Latin America and US agree to sack IDB president, a Trump appointment

Friday, September 23rd 2022 - 09:44 UTC

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The move comes after an independent investigation confirmed misconduct allegations against Claver-Carone, nominated for the job in 2020 by Trump

The fourteen governors on the board of the multilateral Inter-American Development Bank (IDB) have voted unanimously to recommend firing President Mauricio Claver-Carone, Latin American sources revealed on Thursday.

The move comes after an independent investigation confirmed misconduct allegations against Claver-Carone, who was nominated for the job in 2020 by then US president Donald Trump. His fate now lies in the hands of the governing board of the IDB representing all 48 of the bank's member nations.

The appointment of Claver-Carmona by Trump was strongly questioned at the time by Latin American bank members, arguing it was against long established tradition that the top job at the bank had to go to a Latin American.

A US Treasury spokesperson said Washington backed Claver-Carone's removal from office and urged “swift resolution” by the IDB's governors.

”His creation of a climate of fear of retaliation among staff and borrowing countries has forfeited the confidence of the (IDB's) staff and shareholders and necessitates a change in leadership,'' the spokesperson said.

The US is the bank's largest shareholder, with 30% of its voting shares.

An independent probe was set up against Claver-Carone after a complaint that he allegedly had an intimate relationship with an employee in violation of the bank's rules.

According to a report in Washington media, the investigation found that he had favored this top aide with whom he had had a romantic relationship.

In a statement, Claver-Carone slammed the US Treasury's comments. “It's shameful the US commented to the press before notifying me and that it is not defending two Americans against what is clearly fabricated information,” he said.

He also claimed that Washington was “handing” the IDB to China by backing his removal from office.

The Claver-Carone affair comes as World Bank president David Malpass, another ex president Trump appointment, is also under investigation after he failed to state that he accepts the scientific consensus on climate change.