By David Lawder
WASHINGTON, Oct. 3 (Reuters) – The board of directors of the International Monetary Fund will this week step up its investigation into managing director Kristalina Georgieva by questioning her separately and investigators who said she had pressured staff at the World Bank to change the data in favor of China, people familiar with the said meetings.
The board will question lawyers at WilmerHale on Monday about their World Bank investigation report https://thedocs.worldbank.org/en/doc/84a922cc9273b7b120d49ad3b9e9d3f9-0090012021/original/DB-Investigation-Findings-and-Report-to -the -Board-of-Executive-Directors-Sept.15-2021.pdf, said three people familiar with the plans. The report alleged that Georgieva, as the bank’s CEO in 2017, put undue pressure on staff https://www.reuters.com/business/sustainable-business/world-bank-kills-business-climate- report-after-ethics- probe-quotes-excessive pressure-2021-09-16 to modify the data of the flagship “Doing Business” report in favor of China.
Georgieva, who strongly denied the charges https://www.reuters.com/business/imfs-georgieva-accuses-former-world-bank-president-kims-office-manipulation-2021-09-24 the charges, will appear in person before board Tuesday, the day she is due to give a virtual speech on the annual IMF and World Bank meetings Oct. 11-17, two of the sources said.
The talks could prove essential in strengthening or eroding IMF shareholder support for Georgieva.
So far, the fund’s most influential member governments, including the largest shareholder in the United States, have declined to comment from the public, preferring to let the review process unfold. Britain said in a statement to Reuters last week that it supported transparency on the matter.
The World Bank tasked WilmerHale with investigating “Doing Business” data irregularities identified in 2020, releasing its findings involving Georgieva just over two weeks ago. The investigation was led by former District of Columbia District Attorney Ron Machen, who is co-chair of WilmerHale’s White Collar Defense and Investigative Practice.
The investigation report argues that Georgieva and the office of former World Bank President Jim Yong Kim pressured staff to manipulate the data, so that China’s global ranking in the âDoing Business 2018â study on investment climates fell from 85th to 78th.
The motive was allegedly to help gain Beijing’s support for a major capital increase that the bank’s management was seeking at the time.
An IMF spokesperson declined to confirm scheduled meetings. Spokesmen for WilmerHale in Boston and Washington did not respond to requests for comment.
A spokesperson for Georgieva also declined to confirm the meetings, but said in an emailed statement that Georgieva “will not be deterred by these false allegations and remains committed to fulfilling the vital mission of the IMF.”
PROCESS, ISSUES OF EVIDENCE
A person familiar with the plan said the board should ask WilmerHale’s team about their investigative process – the scope of their assignment, how they conducted the investigation and how the decision came to be. been taken to publish the results, which came with little prior notification to Georgieva.
Other questions will seek details of the links made in the report between the changes to the “Doing Business” data entries for China and the fundraising campaign, which resulted in a $ 13 billion increase in paid-up capital. of the World Bank in 2018 which strengthened the Chinese shareholding. https://www.reuters.com/article/us-imf-g20-wbank/world-bank-shareholders-back-13-billion-capital-increase-idUSKBN1HS0QS
Another source said there would also be questions about the discrepancies between witness interviews, the report’s findings and subsequent public statements by at least one interviewee. Shanta Devarajan, the former World Bank economist who oversaw the 2018 Doing Business report released in October 2017, said he had never felt any pressure https://twitter.com/Shanta_WB/status/ Georgieva’s 1441091819400351762, and that the WilmerHale team was only using half of their declarations.
Machen did not respond to a request for comment. (Reporting by David Lawder; Editing by Dan Burns and Cynthia Osterman)