The IMF chief is feeling the heat from the workers and legislators over China’s favoritism

IMF leader Kristalina Georgieva is being pressured by US workers, lawmakers and economists as she strikes allegations that she is forcing her superiors to love China while she has worked for the World Bank.

IMF officials are concerned that the scandal has disrupted Washington’s operations, say five people in charge of financial management at the Financial Times. Three U.S. Republican lawmakers also wrote to U.S. Treasury Secretary Janet Yellen asking them to investigate the matter, which they say “raises serious questions about… Georgieva’s resignation from the IMF.”

Georgieva used a meeting organized by the IMF last week to to deny the claims an independent report stating that when the World Bank chief changed his “Doing Business” report on the business climate of other countries, it made China’s history interesting.

“[Let] I have said very briefly to you. It’s not true, “he told staff.” In this case, either before or after, he never existed [I] forces employees to manage data. “On Thursday, Georgieva took a brief look at how to continue trying to address workers’ concerns.

But IMF officials who asked not to be named told FT that Georgiaieva’s refusal to accept the report’s findings at the city meeting left them and their colleagues in a state of shock.

“Not only me, but also other people, who we consider to be inappropriate,” said one manager. “This is questionable and very important,” the man said, “because no one can guarantee that the IMF is not taking” travel from one country to another… Everyone is saying that this stinks in the air. “

The lawsuits against Georgieva, which are in reports They have been sent by the World Bank and since they were sent to the IMF executive committee, then the biggest risk would have been two years at the IMF. It also tarnishes the fund’s reputation as a result of sensitive information, which informs financial and financial decisions by the IMF and other lenders.

Erik Nielsen, chief financial officer at UniCredit and former IMF and World Bank counterpart, said the comments came as the fund struggled to cope with internal disagreements over spending.

“In the midst of the social crisis, you get this story – it’s very good, it’s throwing oil on the fire,” he said. “But at the end of the day, you don’t cook numbers and if you do, you have no part in making decisions.”

Finally, Georgieva’s future as IMF leader depends on whether the major stakeholders – including the US, European countries and Japan – are confident that they will continue to work.

Georgieva has won accolades from economists such as Joe Stiglitz due to the response to the epidemic, as well as its forward-looking approach to climate change and debt.

“They are changing the organization, and I think in a positive way…. “His work is more important now than ever,” he wrote.

However, insecurity due to embarrassment, with one employee saying it had “deeply affected” their work, adds to the pressure on Georgieva to release a report last week prepared by law firm WilmerHale at the request of the World Bank board.

Three Republican lawmakers at the U.S. House of Representatives finance committee Wednesday wrote Yellen and summoned the Treasure department to appear before Congress within 30 days as China could attract the IMF under Georgieva.

“Everyone I’ve talked to is amazing,” said an IMF official. Everyone is unhappy. ”

Georgieva took another step in tackling the problem Thursday. “There are many questions that the report will answer as the Board continues to review,” he wrote in a statement to staff members.

“At this stage I have stopped responding out of respect for the role of the Board. I hope that soon I will be able to elaborate on my thoughts and answers to any questions people may have, “he added, before thanking you” for the many helpful messages from you. “

The WilmerHale report was based on thirteen interviews with current and former World Bank employees and the review of 80,000 internal documents.

Georgieva was a senior member of the World Bank at the time, before becoming its President. He was appointed IMF chief in 2019 and led the agency through the epidemic.

The report criticizes Georgieva for directing Simeon Djankov – a Bulgarian national who also works for the World Bank and was later promoted to head of the finance department – to raise China’s position in the 2018 Doing Business report, which was suspended last week inside furore.

At the time, Georgieva was working with Bank President Jim Yong Kim to persuade China and other countries to invest more in the World Bank. Djankov did not respond to a request for comment.

Former World Bank employees who have been around for this have expressed different opinions.

In a statement sent to the IMF, Shantayanan Devarajan, a former World Bank official, denied that Georgieva had pressured him to undermine the country’s foreign policy to support China.

Devarajan, who was later replaced by Djankov, said Georgieva “asked the team and me to review, re-evaluate and re-evaluate three times what started China” but with an eye to ensure that the investigation is “accurate and reliable.”

“He stressed that he wants us to do our best without compromising the integrity of doing business,” Devarajan wrote to the committee, according to a report from FT. On Thursday, he said Georgieva was tortured by a “rush to trial”, the first of a series of and tweets on what he is saying.

However, Paul Romer, who resigned from the World Bank’s financial position in 2018 after publicly declaring his intentions, says Georgiaieva “wooden cover ” of their ways.

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