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DHAKA, BANGLADESH —Nobel Peace Prize winner Muhammad Yunus, celebrated for his pioneering work in microfinance, is facing a new trial in a criminal case next week in Bangladesh on charges of embezzling more than $2 million from the workers' welfare fund of his nonprofit, Grameen Telecom.
Yunus - a political rival of Prime Minister Sheikh Hasina - was sentenced in January to six months in jail for violating labor laws at the nonprofit. He remains out on bail but faces nearly 200 additional charges, mostly civil cases, all of which he denies.
In the current case, the prosecution alleges that Yunus and his codefendants diverted funds from Grameen Telecom workers' welfare fund, a major stakeholder in Grameenphone, Bangladesh's largest mobile phone operator. Yunus has denied the charges.
Yunus' trial, set to start July 15, has drawn global attention amid concerns about his potential imprisonment. His lawyer, Abdullah Al-Mamun, told VOA that if convicted, the 83-year-old could face a "substantial prison term, potentially up to a life sentence."
Yunus has described his treatment by authorities as humiliating, being held in an iron cage during court proceedings. "Any accused person - against whom a case has been filed - is taken to the cage. ... As far as I know, the accused is innocent until proven guilty," he told reporters after appearing at the June 12 indictment hearing and pleading not guilty, "Is that fair?"
Concerns over fair trial
Rights activists and supporters fear that the government might imprison Yunus as part of the legal and political battle against him. Dhaka-based political analyst Zahed Ur Rahman expressed concerns about imprisonment driven by "vengeance" from Hasina.
"From the highest levels of government, including the prime minister, aggressive statements have been made about subjudice matters. She has not held back. Given the state of the law and justice system in the country, Dr. Yunus will not receive fair treatment," Rahman told VOA.
Yunus's legal team argues that the embezzlement charges are purely "baseless and frivolous" arguing that for embezzlement to occur, funds must be misappropriated from someone's custody, which he asserts did not happen.
"The money in question was properly deposited into a bank account as mandated by a settlement agreement between the workers' trade union and Grameen Telecom, in accordance with labor laws. Thus, there is no basis for embezzlement charges." Al-Mamun told VOA.
He expressed concern that a fair trial will not be possible, given government participation in a "smear campaign" against Yunus, and expressed fear Yunus would not receive justice even in the highest court.
"We are progressing through each step and will go to the highest court eventually. But sadly, what we have repeatedly seen is that the country's highest court has not given verdicts independently based on the merits of these cases. It is likely that we will not receive justice this time either. However, we will follow all procedures."
Hasina's campaign against Yunus
Tensions between Yunus and Hasina began in 2007 after Yunus proposed forming a political party, Citizens' Power, to combat corruption and polarization. Though brief, analysts say the move solidified Hasina's view of Yunus as a rival. Her administration began a series of investigations of Yunus after coming to power in 2008.
"She couldn't tolerate that Dr. Yunus was viewed as a political alternative. Her jealousy was fueled by his Nobel Prize and the global support he received," Rahman said.
"Dr. Yunus began to openly criticize the regime, and that has put pressure on the government. These appears to be the motivations behind the campaign to discredit and humiliate him."
The outside world has expressed significant concern over Yunus' treatment. Last year, more than 100 Nobel laureates, including former U.S. President Barack Obama, wrote an open letter to Hasina, urging an end to what they describe as "continuous judicial harassment."
Amnesty International has condemned Yunus' treatment as emblematic of the broader erosion of human rights in Bangladesh. The United Nations rights body has raised concerns about ongoing harassment and smear campaigns from the "highest levels of government," which could jeopardize a fair trial.
Despite numerous appeals, Hasina has remained firm. In 2011, her administration ousted Yunus from Grameen Bank, and she has consistently accused him of acting against Bangladesh's interests. A significant instance is the World Bank's decision to withdraw funding from the Padma Bridge project, the country's major infrastructure endeavor and longest bridge. Hasina has attributed this withdrawal to Yunus' influence, an accusation that he denies.
At a press briefing on June 25 at her residence, Prime Minister Sheikh Hasina criticized the open letter signed by more than 100 Nobel laureates and notable individuals supporting Muhammad Yunus as nothing more than "advertisements" funded by Yunus himself.
"He has money, so he can pay for publicity. All these endorsements by Nobel laureates and others are merely promotional efforts. If he truly were so popular, why would he need to resort to advertisements to garner so much support? The whole world would naturally rally behind him otherwise," she said.
Hasina who often called Yunus a "bloodsucker of the poor" and criticized Grameen's microlending practices, accused Yunus of taking credit for poverty reduction efforts that she claims her administration achieved, stating that her government reduced poverty significantly over the last 15 years.
"I have eradicated poverty. In the last 15 years, I have reduced it from 41.6% to 18.7%, and he takes the credit. Some international organizations even write that down," she said.
US keeping wary eye on the trials
The U.S. State Department is closely monitoring the case against Yunus, voicing concerns about potential misuse of Bangladesh's labor laws to harass him. During a press briefing on July 9, spokesperson Mathew Miller emphasized that such misuse could undermine the rule of law and discourage foreign investment.
"We continue to monitor closely developments in the case against him. We have expressed for some time our concern that these cases may represent a misuse of Bangladesh's labor laws to harass and intimidate Dr. Yunus," Miller said. "We also worry that perceived misuse of labor and anti-corruption laws could raise questions about rule of law and dissuade future foreign direct investment."