One of them, an IDB person with direct knowledge of the matter, said that directors had discussed the possibility of hiring an outside firm to investigate the allegations and ask Claver-Carone to step down temporarily.
The other two sources confirmed that the bank’s 14 directors, its general counsel and its deputy secretary met to discuss the allegations and how to proceed in a two-and-a-half-hour virtual meeting on Tuesday.
The directors met again on Thursday to draft a resolution to hire an outside firm to investigate the allegations, the bank source said. Directors decided not to propose Claver-Carone’s removal, the IDB person with direct knowledge said.
Reuters was unable to confirm the claims about the alleged relationship, which, if verified, would appear to be against bank rules.
The IDB did not comment when asked about the meeting and the allegations. Claver-Carone, a former White House official nominated for the IDB by former President Donald Trump, did not respond to repeated emails and calls seeking comment.
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Before coming to the IDB in 2020, Claver-Carone served under Trump as senior director for Western Hemisphere affairs at the National Security Council.
The IDB is a development bank that, although much smaller than the International Monetary Fund (IMF) or the World Bank, is a key player in Latin America.
An anonymous email sent to the IDB’s board of directors and ethics officer a week ago accused Claver-Carone of having a relationship with a senior strategist who reported to him, according to the bank source with direct knowledge of the meeting. Reuters has not seen the email.
The email also accused Claver-Carone and the strategist of misusing IDB funds, a source said, without elaborating.
The IDB’s code of ethics on its website states that “you cannot participate in any decision related to the employment of someone with whom you have an intimate relationship.”
The allegations came to light just weeks after the bank’s annual meeting and just as Claver-Carone is trying to push through a capital increase for IDB Invest, the bank’s private sector arm.
The capital increase would require the support of the United States, the bank’s largest shareholder, and its other members, at a time when resources are scarce due to the coronavirus pandemic, the war in Ukraine and the increase in climatic disturbances. .
Top Democrats opposed Claver-Carone’s nomination to head the IDB.
The US Treasury Department declined to comment when asked about the IDB meeting.
The resolution must be sent to the IDB’s board of governors, most of whom are finance ministers from member countries, so that the directors can launch an investigation, according to the bank source with knowledge of the meeting.
The results will be shared with the governors when they are completed, the bank source said.
Claver-Carone, a staunch opponent of the Cuban government, faced strong backlash before his election to the IDB presidency in 2020 from some member states, including Argentina and Mexico, which upheld the bank’s tradition since 1959. , of having a president of a Latin American country.
Claver-Carone dismissed the reactions at the time, saying he had “overwhelming” support, citing public backing from 15 countries and six more privately.
Source: Ambito
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