According to the letter to which you agreed Bloomberg News the representative Patrick McHenry, a senior Republican Party member of the House Financial Services Committee, along with Representatives French Hill y Andy Barr, they asked the president Maxine Waters California to convene the hearing.
It is worth mentioning that at the time Yellen endorsed his continuity as head of the Fund, although the statement makes it clear that “the Treasury will closely monitor the follow-up, assess any new facts or findings and that the WilmerHale report does underline the need for vigilant shareholders to uphold the integrity of both the Bank and the Fund. “
Also, always according to Bloomberg News, there was a second letter to Yellen, where he was asked a series of questions related to the IMF issuance of some $ 650 billion of Special Drawing Rights to help member countries due to the pandemic. Legislators hope to have a response from the Secretary of the Treasury before November 15.
Returning to the issue of suspicions about the Doing Business, it should be recalled that for the board of directors, the investigation carried out by the Fund did not allow conclusively to demonstrate that the managing director played an inappropriate role.
The United States, the largest shareholder of both the IMF and the World Bank, had said that the accusations against Georgieva were “serious” and debated the possibility of requesting her resignation, Bloomberg News reported this month, though it ultimately fell short of that measure.
Last month, Waters qualified the allegations against Georgieva of “very worrying“and he said that” they questioned the current leadership at the IMF. US Treasury spokeswoman Alexandra LaManna declined to comment.
“We share your concern that member countries like China may undermine multilateralism and the integrity of our international financial institutions,” Republican lawmakers wrote in the letter to Waters.
A hearing would allow the committee to hear from Yellen about its decision-making process and “any proactive steps that will be taken to reinforce the integrity, accountability and credibility of the data in the background,” they said.
Doubts
This week it became known that the World Bank board rejected a request by Georgieva for a meeting to defend herself against the accusations regarding the transparency with which the Doing Business report was analyzed, where China was favored.
The information was provided by Reuters agency where it is stated that the World Bank denied the meeting requested by a lawyer hired by Georgieva who, in a 17-page brief, raised the board of directors of the multilateral organization.
In the brief, counsel, Whitney Debevoise of Arnold & Porter, asserts that “an investigative report prepared by the WilmerHale law firm for the board was improperly conducted, violated Georgieva’s due process rights and based its fundamental conclusion in a false assumption ”, according to the international agency he could see from a copy of the letter sent to the World Bank.
Another suspicion
Added to this is the recent accusation of almost 200 employees of the body chaired by Georgieva who, through a letter, asked him to explain the criteria of a report on Brazil, according to a note from Bloomberg News.
The letter from the Fund’s employees expresses concern about “respect for the rules and procedures that safeguard the technical independence of the staff”.
The question is because in Article IV of Brazil the warning about environmental risks for the Brazilian economy would have been softened.
Agency spokesperson Gerry Rice responded to the petition stating that “all fund policies and procedures related to the Brazil Article IV staff report were followed and he has responded in detail to all questions raised.”
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