Nobel Laureate Yunus Sentenced to 6 Months in Jail in Bangladesh, Denies Labor Law Violations

In Bangladesh’s capital, a labour court issued a six-month jail sentence to Muhammad Yunus, a Nobel Peace Prize laureate, for violating the country’s labour laws. Present during the court proceedings, Yunus was granted bail and given 30 days to appeal the verdict. The case revolves around Grameen Telecom, an organization founded by Yunus as a non-profit entity.

Head of Dhaka’s Third Labour Court, Sheikh Merina Sultana, outlined in her verdict that Yunus’ company had breached Bangladeshi labour laws. Allegedly, 67 Grameen Telecom workers, slated to become permanent employees, weren’t transitioned accordingly. Additionally, a “welfare fund” aimed at supporting staff in emergencies was never established as per commitments. Sultana also highlighted that, as per company policy, 5% of Grameen’s dividends should have been allocated to the staff, which was neglected.

Also Read: Congress Backs Truckers’ Protest Against New Hit-and-Run Law, Accuses Government of Penalizing the Poor

The verdict found Yunus, as the company’s chairman, and three other directors guilty, sentencing each to six months in jail. Yunus was also fined 30,000 takas (approximately USD 260). Expressing discontent, the 83-year-old economist mentioned plans to appeal, emphasizing, “We are being penalized unjustly. It’s my fate, and the nation’s. We accept this verdict but will continue to contest it.”

Criticism was voiced by a defence attorney, Abdullah Al Mamun, who labelled the ruling unfair and against the law, while the prosecution viewed the verdict positively, citing it as anticipated and a deterrent for business owners violating labour laws.

Grameen Telecom, holding a 34.2% stake in Grameenphone, Bangladesh’s largest mobile phone company, has connections with Norway’s Telenor. Concerns arise regarding potential implications on Bangladesh’s relations with the US due to Yunus’ ties with Western political elites, especially in the United States. Foreign Secretary Masud Bin Momen, however, asserted that such issues involving individuals might not affect state-to-state relations.

Also Read: Parliament security breach: Court seeks response from Delhi Police on accused’s bail plea

Muhammad Yunus faces additional charges related to alleged corruption and embezzlement. His supporters claim harassment, attributing it to strained relations with Prime Minister Sheikh Hasina, which the government denies. The verdict arrives amidst Bangladesh’s upcoming general election on January 7, marked by the opposition party’s boycott, citing a lack of confidence in the administration’s fairness.

Earlier, global leaders and Nobel laureates urged Hasina to halt legal actions against Yunus, expressing concerns about democracy and human rights in Bangladesh. Hasina responded by inviting international experts to assess the legal proceedings against Yunus.

Yunus, known for founding Grameen Bank in 1983, which provides small loans to entrepreneurs outside the conventional banking system, has faced scrutiny from Hasina’s administration since 2008. Tensions escalated when Yunus contemplated forming a political party in 2007 during a period of military-backed governance, leading to Hasina’s disapproval. Accusations against Yunus by Hasina included exploiting poor rural women and questioning politicians’ motives for monetary gains. Subsequently, investigations into Grameen Bank’s operations began, resulting in Yunus’ removal as managing director in 2011 and subsequent legal battles, including charges related to receiving funds without government permission.