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Akinwumi Adesina: Why the US is targeting a flamboyant Nigerian banker

 

The US and the African Development Bank have fallen out over allegations of corruption against the bank’s Nigerian head.

Akinwumi Adesina is a sharp dresser known for his expensive tailored suits, immaculate white shirts and an endless supply of colourful bow ties.

But the clean public persona of the 60-year-old president of the African Development Bank (AfDB) is now being questioned after a string of corruption and abuse of office allegations from his own staff spilled into the open. Mr Adesina has denied all the allegations.

The board of governors of the 55-year-old institution met on Tuesday to discuss whether to bring in an outside investigator into the allegations concerning the Nigerian’s conduct just days after the US rejected an initial inquiry that cleared him.

The prospects of an independent probe comes only three months before he was expected to be re-elected unopposed at its annual general meeting in August.

US at odds with Africa

The 20-point allegations of “impunity and bad governance” from unnamed employees have exposed a rift between Mr Adesina and ordinary staff.

The “Group of Concerned Staff Members of the AfDB” claimed that Mr Adesina has used the bank’s resources for self-promotion and personal gain while also paying out huge but undeserved severance packages to staff who resigned mysteriously, and favouring his fellow Nigerians.

US Treasury Secretary Steve Mnuchin personally signed a letter to the board rejecting an internal investigation that cleared Mr Adesina.

“Mnuchin’s move is significant because it has now cast a limelight on governance issues and on [the] importance of an independent investigation to uphold the integrity of the AfDB,” said Barbara Barungi, the bank’s former lead economist on Nigeria. “There are very few people that were willing to stick their necks out.”

Besides the core 54 African countries, the US is one of the 27 non-regional members of the AfDB and its second largest shareholder.

AfDB 10 biggest shareholders:

Nigeria: 9.1%; US: 6.5%; Egypt: 5.5%; Japan: 5.4%;
South Africa: 4.9% Algeria: 4.1%; Germany: 4%;
Canada: 3.8%; Ivory Coast: 3.7%; France: 3.6%
“I think AfDB is Africa’s most valuable institution,” said one insider who spoke on condition of anonymity.

“But what you have now is the biggest paymaster, the US, in a stand-off against the Africans. If you read Mnuchin’s letter carefully, it has put the bank on notice.”

The BBC has obtained the original whistleblowers’ email from January 2020, sent to two executive directors of the bank, Yano Takuji (Japanese) and Steven Dowd (American), and the British director for its Integrity and Anti-Corruption Department Alan Bacarese.

We fear that the wholesale dismissal of all allegations without appropriate investigation will tarnish the reputation of this institution [AfDB].

In an April update circulated to a wider pool of senior managers, the whistleblowers said the Ethics Committee headed by Mr Takuji failed to examine their concerns.

The committee later carried out an investigation and declared that Mr Adesina was “totally exonerated of all allegations made against him” and recommended that the board of governors adopt its conclusions.

In early May, the board’s chair – Ivorian Planning Minister Nialé Kaba – wrote to shareholders that the African finance ministers who supervise the bank’s management intended to clear Mr Adesina.

“We fear that the wholesale dismissal of all allegations without appropriate investigation will tarnish the reputation of this institution as one that does not uphold high standards of ethics and governance,” Mr Mnuchin wrote back.

“Therefore, the United States cannot support dismissing the allegations at this stage,” he added.

Mr Kaba said in a statement that a decision had not been made about Mr Adesina and he remained in office.

“The bureau, which I chair, wishes to reassure the public that it is seized with the matter and it is treating it with the utmost seriousness that it deserves,” he said.

‘Trumped up allegations’
The whistleblowers have accused Mr Adesina of major conflicts of interest in his dealings with current and former employees, unethical conduct and preferential treatment.

Eight things about Akinwumi Adesina:

i. He is first Nigerian to lead AfDB
ii. He was elected for five-year term in September 2015
iii. He was Nigeria’s agriculture minister from 2011 until his move
iv. He was named Forbes Africa Person of the Year in 2013 for his “bold reforms” in farming sector
v. He was told by an academic in Nigeria he would never get into Purdue University as his mats was poor
vi. He proved him wrong by getting into the prestigious US institution
vii. He cancelled his admission to UK’s respected Cambridge University
viii. He got his PhD in agricultural economics in 1988

Mr Adesina, who holds a PhD in agricultural economics from Purdue University in the US, did not respond to BBC requests for comment but released a statement.

“In spite of unprecedented attempts by some to tarnish my reputation and prejudice the bank’s governance procedures, I maintain my innocence with regard to trumped up allegations that unjustly seek to impugn my honour and integrity,” he wrote.

“I am confident that fair, transparent and just processes that respect the rules, procedures and governance systems of the Bank, and rule of law, will ultimately prove that I have not violated the Code of Ethics of this extraordinary institution.”

The AfDB board meeting is said to have agreed to an independent investigation into the allegations concerning Mr Adesina’s conduct after Denmark, Sweden, Norway and Finland supported the US position, Bloomberg news agency first reported.

“Should it surprise the world that we’re getting a second investigation backed by no African country? What does that say about the other countries that have lined up behind the US?” wonders Debisi Araba, a friend of Mr Adesina’s.

“He’s due to run unopposed but you want to muddy the waters with this stain of corruption. I believe he will be vindicated.”

Who the AfDB says it helped in May:

[Cape Verde: $33m loan approved to tackle Covid-19], [Zimbabwe: $13.7m grant approved to improve health sector], [Cameroon and Chad: $45m allocated for bridge to link the two states], [Eswatini: $1.67m given for study on building dams],

Mr Araba worked for Mr Adesina in the Nigerian government and was also an intern at the bank while doing his PhD in 2009.

He says the bank has always had a culture of salacious rumour and gossip but faults the US for formalizing the “crass, bargain basement reasoning” into a complaint.

This was denied by a US Treasury spokesperson, who told the BBC: “The United States continues to value the AfDB and its efforts to promote development, reduce poverty, and address the current health and economic impacts of the coronavirus pandemic on the African continent.”

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33 Comments

  1. Reply

    Good to know about

  2. Profile photo ofItz Kvng Twitch

    Reply

    Interesting facts

  3. Reply

    This bankers tho

  4. Reply

    Good to know

  5. Reply

    This is good

  6. Reply

    Thanks for the update.

  7. Reply

    Interesting

  8. Reply

    Wow.. interesting

  9. Reply

    😊😊

  10. Reply

    That’s good

  11. Reply

    This is serious

  12. Reply

    Good post

  13. Reply

    Who amongst the two parties is saying the truth

  14. Reply

    Interesting

  15. Reply

    Cool

  16. Reply

    Investigation no worries they should go ahead let’s see what comes out next

  17. Profile photo ofSIRMUSTY

    Reply

    nigeria with corruption stain

  18. Reply

    This is nice

  19. Reply

    Good write up

  20. Reply

    Nice one

  21. Reply

    he hasnt done anything wrong.

  22. Reply

    Good write up

  23. Reply

    Nice

  24. Reply

    Nice

  25. Reply

    Nice info

  26. Reply

    Interesting one

  27. Reply

    Since the investigation is not from inside, it’ll probably be successful

  28. Profile photo ofSommycruz

    Reply

    This will blow our mind

  29. Reply

    Good

  30. Reply

    Good

  31. Reply

    Nigerians are always the best

  32. Reply

    In this case if really the man is doing things to enrich himself it is really not okay for his personality

  33. Reply

    Great facts

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