Home Moral guidelines IDB Directors Unanimously Recommend Claver-Carone’s Dismissal After Ethics Investigation

IDB Directors Unanimously Recommend Claver-Carone’s Dismissal After Ethics Investigation


Visitors walk past a display bearing the Banco Interamericano de Desarrollo (BID) logo at the Atlapa convention center in Panama City March 13, 2013. REUTERS/Carlos Jasso

Join 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 dismissal of President Mauricio Claver-Carone after an independent ethics investigation found misconduct, officials said. three sources close to the vote.

The recommendation refers the final decision on Latin America’s largest development bank to its highest body, the board of governors, which will vote from Friday to Tuesday, one of the sources said.

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

Join now for FREE unlimited access to Reuters.com

A US Treasury spokesman declined to confirm the vote, but said the United States, the bank’s largest shareholder with 30% of its voting shares, supports Claver-Carone’s impeachment and wants a “rapid resolution” of the governors.

“President Claver-Carone’s refusal to cooperate fully with the investigation, and his creation of a climate of fear of retaliation among staff and borrowing countries, has lost the confidence of bank staff and shareholders and requires a change of direction,” the spokesperson said. .

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

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

Termination of Claver-Carone, a nominee for former US President Donald Trump, requires a majority of the board’s total votes. The three main shareholders of the bank – the United States, Argentina and Brazil – together hold almost 53% of the voting rights. Claver-Carone took office in October 2020.

Governors are expected to approve the recommendation, one of the sources said.

Law firm Davis Polk told administrators it found evidence to support whistleblowers’ claims that Claver-Carone engaged in an intimate relationship with a subordinate and gave himself up to a fault that violated the rules of the bank.

Investigators said they uncovered evidence, including a photograph of a handwritten contract on the back of a paper placemat, purportedly written and signed by Claver-Carone and the staff member, which stated “we deserve happiness absolute” and a clause stating everything a breach of contract would result in “candle wax and a naughty box”.

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

They took issue with his “selective and misleading disclosure of confidential information intended to taint the investigation and shape public opinion,” the source said. This has “undermined confidence in the reliability and ability of Claver-Carone to lead a rules-based multilateral development institution,” the source added.

Claver-Carone also denied ‘direct evidence’ that he had an undisclosed relationship with an IDB staff member who reported directly to him and to whom he had awarded raises totaling more than 45% of base salary. in less than a year, the source added.

U.S. officials said Claver-Carone created “an environment in which staff fear retaliation, including what appears to be genuine retaliation against senior managers and executives who participated fully and honestly 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 lead the bank, a position traditionally held by someone from America Latin.

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

Join now for FREE unlimited access to Reuters.com

Reporting by Andrea Shalal in Washington and Cassandra Garrison in Mexico City; Editing by Leslie Adler and Josie Kao

Our standards: The Thomson Reuters Trust Principles.

Garrison Cassandra

Thomson Reuters

Mexico-based journalist focusing on climate change and business with a focus on telecommunications. Previously based in Santiago de Chile and Buenos Aires, he covered Argentina’s debt crisis, the US-China power struggle in Latin America and the coronavirus pandemic.