African lender AfDB has agreed to launch a probe against its President Akinwumi Adesina after mounting pressure from the US Treasury, its second-largest shareholder after Nigeria. The examination follows pressure from the American government after the U.S. rejected an internal investigation that exonerated Adesina.
The bank’s Ethics Committee recently cleared President Adesina of allegations of favouritism. However, U.S. Treasury Secretary Steven Mnuchin called for independent investigations, sighting deep reservations about the integrity of the committee’s process. Officials said Denmark Sweden Norway and Finland also wrote to the bank demanding fresh inquiry from professional outsiders.
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Anonymous whistleblowers accused Adesina of handing contracts to acquaintances and filling strategic positions with relatives. However, Adesina maintains his innocence and asserts that the banks’ processes will prove his innocence.
“I am confident that fair, transparent and just processes that respect the rules, procedures and governance systems of the Bank, and rule of law, will ultimately prove that I have not violated the Code of Ethics of this extraordinary institution.”
AfDB President Akinwumi Adesina.
Furthermore, Akinwumi also believes that the allegations seek to “impugn his honour and integrity as well as the reputation of the African Development Bank.” The impending investigation comes three months ahead of the bank’s annual meeting, where the lender is expected to extend Adesina’s five-year term.
AfDB is the continents’ largest multilateral lender with an AAA rating from Moody’s Investors Services and S&P Global Ratings. Analysts believe that it would not harm to look into the matter if majority shareholders question internal processes
“… it’s not harmful if that is put into a different light and looked at from the outside world with fresh eyes. We don’t necessarily require such, or we don’t advocate for such..” says Alexander Ekbom from S&P Global.
