Muhammad Yunus - Controversies

Controversies

Since late November 2010, several allegations have been made against Yunus. These allegations started when a documentary, titled “Caught in Micro Debt”, was aired on Norwegian television on 30 November 2010, criticizing microcredit and blaming Grameen Bank on several points . They developed during a time when larger questions were being raised about the benefits of microfinance and its effects on poverty alleviation, particularly in regards to several microfinance institutions (MFIs) in India and Mexico.

The allegations against Yunus turned political in nature when the government of Bangladesh – led by Sheikh Hasina Wajed, who reportedly has viewed Yunus as a political rival since he looked into setting up a political party in 2007 – suddenly turned against him and the concept of microfinance accusing it of “sucking blood from the poor” . In the book, Grameen Social Business Model, Rashidul Bari wrote that the political vendetta in Bangladesh by Sheikh Hasina against Muhammad Yunus could be understood as a modern-day replay of the famous conflict between Pope Urban VIII and Galileo Galilei.

"Pope Urban VIII put 70-year-old Galileo in prison in 1632 for condemning and rejecting Ptolemy's geocentric model, which was adopted by the early Christian Church. In the same spirit, Sheikh Hasina who labeled Yunus as a “blood sucker of poor people”—unleashed her propaganda machine (e.g., AMA Muhith) to remove Yunus from Grameen—and used the High Court and Supreme Court to justify her decision. Why did Pope Urban VIII insult the Father of Astronomy? Because Galileo rejected the accepted Christian Church view, that the earth is the center of the universe, and that all other celestial objects orbit around it.

The Government announced a review into the activities of Grameen Bank on 11 January 2011 ; this review is currently ongoing. In February, several international leaders, such as Mary Robinson, stepped up their defense of Yunus through a number of efforts, including the founding of a formal network of supporters known as “Friends of Grameen” .

On 15 February 2011, the Finance Minister of Bangladesh, Abul Maal Abdul Muhith, declared that Muhammad Yunus should “stay away” from Grameen Bank while it is being investigated.

On 2 March 2011, Muzammel Huq – a former employee of Grameen Bank, whom the government had appointed Grameen Bank chairman in January – announced to the media that Yunus had been fired as Managing Director of the Bank . Jannat-E Quanine, General Manager of the Grameen Bank issued a Grameen Bank Statement clarifiying that Yunus was “continuing in his office” pending review of the legal issues surrounding the controversy .

On 3 March 2011, Muhammad Yunus filed himself a writ at the High Court challenging the legality of the decision from the Bangladeshi Central Bank to remove him as Managing Director of Grameen Bank . The same day, nine elected directors of Grameen Bank filed a second writ petition . The High Court hearing on these petitions, initially planned on 6 March 2011, was postponed. On 8 March 2011, the Bangladeshi Court finally confirmed the dismissal of Yunus as Grameen Bank Managing Director .

Following Hillary Clinton, John Kerry expressed his support to Yunus in a statement released on 5 March 2011 and declared that he was “deeply concerned” by this affair. In Bangladesh, thousands of people protested and formed human chains on 5 March 2011 to support Yunus .