Board’s power to appoint MD reduced drastically
President Zillur Rahman has promulgated the Grameen Bank (Amendment) Ordinance 2012, which contains a provision for the formation of a ‘selection committee’ to appoint the managing director of the world-famous micro-credit organisation.
The Grameen Bank’s chairman, in consultation with the board of directors, will now form the committee of not less than three and not more than five members for the purpose of selecting a candidate for appointment as managing director, according to the amendment to Section 14 of the original Ordinance of 1983.
The government brought about the amendment to give more power to the chairman, who is one of the three government nominees to the
12-member board of directors, as well as to give legal coverage to the selection committee, said officials.
The law ministry on Wednesday issued a gazette notification on promulgation of the Ordinance, the copy of which was made available on Thursday.
‘The Grameen Bank Ordinance has been amended to
make the selection process of the managing director more transparent,’ law minister Shafique Ahmed told reporters on Thursday at the secretariat.
He claimed that the government in no way was interfering in the Grameen Bank’s operations.
‘The selection committee shall recommend three candidates for appointment as managing director, and preference shall be given to persons having knowledge and experience in rural economy and finance or in the field of microfinance,’ says the amended Ordinance. The board of directors was earlier responsible for the appointment of the MD.
The government drew heavy flak from various quarters at home and abroad when the Cabinet on August 2 approved a draft proposing amendments to the Grameen Bank Ordinance 1983 to ‘reduce the power of the bank’s board and give more authority to its chairman in appointing the managing director of the micro-credit organization’.
The US government has expressed its deep concern at the government’s move to curtail the Grameen Bank’s borrowers’ power in the selection of the MD.
Yunus, who jointly won the Nobel Peace Prize with the Grameen Bank in 2006, said that he was very anxious over the future the bank.
The post of Grameen Bank’s MD fell vacant after the Bangladesh Bank removed Yunus from the managing directorship on March 2 last year when he turned 71, on the ground he had passed the retirement age of 60. The Bangladesh Bank and Yunus are now engaged in a legal battle in the highest court of the country.
The GB’s chairman, after formation of the selection committee, will publish an advertisement seeking applications from the interested candidates for the post of managing director.
The origin of Grameen Bank can be traced back to 1976 when Yunus launched a research project to examine the possibility of designing a credit delivery system without taking any collateral, which was aimed at the rural poor, especially women. In October 1983, the Grameen Bank project was transformed into a bank by government legislation.
-With New Age input
