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The IDB Board of Directors may vote this week to recommend removal of director Claver-Carone



© Reuters. Visitors walk past a display with the logo of the Banco Interamericano de Desarrollo (BID) at the Atlapa Convention Center in Panama City March 13, 2013. REUTERS / Carlos Jasso

By Andrea Shaal

WASHINGTON (Reuters) – The directors of the Inter-American Development Bank are nearing a consensus on the need to remove President Mauricio Claver-Carone after an independent ethics investigation and could vote as early as Tuesday. Thursday on the matter, a source familiar with the matter told Reuters.

Such a vote, which would require a simple majority on the board, would make the final decision on Claver-Carone’s future to the bank’s senior body, the board, the source said. know.

Termination of Claver-Carone, a Trump-era candidate who took office on October 1, 2020, would require a majority of the board’s total voting rights, according to the bank’s rules. The three largest shareholders of the bank – the United States, Argentina and Brazil, together hold nearly 53% of the voting rights.

The bank’s 14 executives were in a near-consensus that Claver-Carone should be sacked based on the findings of legal firm Davis Polk’s investigation into allegations that he had a cordial relationship with his subordinates and a lack of interest. his “incredible” cooperation with the source said.

The source added that the Cuban-American president’s subsequent actions, including the dismissal of a senior official without board approval, and his criticism on the bank’s website about how it handled the investigation, which contributed to a “malicious” situation.

The source said Brazil, a major shareholder of the bank that supported Claver-Carone’s election, now supports action against him.

It was not immediately clear how Argentina and the United States would vote. Washington said it was closely reviewing the Davis Polk report.

“There is an emerging consensus that he needs to be removed,” the source said, citing concerns about Claver-Carone’s lack of cooperation and his move on Friday to demote an official. Argentina, who served as vice president in charge of finance.

Reuters, citing multiple sources, reported on Tuesday that the legal firm had found evidence that Claver-Carone had had an intimate relationship with an employee and described the many ways in which he and the employee did not get along. cooperate with the investigation, further violating bank rules.

The Board of Directors met for a third day on the matter on Wednesday, attended by representatives from all 48 member states. Expected to meet again on Thursday, possibly attended by Claver-Carone.

A spokesperson for Claver-Carone was not immediately available for comment.

Claver-Carone and staff both deny the allegations in general.

On Tuesday, Claver-Carone took aim at the bank for its handling of the investigation and said its results did not “substantiate the false and anonymous allegations” that triggered the investigation. He posted his statement on the bank’s website, a move described by two sources as highly unusual.

Washington-based IDB is a development bank that, although much smaller than the International Monetary Fund or the World Bank, is a major provider of development capital in Latin America.

The legal firm’s report found that Claver-Carone refused to hand over a bank-issued cell phone for analysis or provide any text messages between him and employees on his personal phone. , the source said. He also declined to share e-mails sent from his Gmail account to the employee in question.

It concluded that the lack of cooperation was related to the allegations in the complaint and was itself an independent violation of the bank’s guidelines and policies, the source added.



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