US wants AfDB president investigated for alleged ethics violations

Washington, USA

The United States Treasury Department urged the African Development Bank (AfDB) to carry out an independent investigation into alleged ethics breaches by its president, Akinwumi Adesina (pictured).

US Treasury Secretary, Steve Mnuchin wrote a letter to the AfDB Chairperson of the Board of Governors, Kaba Nialé, expressing “deep reservations” about the process undertaken by the Ethics Committee of the Bank’s Board.

Last month, anonymous whistleblowers accused Adesina of embezzlement, preferential treatment of Nigerians in senior appointments and promoting people accused or found guilty of fraud and corruption.

An internal inquiry by the Ethics Committee of the Bank’s Board concluded that Adesina was totally exonerated of all allegations made against him.

However, a group of unidentified staff members said the process was marred by irregularities and manipulations. Mnuchin’s letter came after the whistle-blowers demanded for an independent inquiry after their complaint did not appear to gain momentum.

Mnuchin added that the US could not support dismissing the allegations against Adesina at this stage.

“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. We emphasize that undertaking an independent evaluation of facts, at any stage, is not at odds with a presumption of innocence,” Mnuchin said.

Mnuchin said that a complete dismissal of allegations against Adesina without adequate investigation would taint the AfDB’s reputation at a critical point in time.

“This is a serious risk when we need strong confidence in the AfDB to play an influential role in the current global economic and health crisis, and when many shareholders are seeking legislative support for payments under the recently-concluded General Capital Increase,” Mnuchin said.

Mnuchin further requested the AfDB to take concrete steps to begin an impartial and independent investigation against Adesina as a sign that it takes issues of governance, transparency and anti-corruption seriously. He noted that the Bank will emerge stronger, whatever the result, for upholding good governance.

“Considering the scope, seriousness, and detail of these allegations against the sole candidate for the Bank leadership over the next five years, we believe that further inquiry is necessary to ensure the AfDB’s President had broad support, confidence, and a clear mandate from shareholders.”

Adesina has denied the allegations labeling them as an attempt to discredit him from seeking another term at the helm of Africa’s largest multilateral lender.

The United States is the second largest shareholder of the AfDB with a 6.5 percent stake behind Nigeria which has a nine percent stake.

Adesina, formerly Nigeria’s Minister of Agriculture and Rural Development, was elected as the 8th President of the AfDB in 2015. He is the sole candidate in this year’s race at an annual general meeting scheduled for August.