U.S Demands Investigation Into Akinwumi Adesina As World Bank And AfDB Faceoff Deepens

The United States Government wants the President of Africa Development Bank (AfDB), Akinwumi Adesina, to be investigated by an independent body following a series of allegations made against him. Adesina has been accused of using his position as AfDB President for private gain and other unethical conduct.

Allegations Made Against Adesina

Adesina was said to have abused AfDB's code of ethics after a whistleblower alleged that Adesina was involved in unethical conduct such as pursuing private gain, being an impediment to efficiency, showing preferential treatment, involvement in political activity.

He was said to have also made questionable appointments, and departures from AfDB were also called into question, as well as contracts approved under Adesina - who is contesting for another term as AfDB's President. These conducts were said to have affected the confidence in the integrity of the bank.

Adesina Versus World Bank

AllNews recalled that the World Bank's David Malpass had also accused AfDB and other multilateral lenders of ignoring international standards and process of lending by offering money to African countries in a haste, thereby, worsening the debt burden of Nigeria and other African countries.

Adesina and AfDB had in turn denied the World Bank's accusation, stating that the World Bank was the highest creditor to African countries, whereas, AfDB was the least. AfDB had stated that the debt statement made by the World Bank was inaccurate and misleading. 

Speaking further about its role in Nigeria and South Africa, AfDB said, “The World Bank, with a more substantial balance sheet, has significantly larger operations in Africa than the African Development Bank. The World Bank’s operations approved for Africa in the 2018 fiscal year amounted to $20.2bn, compared to $10.1bn by the African Development Bank. 

“With regard to Nigeria and South Africa, the World Bank’s outstanding loans for the 2018 fiscal year to both countries stood $8.3bn and $2.4bn, respectively. In contrast, the outstanding amounts for the African Development Bank Group to Nigeria and South Africa were $2.1bn and $2.0bn, respectively, for the same fiscal year. 

“With reference to the countries described as ‘heavily indebted,’ our bank recognises and closely monitors the upward debt trend. However, there is no systemic risk of debt distress.” 

U.S Doubt AfDB's Probe Process

These allegations against Adesina led to AfDB's ethics committee commencing a probe into Adesina, but he was later cleared. However, Bloomberg reported that the U.S Treasury Secretary, Steven Mnuchin, has queried the AfDB probe, demanding an investigation into Adesina by an independent body.

The U.S doubt the process of the probe, “We have deep reservations about the integrity of the committee’s process. Instead we urge you to initiate an in-depth investigation of the allegations using the services of an independent outside investigator of high professional standing.”

Adesina's Second Term At AfDB On The Line

Adesina is vying to continue as President of AfDB. He has received backing from President Muhammadu Buhari and the Ivorian government, and President Alassane Ouattara had also canvassed for Adesina to be reelected. Note that the AfDB election will be held in Ivory Coast.

Also, the Economic Community of West Africa (ECOWAS) had also thrown their weight behind Adesina's re-election, but these allegations are threatening such outcomes as his integrity is currently being investigated.

Before he was elected to head AfDB, Adesina was Nigeria’s Minister of Agriculture and Rural Development from 2011 to 2015. The AfDB President will be announced on May 28, 2020, during the Annual Meeting of its Board of Governors.