The Congress of Bangladeshi Americans Inc., a community of Bangladeshi expats in the USA vehemently rejects the ‘baseless’ accusations made by Muhammad Yunus in a recent talk-show with Deutsche Welle.
Nobel Laureate Dr. Muhammad Yunus, who was once celebrated at home and abroad for his efforts to end poverty, has seen a meteoric fall in his reputation for allegations including, money laundering, tax evasion, violating labor laws, exploiting marginalized people in the name of poverty alleviation, and many more.
You can also read: Why Dr. Yunus Nerves of Legal-Court and Seeks International Favor?
In his interview, Dr. Yunus made a false claim that he went to the court not to evade taxes but to clarify whether he needed to pay them and that he immediately paid the tax as soon as the court ordered him to do so.
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“Dr Yunus’ statement is entirely false and misleading. He created two institutions, “Yunus Trust” in 2009 and “Yunus Family Trust” in 2011. Its main objective was to evade the tax. In the 2011-12 fiscal year, Yunus donated about 62 crore Taka to these two institutions. He did not pay tax on donations. He also gave money to both institutions in the next two years and did not pay
taxes. Note that the trustee of these trusts is also himself.” The Congress of Bangladeshi Americans said in a press release on February 25.
Sensing the matter, the National Bureau of Revenue (NBR) audited the matter and demanded TK 160 million in accordance with the Gift tax law against these so-called donations. To evade tax, Dr Yunus appealed to the court and subsequently lost in a legal battle and had to pay Tk12 crores.
Dr. Yunus argued that he made these contributions out of concern for his “death” and that they should therefore not be considered taxable. Upon further examination, it was discovered that Dr. Yunus and members of his family were trustee members of these trusts and ultimate beneficiaries of these funds.
But on Saturday’s show, he falsely claimed that none of his family members can claim money from the trusts. He said that he was unaware of taxation out of donation and spontaneously paid the tax upon knowing the rules. This is another blatant lie. He didn’t pay the tax spontaneously but rather was forced to pay upon the court order.
“The law says that money will not be taxable if you donate to your wife, son, or daughter. In all other cases, tax is payable. Even though the law is written, Yunus keeps patching this simple matter. Yunus went to the Tax Commission, the Tax Appellate Division, and the court. Its primary purpose is to delay.” The press release said.
“In another case involving the National Board of Revenue (NBR), he dragged NBR to court for more than ten years, even though there was a provision to appeal by depositing 25 percent. The court also recently directed him to file an appeal according to the prevailing rules. He went to court with the ulterior motive of delaying the easily solvable matter for 10/15 years by changing the dates one after the other on various pretexts, such as travel abroad and illness without following the rules,” the statement added.
Forceful Occupation: ‘A Deliberate Lie’
While speaking at the talk show, hosted by journalist Khaled Muhiuddin, Dr Yunus Claims that the Grameen Bank forcefully occupied his organizations under the Grameen Banner.
“The goons on February 12 broke into and occupied our offices. We were panicked and sought support from the police but they were reluctant,” Dr Yunus falsely claimed.
Immediately after the same allegations were raised on February 12, The Grameen Bank debunked the allegations, terming them as misleading, false, illegal, and deliberate.
As per the Articles of Association of Grameen Telecom (Articles 51, 35(iii), 51, 48) and Grameen Kalyan (Article 32(iii)), the Bank has the authority to appoint the chairman and a number of directors of organizations formed under its financing.
In line with the regulations, the bank on February 12 appointed new directors for Grameen Telecom and Grameen Kalyan, replacing Yunus as chairman.
Revealing the truth, the bank said that such ‘misleading and untrue statements’ from Dr Yunus undermine the rights of Grameen’s 1.05 million members and their families.
Other Charges Against Dr Yunus
● Grameen Bank’s current chairman recently revealed detailed information that Dr. Yunus had siphoned off substantial sums from Grameen Bank to establish several new entities.
● Dr Yunus is accused of misappropriating employee dividends, making unauthorized deductions labeled as lawyer’s fees, and transferring Tk 2,977 crores for money laundering and embezzlement, totaling Tk 45 crores including interest for the workers’ welfare fund.
● Grameen Telecom submitted inaccurate annual returns to the Registrar of Joint Stock Companies and Firms (RJSC). Despite distributing significant funds to Grameen Kalyan, they falsely claimed in their returns that no dividends were distributed. This action violates Section 397 of the Companies Act, 1994, which carries penalties for such misrepresentation.
● Between 1997 and 2022, Yunus and affiliated organizations received a total of BDT 977 billion from the company’s operational council. An ongoing investigation is probing allegations of money laundering amounting to approximately BDT 300 billion by Grameen Telecom. Additionally, the company’s chairman, Nobel laureate Dr. Muhammad Yunus, and 13 others are accused of embezzling BDT 250,227,806 from the Welfare Fund, intended for the assimilation of BDT 25,22,780.
Playing the Victim Card?
Professor Yunus has attempted many times to seek impunity and avoid labor law violation cases and other financial misappropriation by leveraging his global reputation and Nobel fame.
He has used his global friends and utilized global media to highlight his achievements and so-called ‘Noble face’ while deftly avoiding grave accusations of exploiting thousands of poor Bangladeshi citizens in the name of poverty alleviation.
Yunus has gathered support through international petitions, featuring endorsements from famous figures, creating the impression of global backing. This tactic diverts attention from labor law violations. Instead of addressing the charges directly, Yunus seeks endorsements to paint himself as a victim of politics.
Recently, 12 US senators’ letter urged Sheikh Hasina to stop the abuse of Bangladesh’s judicial system (over the trial of Dr Yunus). Their letters strongly sided with Dr. Yunus and matched with the previous propaganda by 40 eminent persons and then 160 other eminent persons. 40 world leaders jointly published an open letter as a full-page ad in the Washington Post forUS$73,033.
Several legal and ethical questions come to the fore in the wake of the open letter. According to Article 94(4) of the Constitution, judges are completely independent in their judicial work. According to the constitution, no one involved in the administration of the state, including the Prime Minister, has the power to interfere in the judicial process. The statement of the said letter is contrary to the Constitution of Bangladesh and the fundamental rights of workers recognized by the International Labor Organization (ILO).
While reading out the verdict sentencing Dr. Yunus to six months in jail, the court said, “Dr Yunus is not tried as the Nobel-Winner, he is being tried as the chairman of Grameen Telecom. And allegations of violation of labor law have been proven against him.”
However, Prime Minister Sheikh Hasina has repeatedly assured that Dr Yunus can hire lawyers from anywhere in the world to prosecute his case and get a judgment in his favor but on Saturday’s talk show, Dr Yunus claimed without any evidence that the government didn’t cooperate to welcome foreign legal expats.