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IMF boss Kristalina Georgieva remains in office despite allegations of manipulation

2021-10-12T05:33:12.745Z


For lack of clear evidence: Despite accusations of manipulating a country ranking in favor of China, IMF boss Kristalina Georgieva is allowed to keep her job. The US issued a warning, however.


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IMF chief Kristalina Georgieva

Photo: POOL / REUTERS

Despite allegations of manipulation of a report in favor of China, the board of directors of the International Monetary Fund (IMF) has expressed its "full confidence" to Director Kristalina Georgieva.

The executive board trusts its obligation to maintain "the highest standards of governance and integrity" at the IMF, the body said after its eighth session on the matter.

Georgieva, 68, has always denied the allegations against her.

The Bulgarian, a former EU Commissioner, has been at the helm of the IMF since 2019.

US Treasury Secretary Janet Yellen, who represents the IMF's largest shareholder, said she had spoken to Georgieva about the serious allegations.

The report on the data manipulation allegations against the IMF boss raised "legitimate questions and concerns," but a change in leadership was not justified due to a lack of direct evidence, said Yellen.

The Ministry of Finance will follow the processing closely.

To strengthen the integrity of the data collection and the credibility of the IMF, "proactive steps" are necessary.

Georgieva welcomed the decision and reiterated that the allegations against her were "unfounded".

The background to the allegations of data manipulation is an investigation report by the law firm WilmerHale, according to which leading representatives of the World Bank - including its then managing director Georgieva - are alleged to have exerted "inappropriate pressure" on employees to get China to do better in the ranking of the "Doing Business" report for 2018.

China finally landed in 78th place after initially being 85th in the first draft.

The report assesses a country's investment climate and business friendliness.

At the time, the World Bank was trying to get support from the Beijing government for a major capital increase.

The controversial ranking has been abolished

In the assessment of the business climate in other countries, the report is said to have included irregularities in some cases.

The World Bank has now announced that it will abolish the much-cited ranking.

In Brussels, the economist Georgieva was Commissioner for Humanitarian Aid from 2010 to 2014, then until 2017 as the powerful Vice-President of the Commission for Budget and Personnel.

After her post as Managing Director of the World Bank, she came to the helm of the IMF in 2019.

The report overshadows the annual meeting

The alleged manipulation of data is a grave charge for the World Bank and the IMF.

For the organizations based in Washington, the independent and non-political collection and compilation of international data is part of their core business.

The data of the organizations are often also a basis for far-reaching decisions, for example when it comes to aid money.

The timing of the investigation report came at an inopportune time for the IMF and World Bank, because this week of all times finance ministers, central bankers and representatives from the financial sector and development cooperation are gathering for the organizations' annual meeting.

Due to the corona pandemic, the meeting is only partly taking place in Washington, most of it happens online.

mmq / Reuters / dpa

Source: spiegel

All business articles on 2021-10-12

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