Bangladesh court OKs Nobel laureate's dismissal

DHAKA, Bangladesh - Bangladesh's High Court on Tuesday upheld the government's dismissal of Nobel laureate Muhammad Yunus from the microfinance bank he founded.

Last week, the central bank ordered Yunus, 70, out of Grameen Bank, saying he was working in violation of the country's retirement laws.

Yunus, an outspoken government critic, said the dismissal was illegal and appealed to the High Court. He alleged that the government was trying to take control of his bank, which provides tiny loans to the poor.

The High Court upheld Yunus' dismissal, saying it did not violate the law.

His lawyer, Sara Hossain, denounced the ruling.

"The court has provided legality to an illegal order," Hossain told reporters. "It's a sad day."

Hossain said lawyers will consult with Yunus before any decision on whether to appeal the ruling.

Yunus was not present at the court when the ruling was delivered and could not immediately be reached for comment.

Yunus has long had frosty relations with Prime Minister Sheikh Hasina. He has charged that the government is seeking political advantage by controlling Grameen Bank, which was founded in 1983 and spurred a boom in such lending across the developing world. It earned Yunus and the bank the 2006 Nobel Peace Prize.

The bank's poor borrowers comprise 75 percent of its shareholders. The government holds the other 25 percent.

Grameen Bank currently has nearly 9 million borrowers in Bangladesh, 97 percent of whom are women. Without needing collateral to borrow, many use their small loans to make ends meet or to start small businesses.

Hasina has accused Grameen Bank and other microfinance institutions of charging high interest rates and "sucking blood from the poor borrowers." She was reportedly angered by Yunus' 2007 attempt to form his own political party, backed by the country's powerful army.