Tuesday, February 15, 2011

Bangladesh government calls for Yunus to retire

Several years ago Muhammad Yunus toyed with the idea of entering politics. He began to set up a new political party in Bangladesh. Ever since he attempted that he has been at odds with the Bangladeshi ruling party.

A recent Norwegian documentary alleged improprieties within Yunus' Grammen Bank. He was since cleared of any wrongdoing by the Norwegian government. Despite that clearing Bangladesh started their own investigation.

The government of Bangladesh is now calling for Yunus to retire. From the BBC, writer Anbarasan Ethirajan finds out more about how a seldom used law is being used against Yunus.

Finance Minister Abul Maal Abdul Muhith told the BBC that Professor Yunus has reached the normal retirement age for executives at private banks.

Mr Muhith said that the government began talking to Prof Yunus around a year ago about who would succeed him and redefining the bank's role.
'Give it to others'

The finance minister pointed out that according to Bangladeshi rules, the retirement age for executives at private banks had been set at 65 and that Prof Yunus was five years beyond that.

"He should give it to others to continue because you never continue all the time in any institution," Mr Muhith told the BBC.

But the minister conceded that retirement rules in Bangladesh had not been imposed for many years.

"I suggested to Professor Yunus after instituting the inquiry... that it might be a good thing for him to withdraw himself temporarily during the period of the review," Mr Muhith said.

"Professor Yunus told me that no, if he withdraws now, the whole of Grameen will collapse."

The finance minister's comments came days after supporters of Prof Yunus - including former Irish president Mary Robinson and former World Bank president James Wolfensohn - launched Friends of Grameen to "save the bank from a government takeover".

The bank's borrowers and savers own 75% of the company, while the government has a 25% stake.

1 comment:

mujibul said...

...[The bank's borrowers and savers own 75% of the company, while the government has a 25% stake.]

BUT: Grameen Bank web site (http://www.grameen-info.org/index.php?option=com_content&task=view&id=26&Itemid=175) reports;

Borrowers of Grameen Bank at present own 95 percent of the total equity of the bank. Remaining 5 per cent is owned by the government.

SO...which one is correct?

Md. Mujibul Alam Khan