US treasury will hold IMF chief

The second-ranking U.S. Treasury official told senators that the agency would hold International Monetary Fund Managing Director Kristalina Georgieva accountable for changes needed to safeguard IMF integrity in the wake of a World Bank data-rigging scandal. Deputy U.S. Treasury Secretary Wally Adeyemo told a U.S. Senate Banking Committee hearing that they did not find that it was appropriate at this point to remove the (IMF) managing director.

Adeyemo said that they did make very clear during those meetings, and directly to the managing director that changes need to be made to ensure whistleblowers’ rights are protected. And also, that the integrity of the institutions is protected, which is their overarching goal. Adeyemo’s comments underscored the Biden administration’s continued pressure on Georgieva.  Also added that they will be holding her and the other leaders of the international financial institutions accountable for making these changes.

A probe of “Doing Business” data irregularities, by law firm WilmerHale, is continuing. And the firm is expected to issue a second report on potential misconduct by World Bank staff. Adeyemo’s boss, U.S. Treasury Secretary Janet Yellen, during IMF and World Bank annual meetings, called for strong action by the two institutions. This is for protecting the data integrity and prevent misconduct in the wake of the scandal. Georgieva said that the IMF has robust controls and a strong internal protections for whistleblowers.