As Yunus fiddles, Bangladesh slides, his Grameen family soars

India Today

3 days ago

Bangladesh's economy might be gasping for fresh air right now, but it seems the country has a Donald Trump-like business-minded leader at the helm. Several companies of the Muhammad Yunus-founded Grameen Family of Organisations have secured permits and tax exemptions since the interim government led by its patriarch came to power in August 2024. Though none of the approvals are illegal, they raise serious concerns about conflict of interest. Even some appointments by Yunus have raised nepotism stink.advertisementYunus, who now resides in the government guest house Jamuna, might find a parallel with the present White House occupant. Trump has mixed business with politics and pleasure, and his close family has a 60% stake in World Liberty Financial, a crypto firm that is cutting deals and triggering controversies.As the chief adviser to the interim government, Yunus is the de facto prime minister of Bangladesh. The Yunus-led set-up took over in August 2024 after Prime Minister Sheikh Hasina was forced into exile after a students' anti-reservation protest ended up toppling her regime. The Hasina government had become synonymous with state-enforced disappearances, torture, killings and rampant corruption.
Yunus seems to be maintaining some continuity from the previous regime, at least when it comes to business operations. Here's a cheatsheet.Go ahead for the establishment of Grameen University.Export licence for Grameen Employment Services.Permission for Grameen Telecom mobile wallet.The government's stake in Grameen Bank was cut to 10% from 25%.Tax-exemption status of Grameen Bank reinstated.advertisementTo be fair, it must be stated that the Grameen companies had applied for these now-approved permits during the Sheikh Hasina government. The former government might have acted vindictively and held back these approvals, given Hasina and Yunus had a strained relationship.Hasina has had a running feud with Yunus, a Nobel laureate, since the 1/11 plan -- which was meant to bar her and BNP's Khaleda Zia from politics -- was exposed. Yunus was believed to have been planned as the replacement candidate.Still, the rush to grant the permits and tax-exemption status has been questioned. People are questioning why they couldn't wait to be approved by an elected government, which, going by Yunus-asserted timeline, should be in place by mid-2026.'Grameen venture clearances create conflict of interests' -- New Age, a Dhaka-based newspaper, headlined an opinion on the issue.Listing the clearances, the New Age opined, "But all this having happened at a time when he [Yunus] needs to establish the just rights of people and remove obstacles to all that curbs the just rights has created a conflict of interests involving him".PRIVATE INVESTMENT IN BANGLADESH AT 5-YEAR LOWThe good times for Yunus' companies come even as Bangladesh's economy struggles.advertisementPrivate investment in Bangladesh hit a 5-year low, according to data released by the Bangladesh Bureau of Statistics on Tuesday. This will impact job creation in a country already hit by high unemployment.The loss of business confidence comes amid a liquidity crunch, falling Bangladeshi taka that makes imports costlier, inconsistent energy supplies and macroeconomic vulnerabilities.One of the big promises of Yunus and his advisers was to bring in huge foreign direct investment (FDI), which they failed to deliver. In January, FDI into Bangladesh hit a 6-year low.In the early post-Hasina phase, Bangladesh's economy is struggling, even as Grameen companies continue to grow.GOOD TIMES FOR GRAMEEN UNIVERSITY, GRAMEEN EMPLOYMENT SERVICESThe Yunus-led interim government approved the setting up of the Grameen University on March 17.The private university will operate under the Grameen Trust, founded by Yunus, according to the Dhaka Tribune.This is the first private university to be granted approval by the Yunus-led interim government, according to Bangladesh media.Much more interesting is the human resource-export licence to Grameen Employment Services. The company will be sending Bangladeshis for jobs to foreign countries, including Malaysia.The Hasina government capped the number of licenced agencies that can recruit and send Bangladeshis abroad. This, according to Bangladeshi sources, ended up creating a cartel.advertisementNow ruling the game, these agencies asked for huge fees, which, at times, were impractical and unjustified because of the salaries earned abroad, Bangladesh experts told India Today Digital. This even led to human trafficking and crimes by Bangladeshis abroad.Instead of cracking down on the cartel, the Yunus government boosted it with the licence to Grameen Employment Services, the experts said.GRAMEEN TELECOM WALLET SERVICES AND TAX RELIEF TO GRAMEEN BANKIn January, Samadhan Services Limited, a concern of Grameen Telecom, was authorised to operate a mobile wallet service, reported Dhaka-based daily, The Daily Star.Grameen Telecom had applied for the licence in 2009, but the approval was delayed by the Hasina government, according to a report in Dainik Kalbela.This mobile-wallet licence is being seen as a lucrative business award for a company of the Yunus-founded Grameen family.The interim government has also reinstated the five-year tax exemption status for Grameen Bank until 2029.Though the Grameen Bank is dressed as an NGO, it behaves and operates like a corporate entity.Other than the tax relief, the interim government also reduced the Bangladesh government's stake in Grameen Bank from 25% to 10%, thus benefiting some shareholders.advertisementGrameen officials have said that Yunus didn't benefit from any of these deals as his direct association with the entities ended in 2011.Despite the assertions, the approvals and benefits to companies of the Grameen Family of Organisations are being questioned by Bangladeshis."Dr Yunus has shown little respect for the rule of law. Increasingly, his actions mirror those of Sheikh Hasina, leading the country down an uncertain and troubling path. Awarding licences to his own ventures like Grameen Digital Wallet and Grameen Manpower not only reveals a serious conflict of interest, but also raises ethical and contractual concerns," wrote US-based Bangladeshi physicist Muazzam Kazi on Facebook.Being compared to the Hasina regime, which has been branded 'fascist', would be the last objective of the Yunus government.YUNUS APPOINTMENTS RAISE STINK OF NEPOTISMLike Trump didn't wince a bit when appointing son-in-law Jared Kushner the White House adviser in his first term, Yunus too has blatantly appointed his nephew to his official media team.The Yunus government in March appointed Apurba Jahangir, his nephew, as the Deputy Press Secretary to the Chief Adviser. Critics alleged nepotism, pointing to Jahangir having no substantial experience in media or public relations but getting the job.advertisementThe appointment of Nurjahan Begum, former Grameen Bank acting managing director, as the Health and Family Welfare Adviser in the Yunus Cabinet also came in for severe criticism."Nurjahan Begum is one of the earliest associates of Professor Muhammad Yunus during the establishment of Grameen Bank," wrote the Dhaka Tribune while profiling the members of the interim government.Begum, sources said, has been conspicuous by her absence in the department.Yunus might not be heading an economy as large as that of the US, but in several ways he might be the poor Bangladesh's Trump. What Yunus, a Nobel laureate, needs to realise is that he is heading an interim, not elected, government, and the hopes of millions of Bangladeshis are pinned on him. Covering himself with a shroud of doubt and controversy, like Hasina did, should be the last thing on his list.Tune InMust Watch