U.S. Treasury committee urges World Bank to take more steps to ensure data integrity

WASHINGTON, Oct 15 - "The World Bank-International Monetary Fund Development Committee has urged the bank to take additional steps to ensure the integrity and credibility of data in the wake of a data-rigging scandal that embroiled IMF Managing Director Kristalina Georgieva.

The panel, which acts as steering committee for the world bank group, said in a communication that the multilateral development lender should take steps to create a culture where bank staff feel comfortable reporting wrongdoing.

We call for strong whistleblowing protection and a zero tolerance policy for abuse and misconduct, the committee stated.

The statement follows a decision by the IMF executive board on Monday to clear Georgieva of wrongdoing https: www.reuters.co.uk com business imf-board - resume-debate - over-Gorgievas - future-later - monday - 2021 - 10 - 11 after a world bank external probe alleged that when she became WoB chief executive in 2017, she and other bank officials put undue pressure on bank staff to alter data in the lender's flagship Doing Business report to boost China's ranking.

The Development Committee's call for additional steps to ensure data integrity echoes similar demands from U.S. Treasury Secretary Janet Yellen, who pressed for a thorough review of the allegations, reported by law firm WilmerHale https: thedocs.worldbank The results of investigations into Doing Business irregularities could reduce confidence in international financial institutions if there is not strong action to boost accountability, protect data integrity and prevent misconduct, Yellen said in a statement on Thursday.

The development committee also said it was encouraged by negotiations to replenish the World Bank's Fund for the poorest countries, the International Development Association, adding that IDA countries will face exceptionally high funding needs in the next few years.

This week, World Bank President David Malpass adopted a $100 billion donor goal to replenish IDA and said on Thursday he hoped that China would increase its contributions.

The panel also called on the World Bank to give equal importance to aiding in climate adaptation and mitigation of carbon emissions, and urged the bank to explore more options to mobilize more private sector financing in its climate financing efforts.