IMF asserts "full confidence" in MD Kristalina Georgieva; probe into WB staff 'ongoing'

In a major development, the International Monetary Fund (IMF) has asserted "full confidence" in its incumbent Managing Director Kristalina Georgieva after she was hit with accusations of data manipulation in favour of China. The IMF Executive Board (EB) on Monday concluded its review of the matter raised by WilmerHale’s investigation of the World Bank’s Doing Business 2018 report and reaffirmed the MD's "leadership and ability to continue to effectively carry out her duties." However, it is to be noted that the World Bank’s investigation into potential World Bank (WB) staff misconduct in the Doing Business report matter is ongoing.

The Executive Board dissolved allegations against Georgieva stating that the "information presented in the course of its review did not conclusively demonstrate that the Managing Director played an improper role regarding the Doing Business 2018 Report when she was CEO of the World Bank."

"Having looked at all the evidence presented, the Executive Board reaffirms its full confidence in the Managing Director’s leadership and ability to continue to effectively carry out her duties. The Board trusts in the Managing Director’s commitment to maintaining the highest standards of governance and integrity in the IMF," the institution's governing body said in a statement.

Notably, the Executive Board met at least 8 times with the investigating law firm WilmerHale before passing the concluding remarks on Georgieva's leadership. Recently, the board met on October 8 and 10 to comprehensively discuss the 'controversial' findings, France24 reported.

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

According to the investigation reports presented by WilmerHale on September 15, the scrutineers 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