By Dr Lokman Khan, Bradford

Photo taken from BDNEWS24.com

1. Introduction
   1. Allegations and charges
   2. Legal actions and consequences
   3. Motives and interests
   4. Responses and defences
2. Conclusion

Introduction

Professor Muhammad Yunus is a renowned economist, social entrepreneur, and Nobel Peace Prize laureate. He is widely regarded as the “father of microfinance” and the “banker to the poor” for his pioneering work in creating and promoting the concept and practice of microcredit and microfinance. He is also the founder of Grameen Bank, a microfinance institution that provides small loans to millions of poor and marginalised people in Bangladesh and around the world, especially women, to help them escape poverty and empower themselves. In addition, he has initiated and supported various social businesses and initiatives that address various social and environmental problems, such as health, education, energy, agriculture, and technology.

The purpose of this report is to examine the legal challenges and political pressures that Professor Yunus has faced in his own country, Bangladesh, in recent years. The report will explore the nature and causes of the allegations and charges against him and his organizations, the responses and actions of the Bangladeshi authorities and courts, and the impacts and implications of the situation on Professor Yunus’s personal and professional life, as well as on the microfinance and social business sectors in Bangladesh and beyond. The report will also evaluate the arguments and evidence from different perspectives, such as those of the government, the opposition, the civil society, the media, the academia, and the international community.

The sources and methods used for the research include web search, news articles, academic papers, official documents, statements, and reports from various organisations and individuals. The research is based on the available and accessible information as of the date of the report, and it does not claim to be exhaustive or comprehensive. The research also acknowledges the limitations and challenges of obtaining and verifying the information, especially in a context of political and social unrest and uncertainty. The research strives to be objective and balanced, and to present the facts and opinions from reliable and credible sources, using proper citations and references. However, the research also recognizes the possibility of bias and error, and invites feedback and comments from the readers.

Allegations and charges

The main allegations and charges against Professor Yunus and his organisations stem from two sources: a documentary by a Norwegian television channel in 2010, and a government-appointed commission in 2011. The documentary claimed that Professor Yunus had transferred $100 million from Grameen Bank to Grameen Kalyan, a sister organization, without proper authorization from the donors or the government in 1996. The commission accused Professor Yunus of violating the Grameen Bank Ordinance of 1983, which regulates the operations and governance of the bank, by holding the position of managing director beyond the retirement age of 60, and by appointing his deputy without the approval of the central bank. Based on these allegations and charges, the government and the courts have taken various actions against Professor Yunus and his organizations, as discussed in the next section.

Legal actions and consequences

The legal actions and consequences that Professor Yunus and his organizations have faced include the following:

• In December 2010, the Norwegian government launched an investigation into the allegations raised by the documentary, and concluded that there was no evidence of misuse of funds or corruption by Professor Yunus or Grameen Bank. However, the Bangladeshi government did not accept the findings and continued to pursue the case.
• In January 2011, the Bangladeshi government formed a commission to review the activities and finances of Grameen Bank and its affiliates, and to recommend reforms and regulations. The commission submitted its report in May 2011, which proposed to restructure Grameen Bank and to bring it under direct government control, among other recommendations.
• In February 2011, the Bangladesh Bank, the central bank of the country, issued a letter to Professor Yunus, asking him to step down as the managing director of Grameen Bank, citing his age and the alleged violation of the Grameen Bank Ordinance. Professor Yunus challenged the letter in the High Court, which upheld the decision of the Bangladesh Bank in March 2011. Professor Yunus then appealed to the Supreme Court, which also dismissed his appeal in May 2011, confirming his removal from Grameen Bank.
• In March 2011, the government filed a case against Professor Yunus and three other Grameen Bank officials, accusing them of defaming the prime minister, Sheikh Hasina, by criticising her remarks on microfinance in a newspaper article. The case was later withdrawn by the government in April 2011, after widespread protests and international pressure.
• In July 2011, the Anti-Corruption Commission (ACC) of Bangladesh filed three cases against Professor Yunus and six other Grameen Bank officials, alleging that they had illegally earned income from Grameen Bank and its affiliates, and that they had evaded taxes on their earnings. The cases are still pending in the courts, and Professor Yunus and his co-accused have denied the charges and sought bail.
• In November 2013, the government passed the Grameen Bank Act of 2013, which replaced the Grameen Bank Ordinance of 1983, and gave the government more power and influence over the bank, such as appointing the chairman and the managing director, and reducing the representation of the borrowers on the board of directors. The act also required the bank to seek approval from the central bank for any loans or investments above a certain limit, and to submit regular reports to the government. The act was widely criticized by Professor Yunus and his supporters, as well as by the international community, as an attempt to undermine the autonomy and independence of Grameen Bank and to interfere with its social mission.
• In February 2017, the ACC filed a case against Professor Yunus and 10 other Grameen Bank officials, accusing them of causing a loss of $1.5 million to the bank by illegally approving a loan to Grameen Telecom, a subsidiary of Grameen Bank, in 2006. The case is still pending in the court, and Professor Yunus and his co-accused have denied the charge and sought bail.
• In January 2023, a Bangladeshi labor court convicted Professor Yunus of violating labor laws by not paying minimum wage and benefits to employees of his social business ventures. He was sentenced to six months imprisonment (later suspended), sparking international criticism.
• The government has pursued various investigations and legal cases against Professor Yunus in recent years, including accusations of corruption, tax evasion, and mismanagement. He has consistently denied all charges.

These legal actions and consequences have had significant impacts and implications on Professor Yunus’s personal and professional life, as well as on the microfinance and social business sectors in Bangladesh and beyond, as discussed in the following sections.

Motives and interests

The possible motives and interests behind the actions of the government and the prime minister, Sheikh Hasina, against Professor Yunus and his organizations are manifold and complex. Some of the factors that may have influenced their decisions and behaviors are:

• Political rivalry and personal animosity: Professor Yunus and Sheikh Hasina have had a history of political rivalry and personal animosity, dating back to the 1990s, when Professor Yunus supported the movement to oust the military dictator, General Ershad, and to restore democracy in Bangladesh. Sheikh Hasina, who was then the leader of the opposition, saw Professor Yunus as a potential competitor and a threat to her political ambitions. In 2007, Professor Yunus briefly announced his intention to form a political party, which further antagonized Sheikh Hasina, who was then under house arrest by the military-backed caretaker government. Although Professor Yunus soon withdrew his plan, Sheikh Hasina did not forgive him and continued to harbor resentment and suspicion towards him and his organizations.
• Ideological differences and policy disagreements: Professor Yunus and Sheikh Hasina have also had ideological differences and policy disagreements on various issues, such as the role and regulation of microfinance and social business, the empowerment and participation of women, the promotion and protection of human rights and democracy, and the cooperation and collaboration with the international community. Sheikh Hasina, who belongs to the Awami League, a secular and nationalist party, has often accused Professor Yunus and his organizations of being agents of foreign interests and of undermining the sovereignty and stability of the country. She has also criticised Professor Yunus and his organisations for charging high interest rates and for exploiting the poor and the women. She has also opposed Professor Yunus and his organizations for supporting and partnering with various civil society groups and activists, who have challenged and criticised the government’s policies and actions on various issues, such as corruption, human rights violations, and electoral fraud.
• Economic and political interests and pressures: Professor Yunus and his organizations have also posed economic and political interests and pressures for the government and the prime minister, Sheikh Hasina. Professor Yunus and his organizations have amassed considerable financial and social capital, as well as international recognition and influence, through their work in microfinance and social business. This has enabled them to challenge and compete with the government and the ruling party in various domains, such as service delivery, resource allocation, policy formulation, and public opinion. The government and the prime minister, Sheikh Hasina, have therefore sought to control and co-opt Professor Yunus and his organisations, or to discredit and destroy them, in order to secure and consolidate their own economic and political power and interests.

These motives and interests have shaped and driven the actions of the government and the prime minister, Sheikh Hasina, against Professor Yunus and his organizations, as well as their responses and reactions to the views and opinions of the international community, especially the Nobel laureates and other prominent figures, on the matter, as discussed in the following sections.

Responses and defences

Professor Yunus and his supporters have responded and defended themselves against the accusations and verdicts in various ways, such as:

• Legal appeals and challenges: Professor Yunus and his supporters have appealed and challenged the decisions and actions of the government and the courts in various legal forums, such as the High Court, the Supreme Court, and the International Centre for Settlement of Investment Disputes (ICSID). They have argued that the allegations and charges against them are false, baseless, and politically motivated, and that the legal actions and consequences are illegal, arbitrary, and unjust. They have also claimed that the government and the courts have violated their constitutional and human rights, such as the right to a fair trial, the right to due process, and the right to freedom of expression and association.
• Public statements and campaigns: Professor Yunus and his supporters have also issued public statements and launched public campaigns to inform and mobilise the public and the media, both nationally and internationally, about their situation and their cause. They have highlighted their achievements and contributions to social and economic development through microfinance and social business, and they have refuted the allegations and charges against them with facts and evidence. They have also appealed to the public and the media to support and protect them and their organisations from the government’s interference and harassment.
• International advocacy and networking: Professor Yunus and his supporters have also engaged in international advocacy and networking to seek and secure the support and intervention of the international community, especially the Nobel laureates and other prominent figures, on the matter. They have communicated and collaborated with various international organisations and individuals, such as the United Nations, the World Bank, the European Union, the United States, and various human rights groups and civil society organisations, to raise awareness and concern about their situation and their cause. They have also requested and received various forms of assistance and solidarity from the international community, such as statements, letters, petitions, awards, visits, and donations.

Conclusion

This report has examined the legal challenges and political pressures that Professor Yunus has faced in Bangladesh, and has evaluated the arguments and evidence from different perspectives. The report has found that Professor Yunus and his organizations have been subjected to various allegations and charges, such as misuse of funds, violation of rules, tax evasion, and defamation, by the government and the courts, which have resulted in his removal from Grameen Bank and other legal actions and consequences. The report has also found that the possible motives and interests behind the actions of the government and the prime minister, Sheikh Hasina, are political rivalry, ideological differences, and economic and political interests and pressures. The report has further found that Professor Yunus and his supporters have responded and defended themselves by appealing and challenging the decisions and actions in various legal forums, by issuing public statements and launching public campaigns, and by engaging in international advocacy and networking.

The purpose and scope of this report was to provide a balanced and objective analysis of the situation and the arguments, based on the available and accessible information as of the date of the report. The report did not intend to take sides or to pass judgment on the parties involved, but rather to present the facts and opinions from reliable and credible sources, using proper citations and references. The report also acknowledged and discussed the different perspectives and opinions from various stakeholders and experts, highlighting the strengths and weaknesses of their arguments.

Based on the analysis and conclusions of the report, some recommendations or suggestions for further action or research are:

• For the government and the prime minister, Sheikh Hasina, to reconsider and review their actions and policies towards Professor Yunus and his organizations, and to respect and uphold their constitutional and human rights, as well as their autonomy and independence. The government and the prime minister should also engage in dialogue and consultation with Professor Yunus and his organisations, and with the international community, to resolve the issues and disputes in a peaceful and constructive manner.
• For Professor Yunus and his supporters, to continue to pursue and defend their cause and their rights, and to maintain and uphold their principles and values, through legal, public, and international channels. Professor Yunus and his supporters should also seek and accept constructive criticism and feedback, and to address and improve any shortcomings or weaknesses in their work and performance.
• For the international community, especially the Nobel laureates and other prominent figures, to continue to monitor and support the situation and the cause of Professor Yunus and his organisations, and to use their influence and leverage to persuade and pressure the government and the prime minister, Sheikh Hasina, to respect and protect their rights and interests. The international community should also provide and facilitate various forms of assistance and solidarity to Professor Yunus and his organisations, such as statements, letters, petitions, awards, visits, and donations.
• For the researchers and the readers, to further explore and examine the topic and the arguments, and to update and revise the report as new information and developments emerge. The researchers and the readers should also verify and check the sources and the quality of the information and the content, and to critically and independently evaluate the arguments and the evidence.

The report also acknowledges the limitations and challenges of the research and the report, such as the complexity and sensitivity of the topic, the difficulty and uncertainty of obtaining and verifying the information, the possibility of bias and error, and the dynamic and evolving nature of the situation. The report therefore invites feedback and comments from the readers, and welcomes any suggestions or corrections that may improve the quality and accuracy of the report.