- Warns against move for veto power in bank
A coalition of 15 former African Presidents and Prime Ministers have issued a joint statement on the stand of the United States of America who is bent on scuttling the second term agenda of the President of African Development Bank (AfDB), Dr Akinwumi Adesina, warning that “no nation, regardless of how powerful, has a veto power” over the bank.
The coalition of former Presidents, led by former President of Nigeria, Olusegun Obasanjo, also said that under the rules governing the bank, “no nation should have such power.”
They stated: “while differences may exist among parties, the best way to address them is to first respect the rules, procedures and governance structures of the Bank. To do otherwise will be tantamount to undermining the Bank and its long and hard earned reputation, and that of its President.”
The former leaders, apart from Obasanjo, includes Boni Yayi (Benin Republic), Hailemariam Desalegn (Ethiopia), John Kufour (Ghana), Ellen Johnson Sirleaf (Liberia), Joyce Banda (Malawi), Joaquim Chissano (Mozambique), Tandja Mamadou (Niger Republic), Goodluck Jonathan (Nigeria), Mohamed Marzouki (Tunisia) and Benjamin Mkapa (Tanzania).
The statement was also endorsed by former Presidents Ameenah Gurib-Fakin (Mauritius), Rupiah Banda (Zambia), Kgalema Motlanthe (South Africa) and Jakaya Kikwete (Tanzania).
According to the statement titled: ‘Leadership of the African Development Bank: A Need for Caution,’ “Africa is facing an unprecedented challenge with the COVID-19 and all hands must be on deck to tackle the pandemic. The African Development Bank (AfDB), under the leadership of its President, Dr. Adesina Akinwumi, has been doing a remarkable job in steering the organization.
“The Bank announced a $10 billion crisis response facility to support countries in Africa. The Bank also successfully launched a $3 billion “Fight COVID-19 social bond, the largest ever US dollar denominated bond in world history. Powered by his vision and leadership, the shareholders of the Bank from 80 countries all approved a general capital increase of $115 billion for the Bank, the largest in its history since establishment in 1964. The Bank has been doing a lot for women, with a $3 billion fund to provide access of finance to women, supported by G7 countries and Africa.
“Across the continent, the Bank’s presence and work have been highly visible and impactful. In less than five years, the Bank’s High 5 agenda has impacted over 333 million people, from access to electricity, food security, access to finance via the private sector, improve transport and access to water and sanitation. The Bank has maintained its stellar AAA rating among all global rating agencies. The shareholders of the Bank have all played very important roles in supporting the Bank to achieve these impressive results.
“This is why we are concerned with the recent developments at the Bank. Dr. Adesina, who some whistleblowers alleged to have violated the Banks’ Code of Ethics, has firmly and consistently declared his innocence of these allegations. The Ethics Committee of the Board of Directors, a legal oversight body of the Bank, made up of representatives of shareholders, cleared Dr. Adesina of all 16 allegations, declaring them as baseless and unsubstantiated and exonerated him completely.
“The Chairman of the Board of Governors, based on the report of the Ethics Committee, declared Dr. Adesina exonerated. We understand that the Bank fully followed its rules, procedures and governing systems, which have served it well since African countries established it in 1964.
“Governance is all about respecting and abiding by rules, laws and established governing systems of organizations. In the case of the AfDB, while differences may exist among parties, the best way to address them is to first respect the rules, procedures and governance structures of the Bank. To do otherwise will be tantamount to undermining the Bank and its long and hard earned reputation, and that of its President.
“The African Development Bank is a pride for all of Africa, and its President, Dr. Adesina, has taken the Bank to enviable heights. At this critical time that Africa is battling with COVID-19, the Bank and its President should not be distracted. Differences will always occur but we urge that all shareholders work together.
“All shareholders should work with mutual respect, and honour the rules and procedures of the Bank and its governance systems that have served it well for 56 years. No nation, regardless of how powerful, has a veto power over the African Development Bank, and no nation should have such power.
The Bureau of the Boards of Governors of the AfDB had on Thursday said that there was no governance crisis at the bank, cautioning that the Bureau should be allowed to do its work and it would ensure due process as all Governors would be carried along in resolving whatever the issues might be.
According to a statement by its chairman and Finance Minister of Cote d’Ivoire, Mr Nale Kaba, “the bureau of the Boards of Governors of AfDB met on Tuesday, May 26, to consider the matter arising from a whistleblowers’ complaint against the president of the bank which was dealt with by the ethics committee of boards of Directors of the bank. And for which I received letters from some stakeholders expressing various views. The bureau which I chaired wishes to reassure the public that it is treating the matter with the utmost seriousness that it deserves. The bureau wishes to informs the public that it has not taken any decision as was falsely conveyed in some publications.”
The current issues arose from the fact that despite that Dr Adesina being cleared of all allegations of impropriety and fraud by a board of directors, the U.S. has demanded that a fresh and in-depth investigation be conducted into the allegations.
On May 5, the ethics committee of the Board of Directors of the continental bank, headed by Takuji Yano, said in its report that Mr Adesina was not guilty on all counts. Mr Yano is a Japanese Executive Director charged with the responsibility of investigating allegations by some concerned employees against the official.
The committee described the allegations that he (Mr Adesina) violated the code of conduct of the institution as “spurious and unfounded”.
In its petition, the concerned staff accused Mr Adesina of 20 breaches of the bank’s code of conduct, including “unethical conduct, private gain, an impediment to efficiency, preferential treatment, and involvement in political activities.”
The group, which noted their allegations were in line with AfDB’s whistle-blowing policy, said these activities adversely affected the confidence and integrity of the bank.
Despite the conclusions of the Ethics committee, the U.S. government expressed “deep reservations about the integrity of the committee’s process. In a letter dated May 22, 2020 to the chairman of the Board of Governors, the U.S. government, through the Secretary, Department of Treasury, Steven Mnuchin, faulted the decision of the committee to totally exonerate Mr Adesina of all allegations, saying it was not yet time to make such a declaration.
On Wednesday, Dr Adesina maintained his innocence and integrity, saying in a Press Statement he personally signed that he has “absolute confidence in the integrity of the Bank that I lead and its governance systems, rules and procedures. In spite of unprecedented attempts by some to tarnish my reputation and prejudice the Bank’s governance procedures, I maintain my innocence with regard to trumped up allegations that unjustly seek to impugn my honor and integrity, as well as the reputation of the African Development Bank.”.
The U.S. government, who is the second-largest shareholder after Nigeria, claimed that several top officials of the bank, including Adesina, worked towards sabotaging the activities of the ethics committee after initially sitting on the allegations for six weeks.
The push for independent probe is coming barely three months to the bank’s annual general meeting, where Adesina is expected to be ratified for a second term, being the sole Presidential candidate.
Prelude to the move through the Whistleblowers, on 6 October 2019, on OpEd appeared in an American newspaper – The Hill, questioning among other things, why the U.S. (as the second largest non-regional shareholder and the 4th largest shareholder after Nigeria, Egypt, and Germany), did not have veto power at the African Development Bank. Nigeria is the Bank’s largest shareholder, followed by Egypt, Germany and the United States.
But the reality is that what has been at the helm of this seeming crisis is the unyielding determination of the U.S. to remove Adesina as President of the Bank and to stop his second term at the bank. And if this doesn’t work out, it would undermine the credibility of the Bank, derail Adesina’s leadership, and possibly set the pretext for a veiled threat to pull out of the Bank as a shareholder.
It should be noted that there has been no love for Adesina by the U.S. as they vehemently opposed his nomination and election as the AfDB President in 2015. Not succeeding, they have done whatever they could, at the board level, to derail him and his Africa-focused development agenda.
