IMF fails to decide on MD Kristalina Georgieva's removal over EDB report manipulation

Despite significant progress in discussions held on Sunday, International Monetary Fund (IMF) has failed to deliver a decision on whether its Managing Director Kristalina Georgieva will continue in her role or step down. The IMF MD was being investigated by law firm WilmerHale for her activities during her time as World Bank CEO.

Following the conclusion of the investigation, IMF released a press statement updating current developments. IMF spokesperson Gerry Rice informed that the IMF Executive Board met to discuss the matter raised by WilmerHale's investigation of the World Bank's Doing Business 2018 report.

The board had earlier met on October 8 with the representatives of WilmerHale and the Managing Director Kristalina Georgieva to comprehensively discuss the matter. Following the previous discussions, the IMF Executive Board had asserted that it has remained "committed to a thorough, objective and timely review...the board has made significant progress in its assessment, it agreed at today's (Oct 8) meeting to request more clarifying details with a view to very soon concluding its consideration of the matter."

However, on October 10, the Board met again and "made significant progress" in its assessment with a view to conclude its consideration of the matter very soon, IMF said. Meanwhile, on Thursday, Georgieva said that she hoped for an "expeditious resolution" of the case.

IMF MD accused of manipulating World Bank data for China's benefit

According to the investigation reports presented by WilmerHale on September 15, the investigators identified data irregularities in the World Bank's Doing Business 2018 and 2020 reports. Then CEO of World Bank, Kristalina Georgieva was among the top officials who pushed staff members to manipulate data to China's benefit, the watchdog presented in its 24-page report.

The law firm pointed that manipulation took place when IMF was involved in "sensitive negotiations" with China over the bank's increasing lending capital. The move was directed under the purview of Georgieva and her associate Simeon Djankov (former Bulgarian finance minister, who created the Doing Business ranking report of 2018) and then World Bank President Jim Yong Kim, to avoid souring relations with Beijing.

(Image: AP)