Grameen Bank clarifies Dr Yunus was not 'illegally' replaced as Grameen Telecom chairman

The Grameen Bank has the authority to appoint the chairman and a number of directors of organisations formed under its financing, said its Media Cell Head Anju Ara Begum following Dr Muhammad Yunus' allegations that the bank seized eight of their institutions.

In a statement published on 15 February, Anju Ara Begum said, "Dr Yunus has made some misleading, untrue, illegal and intentional statements. Therefore, the Grameen Bank considers it very important to publish its statement and explanation before the nation by referring to the correct information on this matter."

Earlier on 15 February, Nobel laureate Dr Yunus claimed Grameen Bank does not have legal authority to take over the building, and run the companies independently.

He alleged that Grameen Bank seized eight institutions and is running them in its own way. Even after seeking redressal from the police, they are not getting any help.

The Grameen Bank statement said according to the 35 (iii) of the Grameen Telecom Article of Association, three members from amongst individuals having record of service in activities of poverty alleviation and income generation will be nominated by Grameen Bank who may or may not be persons in the service of the bank.

"Also, according to the section 51 of the Grameen Telecom Article of Association, there shall be a chairman of the board who shall be nominated by Grameen Bank from amongst persons having a record of service in activities of poverty alleviation and income generation and/or interest in such activities.

"Section 32 (iii) of the Grameen Telecom Article of Association states that two members from amongst individuals having a record of services in activities of poverty alleviation and income generation to be nominated by Grameen Bank who may or may not be persons in the service of the bank.

"Lastly, section 48 of the Grameen Telecom Article of Association says there shall be a chairman of Kallyan who shall be nominated by Grameen Bank from amongst persons having a record of service in activities of poverty alleviation and income generation and/or interest in such activities."

In light of the above-mentioned provisions Dr Yunus was nominated as the chairman of Grameen Telecom in 1995 and Grameen Kalyan in 1996 by Grameen Bank. In continuation of this, in the 155th board meeting of Grameen Bank held on 12 February, chairman and a certain number of directors have been nominated for the mentioned institutions, The Grameen Bank statement said.

However, in the press conference on behalf of Yunus, it was said that in 2009, the Grameen Bank's power to nominate the chairman and a certain number of directors for the board of directors was withdrawn by changing the articles of association of Grameen Telecom and Grameen Kalyan.

"This statement is completely false, fabricated, and misleading," reads the Grameen Bank statement.

Grameen Bank has recently named new directors for Grameen Telecom and Grameen Kalyan, with Prof Dr AKM Saiful Majid taking over as chairman, replacing Yunus.

Grameen Bank has padlocked eight institutions in the Grameen Telecom Bhaban since 12 February, Dr Yunus alleged at a press conference in Dhaka on 15 February.

The institutions are Grameen Telecom, Grameen Kalyan, Grameen Fisheries and Livestock Foundation, Grameen Agriculture Foundation, Grameen Shamogree, Grameen Fund, Grameen Shakti, and Grameen Communication.

In response to a question, Dr Yunus said the institutions were built with business profit, not through Grameen Bank's money.

He said the companies were being run according to the law.

"Out of nowhere, some outsiders came and forcefully occupied the building, and we became the outsiders," reports the UNB quoting the Nobel laureate.