Dr Yunus’s Billion-Dollar Fraud Empire Behind The Nobel Mask

Beyond the Nobel Mask: How Muhammad Yunus Built a Billion-Daire Empire Through Fraud, Tax Evasion, and State Looting and Political Conspiracy

 

– Saif Al Islam

Dr. Muhammad Yunus is Bangladesh’s first Nobel laureate. From 1976 to 1978, through a project at Chittagong University, the journey of rural banking began with landless women. Later, he established Grameen Bank, through which he and the bank jointly received the Nobel Peace Prize in 2006. Since receiving the Nobel Prize, Dr. Muhammad Yunus has become embroiled in various controversies. In 2006, he formed his own political party. Many believe he also played a role behind the “One-Eleven” (2007 political caretaker government) episode.

However, recently uncovered information and allegations of various irregularities have torn off the mask of that legend, revealing the face of a self-centered, selfish, and cunning businessman. Hidden behind the prestige of the Nobel Prize and the persona of a messenger of peace was a massive conspiracy of financial irregularities and looting of state resources. In this editorial, we will highlight that dark chapter of Dr. Yunus’s life, which has eroded the nation’s trust and proves that his pursuit was not for wealth, but rather an epic saga of fraud and forgery.

An examination of sources shows that Dr. Yunus started his life as an economics teacher. However, from the moment he came into contact with state power, his primary objective became self-aggrandizement. During his one-and-a-half-year tenure as the Chief Adviser of the caretaker government, he did little for the country but took ample opportunities and benefits for himself. However, analyzing Yunus’s life reveals that this 18-month period of power abuse was not an isolated incident; rather, throughout his life, he built mountains of wealth by doing business with government funds. Under the guise of poverty alleviation through non-profit organizations, he embezzled state assets and became wealthy himself.

Dr. Yunus is a Nobel Peace Prize winner. He served as the Chief Adviser of the caretaker government for one and a half years.

Surpassing all else, he will be considered a self-centered, selfish, and greedy individual. Whether he did anything for the country or not while in charge of the caretaker government, Dr. Yunus certainly availed himself of various opportunities and benefits. However, analyzing Yunus’s life reveals that just as he abused state power to take various financial benefits for himself during his 18 months as Chief Adviser, he similarly built mountains of wealth throughout his life by doing business with government funds. By establishing non-profit organizations in the name of poverty alleviation, he became wealthy using state resources.

Muhammad Yunus remains silent on the country’s problems. He is absent during national crises or celebrations. He becomes vocal abroad for his personal interests.

He feels no remorse over child deaths in Gaza (Hamas), but was heartbroken and issued a message of condolence for the death of Trade Turner. He had announced that he would send poverty to a museum through microcredit. Poverty hasn’t gone to a museum, but he has certainly shown the magic of money and wealth. Now, raising the cry of ‘social business’, he lectures around the world.

 

Whether social business is introduced or not, his wealth has expanded. He has risen from teacher to billionaire. But his wealth has grown by plundering the assets of the poor, cheating the government, and embezzling state resources. Dr. Muhammad Yunus, a professional economist, won the Nobel Prize for Peace.

He began his research on microcredit activities in Jobra village. Eventually, claiming to make self-reliant these poor and destitute people, he approached the Bangladesh government for help. It was upon Dr. Muhammad Yunus’s proposal that the Ershad government established Grameen Bank. Dr. Yunus took the job of Managing Director there. In 1983, it started its journey as a legal and independent bank. The government established Grameen Bank through an act of law and appointed Dr. Muhammad Yunus as its Managing Director.

On September 4, 1983, the government issued an ordinance called the Grameen Bank Ordinance (Ordinance No. 46). At that time, Grameen Bank started with a capital of only Tk 3 crore. Most of this money, Tk 1.80 crore, came from the government, and Tk 1.20 crore came from the borrowers. That means Dr. Muhammad Yunus had no personal money invested in Grameen Bank. Yet, Yunus used Grameen Bank to gain everything. On paper, the owners of Grameen Bank are the government and the borrowing public. But with his ‘extraordinary’ intellect, Dr. Yunus funneled state and public money into his own pocket. Using Grameen Bank’s funds, Dr. Muhammad Yunus built 28 institutions under his control, and by embezzling Grameen Bank (i.e., government) money, he has become the owner of thousands of crores of Taka.

Since its inception, donor groups have given grants and loans to Grameen Bank. What would Dr. Yunus gain if all the grant money went to the state and the people? Therefore, using the donors’ grant money, he formed the Social Venture Capital Fund (SVCF). On October 7, 1992, a decision was made to form a separate institution with this fund. In 1994, a limited company named ‘Grameen Fund’ was formed. Tk 49.10 crore from that fund was transferred to it. From the very beginning, there was an attempt to bring money from abroad under the guise of Grameen Bank and then divert it. Although Grameen Bank is a government institution, as its Managing Director, Dr. Yunus made all decisions alone. The Board of Directors was constituted in such a way that no one would speak against him. Dr. Yunus exploited this opportunity. The 34th board meeting of Grameen Bank was held on December 19, 1993. In that meeting, a decision was made to form the Social Advancement Fund (SAF) using the grants and loans from donor groups. However, the donors objected to diverting funds from Grameen Bank in this manner. They made it clear that such transfer of funds was fraud. This time, Dr. Yunus adopted a different strategy. Through a formal letter, he stated that it was a wrong decision. He pledged to be careful about this matter in the future. Later, on April 25, 1996, he proposed forming ‘Grameen Kalyan’ at a Grameen Bank board meeting.

The proposal stated that an institution named ‘Grameen Kalyan’ would be formed under the ‘Companies Act 1994’ for the welfare of Grameen Bank’s members and employees. The Grameen Bank board meeting approved this proposal. It is an affiliate of Grameen Bank. That Grameen Kalyan is indeed a branch of Grameen Bank is further clearly proven by its capital formation process. Tk 69 crore was provided to Grameen Kalyan from Grameen Bank’s Social Advancement Fund (SAF). The Memorandum of Association of Grameen Kalyan also provides evidence of its connection with Grameen Bank. According to the Memorandum of Association, two of the nine members of Grameen Kalyan’s Board of Directors would be nominees of Grameen Bank. Furthermore, the Chairman of Grameen Kalyan would be a nominee of Grameen Bank. As the nominee of Grameen Bank, Dr. Yunus became the Chairman of Grameen Kalyan. Subsequently, Grameen Kalyan became Dr. Yunus’s ‘golden goose’. Through Grameen Kalyan, he established multiple institutions. These institutions are:

 

1. Grameen Telecom Ltd.
2. Grameen Distribution Ltd.
3. Grameen Shikkha
4. Grameen Knitwear Ltd.
5. Grameen Byabastha Bikash
6. Grameen IT Park
7. Grameen Capital Management
8. Grameen Solution Ltd.
9. Grameen Danone Foods Ltd.
10. Grameen Health Care Services Ltd.
11. Grameen Star Education Ltd.
12. Grameen Fabrics & Fashion Ltd.
13. Grameen Agriculture Foundation.

 

On the other hand, more institutions were formed through the Grameen Fund, which was modeled on Grameen Kalyan. These are:

 

1. Grameen Capital Management Ltd.
2. Grameen Solution Ltd.
3. Grameen Udyog
4. Grameen ITech Ltd.
5. Grameen Cybernet Ltd.
6. Grameen Knitwear Ltd.
7. Grameen IT Park
8. Tulip Dairy & Product Ltd.
9. Globe Kids Digital Ltd.
10. Grameen Bitech Ltd.
11. Grameen Cyber Net Ltd.
12. Grameen Star Education Ltd.
13. Rafiq Autovan Manufacturer Ltd.
14. Grameen Information Highway Ltd.
15. Grameen Byabastha Seba Ltd.
16. Grameen Samagri.

 

The interesting thing is that ‘Grameen Kalyan’ and ‘Grameen Fund’ were formed using Grameen Bank’s funds and board decisions. All the institutions formed through these two entities are legally subsidiaries of Grameen Bank. But until 2020, although Grameen Bank had representatives on the boards of Grameen Fund and Grameen Kalyan, since 2021, there have been no representatives from Grameen Bank in these two entities. According to the decision of the Grameen Bank Board of Directors, the Chairman of these two institutions would be a person nominated by Grameen Bank. However, Dr. Muhammad Yunus still holds the position of Chairman of Grameen Kalyan and Grameen Fund. This is a strange form of fraud, building privately-owned institutions with state funds.

Among the 28 institutions formed through Grameen Kalyan and Grameen Fund, all except Grameen Telecom are loss-making. Grameen Telecom owns 34.2% shares of Grameenphone, the country’s largest mobile network. In 2022, after paying tax and VAT, Grameenphone made a net profit of Tk 3,009.16 crore. That means Grameen Telecom receives a net profit of over Tk 1,000 crore annually from Grameenphone. Other than squandering Grameenphone’s dividends, Grameen Telecom has no other function. If one observes closely, it becomes clear that Dr. Yunus is the Chairman of all the institutions formed by diverting money from Grameen Bank through Grameen Kalyan. Moreover, people extremely loyal and trusted by Dr. Yunus are appointed as Managing Directors of these institutions. A major objective behind establishing these institutions was to embezzle Grameen Telecom’s profits and evade income tax.

Grameen Telecom, violating Sections 28 and 29 of the Companies Act 1994, has been distributing 42.6% of its dividend income from Grameenphone Limited to Grameen Kalyan, even though Grameen Kalyan is not a shareholder of Grameenphone Limited. According to the law, Grameen Telecom must enjoy its entire dividend income as its own revenue and pay tax at the applicable corporate rate for the relevant fiscal year.

 

However, a review of their audited accounts shows that they paid nearly half of their dividend income from Grameen Telecom to Grameen Kalyan at only 10-20% Advance Income Tax (AIT). Yet, according to the law, the applicable corporate tax rate for them was between 35% and 37.5%. This difference between the corporate rate and the dividend tax rate constitutes tax evasion, especially because Grameen Kalyan is not entitled to Grameen Telecom’s dividend income under any existing law. Adding up all the taxes Grameen Telecom has evaded since its inception amounts to approximately Tk 1,000 crore. This calculation of tax evasion is only for Grameen Telecom. Widespread tax evasion has also occurred for years, almost as a matter of routine, in other companies and institutions controlled by Dr. Yunus and in his personal income tax. If the tax evasion incidents of other Yunus-controlled entities are calculated, the amount would be huge. A case was filed over this matter. The High Court ordered Yunus to pay an additional Tk 1,200 crore in unpaid taxes. At that time, Yunus had said the court ordered him to pay taxes, and he would pay. He claimed he did not evade taxes but sought clarification from the court. However, after the political change on August 5th (context: reference to a specific date, likely related to a change in government), Dr. Yunus abused his power to have that tax evasion case withdrawn.

 

During its 28 years of operation, Grameen Telecom evaded approximately Tk 1,000 crore in taxes. Throughout this long period, Dr. Yunus evaded between 15% to 25% of taxes each year. From 1997 to 2005, Dr. Yunus evaded 25% of taxes annually at Grameen Telecom. The tax rate then was 35%, but he paid only 10%. From 2006 to 2008, Dr. Yunus evaded 20% taxes annually at this institution. The tax rate was 35%, but he paid only 15%. From 2009 to 2022, 15% tax evasion occurred annually at Dr. Yunus-controlled Grameen Telecom. The tax rate during this period was 35%, but he paid only 20%.

It is noteworthy that Dr. Yunus filed several cases and writ petitions in the country’s courts to suppress his tax evasion matters. The objective of these cases and writs was to prevent Dr. Yunus from having to face the law on tax evasion issues. In every instance concerning Dr. Yunus’s taxes, his evasion has been documented and proven. Investigations conducted by relevant state and regulatory authorities into Dr. Yunus’s tax evasion have undeniably proven that Dr. Yunus himself and the institutions under his control, under his direction, engaged in the crime of tax evasion. During his one-and-a-half-year rule, Yunus halted all ongoing NBR (National Board of Revenue) cases and investigation proceedings against him.

Dr. Muhammad Yunus has three bank accounts. These three bank accounts are: 1. Southeast Bank (Account No. 0212100020061), 2. Standard Chartered Bank (Account No. 18121274701), and 3. Rupali Bank (Account No. 0489010008096). Among these three accounts, the one opened in 2000 at Southeast Bank (Account No. 0212100020061) appears to be his primary personal bank account. Remittances totaling Tk 118.27 crore arrived in this account from 2000 to 2023. The majority of these remittances, Tk 47.89 crore, came during the army-backed caretaker government period. During that same time, Dr. Muhammad Yunus also attempted to form a political party. The question arises: did foreign money come to Yunus to implement the conspiracy of the ‘One-Eleven’ political change?

 

Analysis of Dr. Muhammad Yunus’s tax file reveals that in his tax file for the fiscal year 2005-06, the Nobel laureate Dr. Muhammad Yunus mentioned receiving total remittances of Tk 97.04 crore. However, during that time, the remittances received in his personal Southeast Bank account amounted to Tk 115.98 crore. Meaning, he concealed information about receiving Tk 18.94 crore in remittances from the government in his personal tax file with the intent to evade taxes. This clearly constitutes the offense of money laundering. Debit analysis of Dr. Muhammad Yunus’s personal account reveals that the major portion of the undisclosed funds was transferred by him to two other accounts at Southeast Bank: Tk 11.14 crore to the bank account of Travel International Ltd. (Account No. 733000003339) at Southeast Bank’s 15th branch, and Tk 2.52 crore to an account (Account No. 90303160910) at branch 0035. Money is transferred from one bank to another in this way for the purpose of money laundering.

With the aim of evading taxes, he concealed information about the substantial remittances received in his personal Southeast Bank account in his personal tax file across various tax years. For the fiscal year 2007-08, he received remittances of Tk 15.11 crore, but he declared Tk 9.14 crore in his tax file. The difference between his personal account and the tax file here is Tk 5.96 crore. For the 2008-09 tax year, he received remittances of Tk 11.83 crore, yet he mentioned Tk 10.40 crore in his tax file. Here he concealed information worth Tk 1.42 crore. For 2009-10, he received remittances of Tk 20.95 crore, mentioning Tk 18.99 crore in his tax file, concealing Tk 1.96 crore. For 2010-11, he received Tk 8.18 crore, mentioned Tk 6.60 crore, concealing Tk 1.58 crore. For 2011-12, he received Tk 5.91 crore, mentioned Tk 4.65 crore, concealing Tk 1.25 crore. For 2012-13, he received Tk 8.37 crore, mentioned Tk 6.50 crore, concealing Tk 1.86 crore. For 2013-14, he received Tk 10.55 crore, mentioned Tk 7.98 crore, concealing Tk 2.56 crore. For 2014-15, he received Tk 7.14 crore, mentioned Tk 5.16 crore, concealing Tk 1.97 crore.

In every tax year since 2000, Dr. Muhammad Yunus received remittances from abroad and concealed information worth crores of Taka, thereby evading government taxes. From the 2005-06 tax year up to the current tax year, aiming to evade government taxes, he has concealed remittance information totaling Tk 18.94 crore. Interestingly, in the fiscal year 2020-21, Dr. Yunus withdrew almost all the money from his personal account to form the ‘Yunus Trust’. Trust money is tax-free. He did this based on that calculation. However, a 15% tax is applicable for such funds, which he did not pay. It was due to this tax evasion that a case was filed against him. He lost this case.

Dr. Yunus formed the trust to evade taxes, but only one activity is observable for it: all expenses of Dr. Yunus and his family are borne from this trust’s money. This is also a type of fraud. The trust does none of the social welfare activities it pledged to do. So, is this trust solely for living a luxurious life by evading taxes? How can a Nobel laureate person commit such fraud against the state and its people?

Just as Yunus embezzled state funds for his own benefit throughout his life, he did the same when he came to power. He did nothing for the country during his 18 months in office; everything he did was for himself. After Dr. Yunus assumed the role of Chief Adviser, various Grameen-affiliated organizations started receiving government approvals and benefits. During the caretaker government’s tenure, Grameen-affiliated organizations received several benefits including registration, approvals, and tax exemptions. Among these, a private university named Grameen University in Dhaka received approval. Additionally, Grameen Employment Services received a license for manpower export, and Grameen Telecom received permission to launch a digital wallet. Furthermore, Grameen Bank’s taxes were waived, and the government’s shareholding in the bank was reduced from 25% to 10%.

 

The rapid dismissal of cases against Dr. Yunus and his colleagues regarding labor law violations and money laundering has raised questions about transparency. The private higher education institution named Grameen University will operate under the Grameen Trust. It received approval within three months of submitting the application on December 17, 2024. This is the first private university approved during the caretaker government’s tenure. In January 2025, Grameen Employment Services Ltd. (GESL), founded by Muhammad Yunus, received a profitable manpower export license (licence no. 2806) from BMET, and in April, it obtained membership in the Bangladesh Association of International Recruiting Agencies (BAIRA). Shortly after Dr. Yunus took over as Chief Adviser, an affiliate of Grameen Telecom, ‘Samadhan Services Limited’, received approval on September 2, 2024, to operate as a Payment Service Provider (PSP). After obtaining a No Objection Certificate (NOC) from Bangladesh Bank, the entity received the PSP license. On April 17, 2025, the caretaker government decided in a meeting to issue a new ordinance for Grameen Bank, reducing government ownership from 25% to 10%.

 

The meeting was presided over by Chief Adviser Muhammad Yunus. Under the new ordinance, shareholders’ ownership was increased from 75% to 90%, and out of the 9 elected members on the board, 3 directors would be nominated, from whom one would be elected as board chair. This abolished the government’s role in appointing the chair. Two months after Dr. Yunus became Chief Adviser, on October 10, 2024, the National Board of Revenue (NBR) granted Grameen Bank a tax exemption for five years until 2029. On the other hand, three days after Dr. Yunus assumed the role of Chief Adviser on August 8 last year, a Dhaka court acquitted him in a money laundering case. Furthermore, the day before taking oath, in a case regarding labor law violations where Yunus and Grameen Telecom’s directors had been sentenced to six months in prison, the court also acquitted them.

 

Thus, whenever Yunus has gotten the opportunity, he has increased his wealth through forgery and fraud. When he received the Nobel Prize in 2006, Yunus said poverty would go to a museum. But the poverty rate has increased further over the last 26 years. Especially during Yunus’s rule, the number of poor people in Bangladesh increased the most. But so what? During this time, Yunus became even wealthier. And this wealth of his was not earned through hard work; his mountain of wealth was acquired solely through fraud.

Just as he embezzled state funds throughout his life, he did the same when he came to power. When he received the Nobel Prize, he announced that poverty would go to a museum, but in reality, during his rule, the number of poor people increased. He became even wealthier. This wealth is not hard-earned; it is acquired solely through fraud, forgery, and the looting of state resources.