Bangladeshi probe finds Grameen Bank flouted rules

The Bangladeshi bank that earned the Nobel Peace Price for pioneering small loans to lift people out of poverty flouted rules in its business activities, a government-appointed investigator said Tuesday. Grameen Bank violated its charter as a microlender by creating affiliates that became successful business entities but did not benefit the bank's shareholders, the head of an investigation into the bank's practices said.
The committee recommended the government bring those affiliates under Grameen's direct control, A.K. Monowar Uddin Ahmed told The Associated Press on Tuesday. The report found no money was stolen but said that transfers of Grameen funds to other ventures were not done properly. Ahmed added that the irregularities were "still possible to correct." The bank's founder, Muhammad Yunus who was shared the Nobel, could not be reached immediately for comment. But he has in the past accused the government of going after his bank in order to silence his criticism of Prime Minister Sheikh Hasina.