WASHINGTON, CMC – The President of the Inter-American Development Bank (IDB), Mauricio Claver-Carone, says while he welcomes the findings of an “unprecedented investigation” into the financial institution, the process failed to meet international standards of integrity that both the IDB and the region strive to exemplify.

He said while the investigation did not “substantiate the false and anonymous allegations that were made against me or IDB staff in the press,” it is the first time in the history of any multilateral development bank that a process like this takes place, where an elected leader has been subject to an arbitrary investigation without any formal complaint within the administrative rules of the organisation and launched on the basis of anonymous and unsubstantiated allegations.

“It is unprecedented. Despite the absence of due process, I fully cooperated without relinquishing my constitutional rights. The handling of the investigation has repeatedly violated the Ethics Rules of the Bank, basic norms, and raised seriously questionable practices, including manipulating, distorting, and knowingly using information proven to be unreliable to predetermine an outcome instead of presenting a fair and unbiased review,” Claver-Carone said.

Claver-Carone, who was elected to the IDB top post on September 12, 2020, did not detail the allegations made against him and the Washington-based financial institution.

“I believe that complaints, even if anonymous, should be taken seriously and handled with care, and firmly uphold that the IDB should be a rules-based institution, as established by charter, and not a political organisation that is driven by ideological or partisan interests,” he added.

“In clear and direct contravention of IDB ethics rules, neither I nor any other IDB staff member has been given an opportunity to review the final investigative report, respond to its conclusions, or correct inaccuracies.

“These rules, which apply to all IDB employees including myself and staff that the allegations are against, require that IDB employees be given 15 business days to respond to the allegations. The rules are designed to ensure due process and fair outcomes,” Claver-Carone went on to say.

Claver-Carone said anyone familiar with Latin America and the Caribbean “is aware of persistent concerns among citizens about the lack of due process rights that all-too-frequently plague court systems and undermine the provision of justice in the region.

“And it is unfortunate that this institution which is trusted in the region cannot deliver due process to its own employees,” he said.

Claver-Carone said the IDB should epitomise the type of ethical conduct, transparency and eagerness for justice that it promotes throughout the region, and one must ask why the bank has failed to honour its own rules, and even common-sense ethical precepts, throughout this investigative process.

“Unfortunately, this ad-hoc, arbitrary process has, from its inception, violated IDB rules and norms, including privacy safeguards and confidentiality rules, while failing to prevent conflicts of interests among those responsible for carrying out and evaluating the investigation.

“Willful disregard of the IDB’s established rules and processes, as we have witnessed, poses a reputational risk for the IDB and negligently fails to protect the staff across our 26 regional borrowing member countries, as well as in Europe and Asia,” he explained.

He said to ensure that the IDB, staff, and its mission is protected, it is essential that the Bank exemplify the highest standards of integrity, accountability, and due process.

“It will be vital to implement internal reforms so it can continue to increase trust and effectively promote transparency and integrity in public institutions in Latin America and the Caribbean,” Claver-Carone said, adding that “this episode now gives us an opportunity to consider actions necessary to safeguard and protect the integrity of the IDB, our work, and our workforce against any form of abuse, violations, or institutional political machinations.

“We must redouble our efforts to modernise the Bank and advance with the reforms aimed at bringing much greater resources to bear to improve lives in our region,” said Claver-Carone, who prior to joining the IDB, served as deputy assistant to the President of the United States and Senior Director for Western Hemisphere Affairs at the National Security Council.

Bahamas, Barbados, Belize, Guyana, Haiti, Jamaica, Suriname and Trinidad and Tobago are the Caribbean countries with membership in the IDB.