Professor Dr Muhammad Yunus, once hailed globally as the pioneer of microfinance and a beacon of social business, is now at the centre of growing controversy in Bangladesh. The Nobel Peace Prize laureate is facing a slew of serious allegations ranging from labor exploitation and tax evasion to financial corruption and undue influence over state institutions— raising questions about the integrity of his business empire and its implications for national governance.
Sources in the Bangladesh Army’s intelligence wing, which is at loggerheads with Yunus-led government on different issues, said, Yunus’s company Grameen Communications has been repeatedly accused of violating the Bangladesh Labor Act 2006 (amended 2018), particularly concerning workers’ rights to unionise.
“In 2019, the Bangladesh Labor Court found that workers attempting to form a trade union were illegally harassed and dismissed, a clear violation of labor rights. The International Trade Union Confederation (ITUC) has raised alarms multiple times over what it describes as systemic suppression of labor organising within Yunus-affiliated entities,” said an Army intelligence officer.
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Critics argue that this exploitation sharply contradicts Yunus’s global image as a pro-poor reformer, exposing a deep rift between rhetoric and reality.
Investigations by the Bangladesh Finance Ministry and the National Board of Revenue (NBR) revealed large-scale financial irregularities across Yunus's group of companies.
“In 2023, NBR imposed a fine of Bangladesh Taka (BDT) 111 crore against Grameen Telecom for deliberate tax evasion. The probe by the Bangladesh Financial Intelligence Unit (BFIU) into allegations against Yunus of overseas money laundering in Europe through his NGO-linked ventures has come to a halt as he heads the government now,” said the officer.
This financial misconduct, according to Bangladesh government officials, demonstrates an intentional abuse of the nonprofit framework to facilitate personal enrichment.
Yunus has not only come under fire domestically. International agencies have also questioned his financial conduct.
“In 2011, the Norwegian Broadcasting Corporation (NRK) uncovered evidence that around $100 million in aid, initially granted to Grameen Bank by the Norwegian development agency NORAD, was diverted to other institutions without proper transparency. Though NORAD later accepted explanations provided by Grameen Bank, the episode cast a long shadow over Yunus’s international credibility and brought to light concerns about fund misappropriation,” said an official of Bangladesh government.
Further fueling the controversy are reports of undue influence over government bodies, particularly the Bangladesh Investment Development Authority (BIDA). “Under BIDA Executive Chairman Chowdhury Ashiq Mahmud Bin Harun, Yunus's companies have allegedly received accelerated approval for foreign investment proposals—a privilege not extended to others. A World Bank report published in early 2025 noted that between July and December 2024, at least seven foreign investment agreements involving companies under the Grameen umbrella were fast-tracked, while other investors’ applications remained pending, said the official.
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Analysts argue that such favoritism signals a distortion of the regulatory process, driven by personal and political connections rather than merit or legality. Legal experts and civil society members now warn that the Yunus controversy reflects a larger problem of systemic corporate crime.
“Yunus has used his Nobel laureate image as a shield to bypass scrutiny from the administration, judiciary, and media,” said a senior anti-corruption officer on condition of anonymity, adding, “But the truth is catching up.”
Shakhawat Hossain, an Awami League leader and an American expatriate Bangladeshi businessman said that when a self-styled “social businessman” becomes a multi-millionaire through the exploitation of workers, tax fraud and manipulation of state systems, the term loses its meaning and becomes a tool for elite profiteering.
“From international accolades to courtroom scrutiny, the dramatic transformation of Yunus’s public image is raising urgent questions in Bangladesh and beyond. As investigations deepen, calls are growing for accountability—not just for Yunus as an individual, but for the system that allowed such unchecked power and influence to thrive under the guise of social welfare,” Hossain said.
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