Commission, but he left that job because of lack of work there. He started teaching at the Chittagong University Economic Department. At that time, he was saddened to see the suffering of the poor people in Jobra village, in the area surrounding Chittagong University, and felt an urge to do something for them. Then he undertook an initiative with the farmers of that region. He helped them with his own money. This history is not known to the present legal advisor of Grameen Bank.
At one stage of this agriculture project which was called the “Three Share Cultivation Scheme,” he also started helping the local rickshaw pullers and other day laborers with money from his own money. And he stipulated that what he gave them should be repaid at the end of the day or after seven days. It needed to be decided who will take the payments. Then a certain shop was identified to receive the payments, a tea shop. The borrowers will work all day with a little money, five takas, ten takas, or 25 and do something with it. After a day or three days they would repay their installment to that shop. It turns out that most people repaid the money to that store. He then took the initiative to provide some financial assistance to women to allow them to work. That too was his own money, initially.
Later on, other banks including Krishi Bank got involved, after the whole plan was presented to them by Dr. Yunus. Some agreed, some disagreed, some called it madness, etc. etc. So, in that process, he struggled a lot. Once he went and got a small loan, which means small money of 50 taka, 100 taka, 200 taka, then he came to Tangail and worked. Many struggles, many histories, many worn soles on his shoes. Gradually it emerged as a successful project, and in 1983 it was converted into a bank by an ordinance during the Ershad government.
Grameen Bank did not fall from the sky. Grameen Bank was not created by the Krishi (Agriculture) Bank, and no other person created it. The government did help, that is true. But the thought and vision all came from one man. That man’s name is Dr. Muhammad Yunus. This man’s Grameen Bank won the Nobel Prize. That man also won the Nobel Prize. There are not many such cases in the history of the world. In the same year, the Nobel Prize was awarded to Grameen Bank and Dr. Yunus as independent entities. This rural banking program is running in many places in rural America, rural Australia, rural Africa and other countries, modeled on Grameen Bank that Dr. Yunus created.
The current chief legal advisor and the current chairman of Grameen Bank have not been involved in the organization for very long. When the women were approached on foot to participate in Grameen bank when it was created, I don’t know where this legal adviser was. I do not know where the current chairman was then. I don’t know if they even know anything about Grameen Bank and its history. But even if they take the initiative to change the history, one has to first know the history and then take the initiative to change it. They seem to lack that basic knowledge.
Let me end by saying one more thing: this history can’t be changed. This history cannot be erased. Truth can never be erased. Bangladesh has proved this many times. Attempts have been made to erase political figures and political parties from history, but they cannot be erased. Earlier attempts were made to wipe out Dr. Yunus’ existence, but it was not possible. They are still trying to delete his history, but it can’t be deleted. Trying to remove the name of Dr. Muhammad Yunus from Grameen Bank is an impossible fiction. It can never be removed. By saying all this, only the people saying these things will be ridiculed.
Here comes various little complaints about Dr. Muhammad Yunus by Grameen Bank. The answers have given by Yunus Centre. In most cases the questions are politically biased and containing various accusations. And on behalf of Dr. Muhammad Yunus, every time specific answers are given by the Yunus Centre. But the specific answer that is given is never challenged. That is, the complaint was made and then the complaint was answered correctly.
Now a new complaint has been made by Grameen Bank, which was created by Dr. Muhammad Yunus. In the 1990s, the Package Corporation Ltd., which is a family firm of Dr. Muhammad Yunus, was given a loan. The Yunus Centre has given an answer to this, correcting the misinformation. That means, Grameen Bank does not have the information of how much money has been given as a loan. Grameen Bank gives loans to the poor, so Dr. Muhammad Yunus cannot give loans to such institutions, according to Grameen Bank. The organization has asked him to answer for this. In view of this, the Yunus Center replied that Grameen Bank did not give a loan to the institution. Loans have been given to Packages Corporation with the money of various donors through a special fund. Grameen Bank did not give the loans.
The lawyer tried to say that the donor agency and Grameen Bank are the same thing. In fact, it’s not the same thing at all. It is possible to understand this without necessarily understanding all the legal aspects. It is a separate institution that has given a loan of Rs. 9 crore* 66 lakhs. Packages Corporation Limited signed an agreement with Grameen Bank for 25 years. For 25 years, Packages Company has done printing and publications for Grameen Bank under a 25-year agreement. And in that agreement, the company will not get any profit from the dividend, and the owners will not get any financial benefit. So Grameen Bank gave work to this institution, which did not get any profit from doing this work, and after 25 years Grameen Bank returned that institution. And why did Grameen Bank give it back? Because they grew a lot and they decided to do their own printing. The family of Dr. Yunus gave this printing press to Grameen Bank without any condition or financial benefit. This explanation has been given by Yunus Center contradicting the Bank’s claims. If Grameen Bank has any explanation, then they can surely say it. But it needs to be said politely.
Now there is a complaint against Dr. Muhammad Yunus from the country’s Grameen Bank. Now we hear about future complaints by foreign banks. They haven’t come yet, but let them come. When we go abroad, we see only respect for Dr. Yunus. The Olympic Committee took Dr. Yunus to the Olympic Committee to present it to them and wrote a huge report about it.
So here it is said that work worth hundreds of crores* of takas has been given to the printing company. The work was given by Grameen Bank at a reasonable cost, as stated by the Yunus Centre, and the owners did not get any profit. So where is the responsibility of Dr. Muhammad Yunus? You may ask why he gave this work to his own organization? Now this Grameen Bank was established by Dr. Muhammad Yunus. And if his family supports the Grameen Bank with a printing press for 25 years, then where is the problem? I don’t know where the problem is. I can’t find it anywhere. But even on his part, it has been said that Grameen Bank’s ownership change and Grameen Bank’s allegations have been made many times before. And they have been answered many times, but the same complaint is repeated and the Yunus Center responds again and again. It turned into a kind of game of hide and seek.
Grameen Bank’s lawyer made many more complaints. But what is very important about the target here is that there can be allegations made by the Chief Legal Counsel on behalf of Grameen Bank, and then the allegations can be refuted. But disrespecting Dr. Muhammad Yunus is contemptuous. It is perhaps necessary for the chief legal counsel to stand before the law and wonder who he is really talking about. What is he saying, and why? There is no problem with the legal advisors usually receiving money from the organization saying all these things and fulfilling their responsibilities. It is legally valid. But even in that there should be politeness, which we see missing here.
Muhammad Yunus, standing in court, talked about his regrets. He spoke of some of his anger, some of his frustration; can’t these words be said? Who said that a citizen of Bangladesh cannot say these words? It is said that Dr. Muhammad Yunus committed injustices, irregularities, and corruption. But so far, Grameen Bank could not prove anything like that. There was an incident about not giving money to the workers on time, but there is no such incident where he stole any money. Yet he was found guilty in court. I am not talking about that, it is at the next stage of the appeal, that will be seen at the next stage.
Let’s conclude by saying that in the current or past few years of Grameen Bank’s management, it seems that Grameen Bank is actually being managed differently. Suddenly Grameen Bank said that out of institutions created by Dr. Yunus, 7-8 institutions including Grameen Telecom belong to Grameen Bank. An initiative was taken to occupy these organizations by sending people to forcibly enter and remain in their offices. If it is legally the right of Grameen Bank to take over these organizations, then it should be done legally. What do you want to prove by sending people to vandalize these institutions? Again, Dr. Yunus protested this by holding a press conference and highlighted the truth. Then again, they fell silent and said nothing more about it. Again the new thing is the complaint to the Anti-Corruption Commission about the Packages Corporation. Dr. Yunus replied and refuted those charges. So let’s wait for the Anti-Corruption Commission to investigate. But in the meantime, Dr. Muhammad Yunus is being attacked. Why call him a liar? Let the investigation be done on this matter first.
Let me conclude by saying that Grameen Bank needs to be subject to an international audit. We need to see whether it is still being managed properly. It needs to be an international audit. It is necessary to have an international audit because Grameen Bank may be turning into a traditional bank. There is ample reason to be suspicious of the outward behavior of those in charge. No doubt I can claim as a citizen of Bangladesh that it requires an international audit. See how it is managed now and compare it to how it was managed before. There is no point in making new allegations every few days. It is just harassing people, and verbally insulting them. When Dr. Yunus’ reply cannot be answered, when his arguments cannot be answered, he is still insulted.
In what Grameen Bank is doing now to Dr. Muhammad Yunus, Grameen Bank is forgetting that they became the Chairman of Grameen Bank and the Legal Advisor of Grameen Bank only because of the institution was first created by Dr. Muhammad Yunus. They are forgetting this.
*A crore is ten million units of something.
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