IDB Board Set To Vote On Ouster Of Its President

Directors of the Inter-American Development Bank (IADB) are nearing consensus on the need to remove President Mauricio Claver-Carone as suggested by an independent ethics investigation and could vote as early as Thursday (Friday, Sept. 23, 2022, in Manila) to recommend such a move, a source familiar with the matter told Andrea Shalal of Reuters.

Photo Insert: Termination of Claver-Carone, a Trump-era nominee who took office on Oct. 1, 2020, would require a majority of the total voting power of the governing board, according to the bank's rules.

Such a vote, which would require a simple majority of the board of directors, would throw the final decision on Claver-Carone's future to the bank's board of governors, the source said.

Termination of Claver-Carone, a Trump-era nominee who took office on Oct. 1, 2020, would require a majority of the total voting power of the governing board, according to the bank's rules. The bank's three largest shareholders - the US, Argentina and Brazil, together hold nearly 53% of the voting power.

The bank's 14 directors are nearing consensus that Claver-Carone should be removed on the basis of the findings of an investigation by legal firm Davis Polk into allegations that he had an intimate relationship with a subordinate, and his "immense" lack of cooperation with the probe, the source said.

The Cuban-American president's subsequent actions, including the demotion of a senior official without board approval and his criticism on the bank's website of how it handled the probe, had contributed to a "toxic" situation, the source added.

Brazil, a major shareholder in the bank that had supported Claver-Carone's election, now favors taking action against him, said the source, who declined to speak publicly since the matter is still under review.

It was not immediately clear how Argentina and the United States would vote. Washington has said it was closely reviewing the report filed by Davis Polk.

"There is emerging consensus that he needs to be removed," said the source, citing concern about Claver-Carone's lack of cooperation, and his move on Friday to demote an Argentine official who had served as vice president for finance.

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