Factbox: IMF, World Bank stricken by management upsets, scandals

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WASHINGTON, Oct 4 (Reuters) – Investigations into the roles of now-IMF Managing Director Kristalina Georgieva and former World Bank president Jim Yong Kim in altering World Bank knowledge to favor China are the newest in a collection of management controversies on the two establishments.

The International Monetary Fund’s govt board is reviewing an exterior World Bank investigation report that stated each Georgieva, throughout her time as World Bank CEO, and Kim, by way of subordinates, utilized “undue pressure” for knowledge modifications to spice up China’s rankings rating within the financial institution’s “Doing Business” report on international locations’ enterprise climates. learn extra

The scandal may do lasting harm to the 2 organizations’ reputations on the world stage. learn extra

Georgieva has denied the allegations learn extra . Kim has not responded to requests for touch upon the matter.

Here are among the controversies involving IMF and World Bank leaders prior to now 15 years.

CHRISTINE LAGARDE, IMF

Lagarde, who served because the IMF’s chief from 2011 by way of mid-2019, confronted negligence costs in France stemming from a state payout made whereas she served as France’s finance minister in 2008.

Lagarde was convicted in December 2016 by a French courtroom of negligence and a misuse of public funds for her failure to contest a 400 million-euro arbitration payout to tycoon Bernard Tapie, a supporter of France’s then-president Nicolas Sarkozy. But the decision got here with no positive or jail time period for Lagarde.

Hours after the ruling, the IMF’s govt board reaffirmed its full confidence in Lagarde’s means to steer the disaster lender.

JIM YONG KIM, WORLD BANK

Kim abruptly resigned as World Bank president in January 2019, greater than three years earlier than the top of his time period, ending a tumultuous tenure that included a doubling of the financial institution’s lending capability with a $13 billion capital enhance.

Kim left workers fuming over finances and job cuts, a $94,000 bonus for the chief who engineered them, and efforts to reorganize the financial institution away from its conventional country-focused administration.

Kim had persuaded the Obama administration to appoint him in 2016 for a second five-year time period — a 12 months early — partly to dam the potential for Donald Trump to decide on a World Bank president ought to he win the U.S. presidential election that 12 months.

The financial institution’s workers affiliation had urged the financial institution’s board in a letter to conduct an open competitors, together with non-Americans, and stated the custom of “backroom deals” leading to American male World Bank chiefs should change.

A month after saying that the World Bank would double its investments to combat local weather change within the 5 years from 2019, Kim shocked the event world by quitting the financial institution and becoming a member of Global Infrastructure Partners, a private-sector agency investing in tasks in each growing and rich international locations.

The former Dartmouth College president informed workers he would have the ability to have a larger influence combating local weather change within the “unexpected” private-sector alternative than on the World Bank.

DOMINIQUE STRAUSS-KAHN, IMF

Strauss-Kahn was arrested in May 2011 on costs that he sexually assaulted a maid in his New York lodge suite, with police pulling him off a Paris-bound jetliner at John F. Kennedy Airport.

He resigned from the IMF 4 days later from a Rikers Island jail cell, a call that sources stated was made with out stress from the Fund.

Strauss-Kahn denied the fees, which have been dropped three months later, however the episode shattered his profession and derailed his political ambitions in France, the place he was as soon as thought-about a prime contender for president.

He settled for an undisclosed sum a civil lawsuit filed by the maid who had accused him of attempting to rape her.

His departure led to the number of Lagarde as the primary lady to steer the IMF however India, Brazil, Mexico and different rising market nations challenged the custom of appointing a European IMF chief by backing candidates from growing international locations.

Strauss-Kahn had earlier confronted IMF workers complaints of harassment, favoritism and abuse of energy over a consensual affair he had with an IMF workers economist in January 2008, two months after becoming a member of the Fund. An IMF board inquiry had cleared him with out disciplinary motion, however the board referred to as the incident a “serious error of judgment.”

PAUL WOLFOWITZ, WORLD BANK

Wolfowitz, an architect of former U.S. president George W. Bush’s conflict in Iraq as deputy protection secretary, was a controversial alternative to move the poverty-fighting World Bank in June 2005.

Controversy erupted amongst World Bank workers over his position in granting a promotion and pay rise for his companion, Shaha Riza, a Middle East skilled, who was given an exterior task on the U.S. State Department in September 2005.

A World Bank panel in 2007 discovered Wolfowitz violated a number of workers guidelines, together with granting an extreme pay enhance past financial institution norms. Wolfowitz argued that he adopted the recommendation of the World Bank board’s ethics committee in arranging Riza’s switch, and retained the backing of the U.S. Treasury secretary on the time, Henry Paulson.

But a majority of nations on the financial institution’s board sought to oust him and he resigned his place on June 30, saying: “The poorest people in the world … deserve the very best we can deliver.”

Reporting by David Lawder;
Editing by Kieran Murray