Grameen Bank Secret Documents : Dr Yunus accused of diverting US$ 100 Million aid

New documents made public by investigative journalist and documentary film maker Tom Heinemann in his controversial documentary on microfinance titled Caught in Micro debt accuse Grameen Bank’s founder of diverting developmental aid money from foreign countries meant for Grameen Bank into For-Profit ventures more than 10 years ago.

In 1997 the Norwegian authorities discovered that 608 million kroner (US$ 100 Million approximately) aid from Norway and other countries contributed to the Grameen Bank was being diverted by Mohammed Yunus and his closest associates to a company that was engaged in an entirely different sector.grameen bank

When the Norwegian Embassy raised the alarm about the relationship in 1998, more than 50 million aid money had already been transferred to the For-Profit company Grameen Phone in which Norway’s Telenor is the largest shareholder. The whole matter had been kept a secret until now.

The Norwegian Foreign Affairs committee in Norway’s Parliament has reacted strongly to the information presented in the documentary yesterday and intends to launch an investigation into the diversion of developmental aid by Grameen Bank.

The documentary film maker Tom Heinemann, also revealed that Prof Mohammed Yunus refused to speak to him during the making of the documentary despite repeated attempts to get his version of the story.

The documentary also looks at the effectiveness of Grameen Bank along with it’s miracle stories of transforming people’s lives and concludes that it has had little impact on poverty in all these years. In one segment Heinemann visits the home of the celebrated original grameen loan-taker – Sufiya Begum in Jobra village. Celebrated in grameen folklore that is. He finds some very uncomfortable stories and comes to know that she died in poverty and all her daughters today are beggars.

A source has confirmed that Grameen Bank and Grameen Foundation will soon be issuing an official response to the claims made in the documentary.

Archive of Letters (ZIP file). Contains pdf files of correspondence between Dr Mohammed Yunus, Norwegian Developmental Agency (NORAD) and the Norwegian Embassy.

Source Credit:http://shafiur.i-edit.net

Related News Stories now trending :

Nobel laureate Yunus accused of stashing $100 million

Professor Yunus of Grameen and the case of the missing millions

Yunus siphoned Taka 7 billion aid for poor

Caught in the micro-debt reveals that the Norwegian assistance has not been used in accordance with agreements between Norway and Bangladesh.

Abhay N

Author : 

Abhay is the founder and managing editor of India Microfinance. He is passionate about microfinance, financial inclusion and social entrepreneurship in India.

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  1. habib1974

    December 2, 2010 at 6:02 pm

    we know that Dr younus is a fraud. because-by investigative repot any holder of microcredit will not prosper. They are loser day by day. In Bangladesh poverty is a problem. Not only Gramin Bank- In Bangladesh Any NGO- Their main Terget Earn of Money (in any cause-like Microcredit, change of life style, for education, womens right developmen, for por women, for child labour). I am a journalist-I think All NGO are Fraud in Bangladesh. I know That (have document) when The donor give money for Bangladeshi (any reason) The NGO’s Terget without any work earn The money. Not only That- In any Project (who needs some of employer) employers they cannot give the approve salary. The NGOs Vacancy Advertise in News paper. although The employers & with NGOs Has a condition- The NGOs will not give the actual salary.
    I think If any donor want to help Bangladesh- They should sudden visit about project.
    One Example- Many Of Donor Donet For Adibasi (minoroties-development). but no development Their. I Think Many Donor Donet minimum 1000 bilion dollar for them. but no development. because NGOs are not real.
    so stop the microcredit. investigation about your donet. please do this. & please punished Mr dr younus.

  2. habib1974

    December 2, 2010 at 6:25 pm

    Dr Yunus faces loan default charges

    Staff Reporter. Thakurgaon. Nobel Laureate Dr Muhammad Yunus has been legally charged for not paying off about Tk 40 million loan in due time.
    Sadequl Islam, manager of the Social Islami Bank’s Sirajganj district branch, filed the case with Sirajganj Artha Rin Adalat (Money Loan Court) on Thursday.
    Thirteen people were made defendants in the case including Yunus and Zafarullah Chowdhury, director of the Ganaswasthya Grameen Textile Mills.
    Recently, Yunus has also been accused of ‘siphoning’ billions from Grameen Bank to another company. The money was given as aid by different European organisations. This accusation was made at a documentary film telecast at the Norwegian state television on Tuesday.

  3. babu chaudhry

    December 3, 2010 at 4:42 pm

    yah, but still Dr. Yunus did not spend it for personal gain. It was transferred to Grameen Kalyan which is another Grameen sister company. This guy is still an honest person.
    But this article proved that, there are many people out there who are jealous of Grameen success.

  4. babu chaudhry

    December 3, 2010 at 4:54 pm

    Mr. Habib ..who’s interest do u serve ? This is a man
    who at least tried to solve an immense problem of Bangladesh ( poverty ). Tell me, what did you do to solve this problem ? You with your 2nd grade english ..indeed a good combination to fight poverty !

  5. Zaffor Iqbal

    December 8, 2010 at 7:19 am

    Slow down cowboys specially you “babu chaudhry”
    habib1974 is giving his openion so are you. No need to insult any one personaly. Time will tell who is what…

  6. Iftekhar Sayeed

    December 15, 2010 at 6:42 am

    I am in full agreement with Habib. NGOs here are founded to earn money and, sometimes, prestige. Research has revealed that only 25% of donor money reaches the poor.

    It has been known for years that at the interest rates charged by the micro-credit institutions here, it would not be possible to borrow your way out of poverty.

    But NGOs have become the darlings of the west – precisely because they have created them. Their purpose is not to help the poor, but to buy the loyalty of the elite.

    And in Muslim countries, the west sorely needs that loyalty.

  7. Iftekhar Sayeed

    December 15, 2010 at 6:49 am

    That should read “whose” not “who’s”! Criticizing the messenger’s English is a ‘babu’ pastime in South Asia. I know: I teach the language.

    It’s not the language here, but the logic that counts. I wish we had more honest journalists like him.

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