GB says he is still in-charge, prepares for legal battle: diplomatic row follows

Yunus served dismissal letter

Staff Reporter

Grameen Bank (GB) founder Nobel Laureate Professor Muhammad Yunus will fight in the court against the government’s move to sack him from the post of managing director (MD) of the bank.

Grammen Bank sources said told The New Nation the lawyer of Dr. Yunus assured him that despite a Bangladesh Bank (BB) order sacking him, he was still secure in his position.

Earlier, on the day, the BB issued an order sacking Dr Yunus on the ground that his continuation in the post of MD violating BB, GB Laws and was without prior approval from the central bank.

A Grameen Bank statement yesterday said that the matter was now a ‘legal issue’ and the bank had compiled with ‘all applicable laws in respect of appointment of the managing director’, and Muhammad Yunus accordingly continuing in his office.

Sources close to the GB said, “Dr Yunus wanted to quit after the investigation initiated against him by the government were over and he either proved guilty or was acquitted of the charge.”  The latest decision of the government to sack Dr Yunus is expected to fuel a massive row in financial as well as diplomatic circles.

Finance Minister Abul Mal Abdul Muhith is likely to meet US ambassador James F. Moriarty today (Thursday) to explain government’s stand in this regard.

Sources said the Bangladesh Bank (BB), the central bank, yesterday afternoon issued a circular, signed by its deputy governor Nazrul Islam on the dismissal of Grameen Bank’s founder and its MD in the line with Bank Law. In the termination letter, the BB explained, “No one is legible to stay as a bank’s managing director after crossing age limit of 60 years, according to Grameen Bank Ordinance-1983 and Bangladesh Bank Company Law.”

“If anyone wants to stay, he should take the approval from BB. But Muhammad Yunus did not take any approval from the central bank though he has already crossed 60 years,” the letter added.

The copy of the dismissal order was immediately sent to the Grameen Bank’s headquarters, sources added.

Concerned circles said the Wednesday’s harsh decision about Yunus was the outcome of the rage of the government’s high-ups as he tried to form a party  during the tenure of the immediate past caretaker government.

Prime Minister Sheikh Hasina personally took the matter seriously considering the micro-credit pioneer Dr Yunus as a ‘political threat’, they added.

The relation between Muhammad Yunus and the government turned sour when the Norwegian state television aired a documentary ‘caught in micro-debt’ in November 30 last year alleged that funds were diverted from the Grameen Bank to the Grameen Kalyan of nearly $100 million.

The Norwegian government and NORAD also stand beside Prof. Yunus saying that there was nothing of fund embezzlement; the Bangladesh government took tough stand against him.

Besides, the Prime Minister’s comment about Yunus steamed the world-wide controversy while she said, “This should be properly investigated as diversion of funds was an attempt to evade taxes.”

A couple of cases were filed in different courts against Dr. Yunus. The BB and Finance Ministry simultaneously launched investigations into the matter.

A high ranking official of BB toldThursday, “The decision to remove Muhammad Yunus from the post of Gramen Bank’s managing director was taken earlier.  But we gave him some time to quit voluntarily.”

“Besides, US ambassador James F. Moriarty also requested Dr Yunus Monday to step down from the bank’s top executive position. But he (Yunus) did not listen to anybody’s request.  So finding no other way as well as to save time, the government has taken the ultimate decision,” said the BB official.

US officials a few days ago reportedly told Prime Minister Sheikh Hasina that there would be no further high-level diplomatic interaction between the United States and Bangladesh until the harassment of Muhammad Yunus was stopped.

The US officials also told the premier that a possible visit to Bangladesh early April by the US secretary of state, Hilary Clinton was contingent on resolution of this high-profile crisis, sources added.

Sources said the Prime Minister who is planning to visit Washington next month (April) to take part in the World Islamic Forum has also been informed that she would not be given a meeting with the US president, Barack Obama, unless Yunus is personally agreed to draw solution to meet the crisis.

Officials of Yunus Centre said Dr Yunus is scheduled to go to the United States early this month where he is likely to meet Hilary Clinton.

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Source: The New Nation - Independent Daily