Business & Investment

IMF Georgieva accuses former World Bank Governor Kim’s operating office

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Washington — IMF Prime Minister Cristalina Georgieva, as head of the World Bank, described the results of an independent investigation into the allegations that he pressured staff to manipulate data to make China’s business environment look more favorable. It is false and false. “

In a statement she would submit to the board of directors of the International Monetary Fund, Georgieva also accused her of operating the office of former World Bank President Jim Kon Kim.

She said she intervened to thwart a proposal from Kim staff to include Hong Kong data in China’s rankings in the World Bank’s Doing Business 2018 report. This has greatly improved its position. Kim has not responded to requests for comment.

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The World Bank released a report on its investigation by law firm Wilmer Hale last week https://www.reuters.com/business/sustainable-business/world-bank-kills-business-climate-report-after-ethics-probe -cites -Excessive pressure-2021-09-16. Senior bank leaders, including Georgieva, found that while banks were seeking China’s support for a capital increase, they over-pressured staff to change data to improve China’s ranking in the Doing Business report. I did.

Georgieva, then CEO of the World Bank, publicly accused her staff of the investigation, but she explained in more detail in a statement to the IMF’s board, a copy of which was reuters on Friday. Seen by.

“A false hint of falsehood … World Bank colleagues and I will inflate the country’s business improvement index in exchange for capital commitment,” she said in the findings.

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“For clarity, that didn’t happen, and under my leadership it would never happen,” she said.

Georgieva said efforts to prevent Hong Kong data from being added to China’s Doing Business rankings indicate concerns about maintaining the integrity of World Bank data.

A Bulgarian economist, the first person to lead the World Bank from a developing country, faced a request for her resignation on this issue, although a former colleague spoke in support of her.

The IMF Board met on Tuesday, heard the first report from the Institutional Review Board, and agreed to meet again shortly.

Maxine Waters, chairman of the U.S. House of Representatives Financial Services Commission, conducted a detailed study on Friday at the World Bank on “excessive impact of China” and Georgieva’s role in manipulating “doing business” data at the request of the Chinese government. The results were stated as follows. It’s very annoying. “

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“This damages the World Bank’s reputation, data integrity is important to its mission, and it also casts doubt on the IMF’s current leadership, where excessive effects of selfishness can lead to stability. Increasingly, the world’s financial system at stake

The World Bank’s current president, David Malpass, said Wilmer Hale’s findings speak for themselves, but did not comment on further details.

Georgieva urges banking authorities to manage China’s expectations for rankings in the Doing Business report, as Wilmer Hale’s investigation is concerned that China may be able to withhold support for capital increases. He said he had mistakenly guessed.

Georgieva said he regretted that his bank colleagues “did not believe that we could raise data integrity issues with me” and promised to promote better communication. (Report by Andrea Shalal; edited by Leslie Adler and Cynthia Osterman)

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    IMF Georgieva accuses former World Bank Governor Kim’s operating office

    https://financialpost.com/pmn/business-pmn/imfs-georgieva-accuses-former-world-bank-president-kims-office-of-manipulation-3 IMF Georgieva accuses former World Bank Governor Kim’s operating office

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