An independent review panel that was created under American pressure has cleared African Development Bank (AfDB) President Akinwumi Adesina of any corruption. The panel was established by the Bureau of Governors of the AfDB after the United States (US) voiced its distrust in the internal processes by the Bank’s Ethics Committee and its Board of Governors, which had both exonerated Adesina of any wrongdoing.
The panel was comprised of three members: Mary Robinson, a former President of the Republic of Ireland, a former United Nations High Commissioner for Human Rights, and the Chairperson of the Elders; Hassan B. Jallow, the Chief Justice of the Supreme Court of Gambia; and Leonard McCarthy, a former Director of Public Prosecutions, a former Director for the Office of Serious Economic Offences, a former Vice President of Integrity at the World Bank, and a former Head of the Directorate of Special Operations of South Africa.
In January 2020, Adesina was charged with sixteen allegations of ethical misconduct, with whistleblowers accusing him of “personal enrichment and favoritism.” They said he gave contracts to acquaintances and appointed relatives to “strategic positions” within the Bank. The case was dismissed in March by both the Ethics Committee of the Board and the Bureau of the Board of Governors, who called the allegations “frivolous and without merit” and said that they “rested on no objective, solid facts.”
This outcome was rejected by US Treasury Secretary Steve Mnuchin, who sent a letter to Niale Kaba, the chairperson of the Bank’s board of governors, in which he voiced the Trump administration’s “deep reservations about the integrity of the committee’s process.” He thus called for an independent investigation, saying, “Instead, we urge you to initiate an in-depth investigation of the allegations using the services of an independent outside investigator of high professional standing.”
Mnuchin added, “Considering the scope, seriousness, and detail of these allegations against the sole candidate for bank leadership over the next five years, we believe that further inquiry is necessary to ensure that the AfDB’s president has broad support, confidence, and a clear mandate from shareholders.” American concerns emanate from that the fact that the country holds a 6.5% stake in the Bank, making it the second-largest shareholder after Nigeria.
In fact, these American concerns were echoed by the World Bank, whose president, David Malpass, said in February that multilateral lenders such as the AfDB “tend to provide loans to quickly”, which in turn exacerbates Africa’s debt. The AfDB responded to Malpass’ allegations by calling them “inaccurate and not fact-based.”
America’s position, however, was disputed by Nigeria, where Adesina hails from. In fact, the country’s Minister of Finance, Budget, and National Planning, Zainab Ahmed, wrote to the Board chair, Kaba, welcoming the Ethic’s Committee’s decision, and urging the Bank to ignore American calls for an investigation, saying it would “hijack” the governance of the Bank “away from Africa.” This point was reiterated by fifteen former African leaders, from twelve separate countries.
However, under severe American pressure, the independent review panel was created. This week, the panel declared that it “concurs with the (Ethics) Committee in its findings in respect of all the allegations against the President and finds that they were properly considered and dismissed by the Committee.” The panel added that “it has considered the President’s submissions on their face and finds them consistent with his innocence and to be persuasive.”
The decision was welcomed by Nigerian President Muhammadu Buhari, whose Special Adviser, Femi Adesina, called the decision “further validation of his competence and integrity to lead the institution.”
Adesina’s exoneration paves the way for him to seek re-election for his second five-year term as President during the annual meetings, which are scheduled from August 25 to 27. He is the only candidate for the presidential elections, which were originally scheduled for May but have now been postponed until the annual general meeting in August due to the coronavirus pandemic.
The AfDB is among the world’s five largest multilateral development banks. It is the only African financial institution to have a AAA credit rating from Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings. It has 81 shareholders—54 of whom are African, while the other 27 are from the Americas, Asia, and Europe.
Independent Panel Exonerates African Development Bank President, Despite US Pressure
The panel was created after the US rejected the Bank’s internal review process.
July 29, 2020
IMAGE SOURCE: LUC GNAGO / REUTERSAfrican Development Bank President Akinwumi Adesina at the African Economic Outlook summit in Abidjan, Ivory Coast in January 2020.