Clean chit to Grameen

Norwegian Minister Erik Solheim yesterday said the Grameen Bank had neither embezzled Norad fund nor used the money for unintended purposes.The minister for environment and international development also said the microfinance institution was not involved in corrupt practices, according to a press release on the website of the Norwegian foreign ministry.The remarks came after the Norwegian Agency for Development Cooperation (Norad) on Tuesday submitted a report on the Grameen Bank's alleged undue transfer of funds to one of its spin-off organisations.Last week, he had requested Norad to prepare a report on it after a Norwegian TV channel broadcast a series of documentaries on alleged fund anomalies involving the bank.
"According to the report, there is no indication that Norwegian funds have been used for unintended purposes, or corrupt practices or embezzled funds. The matter was concluded when the agreement concerning reimbursement of the funds was entered into in May 1998 under the government in office at the time," said Erik Solheim.In an instant reaction, Grameen spokesman Mohammad Shajahan told AFP, "We are very happy that the actual proof (of Grameen's innocence) has come to light and we hope this will end all debate about Grameen."The microfinance institution has all along maintained that the transfer of aid to Grameen Kalyan was legitimate and done to minimise tax on the money.Norad's report shows that Grameen Bank transferred a total of NOK (Norwegian Kroner) 608.5 million to its sister company Grameen Kalyan in 1996. Norway's share in it was approximately NOK 170 million.The Norwegian Embassy in Dhaka reacted immediately as soon as it came to know about the transfer in 1997. In the embassy's view, the transfer was not done in accordance with the agreement. The matter was raised before Grameen Bank. Following negotiations, it was agreed in May 1998 that NOK 170 million was to be transferred back from Grameen Kalyan to Grameen Bank.The issue came to the fore recently after Norwegian National TV, NRK ran a series of documentaries early this month on micro-credit with mentions of Grameen's transfer of funds to Grameen Kalyan.On December 3, Grameen Bank in a statement denied any wrongdoing and said it had transferred $96 million of aid to Grameen Kalyan and had it back as loan the same day to enhance funds for micro-borrowers.Nobel Laureate Prof Muhammad Yunus, founder of the bank, has defended himself saying this had been done to ensure maximum transparency and responsible use of the Bank's revolving fund.
The whole episode took place about one and a half decades ago. And then it was presumably ironed out, as the documentary showed a compromise had been reached concerning transfer of the funds Norway granted to Grameen Bank. Under the agreed compromise, 170 million Norwegian Kroners was transferred back to the Bank.Some local media and an online news agency picked up the issue. They gave a new twist to the event alleging that Yunus had "siphoned off" the fund.
ALLEGATIONS AGAINST GRAMEEN BANK
The documentary claimed the Norwegian embassy in Dhaka at a meeting with the bank on December 3, 1997 learnt about the May 7, 1997 agreement between the Bank and Grameen Kalyan. The deal was made effective on December 31, 1996 for transfer of funds of Tk 3.914 billion.
In a letter to Yunus on December 15, 1997, the embassy said: "In line with the agreement, Grameen Bank transferred all funds accumulated up to December 31, 1996 received from donors for revolving funds, to Grameen Kalyan, which on the same date transferred the amount to Grameen Bank as loan.
Of the amount, Tk 1.927 billion was related to the revolving funds for housing loans. Grameen Kalyan is in fact a spin-off created in 1996 by Grameen Bank, which set up an internal fund called Social Advancement Fund (SAF) by imputing interest on all the grant money it received from various donors.
SAF has been converted into a separate company to carry out social advancement activities such as education, health and technology among Grameen borrowers. It has 30 health clinics across the country. Most of these are attached to Grameen Bank branches.
The letter, signed by Ambassador Hans Fredrik Lehne, said: "The agreement concerning these transactions has not made provisions for any interest rates to be charged for this part of the loan, nor any terms of repayment."
The agreement was signed between the governments of Norway and Bangladesh on November 30, 1994 to support Grameen Bank's Phase IV project.
Annex 1, clause 4 of the agreement said: "The amount of the Grant used for housing loans will be used as a revolving fund."
The Norwegian embassy was concerned that it had not been informed about the agreement between the two organisations. It said, "The agreement was contrary to the quoted clause of the agreement between the governments."
It observed that the Grameen Bank accounts as of December 31, 1996 did not reflect any revolving fund for housing loans in operation under the Bank.
The embassy said "The ownership of Grameen Kalyan is of another nature, and Norway has not entered into an agreement with Bangladesh to provide funds to Grameen Kalyan for lending to Grameen Bank".
"The agreement has further left uncertainty about future repayment of the loan to Grameen Kalyan, since it is not regulated by the agreement.
"The agreement is also silent about Grameen Bank's use of the loan from Grameen Kalyan."
In the light of it, the embassy considered the agreement between Grameen Bank and Grameen Kalyan "as a change which affects two agreements between the two governments to support Grameen Bank."
It requested Yunus to explain in writing "why Grameen Bank entered into the agreement with Grameen Kalyan, and of the consequences for the owners of Grameen Bank and the beneficiaries of the housing loans."
GRAMEEN'S RESPONSE TO ALLEGATION
Immediately after the report, Grameen in a statement said there was no wrongdoing in the agreement between Grameen Bank and Grameen Kalyan.
The Grameen Bank Board made the decisions with due deliberation, good faith, and good intentions to benefit the poor. The actions taken by the Board were viewed as the best use of the funds at the time and a way to ensure Grameen Bank would remain financially accountable for the money and that the borrowers received the most possible benefit from donors' grants.
For the grant that Grameen Bank received from Norad and other donor agencies under its 3rd extension phase, Grameen Bank and donors agreed that a 2% interest rate would be fixed on the grant and that interest would be used to create a Social Advancement Fund (SAF) for the welfare of Grameen Bank borrowers and employees. "The creation of SAF was our suggestion, donors happily agreed to it."
Grameen Bank believed that if the SAF was kept within Grameen Bank and managed by the Bank then it would not receive the attention it deserves. The core activity of Grameen Bank, the lending program, would always get precedence. Grameen Bank may not pay sufficient attention to create welfare-based programmes for its members and employees.
Moreover, Grameen's tax exemption period expired on 31st December, 1996. At that time it was uncertain whether the government would extend the tax exemption period after 31st December, 1996. If the government would not extend the period, the contribution to the Social Advancement Fund as expenses would not be considered as an expenditure of Grameen Bank. As a result, 40% tax would have been imposed on contribution to Social Advancement Fund. It might compel Grameen Bank to reduce or stop charging 2% interest on revolving fund to contribute to SAF, which would be a violation of the agreement with donors. "Prof Yunus explains this in his letter dated January 8, 1998 which we attach with this statement."
Under these circumstances, the need for a new organisation emerged. This led to the creation of Grameen Kalyan as the dedicated organisation to utilise the interest income.
Empowered by a board decision and executing an agreement between Grameen Bank and Grameen Kalyan under which, an endowment to the extent of Tk 3,917 million and 14 thousand was created by simultaneous notional "transfer" of money. Grameen Kalyan was never given the control and possession of the fund. This simultaneous transfer and Grameen Bank receiving it back in the form of a loan, created an opportunity to charge interest on this loan. That interest income was earmarked to finance borrowers under Social Advancement Fund (SAF) as agreed by the donors earlier within the Bank. It was a financial innovation to benefit the poor. Grameen Kalyan received 2% percent interest on the money. This money was to be used to provide education and other services to the borrowers and employees of Grameen Bank.
The actions taken by the Board, which is comprised of 9 elected representatives of Grameen Bank borrowers, and three senior representative of the government, were viewed as the best use of the funds, a way to ensure Grameen Bank would remain financially accountable for the money while still ensuring that the borrowers received the most possible benefit from donors' grants. Afterwards not only Norad's money, but the 100% of all donor's money to the extent of Tk 3,474 million and 501 thousand was "transferred back", from Grameen Kalyan to Grameen Bank, although the money was always in the Grameen Bank's account. Only SAF fund money amounting to Tk 442 million and 512 thousand remained with Grameen Kalyan as it was created out of the interest.
Some print and electronic media reported that Grameen Bank transferred Tk 7 billion to Grameen Kalyan, which is absolutely false. The Bank transferred to Gameen Kalyan Tk 3,917 million and 14 thousand as mentioned before and transferred back Tk 3,474 million and 502 thousand, which is stated earlier. These can be verified through Grameen Bank's annually audited accounts.
"If we convert the aforesaid amount at the prevailing exchange rate of 1996, then the 'transfer' stands at about US$ 96 million and the 'transfer back' stands at approximately US$ 85 million." Thus all the donors' money was transferred back and only US$ 11 million remained with Grameen Kalyan as it was created out of interest. So the report where it mentions that Grameen Bank transferred US$ 100 million and transferred back only US$ 30 million is completely false.
All necessary entries had been taken in the books of accounts of Grameen Bank to replace the transfer, though no physical fund transfer took place, as the fund was with Grameen Bank all along. The fund in question never went out of the Grameen Bank's account and the question of Prof Yunus siphoning this amount is false and baseless. All these talk about siphoning off are just empty words for sensationalism.
According to the management and board of Grameen Bank, there was no violation of any provision of the agreement with Norad. It was a matter of differing views on the subject. Norad considered it a departure from the provision of the agreement, while Grameen Bank thought it was done within the agreement. "Grameen Bank did not want go into battle on this issue and so jeopardise our excellent relationship. Grameen Bank reversed its decision and restored the status quo."
The concerns brought up by Norad and the Norwegian government were treated with the utmost seriousness by Grameen Bank and Prof Yunus, and both sides worked to resolve the differing interpretation of a clause in their initial Agreement and arrived at a solution in a satisfactory manner. By restoring the status quo the matter was amicably resolved. It never came back since then. None of the parties involved felt aggrieved.
This is an excerpt from the Norwegian Embassy's letter dated 26 May 1998: H.E. Ambassador Hans Fredrik Lehne and Einar Landmark wrote, "The Embassy highly appreciates your cooperation in solving this issue, and is pleased to have arrived at a solution which is satisfactory for Grameen Bank as well as the embassy".
Reports gave the impression that these transactions were somehow secretive. There was nothing secretive about them. It was a matter of honest disagreement.

Bangladesh get first-ever Asian Games gold

Bangladesh's cricketers won their country its first-ever gold medal in the Asian Games by beating Afghanistan in a thrilling final in Guangzhou. In a see-saw match that attracted a crowd of 2000, 19-year-old Shabbir Rahman smashed two sixes in the penultimate over to decisively swing the match Bangladesh's way and dash Afghan hopes of a gold. A day after upsetting fancied Pakistan in the semi-finals, Afghanistan looked set for a hammering when they slid to 66 for 6 in the 13th over on choosing to bat. Youngsters Asghar Stanikzai (38*) and Shabir Noori (25) then gave Afghanistan's chances a boost with a robust stand that left Bangladesh needing 120 for victory. With 19 needed off the final two overs, Bangladesh were the underdogs but they clubbed 17 runs of the 19th over bowled by offspinner Karim Sadiq, who had excellent figures of 2-0-10-2 before that, to transform the game.

JS adopts Ruppur nuclear power plant resolution

The Jatiya Sangsad on Thursday unanimously adopted a resolution for implementation of Ruppur Nuclear Power Plant Project with an objective to ensure cost effective and environment friendly production of electricity in the country.Lawmaker Mohammad Shahriar Alam of Rajshahi-6 under rules 147(a) of the Rules of Procedures moved the resolution titled "Let nuclear power plant be set up for solving the growing electricity crises of the country".While moving the proposal in the House, Alam said sufficient production and distribution of electricity is the pre-requisite for socio-economic development of the country. Besides, uninterrupted supply of electricity plays a vital role in enhancing living standard of the people and increasing quality of products in all economic sectors, he said.He pointed out that in consideration of insufficient production of power initiatives were taken in the 60s to set up an atomic power plant at Ruppur under Ishwardhi of country's western district of Pubna.The mover of the resolution said Father of the Nation Bangabandhu Sheikh Mujibur Rahman in 1974 took a decision to implement this plant. Again, the capable daughter of Bangabandu, Sheikh Hasina took steps to implement this vitally important project during 1996-2001 period.
"Unfortunately after 2001, no steps were taken to implement this plant which ultimately created severe power crises in the country," he said.Shahariar Alam said, after formation of the grand combine government under the leadership of Sheikh Hasina, the highest priority was given on power sector to attain the "Vision 2021".
He concluded saying that nuclear power production is regarded as the best device to ensure "Energy Security".Commerce Minister Mohammad Faruque Khan, Chief Whip Vice-Principal Abdus Shahid, Maj Gen (retd) Subed Ali Bhuyian, Shamsur Rahman Sarif, Dhirendra Devanath Shambhu, Imajuddin Promanik, Golam Dastagir Gazi, Enamul Haq, Joynal Abedin and Md Ishrafil Alam took part in the discussion.
They lauded Shahriar Alam for moving this vitally important resolution and referred to various measures already taken by the government to enhance power production in the country.They particularly referred that during recent Russia visit of Prime Minister Sheikh Hasina a memorandum of Understating (MOU) was signed for implementation of Ruppur Nuclear Power Production Project.They hope that the nation would get rid of the present burning power crises very soon.

Signal violation blamed for train crash

The preliminary findings of an investigation team revealed that the violation of signal by the drivers of Dhaka-bound Chattola Express is the main reason of the Wednesday's train accident that left at least 14 people dead in Narsingdi.Dhaka Divisional Railway Manager Md Habibur Rahman, the chief of a four-member probe body formed by the Bangladesh Railway to investigate the train accident, told The Daily Star that during their primary investigation they found two reasons that prompted the accident.
The two reasons--Chattola Loco masters (drivers) Rafiq Uddin, 42, and Mayeen Uddin, 30, at first ignored the signal and came to loop line (branch line) from the main track and secondly they also violated the speed limit while plying on the loop line.As per the railway rule, loco masters are permitted to ply their trains with a maximum speed of 16 km per hour. But the loco masters of the Chattola Express ran the train with a speed of 70 km per hour, Habibur added.At least 14 people were killed and over 100 injured, as two trains --Chittagong-bound intercity Mahanagar Godhuli and Dhaka-bound Chattola Express-- collided head-on at Narsingdi rail station Wednesday afternoon.Terming the drivers' stance as 'mysterious', Habibur said the drivers will be questioned in this regard after they regained their consciousness.The drivers are undergoing treatment at the Dhaka Medical College Hospital in an unconscious state.Communications Minister Syed Abul Hossain also termed the train accident as 'unusual'.The committee formed by his ministry will submit probe report within 48 hours, the minister said adding that the report would be made public.
Anyone, if found responsible for the incident, will be brought to justice, he told reports at Setu Bhaban in the morning.Meanwhile, the rescue operation was declared closed as no more body was found at Narsingdi Railway Station, the scene of the occurrence, till filing of the report around 1:00pm.In the meantime, the rail communications on Dhaka-Chittagong and Dhaka-Sylhet routes resumed partially Wednesday night nearly five hours after the accident.The authorities resumed train services on track No-3 since 9:00pm Wednesday while train movements on track number-1 and -2 remained suspended. The rail movements on the two tracks are expected to become normal by 3:00pm, Habibur said.He also said all the trains plying on the routes were delayed for few hours as they were running through a single track.Military personnel along with police, RapidAction Battalion (Rab) and firefighters were working on the spot to clear the routes.Four separatecommittees have so far been formed to investigate the accident.On Thursday, the BangladeshRailway formed two separate committees--one four-member headed by Habibur Rahman and anotherfour-memberheaded by Signal Training and Telecommunications chief of Dhaka.Earlier Wednesday night, two separate committees were formed by the communication ministry and deputy commissioner (DC) of Narsingdi.

Bangladesh ‘worst victim of climate change’

Experts at an international seminar in Rajshahi have viewed that Bangladesh would be one of the worst victims of climate change caused by industrialised nations.Scholars, environmentalists, researchers and teachers from 15 countries took part in the three-day international seminar on climate change and environmental challenges of 21st century, which was concluded on Thursday at Rajshahi University.Dora Marinova, professor of Cartin University of Australia, presented the keynote paper on the negative effect of climate change.Participants said climate change is now a man-made problem with significant long-term economic and social effects across the world.They said Bangladesh is likely to be one of the worst victims of the climate change caused by the industrialized nations. Bangladesh is vulnerable to cyclones, floods and droughts badly affecting more than 100 million people living in rural areas.They said two-thirds of the country is less than five metres above sea level and, in an average year, a quarter of the country is inundated.Bangladesh has experienced severe floods every 4 to 5 years that may cover more than 60 per cent of the country, resulting in significant losses of lives and wealth, they said.The experts said that if the climate change is continuing, Bangladesh will turn into desert land. The winter and rainy seasons will be lost gradually. The diversity of nature will not prevail.They said that because of the effect of climate change the lives and occupations of the people of Bangladesh are gradually going under threat specially the people who are dependable on natural resource.Speakers underscored the need of find out new way to adapt with the effect of climate change.The seminar was organised by the Rajshahi University Environmental Science Institute in collaboration with the Cartin University of Australia.

MV Jahan Moni close to Somali coast

The hijacked Bangladeshi ship was moving towards Somali and on Thursday spotted 400 nautical miles off the Somali coast, said Meherul Karim, general manger of Brave Royal Shipping limited.The ship operating company could neither make any contact with the crewmembers of MV Jahan Moni nor Somali pirates who captured the vessel in the Arabian Sea on Sunday, he added.Mercantile Marine Department of Bangladesh that is monitoring the ship via a satellite said it cannot contact with the ship directly due to lack of some technical facilities, reports our staff correspondent in Chittagong.Meanwhile, Shipping Minister Shahjahan Khan on Wednesday held a meeting at his ministry where the ship's Chairman Md Shahjahan, Shipping Department Director General (DG) Rear Admiral Bazlur Rahman and foreign ministry officials were present among others.The minister at the meeting assured them of proving all kinds of support on behalf of the government, Meherul said.The vessel, with 25 crewmembers and the wife of its chief engineer was spotted 600 nautical miles off the Somali coast on Wednesday and around 850 nautical miles on Tuesday while it was traced some 1,100 nautical miles away from the coast on Monday.

PM asks women to bravely face stalkers

Prime Minister Sheikh Hasina on Thursday advised women to bravely face the stalkers instead of choosing the path of suicide.“Why will you choose such an extreme course? You must learn self-defence,” she said at a function marking the distribution of Begum Rokeya Award 2010 at the Osmani Memorial Auditorium in the city.She blasted a section of women for showing extreme attitude in choosing their attires and also in their demeanor.“One section of women wears too small clothes while another section covers their whole body, even their face and eyes… both are unacceptable. We’ve to maintain our culture and tradition,” she said.
Women & Children Affairs Ministry organised the function as part of their annual programme where State Minister Dr Shirin Sharmin Chaudhury was present as special guest.Addressing the function, the prime minister said it seems that the so-called ultra-modern women “don’t bother to keep their modesty.”

Criticising the other section for covering their whole body with clothes in the name of religion, she said: “Our religion never told us to do so.”In this connection, Hasina said Islam is the religion which pays highest respect to women. She mentioned names of various distinguished women who were indivisibly linked with Islam in its early stage.The prime minister said she has been doing everything keeping to the local traditions and also of Islam. “I never encountered any obstacles.”She, however, was critical of the attitude of confining women only in the house in the name of religion.The prime minister advised the guardians to teach their children, both boys and girls, about morality and customs of the country apart from imparting them religious education.
She also asked the women to strive to realise their rights as rights are never given automatically and hardly realised by mere placing of demands.In this connection, she put special emphasis on women-literacy, saying that only education could give strength to the women.She further said besides education, women also need to attain economic freedom. “The society will advance towards development if women attain economic freedom along side good education.”Later, the prime minister handed over gold medal, certificate and cheque to Ayesha Jafar and Prof Meher Kabir - the recipients of Begum Rokeya Award 2010 - for their contributions in women empowerment and development.National Professor Kabir Chowdhury received the medal, certificate and cheque on behalf of his wife Prof Meher Kabir as she was unable to come to the function due to her illness.

BENGLE TIGER

The sunderban forest project is a Bangladesh Forest Department initiative that started its field activities in February 2005. The idea for creating such a project was first developed during a field survey in 2001, conducted by Md. Osman Gani, Ishtiaq U. Ahmad, James L. D. Smith and K. Ullas Karanth. They realized that the Sundarbans mangrove forest at the mouth of the ganges river contained probably one of the largest populations of wild tigers left in the world. As such, there was an urgent need to start measures that would ensure the protection of this precious area. The Save the Tiger Fund and the United States Fish and Wildlife Service generously donated funds to support the initial phase of research that aimed to collect data on tiger ecology using telemetry, and study the tiger’s environment by assessing its habitat and prey. But management of a wilderness area needs more than just information on the species to be protected. Personnel with skills and resources to implement conservation strategies, and the general support of the country are also required. So from the research base, the project is evolving rapidly to also encompass capacity building and conservation awareness activities. It has been able to do so through the forward thinking approach to management taken by the Forest Department, and the incredible support of the Bangladeshi people. The project is administered by the Forest Department. At the field level, there is a team of 8 persons, made up of Forest Department personnel and one wildlife consultant from the University of Minnesota who advises on research strategies and trains staff.

RABINDRONATH TAGORE

Rabindranath Tagore (Bengle: Robindronath Ţhakur 7 May 1861 – 7 August 1941),sobriquet Gurudev, was a Bengle poet, novelist,  painter and well play writter who reshaped bengle litareture and music. As author of Gitanjali and its "profoundly sensitive, fresh and beautiful verse^, he was the first non-European to win the Nobel prize for litareture in 1913 His poetry in translation was viewed as spiritual, and this together with his mesmerizing persona gave him a prophet-like aura in the west but his "elegant prose and magical poetry" still remains largely unknown outside the confines of Bengal

A pirali brahmin from Calcutta, Tagore was already writing poems at age eight ^. At age sixteen, he published his first substantial poetry under the pseudonym Bhanushingho  and wrote his first short stories and dramas in 1877. Tagore denounced the british raj and supported independence. His efforts endure in his vast canon and in the institution he founded, visva varati university .
Tagore modernised Bengali art by spurning rigid classical forms. His novels, stories, songs, dance-dramas, and essays spoke to political and personal topics. Gitanjali (Song Offerings), Gora (Fair-Faced), and Ghare-Baire  are his best-known works, and his verse, short stories, and novels were acclaimed for their lyricism, colloquialism, naturalism, and contemplation. Tagore was perhaps the only litterateur who penned anthems of two countries - jana gana mana the Indian national anthem and AMAR SONER BANGLA the Bangladeshi national anthem.