Bangladesh to probe operations of Grameen Bank

B`desh govt will form a high-powered committee to investigate the alleged irregularities in the operations of Grameen Bank pioneered by Nobel laureate Muhammad Yunus.

Dhaka: Bangladesh government will form a
high-powered committee to investigate the alleged
irregularities in the operations of Grameen Bank pioneered by
Nobel laureate Muhammad Yunus.

"A high-powered committee will investigate the matter,"
chairman of the standing committee on finance ministry A N H
Mostafa Kamal told reporters today.

He said the committee would be formed within a few days.
Kamal said the parliamentary watchdog has sought
explanation from the government why Grameen Bank is not being
operated under the Microcredit Regulatory Act 2006.

"We`ve sought an explanation for Grameen Bank`s operations
from the finance ministry`s banks and non-bank financial
institution division," Kamal was quoted as saying by bdnews24.

He, however, refused to comment on the recent
controversies over fund management saying that the government
would probe the matter.

"We`ll comment only after the committee submits its
report," he said.

He said the standing committee feels that microcredit
operation in the country should be regulated properly.
"The committee also believes that rules and regulations
of the MRA [Microcredit Regulatory Authority] are weak to
regulate the sector."

He added that the regulatory body`s manpower should also
be increased for strong monitoring activities. "The MRA needs
to work at the country`s grassroots-level."

Meanwhile, the Grameen Bank today dismissed media reports
on Muhammad Yunus` resignation from the organisation.

The GB in a statement said the Nobel Laureate is still
serving as managing director on the GB board.

Two Bengali dailies -- Daily Jugantor and Daily Samakal
-- today ran reports that Yunus had resigned from the board.
"The newspaper reports are totally baseless," said the
statement.

Earlier Bangladeshi media had quoted the Norwegian TV as
saying that Yunus allegedly drew off nearly USD 100 million in
aid for poor borrowers of Grameen Bank to another of his
company back in 1996.

The 2006 Nobel Peace Prize winner Yunus has denied
allegation.

PTI