WASHINGTON (Businesshala) – US Treasury Secretary Janet Yellen told International Monetary Fund Managing Director Kristalina Georgieva on Monday that a law firm’s report against the IMF chief over allegations of misappropriation of World Bank data “raised legitimate issues and concerns”. But the lack of direct evidence meant a leadership change was inappropriate.
Yellen said in the statement that “proactive steps should be taken to reinforce data integrity and credibility at the IMF,” and that Georgieva and other fund leaders should renew their commitment to maintaining transparency in research, analysis and policies.
The call came after the IMF’s executive board on Monday reaffirmed its full confidence in Georgieva’s leadership of the fund after a lengthy review of the World Bank’s external investigation report. Here.
The report by law firm WilmerHale alleges that when Georgieva was CEO of the World Bank in 2017, she pressured bank employees to change data in order to raise China’s score in the major “Doing Business” report. The firm’s investigation is ongoing and will investigate World Bank staff misconduct affecting changes in China in 2017 and scores of Saudi Arabia and other countries in Doing Business data in 2019.
Yellen told Georgieva that her priority in pushing for a thorough review of the matter was “to preserve the integrity and credibility of the World Bank and the IMF”.
“Secretary Yellen also noted that the Treasury will closely monitor follow-up, evaluate any new facts or findings, and that the Wilmerhall Report underscores the need for shareholders to be vigilant in defending the integrity of both the bank and the fund.” It is,” Treasury said. in your statement.