The government is going to form a committee to prepare a set of recommendations about the future operation of Grameen Bank (GB) include the appointment of its new Managing Director.

The ministry of finance will announce the three-five member committee including its chairman soon after getting approval from the Prime Minister Sheikh Hasina, a senior official of the ministry said. Earlier the ministry has prepared a proposal to this effect.

The official also said the committee will also be asks to implement the recommendations of the Prof AK Monowar Uddin Ahmed review report on GB, the pioneering microfinance institution of the world.

Earlier, Deputy Managing Director of GB, Mohammad Shahjahan, appointed an acting managing director for the bank on August 16, 2011.

Sources in the finance ministry said the decision to form a committee was finalised at a meeting last week, presided over by finance minister AMA Muhith at his secretariat office.

Bangladesh Bank (BB) sources said BB will have to appoint an administrator if the financial institution fails to appointment its MD within three months as per the existing Bank Company Law. A BB authority has appointed administrators in different commercial banks during last 10 years, sources also said.

The provision 14(1) of Grameen Bank ordinance says that the government or Bangladesh Bank is the ultimate controlling authority regarding the appointment and removal of the managing director of Grameen Bank, sources said.

GB Chairman Khondaker Muzammel Huq earlier told newsman that the bank has failed to select a new MD due to various complexities in last seven months.

Earlier, on March 2, 2011, Bangladesh Bank removed Nobel Laureate Muhammad Muhammad Yunus from GB, which he fathered in 1983, alleging that he was overaged to hold the position as per the GB ordinance.

Banking Division Secretary Shafique Rahman Patwary also told daily sun last week that a committee will be formed soon to appoint an MD and to implement the recommendations of the review report on the bank.

“The issue of the bank’s interest rates on credits to the poor people should be looked into by the proposed committee and will recommend on this issues,” he said.

The secretary also said the financial condition of the bank was good compared to that in previous years.

“We have already forwarded GB chairman’s appeal of corporate tax exemption to the National Board of Revenue”, he also said.

Meanwhile, Grameen Bank Chairman Khondaker Muzammel Huq sent a letter to finance Minister AMA Muhith last week seeking exemption of all types of taxes of the bank for four years from 2012 to 2015. As per rules, Grameen Bank will have to pay 42.5 per cent corporate tax on its yearly profit.

GB earned Tk 8.4 billion in 2011, while the income was 7.6 billion in 2010.

The Daily Sun/Bangladesh/ 26th Feb 2012