History Will Be Made Tomorrow in Bangladesh

Posted on by Protect Nobel Laureate Muhammad Yunus

Tomorrow will be an important day in the history of Bangladesh.

Tomorrow we will likely learn whether Bangladesh is governed by the rule of law, or the rule of one—one pursuing a political vendetta.

Tomorrow is the day when Professor Yunus and his colleagues go to court to face ridiculous charges from the Labor Law Tribunal and the Anti-Corruption Commission.

Just in time to put the labor law charges in proper context, the Clooney Foundation for Justice released an important report debunking this case against Professor Yunus.  The report was meticulously researched over many months.

The carefully but also strongly worded press release stated, “Based on its review of the proceedings, there are significant grounds for finding that the case against Professor Yunus constitutes an abuse of process, the report said, and it urges the Labor Appellate Tribunal to overturn the conviction for alleged violations of the country’s labor law.”

It continued, “TrialWatch calls on Bangladesh’s Labor Appellate Tribunal to overturn the conviction of Yunus and his co-defendants.”

Also pay attention to what the Anti-Corruption Commission reports. It has the power to impose a much longer prison sentence on the 83-year-old Nobel Peace Prize laureate and his co-defendants. It may also endorse the Grameen Bank chairman’s contention that independent, nonprofit Grameen companies established by Professor Yunus are somehow subsidiaries of Grameen Bank.

Under Bangladeshi law and the law of many other nations, nonprofits can’t be subsidiaries of any other organization, as they have no owners per se. (The frequent claim by the government and its allies that Professor Yunus “owns” these companies is likewise false.) Nonprofit organizations are organized under the laws of their country of incorporation, and they are governed by a board of directors elected in accordance with their bylaws. The boards of directors of all 8 companies that were recently occupied by people claiming association with Grameen Bank do not seek to be taken over by any other institution.  

It may very well be that Grameen Bank and the Bangladeshi government covet these successful organizations established by Professor Yunus. But in a nation of laws, it does not give them the right to take them over and, most likely, plunder them and run them into the ground. Their independence and ability to pursue their poverty-fighting missions are essential. The extent to which the Bangladeshi courts respect these attributes will go a long way to telling the world the direction in which the country is headed.

Why Grameen Bank Can’t Take Over Other Grameen Companies

Posted on by Protect Nobel Laureate Muhammad Yunus

The case, if it can be called that, for taking over Grameen Kalyan, Grameen Telecom, and six other Grameen companies rests on the mistaken claim that Grameen Bank can nominate the chairmen and managing directors of these organizations. (And even if that were true, to do so by force is contrary to the rule of law.)

But the reality is that Grameen Bank does not have this power. It is important to understand why this is the case. The reasons why it can’t do this were explained concisely in an excellent analysis published earlier this week by United News of Bangladesh. Highlights of the article, which asserts that this takeover represents “an effort to weaponize Dr Yunus’ most prized achievement, Grameen Bank, against him,” appear below:

Nazmul Islam, managing director of Grameen Telecom, revealed that the intruders [who invaded their offices on February 12], claiming [an] association with Grameen Bank, cited a 1995 Act to justify their actions, suggesting Grameen Bank had the authority to change Grameen Kalyan’s leadership.

However, Nazmul Islam clarified that this claim was erroneous, as the relevant rule was amended in 2009 and Grameen Kalyan operates independently…

The legal issues were then more clearly explained in a second press conference held by Barrister Abdullah Al Mamun, legal advisor to Grameen Telecom….

He said according to articles of association drawn up in 1995 and 1996, Grameen Bank had the authority to nominate, not appoint — a key difference — three directors to the board of Grameen Telecom and two to the board of Grameen Kalyan. They could also nominate the chairman.

Using muscle power, Grameen Bank was now apparently forcefully appointing the chairman of the two entities, but this was unlawful, Barrister Mamun said.

“Their nominations have to be accepted in a meeting by the two entities themselves. There is no scope for them to force their choice and seat them as the chair or director,” he said. “Besides, after the changes in 2009, the articles of association were changed and notified to the Joint Stock Registrar of Companies.”

As this conflict plays out, we are going to find out soon whether the rule of law has survived in any noticeable form in today’s Bangladesh.

Coverage and Condemnation of the Illegal Occupation of Eight Grameen Companies Grow

Posted on by Protect Nobel Laureate Muhammad Yunus

Some of us in the Protect Yunus Campaign hoped that in the aftermath of the Prime Minister’s reelection, however disputed and fraudulent it was, she would take the high road and scuttle the meritless cases and investigations of Professor Yunus (and ideally also of the many others she has been persecuting), or perhaps facilitate a presidential pardon. It appears that such optimism was unwarranted.

On February 12, thugs including people claiming to be retired military officers invaded the Telecom Building and have, ever since, been occupying the offices of eight leading Grameen companies that Professor Yunus established and that have been doing breakthrough work in health care for the poor, renewable energy, and other important areas. Six of those organizations have received letters from Grameen Bank asserting that their chairmen and managing directors are being removed and replaced, despite there being no legal basis for such actions. Each day this week, the invaders lock the doors when they leave and don’t allow any of the legitimate employees of the companies back into their offices until they arrive and unlock the doors. When lawyers attempted to notify local police of this illegal invasion and occupation, the police would not take any action or even note down the complaint. Later they “investigated” and, incredibly, found nothing amiss!

There were some initial press reports on the invasion and occupation. When Professor Yunus and other leaders of these companies tried to hold a press conference on Thursday, February 15, they were initially unable to do so because some women were blocking the entrance to the Telecom building. (Later, when asked, the women admitted they had no idea why they were there beyond having been asked by some local political leaders to do their bidding.) The press conference ultimately went forward. It has led to more local and international press coverage, including an AFP article carried in Barrons and The Hindu, and on the BBC World News, where reporters lauded Professor Yunus’ global leadership, discussed the invasion, and referred to the “judicial harassment” Professor Yunus has been facing. More international coverage and condemnation is expected.

The spokesperson for the U.N. Secretary General addressed this at a press conference on February 15 when he said, responding to a question about the illegal occupation of 8 Grameen companies, “I’d have to reiterate that Mr. Yunus has been very much a valued partner of the United Nations through the years.  He’s been an advocate for us both in official and unofficial capacity and supporting a number of initiatives surrounding the Millennium Development Goals, the Sustainable Development Goals, and our development work in general.  We are very concerned about the reports that we have seen coming out of Bangladesh on issues related to him.” 

The U.S. State Department also weighed in. According to one report, “The US Department of State condemned the raids on offices linked to Bangladesh’s Nobel laureate Muhammad Yunus saying they could hinder foreign investment in the South Asian nation. In a statement on Tuesday, spokesman Matthew Miller expressed concern about the unusually fast-paced legal actions against Yunus, including the frequent involvement of the Anti-Corruption Commission in many cases. He warned that harassment of such a prominent figure could ‘damage Bangladesh’s reputation’ and ‘hinder foreign investment.'”

Bangladeshis at home and abroad are expressing shock and disgust about this latest development, with any remaining sympathy for the Prime Minister’s position evaporating precipitously. Fears about the safety and freedom of Grameen leaders including Professor Yunus is growing, and also about the independence of eight organizations that have been working for decades to improve living conditions in Bangladesh and address climate change using innovative means that have been admired and copied around the world.