How Md Yunus Syphoned Money from Bangladesh’s Economy

Muhammad Yunus is hailed as a hero of microfinance. But beneath the praise lies a massive financial empire built on donor money and misuse of public trust. How MD Yunus Syphoned massive money from Bangladesh’s economy. Let’s pull back the curtain.

Grameen Bank started as a microcredit experiment in 1976. By 1983, it became a statutory public authority. But instead of staying true to its mandate, helping the poor, it became a launchpad for a private empire grew into a sprawling network of 46+ institutions.

Yunus used Grameen Bank’s name and reputation to raise millions in donor funds, then diverted that money into a web of private entities he and his allies controlled: Grameen Kalyan, Grameen Telecom, Grameen Fund, and dozens more.

From 2003–2022, Grameen Telecom earned BDT 10,890 crore in profit. A large chunk of this was quietly funneled into entities Yunus controlled, including Kalyan (BDT 222 cr) and Grameen Trust (BDT 301 cr). Who really benefited?

Grameen Trust received BDT 301 crore from Telecom and redistributed BDT 439.58 crore to 17+ Yunus-linked orgs. Many were unprofitable, but funding continued.

Grameen Kalyan, started with an illegal BDT 69.82 crore grant, pumped money into 14 Yunus-affiliated entities. Total: BDT 192.14 crore. These investments yielded poor returns, but massive control

In 2011, Kalyan and Telecom signed a deal worth BDT 53.25 crore. Grameen Kalyan was formed with Grameen Bank money. So the fund used was originally Grameen Bank’s SAF. This let Yunus bypass Grameen Bank and channel profits into his network. Classic tax-shielding?

Severe mismanagement: Grameen Fashion, Received BDT 8.75 cr, lost BDT 70 cr. Grameen Network, Lost BDT 15 cr in 2018–19. Grameen Solutions, Funded despite 20+ years of failure. Losses were frequent. Oversight was absent.

From 2000–2023, Dr. Yunus received BDT 118.27 crore into personal accounts. Nearly BDT 48 crore arrived during the 2006–08 political transition. Why so much and from where?

Income Tax Discrepancies: In 2005–06, Yunus reported BDT 97.46 crore in foreign income. Actual: BDT 115.98 crore. That’s BDT 18.94 crore underreported, a clear case of tax evasion.

From 2010–15, Yunus “donated” BDT 86+ crore to personal trusts. The twist? Audits show the money stayed with him or was returned via interest deposits.

Grameen-linked entities used public and donor money for: Office rentals while owning property. Over-invoiced admin costs. Fake travel expenses. This wasn’t social business, it was systematic resource siphoning.

Authorities found Yunus repeatedly used trusts to reduce tax, recycle funds into FDRs, and cover personal expenses under “foreign travel.” All while showing declining declared income. A deliberate tax avoidance scheme.

Agreement stating Kalyan invested BDT 53.25 crore in Telecom was signed in April 2011, but the funds were transferred earlier. This raises serious questions: Was the deal retrofitted to justify unlawful dividend flow?