Yunus 'siphoned Tk 7bn aid for poor'

[Skies]

My uncle is big fan of Yunus. He wrote him some letters and leave messages in his office requesting him to come in politics. He said to Yunus that we and our friends will vote you, please come to politics. Yunus could have took that chance in that time. He has personal relation with USA/Clinton, which may be a positive point for BD.
If he really like to serve the nation then he can take a chance in politics, although I am not sure whether will be able to work independently and how will be his political ideology.

 

[fallstuff]

If he comes to politics, it would be a huge news. He will bring in a Ph.D and years of experience in operating a large organization.

He put his own money behind his words.

What Hasina has to show for ? She is still riding on her fathers name. No wonder she needs to slap that name on everything in Bangladesh.

 

[integra]

I really hope some day he develops his guts to lead a country and lead us out of this loophole created by the two witches. Remember the time during the caretaker government when everyone wished for yunus to take over the power. Maybe thats why the politicians are so pissed off at him.

@ skies your idea isn't bad maybe everyone should write him a letter to lead the country some day.

 

[Skies]

There are four interest rates for loans from Grameen Bank : 20% for income generating loans, 8% for housing loans, 5% for student loans, and 0% (interest-free) loans for Struggling Members (beggars). All interests are simple interest, calculated on declining balance method. This means, if a borrower takes an income-generating loan of say, Tk 1,000, and pays back the entire amount within a year in weekly instalments, she'll pay a total amount of Tk 1,100, i.e. Tk 1,000 as principal, plus Tk 100 as interest for the year, equivalent to 10% flat rate.

There has also been much criticism of the high interest rates charged to borrowers. The real average portfolio yield cited by the a sample of 704 microfinance institutions that voluntarily submitted reports to the MicroBanking Bulletin in 2006 was 22.3% annually. However, annual rates charged to clients are higher, as they also include local inflation and the bad debt expenses of the microfinance institution.[38] Muhammad Yunus has recently made much of this point, and in his latest book[39] argues that microfinance institutions that charge more than 15% above their long-term operating costs should face penalties.

en.wikipedia.org/wiki/Microfinance#Other_criticisms

Here in (wiki: other criticisms ) Yusus is saying that: Microfinance institutions that charge more than 15% above their long-term operating costs should face penalties. Then how can Grameen Bank charge 20% for income generating loan?

 

[fallstuff]

The breakdown of a Micro loan:

Operating Expenses: 62%
Financial Expenses: 23%
Profits 7%
Portfolio Losses 6%
Taxes 2%


It costs a lot less to loan TK 100,000 to one person, then the same amount to ten people. It may take one hour ( out of thin air) to close one TK 100,000 loan. It may take the whole business day or more to close ten loans. Poorer folks are not finance savy, they may take more time to undersand the simple financial terms.
Sometimes employees are sent out to collect loans.

One has to charge a higher rate of interest for Micro loans to cover operating expenses.

Govt. loans are subsidised. Which means the returns are not sufficient to pay operaitng expenses.

These are the poorest of the poor. The only other option they had before Yunus was the so call "Mohajon" the local Loan Shark, even the Loan Shark wouldn't make a loan to someone without a colateral (bondhok).

 

[desioptimist]

It costs more to lend to the poor. Hence the interest rates are higher.
But at least microfinance institutions are giving him an option. Yunus wanted the microfinance to be self sustained, i.e. not taking money from others to subsidise the high cost of lending. Hence the interest rate reflect the true cost of lending + nominal profit.

 

[CaPtAiN_pLaNeT]

Fund transfer allegation against Prof Yunus needs inquiry: PM
Microlenders see people as guinea pig

Fund transfer allegation against Prof Yunus needs inquiry: PM


Fund transfer allegation against Prof Yunus needs inquiry: PM
Prime Minister Sheikh Hasina said Sunday allegations of foreign fund transfer against Nobel laureate Professor Muhammad Yunus's Grameen Bank needed an "extensive" investigation.

"There should certainly be a thorough investigation to find out what actually happened," she told a press conference at her office, organised on the outcome of her tri-nation visit.

But she said that the Grameen Bank's exposure to the controversy could have occurred as it tried to play a "trick" to evade government taxes, report agencies.

"Many examples are set in Bangladesh . . . it was an example of wizardry how one could play with people's money," Sheikh Hasina said.

The prime minister's comments came a day after finance minister AMA Muhith apparently came in defense of Yunus as the Grameen Bank trashed allegations of fund diversion breaching agreements with donors and violating Bangladesh's financial laws.

"I see no fault in the transfer of the fund, if their (Grameen Bank) claim (of doing so under an understanding with the Norwegian government) is true" Muhith told newsmen on the sidelines of a function late yesterday.

Hasina said it is time to know what has been going on in the name of poverty alleviation and with the fate of the poor people.

"You can't hide the truth for a long time… once the truth will come out on the surface."

The Prime Minister admitted that she was convinced initially when Grameenphone came to get a license in the name of empowering women during her previous tenure.

"I was charmed when I came to know that the rural women will get phone and come out from their extreme poverty. But I've hardly seen such an example," she said.

Hasina alleged micro-financers nurse poverty to run their brisk business.

"This is the misfortune of the people," she said.

She added: "Micro-lenders make the people of this country their guinea pig. They are sucking blood from the poor in the name of poverty alleviation."

The Prime Minister said that the poor hardly came out of the poverty trap after taking out loan from microcredit organisations.

Hasina said the fund transfer took place to evade tax and that was very unfortunate.

Replying to a related question, the Prime Minister said Grameen Bank was a statutory body with government having its stake and recalled that her government during its previous tenure poured money to salvage it while it was in a difficult state.

"But it appeared to be a property of someone," she said in an oblique reference to Vanderbilt-educated economist Prof Yunus.

 

[BanglaBhoot]

Lets get one thing straight here. Microcredit is based on a myth. It does not lift people out of poverty. Banks have to charge high interests because it is very expensive to recover microcredit loans. A person who takes a loan eventually become dependent on the bank and many have to seek extra funds from loan sharks simply to pay off the loan money owed to the bank. How do I know all this? I operate a bank.

Yunus has done himself no favour as he over exposed himself. Privately he was waiting for this government to fall and was becoming frustrated. Hasina probably realized he was going to make a move and so she took preemptive action.

If Yunus wants to become leader of Bangladesh he has a lot to learn about politics and he has to mix with the people. He remains aloof from his own people and spends more time with foreigners. He is not fit to be president if he has to beg the US to install him in government. I understand that is what he has been trying to do. A person should only become a leader on his own merit and not through cutting deals with foreign governments.

 

[fallstuff]

I sure would like to see how she turns the public opinion 180 about Grameen Bank. Perhaps making it "Sheikh Mujib Grameen Bank" , yup that will do it.

Yunus added huge value to the Bangladesh brand.

She is known as one of the feuding "Begums."

 

[Al-zakir]

Prof. Yunus is basically an opportunist and businessman. When he won the Nobel Prize Hasina became jealous and also felt threatened by him. There is speculation that there is an international conspiracy to bring this government down. If this government falls then it is predicted that Yunus will be installed as head of a national government. The AL eliminated the threat posed by Yunus by bringing these allegations.

Professor Yonus should joint hand with opposition BNP and help them to bring this Ghaddar Al from power. Professor Yonus is renown personality and I do not mind if he become president of Bangladesh.

 

[saleen_s7]

Professor Yonus should joint hand with opposition BNP and help them to bring this Ghaddar Al from power. Professor Yonus is renown personality and I not mind if he become president of Bangladesh.

Matter of fact, he's the most capable guy of being a president than anyone else. He might face a bit of criticism, and the AL propagandas will probably hurt his rep, nonetheless thats no excuse as being in a place in that position means being exposed to such cheap people.

 

[BanglaBhoot]

Professor Yonus should joint hand with opposition BNP and help them to bring this Ghaddar Al from power. Professor Yonus is renown personality and I not mind if he become president of Bangladesh.

If you will accept someone who is utterly secular and will align with Israel then that is fine. As president he will bring America and India closer so the latter has a free hand in Bangladesh.

 

[eastwatch]

People should stick to the present topic. But, I find some posters are taking advantage of the problem faced by Dr. Yunus and is imagining things like he wants to become President and probably the PM at the same time.

Where did these guys find such stories except if these are not brewing in their fertile brains! Mythology writers and gossip talkers seem to have overcharged themselves with unnecessary thoughts. Please stick to the topic and express your opinion about any new developments.

 

[eastwatch]

I really hope some day he develops his guts to lead a country and lead us out of this loophole created by the two witches. Remember the time during the caretaker government when everyone wished for yunus to take over the power. Maybe thats why the politicians are so pissed off at him.

@ skies your idea isn't bad maybe everyone should write him a letter to lead the country some day.

Dr. Yunus should be away from politics and people should not go just after a name or a fame. To work as financier and to work as a politician are two different categories of jobs. A doctorate or micr-financing background are not enough to become a politician.

Rather, people with vision should come to politics. A businessman should remain in business and profit. I can remember Thaksin of Thailand, who was a total failure as a PM, but was a success in business.

 

[integra]

May be I got carried away a little. But I do remember once he wrote(during the caretaker government) some articles on pro-alo on how to select proper educated candidates from ones locality and encourage them to stand for election. That way we make a huge change on our perception and pave the way for a better governance. Anyways later on it was all the same ol sh*t.