Allegations against Nobel Laureate Yunus of misappropriation suspicion cleared


Monday, 25 April 2011
Nobel laureate Muhammad Yunus, who became to prominence after designing his micro loan scheme to the poor, has been cleared from suspicion of financial crimes after investigations carried out in Bangladesh. The results were similar to the same carried out earlier by the Norwegian authorities.

Bangladesh Finance Minister Ama Muhith said on Monday and widely reported by various media sources that Mr Yuna has been cleared.

Yunus received the Peace Prize in 2006 for creating the Grameen Bank ("village banks") for micro-loans to poor people.


According to Swedish television’s investigative program "Mission Review" it was reported that Mr Yunus had brought more than Skr608 million donated by Sweden and Norway from the bank into a newly established company, Grameen Kalayan. According it, Mr Yunus had diverted contribution made to support his micro loan business into a new business in Norway and it was also held that Norwegian and Swedish authorities knew about the misappropriation but chose to take no action.

The TV program had accused the Swedish international development authority, Sida, and the similar Norwegian body, NORAD of cover up in the affair in order to protect Yunus.

This led to the dismissal of Mr Yunus, already 70 years old and still very popular from Grameen Bank, despite street protests in support of him. It was later on claimed that a bank manager will formally retire at age 60 thus justifying their decision.

Yunus has been praised worldwide for his small loans sachems to poor women, which made it possible for them to start businesses and chase away poverty.
According to analysts, the Grameen Group's big power in Bangladesh and its commitment to solar panels, mobile phones and other consumer annoyed Prime Minister Hasina Wajed. She has accused Yunus of "sucking the blood out of the poor" with high interest rates.

The rates are lower in the Grameen Bank than other microcredit banks.
By Team

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