Nobel-Winning Microlender Accused of Corruption

Nobel Peace Prize winner Mohammed Yunus, founder of microcredit lender Grameen Bank, is under investigation by the Norwegian Committee of Foreign Affairs after a Norwegian documentary, Caught in Microdebt, publicized accusations that Yunus funneled money to Grameen Kalyan, a subsidiary that finances his bank, as well as Yunus’ phone company GrameenPhone—which is co-owned by a Norwegian company, Telenor. Over the years, Norway has provided $100 million in aid to the Bangladeshi-based Grameen Bank—and explained to Grameen back in a 1997 letter that using the money to finance other projects wasn’t part of the deal.

In documents published by Tom Heinemann, the Danish journalist who produced the documentary, the Royal Norwegian Embassy’s questioning of Yunus’ money transfers are revealed. Yunus claimed the change in cash-flow structure was “to generate income for the borrowers of the bank and offer opportunities to diversity our efforts for poverty reduction” by avoiding burdensome taxes.

Read the full story and the recent update.

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