GRAMEEN DEAL
It's unethical: Muzaffer
It's unethical: Muzaffer
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"It's unethical, I think," Muzaffer said, "It's illegal, too."
"Grameen Bank should usually issue microcredit to the poor," he told bdnews24.com after the relevant report was published on bdnews24.com in the early hours of Tuesday.
"It was unethical to sign such a deal with a family firm," he added.
Muzaffer, also chief of Sujan, a citizens' platform for justice, asked, "Why didn't the Bangladesh Bank and the top officials of the government take steps that time?"
Columnist Faiz Ahmed told bdnews24.com that the deal was 'signed for self-interest'.
He alleged that Nobel laureate Muhammad Yunus never does anything selflessly.
Citing Yunus' activities beside Grameen Bank, he said, "His [Yunus] other activities should also be questioned."
Though there were several opinions against microcredit, Grameen Bank managing director Yunus was recently subjected to widespread debate on siphoning foreign funds of the bank to another organisation.
The criticisms did not end as the latest report on controversy over selecting beneficiaries was published on bdnews24.com.
According to the report, a Chittagong-based packaging company appointed Grameen Bank as its managing agent in a deal, struck 20 years ago, giving the bank a job having nothing to do with its core business.
Yunus signed the deal for Grameen Bank, granting the micro-lending entity all rights—just ownership aside—to run and manage the packaging business.
His father, Muhammad Dula Meah Saodagor, represented Packages Corporation as its managing director, in an apparent case of conflict of interest. He along with his sons owned the company incorporated in 1961 as Pakistan Packages Corporation.
The family owns the company, and Yunus still sits on its board as a shareholder director, according to documents obtained by bdnews24.com.
Signed on June 17, 1990, the contract was initially valid for 15 years. Three of Yunus' brothers—Muhammad Ibrahim, Muhammad Azam and Muhammad Jahangir—signed as witnesses to the contract between the father and the son who would secure a Nobel peace prize 16 years later.
The Grameen Bank managing director has evaded bdnews24.com requests for a face-to-face interview.
Under the 1990 deal, Packages Corporation was allowed to deploy Grameen Bank employees and managers, to be sent on "deputation" from the Yunus-run non-profit, to boost dividends for the family business.
Grameen Bank told bdnews24.com that six managers or executives had gone on "deputation" so far.
The deal also created room for Grameen Bank to invest in Packages Corporation. According to the contract, such investments would be considered as loans given by Grameen Bank to the business.
The Bank said on Monday it did not lend any money to Packages but that Social Venture Capital Fund (SVCF) of the Bank gave the loans.
The SVCF fund channelled to Packages until 1993 amounted to Tk 30 million, the Bank told bdnews24.com.
For the last 17 years, Grameen Fund has been lending Packages Corporation. The Grameen Bank responses to bdnews24.com queries did not include the loan figures after 1993.
The contract further says that any profits generated from any printing work done for Grameen Bank would be diverted to Grameen Trust. Such profits would be calculated in consultation with the Trust.
Grameen Bank said on Monday that no money had been donated in the last 20 years to Grameen Trust.
Related:
EXCLUSIVE
Family affair!
Family affair!
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From left, Wife, father Muhammad Dula Meah Saodagor, Yunus and daughter. Courtesy: Yunus Center
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