Yunus 'siphoned Tk 7bn aid for poor'
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Capt.Popeye
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Nobel prize was given to yunus just to shut him up? You and your conspiracy theories.....get a life bro.
This canard is a hard 'story' to swallow. Yunus is not a role model for Bangladesh alone but for Asia. There are many successful micro-finance systems in India which are based on his model.
Of course Munshi babu with his "inteliigence connections" has both the method and wherewithal to conclusively prove that Yunus may be a crook and charlatan.
BanglaBhoot
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In the south-eastern Indian state of Andhra Pradesh micro-loans have been blamed for a series of suicides among struggling farmers.
It is estimated some 250 organisations in the state have handed out loans totalling more than £1.65bn (£883m), only a small proportion of which have been paid back.
BBC News - Bangladesh Grameen founder Yunus in aid probe
Not a conspiracy theory you moron.
BanglaBhoot
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Nobel prize was given to yunus just to shut him up? You and your conspiracy theories.....
Blinded by Yunus's stardom while he exploits the poor.
desioptimist
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Younus actually criticized some microcredit institutions from India.(mentioned above by munsi)
Microfinance pioneer Prof Yunus raises concerns over SKS IPO | Microfinance News
Microfinance pioneer Prof Yunus raises concerns over SKS IPO | Microfinance News
integra
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Norway examining 'aid anomalies' by Grameen
Norway says it is examining allegations that Grameen Bank has diverted millions of dollars of aid money to one of its sister concerns, reports BBC online.
International Development Minister Erik Solheim said that it was "totally unacceptable that aid is used for other purposes than intended".
A documentary maker has alleged that cash was diverted from Grameen Bank to other parts of Grameen.
In a statement, the Bank said that the allegations were false. It said that a full explanation with more details would be provided at the "earliest convenient time".
Our staff correspondent adds: The documentary has alleged that Grameen Bank (GB) had transferred about $100 million it received from donors to Grameen Kalyan in 1996 and then got back the money as loan in breach of agreement. This led to a spat between the Norwegian government and Grameen Bank.
But Dr Muhammad Yunus, founder of the Bank, has defended himself saying this had been done to ensure maximum transparency and responsible use of the Bank's revolving fund.
The documentary, titled "Fanget i Mikrogjeld" or "Caught in Micro debt", was aired on Tuesday on the National Norwegian Television, NRK. The whole episode took place about one and a half decades ago. And then it was presumably ironed out, as the documentary showed a compromise had been reached concerning transfer of the funds Norway granted to Grameen Bank. Under the agreed compromise, 170 million Norwegian kroners was transferred back to GB.
Contacted, Grameen Bank said the allegations of fund misuse are false. It will release a detailed statement on the affairs soon. The Bank is already working on the issue, but since it was a matter happening about 14 years ago, it is taking some time to get all the facts together.
The documentary claimed the Norwegian embassy in Dhaka at a meeting with the Bank at its office on December 3, 1997 came to know about the May 7, 1997 agreement between Grameen Bank and Grameen Kalyan, which became effective on December 31, 1996 for transfer of funds of Tk 3.914 billion.
In a letter to Yunus on December 15, 1997, the embassy said: "In line with the agreement, Grameen Bank transferred all funds accumulated up to December 31, 1996 received from donors for revolving funds, to Grameen Kalyan, which at the same date transferred the amount to Grameen Bank as a loan.
Tk 1.927 billion of the amount was related to the revolving fund for housing loans.
Grameen Kalyan is in fact a spin-off created in 1996 by Grameen Bank, which set up an internal fund called Social Advancement Fund (SAF) by imputing interest on all the grant money it received from various donors. SAF has been converted into a separate company to carry out social advance activities such as education, health and technology among Grameen borrowers. It has 30 health clinics across the country. Most of these clinics are attached to Grameen Bank branches.
The letter, signed by Ambassador Hans Fredrik Lehne, said: "The agreement concerning these transactions has not made provisions for any interest rates to be charged for this part of the loan, nor any terms of repayment."
The agreement was signed between the governments of Norway and Bangladesh on November 30, 1994 to support Grameen Bank's Phase IV project.
Annex 1, clause 4 of the agreement said: "The amount of the Grant used for housing loans will be used as a revolving fund."
The Norwegian embassy was concerned that it had not been informed about the agreement between the two organisations. It said "the agreement was contrary to the quoted clause of the agreement between the governments."
It also observed that the accounts of Grameen Bank as of December 31, 1996 did not reflect any revolving fund for housing loan in operation under the Bank.
The embassy said "the ownership of Grameen Kalyan is of another nature, and Norway has not entered into an agreement with Bangladesh to provide funds to Grameen Kalyan for lending to Grameen Bank".
"The agreement has further left uncertainty about future repayment of the loan to Grameen Kalyan, since it is not regulated by the agreement.
"The agreement is also silent about Grameen Bank's use of the loan from Grameen Kalyan."
The embassy in that consequence considered the agreement between Grameen Bank and Grameen Kalyan "as a change which affects two agreements between the two governments to support Grameen Bank.
It also requested Yunus to explain in writing why Grameen Bank entered into the agreement with Grameen Kalyan, and of the consequences for the owners of Grameen Bank and the beneficiaries of the housing loans.
In a letter to the head of Norad in 1998, Yunus wrote: Some misunderstanding has crept up between us and Norad/Dhaka. Norwegian embassy/ Dhaka has written a letter to the government of Bangladesh making an allegation that Grameen is transferring donor money (including that of Norad) to various enterprises outside of Grameen Bank. This allegation will create a lot of misunderstanding within the government of Bangladesh.
Interestingly, the news about this spat between Norway and Grameen Bank was publicised as if Nobel Peace Prize winner Yunus had himself pocketed the donor money, which is totally removed from the fact. The fact remains that he never had gained from this transfer. The money was transferred just as a matter of organisational accounting to another sister company to carry out the same task--fighting poverty. Grameen Bank's response as written by Yunus to the allegations was also not carried by newspapers.
In his reply to the Norwegian ambassador , Yunus said the agreement between Grameen Bank and Grameen Kalyan was made so that Grameen's financial resources and assets could be managed more professionally and effectively to get the maximum benefits for Grameen's customers.
Grameen Kalyan was established as a separate legal entity to accelerate the pace of social and economic development of Grameen's targeted clientele and also to ensure continued access to loans and other financial services they have been getting from Grameen Bank, he explained.
Yunus said the agreement to transfer funds from the Bank to Kalyan was to ensure maximum transparency and responsible use of the revolving fund.
He argued that in earlier system, the money would have been owned by the Grameen Bank which would use it on a revolving basis. Under the changed situation, he argued, the money will be used for the same purpose but GB will now receive it as a loan from separate legal entity.
The idea of revolving fund was to ensure its continuous reuse for the same purpose and to harness maximum benefit in terms of servicing more clients, Muhammad Yunus said, adding: But since in the earlier approach the fund was available within the same management structure, in spite of the policy compulsion to revolve it, there remained the possibility that the required financial discipline to recover the money and exercise appropriate caution to effectively monitor the loan operation, may not be enforced.
This led them to find an alternative method though GK to implement the intention and the spirit of the revolving fund concept. The revolving fund has got an institutional structure so that it can never be absorbed by multifarious other demands of the Bank, he said, adding further that the GK can be viewed as a company set up exclusively to manage the revolving fund.
We believe that the new arrangement does not in any way violate any of the clauses of the agreement between Norway and GOB, rather it strengthens professionally the financial operation of GB for eradication of poverty, Dr Yunus said.
He further said that the GB board of directors took the decision within the scope of the agreement with the donors. It in no way threatened to interfere with the successful utilisation of the grant [and] that is why we did not think of informing the donors.
On charging interest for the housing portion of the loan given to GB, Dr Yunus said, the GK management consciously decided to avoid charging the interest to keep the interest burden low on the ultimate borrowers. Adding interest on this loan would have made the fund costly for the GB to transfer it to the borrowers at the existing rate of eight percent.
He, however, added: the issue of adding interest can be reviewed if deemed appropriate by the lending and borrowing organisation.
Prof Yunus said the decision to transfer the money, instead of adversely affecting the owners, has enhanced their interests by ensuring more efficient and prudent fund management and accountability on the part of GB.
This process of mutual obligation and accountability on the part of two organisations has enhanced the immunity of the fund from being eroded due to lack of accountability if handed by a single organisation as was done prior to its transfer to Grameen Kalyan.
The grant money received from different donors reckoned has increased the liquidity of the loanable funds for Grameen Bank, he added.
Dr Yunus also wrote the ambassador that establishment of GK with endowment fund from GB has broadened the scope for them to address the issue of eradication of poverty and hunger by undertaking different projects and activities.
The profits and income earned by Kalyan, he said, offer the scope for such initiatives to be undertaken for the poor, he said, adding that it was the initial purpose of creating the Social Advancement Fund.
Norway says it is examining allegations that Grameen Bank has diverted millions of dollars of aid money to one of its sister concerns, reports BBC online.
International Development Minister Erik Solheim said that it was "totally unacceptable that aid is used for other purposes than intended".
A documentary maker has alleged that cash was diverted from Grameen Bank to other parts of Grameen.
In a statement, the Bank said that the allegations were false. It said that a full explanation with more details would be provided at the "earliest convenient time".
Our staff correspondent adds: The documentary has alleged that Grameen Bank (GB) had transferred about $100 million it received from donors to Grameen Kalyan in 1996 and then got back the money as loan in breach of agreement. This led to a spat between the Norwegian government and Grameen Bank.
But Dr Muhammad Yunus, founder of the Bank, has defended himself saying this had been done to ensure maximum transparency and responsible use of the Bank's revolving fund.
The documentary, titled "Fanget i Mikrogjeld" or "Caught in Micro debt", was aired on Tuesday on the National Norwegian Television, NRK. The whole episode took place about one and a half decades ago. And then it was presumably ironed out, as the documentary showed a compromise had been reached concerning transfer of the funds Norway granted to Grameen Bank. Under the agreed compromise, 170 million Norwegian kroners was transferred back to GB.
Contacted, Grameen Bank said the allegations of fund misuse are false. It will release a detailed statement on the affairs soon. The Bank is already working on the issue, but since it was a matter happening about 14 years ago, it is taking some time to get all the facts together.
The documentary claimed the Norwegian embassy in Dhaka at a meeting with the Bank at its office on December 3, 1997 came to know about the May 7, 1997 agreement between Grameen Bank and Grameen Kalyan, which became effective on December 31, 1996 for transfer of funds of Tk 3.914 billion.
In a letter to Yunus on December 15, 1997, the embassy said: "In line with the agreement, Grameen Bank transferred all funds accumulated up to December 31, 1996 received from donors for revolving funds, to Grameen Kalyan, which at the same date transferred the amount to Grameen Bank as a loan.
Tk 1.927 billion of the amount was related to the revolving fund for housing loans.
Grameen Kalyan is in fact a spin-off created in 1996 by Grameen Bank, which set up an internal fund called Social Advancement Fund (SAF) by imputing interest on all the grant money it received from various donors. SAF has been converted into a separate company to carry out social advance activities such as education, health and technology among Grameen borrowers. It has 30 health clinics across the country. Most of these clinics are attached to Grameen Bank branches.
The letter, signed by Ambassador Hans Fredrik Lehne, said: "The agreement concerning these transactions has not made provisions for any interest rates to be charged for this part of the loan, nor any terms of repayment."
The agreement was signed between the governments of Norway and Bangladesh on November 30, 1994 to support Grameen Bank's Phase IV project.
Annex 1, clause 4 of the agreement said: "The amount of the Grant used for housing loans will be used as a revolving fund."
The Norwegian embassy was concerned that it had not been informed about the agreement between the two organisations. It said "the agreement was contrary to the quoted clause of the agreement between the governments."
It also observed that the accounts of Grameen Bank as of December 31, 1996 did not reflect any revolving fund for housing loan in operation under the Bank.
The embassy said "the ownership of Grameen Kalyan is of another nature, and Norway has not entered into an agreement with Bangladesh to provide funds to Grameen Kalyan for lending to Grameen Bank".
"The agreement has further left uncertainty about future repayment of the loan to Grameen Kalyan, since it is not regulated by the agreement.
"The agreement is also silent about Grameen Bank's use of the loan from Grameen Kalyan."
The embassy in that consequence considered the agreement between Grameen Bank and Grameen Kalyan "as a change which affects two agreements between the two governments to support Grameen Bank.
It also requested Yunus to explain in writing why Grameen Bank entered into the agreement with Grameen Kalyan, and of the consequences for the owners of Grameen Bank and the beneficiaries of the housing loans.
In a letter to the head of Norad in 1998, Yunus wrote: Some misunderstanding has crept up between us and Norad/Dhaka. Norwegian embassy/ Dhaka has written a letter to the government of Bangladesh making an allegation that Grameen is transferring donor money (including that of Norad) to various enterprises outside of Grameen Bank. This allegation will create a lot of misunderstanding within the government of Bangladesh.
Interestingly, the news about this spat between Norway and Grameen Bank was publicised as if Nobel Peace Prize winner Yunus had himself pocketed the donor money, which is totally removed from the fact. The fact remains that he never had gained from this transfer. The money was transferred just as a matter of organisational accounting to another sister company to carry out the same task--fighting poverty. Grameen Bank's response as written by Yunus to the allegations was also not carried by newspapers.
In his reply to the Norwegian ambassador , Yunus said the agreement between Grameen Bank and Grameen Kalyan was made so that Grameen's financial resources and assets could be managed more professionally and effectively to get the maximum benefits for Grameen's customers.
Grameen Kalyan was established as a separate legal entity to accelerate the pace of social and economic development of Grameen's targeted clientele and also to ensure continued access to loans and other financial services they have been getting from Grameen Bank, he explained.
Yunus said the agreement to transfer funds from the Bank to Kalyan was to ensure maximum transparency and responsible use of the revolving fund.
He argued that in earlier system, the money would have been owned by the Grameen Bank which would use it on a revolving basis. Under the changed situation, he argued, the money will be used for the same purpose but GB will now receive it as a loan from separate legal entity.
The idea of revolving fund was to ensure its continuous reuse for the same purpose and to harness maximum benefit in terms of servicing more clients, Muhammad Yunus said, adding: But since in the earlier approach the fund was available within the same management structure, in spite of the policy compulsion to revolve it, there remained the possibility that the required financial discipline to recover the money and exercise appropriate caution to effectively monitor the loan operation, may not be enforced.
This led them to find an alternative method though GK to implement the intention and the spirit of the revolving fund concept. The revolving fund has got an institutional structure so that it can never be absorbed by multifarious other demands of the Bank, he said, adding further that the GK can be viewed as a company set up exclusively to manage the revolving fund.
We believe that the new arrangement does not in any way violate any of the clauses of the agreement between Norway and GOB, rather it strengthens professionally the financial operation of GB for eradication of poverty, Dr Yunus said.
He further said that the GB board of directors took the decision within the scope of the agreement with the donors. It in no way threatened to interfere with the successful utilisation of the grant [and] that is why we did not think of informing the donors.
On charging interest for the housing portion of the loan given to GB, Dr Yunus said, the GK management consciously decided to avoid charging the interest to keep the interest burden low on the ultimate borrowers. Adding interest on this loan would have made the fund costly for the GB to transfer it to the borrowers at the existing rate of eight percent.
He, however, added: the issue of adding interest can be reviewed if deemed appropriate by the lending and borrowing organisation.
Prof Yunus said the decision to transfer the money, instead of adversely affecting the owners, has enhanced their interests by ensuring more efficient and prudent fund management and accountability on the part of GB.
This process of mutual obligation and accountability on the part of two organisations has enhanced the immunity of the fund from being eroded due to lack of accountability if handed by a single organisation as was done prior to its transfer to Grameen Kalyan.
The grant money received from different donors reckoned has increased the liquidity of the loanable funds for Grameen Bank, he added.
Dr Yunus also wrote the ambassador that establishment of GK with endowment fund from GB has broadened the scope for them to address the issue of eradication of poverty and hunger by undertaking different projects and activities.
The profits and income earned by Kalyan, he said, offer the scope for such initiatives to be undertaken for the poor, he said, adding that it was the initial purpose of creating the Social Advancement Fund.
integra
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told you guys before, the previous news was biased they had their cheap shots of fame(they follow a certain political agenda). When political parties become corrupt all their activists shut their mouth but when a guy like this works his a$$ off promoting our countries name they go berserk. Yunus should marry the two begums of our country and just force them to quit politics.
Stupid politicians.
Stupid politicians.
thank you for the very crucial post. Is it possible to take legal action against bdnews to headlines this news? news agency has suffered for much less. anyways, muhammad younus documentary is coming out in 2011. Its called "To Catch a Dollar". Here's the link :
YouTube - To Catch A Dollar film trailer
integra
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That depends on grameen foundation though I don't think he'll be interested to take legal action. But yes it's possible.
BanglaBhoot
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Doesn't make any sense. Having two organisations dealing with the fund makes the whole thing less transparent. Are you brain dead?
integra
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When a single organization handles this much money anyone can question its credibility that is what I understand. Therefore it can be split for better accountability among the cluster of organizations.
Anyways I wasn't a student of BBA so pls STFU and refrain from making perverted comments. I respect you and wud like to keep it that way.
Anyways I wasn't a student of BBA so pls STFU and refrain from making perverted comments. I respect you and wud like to keep it that way.
BanglaBhoot
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Grameen founder in aid probe
Dhaka, Dec 2 (bdnews24.com)—Norway says it is examining reports that Nobel Peace Laureate Muhammad Yunus allegedly diverted millions of dollars of aid money from a bank.
International Development Minister Erik Solheim told the BBC that it was "totally unacceptable that aid is used for other purposes than intended".
A documentary maker has alleged that cash was diverted from Professor Yunus' Grameen Bank to other parts of Grameen.
In a statement, the bank said that the allegations were false.
It said that a full explanation with more details would be provided at the "earliest convenient time".
The bank was set up by Professor Yunus to provide micro-credit - or small loans - to the poor.
The move by the Norwegians - who insist that no criminal activity has taken place - comes at a time when the reputation of the micro-credit industry has been under attack.
The original aim of the micro-credit concept was poverty reduction, but in recent years some micro-financial institutions have been criticised over exorbitant interest rates and alleged coercive debt collection.
In the south-eastern Indian state of Andhra Pradesh, for example, micro-loans have been blamed for a series of suicides among struggling farmers.
It is estimated some 250 organisations in the state have handed out loans totalling more than £1.65bn (£883m), only a small proportion of which have been paid back.
OBJECTIONS
The Grameen Bank's denial followed the release of a documentary by Danish filmmaker, Tom Heinemann, who claimed Professor Yunus and his associates diverted nearly $100m of grant money to another company - Grameen Kalyan - which was not involved in micro-credit operations.
Mr Heinemann said he stumbled upon the documents and letters relating to the alleged transfer while doing research for his documentary on micro-credit.
"I got most of the documents from the archives of Norad, the Norwegian aid agency in Oslo," he said.
The Grameen group of more than 30 companies headed by Professor Yunus is divided between those not operating for profit and those which do.
Mr Heinemann's report alleged that after the Norwegian authorities raised objections to the alleged transfer of funds, the Grameen bank returned about $30m. The aid money was from Norway, Sweden and Germany.
Professor Yunus, known as the Banker to the Poor, and the Grameen Bank were awarded the Nobel Peace Prize in 2006 "for their efforts to create economic and social development from below".
REPLICATED MODEL
The economist founded the bank, which is one of numerous organisations now providing loans to the poor - especially women - in Bangladesh.
The micro-credit lending model has been replicated in other parts of the world.
Reacting to the latest report, the Norwegian authorities say they have no suspicions of tax fraud or corruption committed by Grameen Bank.
"Having said that, the Government of Norway finds it totally unacceptable that aid is used for other purposes than intended no matter how praiseworthy the causes might be," Norwegian International Development Minister Erik Solheim said in a statement e-mailed to the BBC.
Mr Solheim said that he had asked the Norwegian Agency for Development Co-operation for a full report on the matter.
"At the same time it is important to stress that we are firm believers in micro-finance as a tool in the fight against poverty," he said.
The documentary "Caught in Micro Debt" was shown on Norwegian National Television earlier this week.
"I travelled to Bangladesh, India and Mexico to find out whether micro-credit loans have really helped the poor. But I found out that poor people are getting into more and more debt because of micro-credit loans," Mr Heinemann told the BBC.
He said that he was not accusing Professor Yunus of misusing the money or personally benefiting from the transfer.
Grameen founder in aid probe | Business | bdnews24.com
Dhaka, Dec 2 (bdnews24.com)—Norway says it is examining reports that Nobel Peace Laureate Muhammad Yunus allegedly diverted millions of dollars of aid money from a bank.
International Development Minister Erik Solheim told the BBC that it was "totally unacceptable that aid is used for other purposes than intended".
A documentary maker has alleged that cash was diverted from Professor Yunus' Grameen Bank to other parts of Grameen.
In a statement, the bank said that the allegations were false.
It said that a full explanation with more details would be provided at the "earliest convenient time".
The bank was set up by Professor Yunus to provide micro-credit - or small loans - to the poor.
The move by the Norwegians - who insist that no criminal activity has taken place - comes at a time when the reputation of the micro-credit industry has been under attack.
The original aim of the micro-credit concept was poverty reduction, but in recent years some micro-financial institutions have been criticised over exorbitant interest rates and alleged coercive debt collection.
In the south-eastern Indian state of Andhra Pradesh, for example, micro-loans have been blamed for a series of suicides among struggling farmers.
It is estimated some 250 organisations in the state have handed out loans totalling more than £1.65bn (£883m), only a small proportion of which have been paid back.
OBJECTIONS
The Grameen Bank's denial followed the release of a documentary by Danish filmmaker, Tom Heinemann, who claimed Professor Yunus and his associates diverted nearly $100m of grant money to another company - Grameen Kalyan - which was not involved in micro-credit operations.
Mr Heinemann said he stumbled upon the documents and letters relating to the alleged transfer while doing research for his documentary on micro-credit.
"I got most of the documents from the archives of Norad, the Norwegian aid agency in Oslo," he said.
The Grameen group of more than 30 companies headed by Professor Yunus is divided between those not operating for profit and those which do.
Mr Heinemann's report alleged that after the Norwegian authorities raised objections to the alleged transfer of funds, the Grameen bank returned about $30m. The aid money was from Norway, Sweden and Germany.
Professor Yunus, known as the Banker to the Poor, and the Grameen Bank were awarded the Nobel Peace Prize in 2006 "for their efforts to create economic and social development from below".
REPLICATED MODEL
The economist founded the bank, which is one of numerous organisations now providing loans to the poor - especially women - in Bangladesh.
The micro-credit lending model has been replicated in other parts of the world.
Reacting to the latest report, the Norwegian authorities say they have no suspicions of tax fraud or corruption committed by Grameen Bank.
"Having said that, the Government of Norway finds it totally unacceptable that aid is used for other purposes than intended no matter how praiseworthy the causes might be," Norwegian International Development Minister Erik Solheim said in a statement e-mailed to the BBC.
Mr Solheim said that he had asked the Norwegian Agency for Development Co-operation for a full report on the matter.
"At the same time it is important to stress that we are firm believers in micro-finance as a tool in the fight against poverty," he said.
The documentary "Caught in Micro Debt" was shown on Norwegian National Television earlier this week.
"I travelled to Bangladesh, India and Mexico to find out whether micro-credit loans have really helped the poor. But I found out that poor people are getting into more and more debt because of micro-credit loans," Mr Heinemann told the BBC.
He said that he was not accusing Professor Yunus of misusing the money or personally benefiting from the transfer.
Grameen founder in aid probe | Business | bdnews24.com
BanglaBhoot
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Grameen Bank dismisses charges
Dhaka, Dec 3 (bdnews24.com)--Grameen Bank has dismissed reports that its founder Muhammad Yunus had diverted nearly Tk 7 billion in aid to another company as "inaccurate and misleading".
It denied any wrongdoing and said 'these reports are a total fabrication and baseless".
Norway's national TV NRK aired a documentary on November 30 titled "Fanget i Mikrogjeld" or "Caught in Micro debt", based on which bdnews24.com ran a report on December 1. According to the documentary, Nobel laureate Yunus transferred the money to Grameen Kalyan, which was in no way involved with microcredit operations.
Responding to the allegations, Grameen Bank said there was no wrongdoing in the agreement between the bank and Grameen Kalyan under which it received Tk 3,917 million from the bank.
"Decisions were taken by Grameen Bank Board, with due deliberation, good faith, and with good intentions to benefit the poor," the rejoinder said.
Grameen Kalyan was never given the control of possession of Tk 3,917 million, rather it lent back Tk 3474 million to Grameen Bank which created an opportunity to charge interest on the loan.
"Only Tk 442 million remained with Grameen Kalyan as it was created out of the interest."
The rejoinder said the bank and donors agreed to create Social Advancement Fund (SAF) with 2 per cent interest rate on the donor money for the welfare of the Grameen Bank borrowers and employers.
"Grameen Kalyan received 2.0 per cent interest on the money."
"Grameen Bank believed that if the SAF was kept within the Grameen Bank and managed by Grameen Bank then it would not receive the attention it deserves."
In addition to that, contribution to SAF would have been subjected to 40 per cent tax and it might have compelled the bank to reduce or stop charging 2.0 per cent interest rate on revolving fund to contribute to SAF, the rejoinder said.
It said the whole issue was a matter of differing views by Grameen Bank and Norad, the Norwegian aid agency
"Grameen Bank did not want go into battle on this issue and so jeopardize our excellent relationship. Grameen Bank reversed its decision and restored the status quo."
Grameen Bank dismisses charges | Bangladesh | bdnews24.com
Dhaka, Dec 3 (bdnews24.com)--Grameen Bank has dismissed reports that its founder Muhammad Yunus had diverted nearly Tk 7 billion in aid to another company as "inaccurate and misleading".
It denied any wrongdoing and said 'these reports are a total fabrication and baseless".
Norway's national TV NRK aired a documentary on November 30 titled "Fanget i Mikrogjeld" or "Caught in Micro debt", based on which bdnews24.com ran a report on December 1. According to the documentary, Nobel laureate Yunus transferred the money to Grameen Kalyan, which was in no way involved with microcredit operations.
Responding to the allegations, Grameen Bank said there was no wrongdoing in the agreement between the bank and Grameen Kalyan under which it received Tk 3,917 million from the bank.
"Decisions were taken by Grameen Bank Board, with due deliberation, good faith, and with good intentions to benefit the poor," the rejoinder said.
Grameen Kalyan was never given the control of possession of Tk 3,917 million, rather it lent back Tk 3474 million to Grameen Bank which created an opportunity to charge interest on the loan.
"Only Tk 442 million remained with Grameen Kalyan as it was created out of the interest."
The rejoinder said the bank and donors agreed to create Social Advancement Fund (SAF) with 2 per cent interest rate on the donor money for the welfare of the Grameen Bank borrowers and employers.
"Grameen Kalyan received 2.0 per cent interest on the money."
"Grameen Bank believed that if the SAF was kept within the Grameen Bank and managed by Grameen Bank then it would not receive the attention it deserves."
In addition to that, contribution to SAF would have been subjected to 40 per cent tax and it might have compelled the bank to reduce or stop charging 2.0 per cent interest rate on revolving fund to contribute to SAF, the rejoinder said.
It said the whole issue was a matter of differing views by Grameen Bank and Norad, the Norwegian aid agency
"Grameen Bank did not want go into battle on this issue and so jeopardize our excellent relationship. Grameen Bank reversed its decision and restored the status quo."
Grameen Bank dismisses charges | Bangladesh | bdnews24.com
BanglaBhoot
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If GK is charging GB 2% interest then it is the poor who will have to take this extra burden on their microcredit loan repayments so that Yunus can provide other facilities which the poor also have to pay for.
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