The African Development Bank (AfDB) has succumbed to pressure from the United States (US) Government by directing a new and independent probe of the bank’s president, Akinwumi Adesina, Daily Trust reports.
But Adesina yesterday issued a statement saying he is still the president of the continental development financial institution, insisting that he is innocent of all the allegations levelled against him by a whistle blowing team at AfDB.
Credible sources within AfDB told the Daily Trust yesterday that Adesina hasn’t been officially told that he would be probed by an external body.
“Adesina would have to step aside if the probe would be carried out…This is what the law says, but I want to assure you that he has not been officially informed that he would be subjected to external scrutiny.
“May be they would inform him any moment from now, the case is actually snowballing and is dicey,” one of the sources said.
The board of AfDB decided to go for an independent probe after the U.S. Treasury Secretary, Steven Mnuchin, openly rejected the decision of the bank’s ethics committee that cleared Adesina of all the allegations brought against him by some whistle blowers.
According to a monitored report from Bloomberg, inside sources who want to remain anonymous said that the AfDB, which is Africa’s largest multilateral development financial institution, gave in to the request of the U.S. Government, by ordering an independent investigation into the activities of Adesina.
It is believed that many other foreign governments such as Denmark, Sweden, Norway, and Finland supported the U.S. treasury’s stand on the matter.
The U.S. Government, in its letter to AfDB’s board of directors, appeared convinced that the ethics committee of the bank did not do a proper preliminary investigation in line with standard practices in the other international multilateral financial institutions and the bank’s own rules and procedures.
But other sources said Adesina is only being haunted by some forces led by the U.S. Government because of his “pro-African stand” when it comes to decision making.
Mnuchin had raised concerns that the wholesale dismissal of all the allegations against Adesina without appropriate investigation might tarnish the reputation of the financial institution.
It’s election time
Some sources said the moves against Adesina were meant to reduce his chances, and by extension the chances of Nigeria to get a second term.
The independent probe is coming barely 3 months to the AfDB’s annual general meeting, where he is expected to be ratified for a second term, having been the sole presidential candidate.
Prior to the AfDB’s decision to order a fresh probe, S & P analyst, Alexander Ekbom, was quoted to have said that “If there are questions from major shareholders on the appropriateness of an internal process, clearly it’s not harmful if that is put into a different light and looked at from the outside world with fresh eyes.”
Part of the accusations of the whistle blowers against Adesina include claims of giving contracts to acquaintances, appointing relatives and friends to strategic positions, and giving preferential treatment to Nigeria, his home country.
If the AfDB President leaves, chances are that Nigeria might lose the seat to another country at the forth coming election of the African lender.
An expert who spoke under anonymity said Adesina introduced far reaching reforms, especially in the agricultural sector that is set to make Africa less dependent on the developed economies on food imports, including the USA, a situation that might have irked Trump who has been marketing American farm produce to Africa and other parts of the world.
I remain innocent- Adesina
Adesina in a statement yesterday debunked all the allegations of ethical impropriety levelled against him.
Adesina said there is an “unprecedented attempts by some to tarnish my reputation and prejudice the Bank’s governance procedures.”
According to the former Minister of Agriculture and Rural Development, “I maintain my innocence with regard to trumped up allegations that unjustly seek to impugn my honour and integrity, as well as the reputation of the African Development Bank.
“At this time, I remain confident that ultimately and as one collective, the Bank will emerge stronger than before and continue to support Africa’s development drive.
“I draw great inspiration from my heroes, Nelson Mandela and Kofi Annan, whose lives have shown that through pain we grow. As Martin Luther King Jnr. once said, ‘the arc of the moral universe is long but it bends towards justice.’
“I am confident that fair, transparent and just processes that respect the rules, procedures and governance systems of the Bank, and the rule of law, will ultimately prove that I have not violated the Code of Ethics of this extraordinary institution.
“I will therefore continue to work with each and every one of our shareholders to ensure that the African Development Bank maintains its hard earned global reputation: and that our credible and well-functioning institutional and governance systems are reinforced, as we collectively press on to fulfil the mission of our founders to accelerate and transform Africa’s development” he concluded.
Why the increased interests in AfDB
Daily Trust reports that after Nigeria, the U.S. is AfDB’s second shareholder, hence its unprecedented interest in the affairs of the bank.
Shareholders of the AfDB include 54 nations on the continent and 27 countries in the Americas, Europe, Middle East and Asia. It has an AAA rating from Fitch Ratings, Moody’s Investors Service and S&P Global Ratings.
Prior to Mnuchin’s letter to the board, African leaders including South African President, Cyril Ramaphosa and his Nigerian counterpart, Muhammadu Buhari, expressed support for Adesina and commended him for his efforts to help secure funds for Africa to deal with the fallout from the disease.
U.S. criticism of the bank’s internal processes follows comments by World Bank President, David Malpass in February that multilateral lenders including the AfDB tend to provide loans too quickly, and, in the process, add to African nations’ debt problems. The bank rebutted the statement, saying it undermines its governance systems, impugns its integrity and that there is no risk of “systemic debt distress” on the continent.
In March, AfDB issued a $3 billion social bond to help African countries deal with the fallout from the coronavirus pandemic. The bank also launched a $10 billion crisis-response facility for African nations.
Expert urges Nigerian govt, stakeholders to await outcome of probe
The federal government and all interested parties in the AfDB should “wait and see” the outcome of the fresh probe on Adesina before making conclusions or pronouncements.
Speaking to Daily Trust, an expert in business and economy, Prof. Adesoji Adesugba, said the probe process must be transparent and fair.
“Since the board has agreed that the president should face an independent probe on charges of wrongdoing, it is prudent for us to wait and see the outcome of such investigations as long as whatever process used is transparent and fair,” he said.
Adesugba, who is the founder and provost of the Abuja Chamber of Commerce and Industry’s Business Entrepreneurship Skills and Technology Centre, said Adesina’s ordeal might not be unconnected to the politics of the leadership of the AfDB.
“We’re all aware of the politics introduced into the bank by some interested parties due to Adesina’s intention to bid for a second term,” he said.
The expert said the Nigerian government and all stakeholders should remember Adesina’s “successes at the bank while this attack is going on.”
