Finance Minister AMA Muhith has asked the Bank and Financial Institutions Division to appoint new board of directors for Grameen Bank immediately to make it fully functional, official sources said.
In a Demo-Official (DO) letter sent yesterday to the banking Secretary, M Aslam Alam, Muhith asked to take immediate steps to do the task.
On November 6, the government amended the Grameen Bank election rules and tightened its grip on the microlender.
The rule gave the government an authority to pick up board members for the bank.
The amendment came after the central bank disagreed to take responsibility to conduct the Grameen Bank nine women-member election.
According to a notification from the Banking and Financial Institutions Division, the government will now form a three-member committee to elect nine of the 12 board members.
The newly amended rules reveal that the three-member body is comprised of two deputy managing directors – one from a state-owned commercial bank and another from Palli Karma-Sahayak Foundation, and a former district judge that will serve as the chief election commissioner.
The newly amended Grameen Bank election rules will be effective from October 5, 2014 to the same date of 2015, and an election will be held within this time, according to the Gazette notification.
Earlier, the finance minister said the board of directors of Grameen Bank failed to function as the pro-Yunus nine board of directors used their veto on any government decision.
As per its share, the government appoints chairman and two board members for Grameen Bank.
Banking Secretary M Aslam Alam said: “We will immediately form an election commission within this year to hold the board of directors’ election within a year.”
He, however, mentioned it is not easy to hold the election overnight.
Tahsina Khatun, a director of the microcredit institution, and also spokesperson for the nine directly-elected directors, said there was no need to change the Grameen Bank laws at all.
She added that election under the new election rules will only politicise the Grameen Bank.
According to the original rule, GB board will choose an official of the bank to conduct the election.
The Grameen Bank board appointed ASM Mohiuddin as the acting managing director after Mohammad Shahjahan went on Leave Preparatory to Retirement (LPR) last week.
Mohiuddin had been involved with GB since 1982 when the bank was operating as a project. Later he had been promoted to the position of deputy managing director from general manager for administration.
