Thaindian News

Dhaka, May 8 (IANS) Grameen Bank founder Muhammad Yunus has said his removal as managing director has threatened the bank’s “independent existence” and raised the question “whether it can be successful in keeping itself away from political influence.”

“What actually happens to financial institutions in our country if political influence starts playing a role in them is common knowledge,” said Yunus Saturday in a statement which came two days after the Supreme Court, for the second time, confirmed his removal from the bank by upholding a high court verdict.

The apex court’s Appellate Division rejected all applications from Yunus and the bank’s nine elected directors. The appellants have said they would appeal again.

Yunus, however, remains in office as the board of directors are yet to meet to decide on the bank’s future.

The government says he must go after court verdicts.

In his five-page statement Saturday, the Nobel Laureate stated that there “is a growing doubt as to whether any civil society effort can survive and retain its character and independence in this political influenced environment.”

He has repeatedly talked of the ‘independence’ of the bank which he says is neither a government bank nor a non-government organisation (NGO), but a bank created under a special law.

Bangladesh Bank, the country’s central bank removed him March 2 on the ground that he should have superannuated at 60, the law applicable to other bank CEOs. It says the bank is created under the country’s banking laws.

“Grameen Bank is owned by poor women,” Yunus has contended.

Yunus has contended that he went to the court as the letter removing him was “not legally correct”.

The bank stopped receiving any foreign funds after 1995. The highest rate of interest it charges is 20 percent as simple interest. There is no coercion in recovering loans.

Yunus also said that those who claim that he wanted “to cling to the position of Grameen Bank’s managing director” were not correct, pointing to a letter he wrote to the finance minister a year ago.

“I suggested two options to him for a transition that could take place without creating any waves within the bank, but I did not get any response to these proposals. Instead, I was told to quit,” he claimed.

While saying he was not wanting to “cling to” office, he warned that an “unfriendly atmosphere is not helpful for a smooth change of leadership.”

Yunus has listed the bank’s achievements, at home and in many countries abroad, saying it had 40 million creditors from the poorest classes.

He has justified the vociferous support received from some governments and personalities, emphasising the role of the civil society in monitoring the working of public institutions.