Board of leading regional lender IDB recommends firing president over ethics probe

Mauricio Claver-Carone’s position as president of the Inter-American Development Bank (IDB), Latin America’s leading development lender, is in danger. A devastating report presented by a law firm that carried out an independent investigation into his conduct indicates that he had a sentimental relationship with a senior colleague whom he favored with his decisions. After learning of the report, the bank’s board of executive directors has unanimously recommended dismissing him, according to sources cited by Bloomberg and AP.

The final decision will now depend on a vote by finance officials who sit on the board of governors, representing the bank’s 48 member nations. But with such a damning report and a negative recommendation from the executive board, the chances of Claver-Carone keeping his post are slim.

The United States has already backed the recommendation for his removal. Claver-Carone’s appointment to head the IDB was controversial from the beginning, as until then the bank had never had a non-Latin American president. Claver-Carone, who had previously worked as senior advisor on Latin America for Donald Trump, had the backing of the former president, and the Joe Biden administration sees no pressing reason to defend him in the present circumstances. The United States is the IDB’s largest shareholder, with just over 30% of capital, which allowed Trump to push for Claver-Carone’s appointment.

The contents of the external probe by the law firm Davis Polk, revealed this Wednesday by EL PAÍS, suggest that the president and a senior bank official had a romantic relationship before getting jobs at the bank, something that is prohibited by the internal policy of Latin America’s largest development lender. In addition, between 2020 and 2022 the woman, identified as J.B, received two significant pay raises, one in response to angry demands by the latter for a better job title. The president denies the accusations and says he never got a chance to officially respond to them.