U.S. Reps. French Hill (R-AR), Andy Barr (R-KY), and Anthony Gonzalez (R-OH) on Wednesday requested that the U.S. Treasury Department provide a report on its review of an investigation into Kristalina Georgieva, the former chief executive officer of the World Bank and the current managing director of the International Monetary Fund (IMF).
The findings of the investigation — which was conducted by the law firm WilmerHale at the request of the World Bank’s ethics committee — concluded that as CEO of the bank, Georgieva “directed, implemented, or knew” about staff changing data to inflate China’s standing in the Doing Business 2018 report, according to WilmerHale’s report released on Sept. 15.
“Any attempt to pressure staff to alter the numbers in the Doing Business Report raises serious questions about Director Georgieva’s ability to lead the [IMF],” according to a Sept. 22 letter the members sent to U.S. Treasury Secretary Janet Yellen. “If the findings contained in the report by WilmerHale are substantiated, the IMF Board should reassess her position leading the Fund.”
Additionally, Reps. Hill, Gonzalez, and Barr, who serve on the U.S. House Financial Services Committee, pointed out in their letter that the WilmerHale findings also illustrate how the Chinese Communist Party undermines multilateral institutions like the IMF “in pursuing its self-interest.”
“China feels entitled to a greater say in how these international organizations operate,” they wrote. “Its lack of commitment to multilateral values demonstrates why it must not be allowed to.”
The lawmakers requested that Secretary Yellen report to Congress within 30 days on several items, such as Treasury recommendations to ensure strict and transparent data integrity in reports by the IMF and the World Bank, including appropriate firewalls to prevent data from being influenced by their respective leadership and member countries.
They also want information on Georgieva’s interactions with Chinese representatives at the IMF leading up to the Aug. 2 announcement by the IMF Board of Governors to approve a $650 billion general allocation of Special Drawing Rights, which included an estimated $42 billion to the People’s Republic of China, according to their letter.