Scandal at the Islamic Development Bank: the political conspiracy that will decide the future of Argentina’s major bank

Washington. The future of Mauricio Clavier Caroni, President of the Inter-American Development Bank, besieged by an ethical scandal, was linked to a political decision by the White House, which will – once again – play a crucial role in the network of alliances and support being woven at this time in Washington and Latin America to determine whether The appointed official will be replaced by Donald Trump or will continue to head the major regional bank.

Several clashes took place in Argentina with the head of the Islamic Development Bank until Economy Minister Sergio Massa reached a truce to expand the country’s loans and release more than $1.2 billion in reserves, Official sources indicated that it would acquiesce in the position taken by the United States, like other countries in the Western Hemisphere.

Claver-Carone was left in grave danger after an independent investigation by a law firm, Davis Polk, found evidence that He struck up a romantic affair with his chief of staff and increased her salary during the pandemic by 40%, As reported by the newspaper Country The Associated Press, which reviewed the report. A law firm work additionally Claver-Carone did not fully cooperate with the investigation and withheld text messages and emails.

This week the report was submitted to board From the directors of the Islamic Development Bank, which can reach Raised his recommendation today, Thursday, to the Board of Governors of the Bank. This step requires only a simple majority. The United States, Brazil and Argentina focus more than 50% of the voting power, followed by Mexico, Japan, Canada, Colombia and Chile.

President Alberto Fernandez and Sergio Massa, representing Argentina on the Board of Governors of the Islamic Development Bankpresidency

Joe Biden’s government has not announced its position. A US Treasury spokesman told the Los Angeles Nation that the US takes “very seriously all ethical charges” in financial for anonymous whistleblowers such as the person making the accusation, and the “quick and fair” process for evaluating charges.

See also  The local does not take away the global - El Financiero

“The Treasury Department is closely reviewing the report and is withholding further comments until that review is complete,” he said.

Claver Caron dismissed the report and contradicted it by categorically denying, in a lengthy and harsh statement, that he had not cooperated with the investigation. “I have supported and participated in this unprecedented investigation and, unsurprisingly, Do not prove false and anonymous accusations that were carried out against me or against the employees of the Islamic Development Bank in the press. “Despite the absence of legal procedures, I have fully cooperated without waiving my constitutional rights,” he added.

The President of the Islamic Development Bank pointed out that The investigation ‘repeatedly’ violated the bank’s rulesand I raise “seriously questionable practices, including manipulation, misrepresentation, and knowing use of information that has been shown to be unreliable” rather than “providing a fair and impartial review”. His chief of staff testified only in writing, denying that he had violated the bank’s code of ethics. No country publicly objected to the investigation.

The story in which the bank participated will be decided in two votes. The first will be in the Executive Board, which must make a recommendation to the Board of Governors, where the fate of the official will be decided. The final vote is expected in a few weeks, possibly in November. Many countries will support the decision made by the Biden government, including Argentina. “It was proposed by the United States, and therefore, we will follow what the President of the United States decides,” a senior official source said.

See also  Peñoles consolidates sales of over 78 billion pesos

They believe in Washington that the Biden government – which views the Islamic Development Bank as a pillar of a strategic union it proposed with Latin America, and a tool to try to counter China’s growing influence in the region – would prefer to remove Claver. Karon. But Claver Karouni enjoys major political support in Congress. His main ally is the Democratic Senator Bob Menendez, “Saqr” of Cuban origin has known the head of the Islamic Development Bank for two decades, and is the chairman of the influential Senate Foreign Relations Committee, through which appointments to the Democratic administration, including ambassadors, pass. His office did not respond to an inquiry from Nation.

“I hope Senator Menendez reads the report and realizes that it is time for new leadership at the Islamic Development Bank,” said a former US official. It would be better to resolve this quickly because the Islamic Development Bank has been damaged in the last couple of years and this is further damaging the reputation of the Bank. And I suspect there will be consensus in the region to remove it because everyone understands that it shouldn’t have been there in the first place and the governments that supported it have left or are about to leave.

Claver-Carone, in his first encounter with Alberto Fernandez.  The relationship with the government had several frictions.
Claver-Carone, in his first encounter with Alberto Fernandez. The relationship with the government had several frictions.

Biden has a slim Senate majority of 50 plus a vote for Vice President Kamala Harris, a scenario that would give any lawmaker atypical power because Biden needs it all to pass any bill.

See also  Fibras, CKD's and reits - El Financiero

Alberto Fernandez’s government has had a series of frictions and conflicts with the Trump official Gustavo Pelez won the arm wrestling to lead the Islamic Development Bank. Belize had under its control the Department of Relationship with International Organizations. Massa withdrew college from him when he was promoted to the Ministry of Economy. Pelez resigned, and Massa struck a truce with Claver Caron to release two unrestricted loans worth $1.2 billion to reserves. Rap switched from violent criticism to praising the government’s economic policy, and held a press conference with the minister.

Concluding his tour of the United States, Mr. President Alberto Fernandez avoided making a statement on the scandalBut he said it was “not good for the region that the bank is not in Latin American hands”.

If he doesn’t get the support of major shareholders, it’s very difficult for Claver-Carone to stay in office. His election was met with resistance: He garnered the support of 30 out of 48 governors, with 66.8% of the vote, a National Security Council spokesperson noted at the time. Argentina abstained from voting. Argentina’s Foreign Ministry reported that 16 countries abstained with 31.23% of the vote, including Chile, Mexico, Peru, Trinidad and Tobago and members of the European Union. If the United States decides to support their exodus, it will lead to a domino effect and many countries will follow the same path.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

Leave a Reply

Your email address will not be published.

Back to top