The government is proposing a plan to restructure Grameen Bank to insert more governmental control over the institution. This type of unnecessary meddling in a successful organisation is against the interest of the nation and a serious misuse of the government’s powers.
The plan proposes that the government will become a majority shareholder of the bank, holding at least 51% of the shares. This will drastically reduce the number of shares available to the borrowers, which will in turn reduce the amount of control the beneficiaries of the bank (8.4m low income women) can exercise.
Another restructuring proposal suggests dividing the bank into 19 or more independently registered organisations that will have no legal, managerial or financial connection with each other.
All the options suggested are invasive and will involve a major disruption in the functioning of the Grameen Bank, a profitable and internationally renowned institution.
The move is even more baffling considering the government’s poor track record in managing the financial institutions that are under its control. The Anti-Corruption Commission is investigating a major lending scandal at the Sonali Bank at this very moment. Many other government organisations are on the verge of collapse due to negligence.
Under the circumstances, it is hard to argue that the welfare of the Grameen Bank or its beneficiaries is motivating the government’s proposal.
The Grameen Bank is a source of national pride and an inspiration to many around the world. Undermining it by forcefully asserting control over it is unconscionable and the government should abandon this foolish course of action immediately.