Canada is freezing ties with China’s Asian Infrastructure Investment Bank (AIIB) due to concerns of the financial institution being dominated by the Chinese Communist Party (CCP).
CCP Infiltration Allegations
The Western nation suspended all activity at the multilateral lender after a top Canadian official resigned, alleging that the institution was run by CCP members who “operate like an internal secret police.”
Bob Pickard, the bank’s global communications director, announced his resignation on Twitter on Wednesday, saying he had left because of the institution’s “toxic culture.”
“As a patriotic Canadian, this was my only course. The bank is dominated by Communist party members and also has one of the most toxic cultures imaginable. I don’t believe that my country’s interests are served by its AIIB membership,” he wrote.
On the same day, Pickard flew to Tokyo because he feared for his safety after raising concerns.
“These people are like an invisible government inside the bank and this is what I can’t be part of. I don’t want to be a useful idiot,” Pickard told the Financial Times (FT) from Tokyo.
The Chinese Embassy in Canada on Wednesday blasted an AIIB former global communications director's comments on the bank as sensationalism and a total lie, stressing that #China is an active contributor in maintaining world peace, boosting mutual development and dealing with… pic.twitter.com/e9LV3zVsFm
— Global Times (@globaltimesnews) June 15, 2023
Canadian Government Response
Canadian Finance Minister and Deputy PM Chrystia Freeland told the media that Ottawa will “immediately halt all government led activity” at the bank.
She added that she had instructed the Finance Department “to lead an immediate review of the allegations raised and of Canada’s involvement in the AIIB.”
AIIB Response
AIIB, which is also known as “China’s World Bank,” said in its statement that “throughout this time,” it has “supported and empowered [Pickard] to perform his role.”
It added that the former official’s “characterisation of the Bank” was “baseless and disappointing.”
“We are proud of our multilateral mission and have a diverse international team representing 65 different nationalities and members at AIIB, serving our 106 members worldwide, many of whom have been with us since our formation in 2016,” it underscored.
In an internal memo seen by FT, AIIB President Jin Liqun told staff that management was aware of Pickard’s public comments and was “addressing the situation”.
“We acknowledge the uncertainty these comments can cause for all of us that work at the AIIB. We hope that you will join us in wishing Bob well for the future,” Jin said.
Chinese Response
China’s embassy in Canada dismissed Pickard’s allegations in a statement, calling them “outright lies with an attempt to seek sensationalisation.”
“China is an important member of AIIB and has always followed multilateral rules and procedures, and participated in decision-making through multilateral governance mechanisms such as the Board of Governors and the Board of Directors,” the embassy spokesperson said.