IMF board to grill investigators, Georgieva on data-rigging claims this week, sources say


WASHINGTON, Oct 3 (Reuters) – The International Monetary Fund’s govt board will intensify its probe of Managing Director Kristalina Georgieva this week by individually interviewing her and investigators who mentioned she pressured World Bank workers to change information to favor China, individuals with data of the conferences mentioned.

The board will query legal professionals from the WilmerHale agency on Monday about their World Bank investigationreport, three individuals acquainted with the plans mentioned. The report alleged that Georgieva, because the financial institution’s CEO in 2017, utilized undue strain on staffto alter information within the flagship “Doing Business” report to learn China.

Georgieva, who has strongly denied the accusations, will seem in particular person earlier than the board on Tuesday, the day she is to ship a digital speech in regards to the IMF and World Bank annual conferences Oct. 11-17, two of the sources mentioned.

The interviews might show pivotal in both constructing or eroding IMF shareholder help for Georgieva.

Thus far, the fund’s most influential member governments, together with high shareholder the United States, have withheld public remark, preferring to let the assessment course of play out. Britain final week mentioned in an announcement to Reuters that it helps transparency within the matter.

The World Bank tasked WilmerHale with investigating the “Doing Business” information irregularities recognized in 2020, issuing its findings implicating Georgieva simply over two weeks in the past. The probe has been led by former U.S. Attorney for the District of Columbia Ron Machen, who’s co-chair of WilmerHale’s white collar protection and investigations observe.

The investigation’s report contends Georgieva and former World Bank President Jim Yong Kim’s workplace pressured workers to control information so China’s world rating within the “Doing Business 2018” examine of funding climates rose to 78th from eighty fifth.

The motive was allegedly to assist win Beijing’s help for a serious capital enhance that the financial institution’s administration was searching for on the time.

An IMF spokesman declined to verify the deliberate conferences. Spokespersons for WilmerHale in Boston and Washington didn’t reply to requests for remark.

A spokesperson for Georgieva additionally declined to verify the conferences however mentioned in an emailed assertion that Georgieva “will not be deterred by these false allegations and remains committed to fulfilling the vital mission of the IMF.”


One particular person acquainted with the plan mentioned the board was anticipated to query the WilmerHale group about its investigatory course of – the scope of its project, the way it performed the probe and the way the choice was made to publish the outcomes, which got here with little prior notification to Georgieva.

Other questions will search particulars on the hyperlinks drawn within the report between the adjustments to the “Doing Business” information inputs for China and the capital-raising marketing campaign, which resulted in a $13 billion enhance to the World Bank’s paid-in capital in 2018 that boosted China’s shareholding.

Another supply mentioned there additionally will seemingly be questions over discrepancies between witness interviews, the report’s conclusions and later public statements from at the very least one particular person interviewed. Shanta Devarajan, the previous World Bank economist who oversaw the “Doing Business” 2018 report launched in October 2017, said he never felt pressure from Georgieva, and that the WilmerHale group used solely half of his statements.

Machen didn’t reply to a request for remark.

Reporting by David Lawder;
Editing by Dan Burns and Cynthia Osterman

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during a joint news conference at the end of the Summit on the Financing of African Economies in Paris, France May 18, 2021. Ludovic Marin/Pool via REUTERS/Files