Dr. Yunus loses legal battle in Bangladesh Supreme Court

by Mizanur Rahman
April 6, 2011

http://www.weeklyblitz.net/1364/dr-yunus-loses-legal-battle-in-bangladesh-supreme

Bangladesh Supreme Court has upheld the order issued by Bangladesh Bank, dismissing Grameen Bank founder Mohammad Yunus from the post of managing director [Chief Executive Officer] of the bank.

A seven-member full bench of the Appellate Division headed by Chief Justice A.B.M. Khairul Haque turned down Dr. Yunus' appeal against the High Court order.

The High Court had on March 8 upheld the central bank order that said Grameen Bank failed to seek its approval when Dr. Yunus was reappointed as MD in 2000, violating one of the statutes of the partly state-owned Grameen Bank.

Right after this verdict, Voice of America said, "following international pressure, however, the government has been in talks with the Nobel laureate to reach a compromise."

Bangladesh Bank had sacked the 70-year-old founder in March 2011 for violating Bangladesh's retirement laws by staying on past the age of 60.

There has been huge criticism by the United States, and particularly the ruling Democratic Party for sacking internationally renowned individual like Mohammad Yunus. It may be mentioned here that, former President Bill Clinton and Secretary of State, Hillary Clinton are good friends of Mohammad Yunus.

During a visit to Dhaka last month, U.S. Assistant Secretary of State for South and Central Asian Affairs Robert Blake pushed for a dialogue between the government and Yunus to find what he called a "mutually acceptable solution."

A top official of the Awami League Party, Abdul Jalil, is hopeful of a compromise. "They are discussing the matters. I think the solution will be there. It will be solved. There will be an understanding honoring both the sides," he said.

But as of now, the Supreme Court order means that Yunus can no longer return to work, which he continued to do after challenging his firing - first in the High Court and then in the Supreme Court.

Both Yunus and his supporters have called his dismissal politically motivated, saying it was part of the government's plan to wrest control of the Grameen Bank. Analysts say Yunus fell out of favor with the ruling Awami League when he made a short-lived attempt to begin his own political party in 2007 as well for his open support towards military controlled government, which tried in multiples ways in killing democratic institutions in the country.

Dr. Yunus and the Grameen Bank, joint winners of the 2006 Nobel Peace Prize, came under the spotlight after a Norwegian television documentary claimed in December last year that Dr. Yunus diverted nearly $100 million of grant money in 1996 to another company — Grameen Kalyan — which was not involved in micro-credit operations. It was also alleged in Bangladeshi media that, Mohammad Yunus used Grameen Bank's fund for running family business enterprises, where he and his family members are owners. He also has been criticized for having a kind of authoritarian administration inside the Nobel winning bank, thus giving undue benefits and positions to a number of the members of his family, including his younger brothers.

The matter was first reported in Weekly Blitz since 2008, which was followed by the documentary made by an award-winning short film maker in Norway.

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