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The scheduled 22 January 2007 elections were marred by controversy. The Awami League and its allies protested, saying that the elections would not be fair because of alleged bias by the caretaker government in favour of Khaleda Zia and the BNP. Hasina demanded that the head of the caretaker government, President Iajuddin Ahmed, step down from that position, and on 3 January 2007, she announced that the Awami League and its allies would boycott the elections.[2] Later in the month, the military led by Army Chief General Moinuddin Ahmed intervened and President Iajuddin Ahmed was asked to resign as the Chief Advisor. He was also made to declare a state of emergency. A new military-controlled Caretaker government was formed with Dr. Fakhruddin Ahmed as the Chief Adviser. The scheduled parliamentary election was postponed.

On 12 January 2007, President Iajuddin Ahmed swore in Fakhruddin Ahmed as the Chief Adviser to the Interim Caretaker Government. For a country widely perceived as one of the world's most corrupt, the most dramatic aspect of Fakhruddin Ahmed's rule is his antigraft campaign against the establishment. So far, more than 160 senior politicians, top civil servants and security officials have been arrested on suspicion of graft and other economic crimes.[3] The roundup has netted former ministers from the two main political parties, including former prime ministers Khaleda Zia and Sheikh Hasina and former adviser Fazlul Haque.

On May 11, 2017, the Office of Bangladesh Prime Minister Sheikh Hasina announced that then US Secretary of State Hillary Clinton called her office in March 2011 to demand that Dr. Muhammed Yunus, a 2006 Nobel Peace prize winner, be restored to his role as chairman of microcredit bank, Grameen Bank. The bank’s nonprofit Grameen America, which Yunus chairs, has given between $100,000 and $250,000 to the Clinton Global Initiative. Grameen Research, which is chaired by Yunus, has donated between $25,000 and $50,000, according to the Clinton Foundation website.[4][5][6]