The directors of the IDB unanimously recommend the dismissal of Claver-Carone after the ethics investigation

Visitors pass a screen with the Banco Interamericano de Desarrollo (BID) logo at the Atlépa Convention Center in Panama City on March 13, 2013. REUTERS / Carlos Jasso

Register now for FREE unlimited access to Reuters.com

WASHINGTON, Sept. 22 (Reuters) – The board of directors of the Inter-American Development Bank voted unanimously on Thursday to recommend the sacking of President Mauricio Claver-Carone after an independent ethics investigation found misconduct, three sources said. aware of the vote.

The recommendation passes the final decision on Latin America’s largest development bank to its most senior body, the board of directors, which will vote Friday through Tuesday, one of the sources said.

Claver-Carone did not immediately respond to a phone call or text message seeking comment.

Register now for FREE unlimited access to Reuters.com

A spokesperson for the US Treasury declined to confirm the vote, but said the United States, the bank’s largest shareholder with 30% of its voting shares, supported Claver-Carone’s removal from office and wanted to a “quick resolution” by the governors.

“President Claver-Carone’s refusal to fully cooperate with the investigation and its creation of a climate of fear of retaliation between staff and borrowing countries has lost the trust of bank staff and shareholders and requires a change of leadership.” , the spokesman said.

Claver-Carone, in a statement in response to the Treasury, said: “It is shameful that the United States commented to the press before warning me and that it is not defending two Americans from clearly fabricated information.”

The bank’s 14 directors voted after four long days of discussions and the appearance of Claver-Carone, who had been in New York this week for meetings on the sidelines of the UN General Assembly.

Reuters reported Wednesday that the board was nearing consensus on a vote to sack Claver-Carone.

The termination of Claver-Carone, a candidate of former US President Donald Trump, requires a majority of the board’s total voting power. The bank’s three largest shareholders – the United States, Argentina and Brazil – together hold nearly 53% of the voting power. Claver-Carone took office in October 2020.

Governors should approve the recommendation, one of the sources said.

Law firm Davis Polk told directors it found evidence to support whistleblowers’ allegations that Claver-Carone had had an intimate relationship with a subordinate and committed misconduct that violated the bank’s rules.

Investigators said they uncovered evidence including a photograph of a handwritten contract on the back of a paper placemat, allegedly written and signed by Claver-Carone and the staff, which claimed “we deserve absolute happiness” and a clause which foresaw any breach of contract would result in “candle wax and a bad box”.

US officials were particularly concerned about Claver-Carone’s “behavior during the investigation, including her refusal to make available her IDB-issued work phone and other records,” a separate source familiar with the matter said.

They objected to his “selective and misleading release of confidential information intended to contaminate investigations and shape public opinion,” the source said. This has “undermined confidence in Claver-Carone’s reliability and ability to lead a rules-based multilateral development institution,” the source added.

Claver-Carone also denied “direct evidence” of having had a secret relationship with an IDB staff member who reported directly to him and to whom he gave increases totaling more than 45% of base pay in less than one year, the source added.

US officials believed Claver-Carone had created “an environment where staff feared retaliation, including what appears to be genuine punishment against senior and grassroots staff who fully and honestly participated in the investigation,” the source said. .

US Senator Patrick Leahy, who chairs the Senate Appropriations Committee, had strongly opposed Trump’s appointment of Claver-Carone as the first American to head the bank, a job traditionally held by someone from Latin America.

“That tradition should be restored, with a person of the utmost integrity and professionalism,” Leahy told Reuters.

Register now for FREE unlimited access to Reuters.com

Reporting by Andrea Shalal in Washington and Cassandra Garrison in Mexico City; Editing by Josie Kao and Stephen Coates

Our Standards: Thomson Reuters Trust Principles.

Cassandra’s garrison

Thomson Reuters

Mexico-based reporter focusing on climate change and corporations with an emphasis on telecommunications. Previously based in Santiago de Chile and Buenos Aires to deal with the Argentine debt crisis, the fight for influence between the United States and China in Latin America and the coronavirus pandemic.

    .

Leave a Reply

%d bloggers like this: