Nobel laureate Dr Muhammad Yunus reportedly has sought a review of the court decision that upheld his removal from his position as managing director of Bangladeshi microfinance institution (MFI) Grameen Bank. His lawyer, Sarah Hussain, was quoted as having said, “We have filed a petition before the Appellate Division of the Supreme Court seeking it to review its own verdict in May this year on ‘grounds of errors of law’.” According to Ms Hussain, the apex court judgment was an inconsistent interpretation of the law [1].
Dr Yunus had challenged the central bank’s decision to remove him from his post based on the grounds that the move was politically motivated. However, the courts subsequently maintained that the appointment of Dr Yunus in 1999 as the managing director of Grameen Bank, without central bank approval, was invalid. The courts also backed the central bank’s argument that Dr Yunus, aged 70, is in violation of the mandatory legal retirement age of 60 years for government employees [2] [3]. Dr Yunus left Grameen Bank in May 2011 [4].
By Kristha Abores, Research Associate
About Grameen Bank:
Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in 1976 by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of December 31, 2010, Grameen Bank reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 1.7 billion, return on assets (ROA) of 0.7 percent and return on equity (ROE) of 10.7 percent. As of September 30, 2011, Grameen Bank reported a gross loan portfolio of USD 959 million and 8.34 million active borrowers.
About Bangladesh Bank (BB):
Bangladesh Bank (BB) is the chief regulator of the country’s monetary and financial system. Established in 1972, BB’s mission is to regulate reserves, to manage country’s monetary and credit system and to foster development of the country’s economy. As of December 2010, BB operates nine branches and has a total staff of 5,071. Atiur Rahman was appointed as Bank Governor in 2009 and still serves in that capacity as of 2012.
Sources and Additional Resources:
[1] “Nobel laureate seeks review of dismissal verdict,” http://gulfnews.com/news/world/other-world/nobel-laureate-seeks-review-of-dismissal-verdict-1.958858
[2] MicroCapital.org article, March 25, 2011, “Dr Muhammad Yunus Appeals Bangladesh High Court Decision Upholding His Removal as Managing Director of Microfinance Institution (MFI) Grameen Bank”, https://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-appeals-bangladesh-high-court-decision-upholding-his-removal-as-managing-director-of-microfinance-institution-mfi-grameen-bank/
[3] MicroCapital.org article, March 8, 2011, “Bangladeshi Court Confirms Central Bank Decision to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-court-confirms-central-bank-decision-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/
[4] MicroCapital.org article, May 17, 2011, “MICROCAPITAL BRIEF: Under Pressure Since February, Dr Muhammad Yunus, Founder of Bangladesh Microfinance Institution (MFI) Grameen Bank, Resigns as Managing Director,” https://www.microcapital.org/microcapital-brief-under-pressure-since-february-dr-muhammad-yunus-founder-of-bangladesh-microfinance-institution-mfi-grameen-bank-resigns-as-managing-director/
MicroCapital.org article, May 16, 2011, “MICROCAPITAL BRIEF: Bangladesh Supreme Court Dismisses Attempt by Dr Muhammad Yunus to Remain as Managing Director of Microfinance Institution (MFI) Grameen Bank,” https://www.microcapital.org/microcapital-brief-bangladesh-supreme-court-dismisses-attempt-by-dr-muhammad-yunus-to-remain-as-managing-director-of-microfinance-institution-mfi-grameen-bank-2/
MicroCapital.org article, April 4, 2011, “Dr Muhammad Yunus Says Borrowers’ Control of Microfinance Institution Grameen Bank is Key to Success”, https://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-says-borrowers-control-of-microfinance-institution-grameen-bank-is-key-to-success/
MicroCapital.org article, March 14, 2011, “Crowd of 20,000 Protests Bangladesh Bank Attempts to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank, US Secretary of State Clinton Among Those Offering Support”, https://www.microcapital.org/microcapital-brief-crowd-of-20000-protests-bangladesh-bank-attempts-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank-us-secretary-of-state-clinton-among-those/
MicroCapital.org article, March 2, 2011, “Yunus Continues as Grameen Bank Managing Director after Bangladesh Bank Asks Him to Step Down”, https://www.microcapital.org/microcapital-brief-yunus-continues-as-grameen-bank-managing-director-after-bangladesh-bank-asks-him-to-step-down/
MicroCapital.org article, February 15, 2011, “Bangladeshi Government Asks Yunus to Step Down as Director of Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-asks-yunus-to-step-down-as-director-of-grameen-bank/
MicroCapital Universe Profile: Grameen Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank
MicroCapital Universe Profile: Bangladesh Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangladesh+Bank+%28BB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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