Nine borrower-directors of Grameen Bank yesterday rejected Finance Minister AMA Muhith's recent comment on the transparency of the electoral process at the microlender.
Muhith on Saturday said Nobel laureate Prof Muhammad Yunus had picked the directors through a so-called election in the last 30 years, terming the process an utterly undemocratic practice.
“To stop this undemocratic practice, the new rules have entrusted Bangladesh Bank with power [to hold the elections],” the minister said.
In the first week of this month, the government issued the new Grameen Bank (Election of Directors) Rules 2014, giving the central bank the authority to hold elections to pick nine independent directors. Before this, Grameen Bank officials used to conduct the elections.
"We are very surprised at the comment of the finance minister. We are also surprised to see the ignorance of the minister on how the election to the governing body is held," the nine directors said in a joint statement.

In the last three decades, the election for the nine directors from the members of the bank has been held under the rules scripted by the government. So far 10 elections were held, electing borrower-directors for three years in each term.
The statement said the government-appointed chairman and two other directors to the 12-member board have always attended the board meeting during elections.
"They have always praised the elections and welcomed new board members," it said, adding that there was no way for Prof Yunus to hand-pick people for the board.  
The nine directors have to face elections at branch, area and zone levels before being elected.
The statement said the government has kept the rules almost the same, except taking away power from Grameen Bank to organise the elections.
"Someone might be determined to destroy Grameen Bank. The law was changed as it had not been possible to ruin the bank with the help of the law of Grameen Bank," the directors said.
The elected directors said the process to nationalise the bank has started with the new law.
"The previous law did not allow the government to take the control of the bank in its hand."
The 86 lakh members and borrowers of Grameen Bank own 75 percent share of the Nobel Peace Prize winning bank, while the government controls the rest.
The nine directors said there was no way the election process would take a political shape, given the way the election commission will be formed and the polls under the supervision of the central bank be conducted.
"Partisanship, violence and money will make their way into the elections. As a result, Grameen Bank will be destroyed. Indiscipline will affect lending and deposit collection," the directors said.