Proshika axes Faruque

Qazi Faruque

The governing body of Proshika, one of the largest NGOs, replaced its chairman Qazi Faruque Ahmed with advocate Abdul Wadud yesterday in the face of an ongoing employees' agitation against Qazi Faruque.
Eight of the nine members of the governing body, highest policy making body of Proshika, made the decision during a meeting yesterday morning and held a press conference at Dhaka Reporters Unity later on.
The board also removed Chief Executive Officer (CEO) Syed Giasuddin Ahmed and appointed Vice-chairman Mahbub-ul-Karim in his place. Karim gave up his membership of the governing body.
Governing body member Masrurul Islam, who attended the meeting, said they had to remove them in the face of a month-long agitation of the general employees against Qazi Faruque Ahmed.
"We had no other options," he said, adding, "Our foremost concern was to prevent the organisation from collapse and putting the organisation above an individual."
Even though the governing body invited Qazi Faruque to the meeting, he failed to show up.
On contact, Qazi Faruque Ahmed said the governing body meeting that removed him from chairmanship of Proshika was illegal since the chairman did not convene the meeting.
According to Proshika's constitution, only the governing body chairman can convene such a meeting, he said, adding that the governing body neither has mandate to call for an extraordinary meeting nor can it remove the chairman.
"The 55-member general body can convene an extraordinary meeting and remove the governing body chairman with a three-quarter majority," Qazi Faruque said, adding, "I will go for legal recourse against the decision."
Masrurul Islam said provisions of Proshika constitution do not forbid such a meeting of the governing body in a situation when the entire organisation is at stake.
It is an accepted principle that eight people of a nine-member body can convene a meeting when the single top man refuses to do it, he added.
Ninety-nine percent of Proshika's general employees stand against Qazi Faruque for his alleged corruption, nepotism and political involvement. The agitation had brought the organisation's activities to a stand still for last one month, he said.
The governing body members repeatedly requested Qazi Faruque to convene a meeting but he did not, he claimed.
At least 5,000 employees depend on this organisation that has around 16 lakh beneficiary members in the country, he said.
However, Masrurul Islam said they would convene an extraordinary meeting of the general body on June 9 and governing body will not have any objection if the general body elects Qazi Faruque chairman again.
The governing body has also appointed a five-member managing committee comprised of Sirajul Islam, Sirajul Haq, Abdur Rob and Mahbubul Alam and chief financial officer Altah Hossain Talukdar. The managing committee will help the new CEO Mahbub-ul-Karim do his job.
Masrurul Islam said they would have to look into the allegations of misappropriation of money brought against Qazi Faruque to ascertain the true extent of the damage.
Sirajul Islam, a senior director and a member of the newly formed managing committee, said, "We have not received any fund from foreign and local donor agencies for last five-six years apparently due to Qazi Faruque's non-transparent activities and political involvement."
Foreign donors of Proshika include DFID, Canadian CIDA, European Union and local organisation PKSF, he said. Proshika mainly runs educational, awareness building, training and health service programmes.
According to the agitating employees, Proshika was on the verge of ruination because of Qazi Faruque's political ambition and financial irregularities.
Qazi Faruque formed a political party styled Oikyabodhha Nagorik Andolan and took part in the December 29 general elections from three parliamentary constituencies. He lost his deposits to all three constituencies.
He not only involved Proshika employees in his campaign but also spent an unspecified amount of Proshika money, alleged the agitating employees.
At yesterday's press conference Mahbub-ul-Karim also said Qazi Faruque had compelled Proshika employees to work for his political party formed four months before the ninth parliamentary elections.
"Engaging a huge number of employees and officials, he [Qazi Faruque] ran his party which disrupted the organisation's microcredit programme," said Mahbub.
Mahbub also said they would form an internal investigation committee to probe Qazi Faruque's corruption.
The NGO affairs bureau during an investigation in 2001 identified 55 irregularities including financial irregularities in Proshika.
MRA CONCERNED
The Microcredit Regulatory Authority (MRA) is concerned with the Proshika situation and has decided to write to the government asking it to address the issue immediately and protect interests of thousands of micro-depositors.
"Realising the gravity of the problem we have decided to write to the government [Ministry of Finance] today to take necessary steps to protect micro-depositors' interests," Khandakar Muzharul Haque, executive vice-chairman of MRA, told The Daily Star yesterday.
Muzharul, also an executive director of Bangladesh Bank, said the MRA could not take actions directly because the NGO is yet to get a licence for operating microcredit programmes. The NGO is running with the approval of the social welfare department.
"So a copy of the letter will also be sent to the social welfare ministry," Muzharul said.
According to an investigation of the MRA, allegations that have been found valid are: Loss of Tk 203 crore, diversion of money from the employees' provident fund, internal feud and groupings.
"Top management of the NGO has transferred assets of microcredit and did not mention it in the books of accounts," alleged another top official of MRA.
The official said, "Proshika has spent money of poor people. It is the government that can protect the deposit of the poor people."
Members of the Proshika, mostly rural folks, have so far deposited Tk 199 crore with the NGO.