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Thursday, May 28, 2020 06:10
PM / by Olusegun Obasanjo and Federal Ministry of Finance/ Header
Image Credit: AIG Media Pro
I hope that you are keeping well in the midst of the
current COVID 19 pandemic that we are all going through in Africa and all over
the world. I am writing to you in respect of developments at the African
Development Bank.
As you may be aware the President of the Bank, Dr.
Akinwumi Adesina has performed very well in this position over the past five
years. He has taken the Bank to great heights. In 2020, he led the Bank to
achieve a historic general capital increase, raising the capital of the Bank
from $93 billion to $208 billion, an increase of $155 billion, the highest in
the history of the Bank since its establishment in 1964.
I have been made to understand that the Bank also
successfully raised funds from donor countries of over $7 billion for the
African Development Fund 15" replenishment for low-income countries, an
increase of 35%. Under his leadership the Bank launched the Africa Investment
Forum (AIF) to mobilize massive flows of capita! to Africa. The inaugural
launch of the AIF held in Johannesburg, South Africa, secured 38.7 Billion of
investment interests within less than 72 hours. The AIF event held in 2019 went
even further and secured $40.1 Billion of investment interest in less than 72
hours. Africa has never seen these kinds of financial and investment interests.
The Bank has been effectively positioned as an
effective global institution, ranked 4" globally in terms of transparency
among 45 multilateral and bilateral institutions by Publish What You Fund, an
outfit that consists of 19 developed economies. Dr. Adesina led the Bank to
successfully launch at the G7 Summit in Biarritz, France, the Affirmative
Finance Action for Women (AFAWA) to mobilize $3 Billion for women businesses
and entrepreneurs in Africa, with strong support and resources from G7 leaders
and nations.
The Bank has also substantially aligned its financing and operations to help accelerate Agenda 2063 and the High 5 agenda of the Bank (Light Up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improve the Quality of Life of the People of Africa) are achieving good results. Over the past four years, it is estimated thatl8 million people were provided with access to electricity, through "Light Up and Power Africa": 141 million people gained access to improved agricultural technologies for food security, through "Feed Africa"; 13 million people benefited from access to finance from private sector investment projects, through "Industrialize Africa"; 101 million people benefitted from access to better transport through "integrate Africa"; 60 million people benefit from improved access to water and sanitation under "Improved quality of life for the people of Africa. In summary: in less than five years under Dr. Adesina's leadership, the Bank's investments have benefitted and impacted a total of 333 million Africans.
You will agree with me that these achievements are
commendable and the Bank has been placed in a strategic position to fast track
Africa's development. Finally, under Dr. Adesina's leadership of the Bank, it
has continued to maintain its Triple A (AAA) rating by all global rating
agencies over the past five years.
As Africa faces COVID-19, Dr. Adesina again took
bold measures to ensure the Bank can respond proactively to support African
countries and got its Board of Directors to approve a $10 Billion crisis
response facility to support African countries. In addition, the Bank
successfully launched a $3 billion "Fight COVID-19" social impact bond on the
international capital market, secured at 0.75% interest rate. The social bond
is the largest US dollar denominated bond ever in world history. The bond is
now listed on the London Stock Exchange where it has been oversubscribed at
$4.6 billion.
Given these great achievements, Dr. Adesina was
unanimously endorsed for re-election for a second term as President of the Bank
by all Heads of State and Governments of the ECOWAS region. At the Africa Union
Summit in February of 2020, all 55 African countries endorsed him for
re-election for his second term, as the sole candidate as President of the
African Development Bank.
Despite these achievements and impressive leadership for the Bank and passion for Africa's faster-paced development, and his clear endorsement by all of African countries for re-election for his second term, there are some attempts, led by some non-regional member countries of the Bank to frustrate his re-election. At issue are some allegations made by some whistleblowers that alleged that Dr. Adesina violated Code of Ethics as President. Dr. Adesina strongly denied the allegations as fabrications and misinformation to disparage and discredit him. The laid down due process at the Bank, the Ethics Committee of the Board of Directors, Chaired by the Executive Director from Japan and with members who represent shareholder member countries evaluated the allegations over a period of 3 months. The Ethic Committee of the Board of Directors, after examination of each of the 16 allegations of the whistleblowers had dismissed each and all of the allegations as baseless and without any substantiation. The Chairman of the Board of Governors of the Bank following review of the Ethics Committee report exonerating Dr. Adesina concurred with the conclusions and exonerated Dr. Adesina of all the allegations. The Ethics Committee and the Chairman of the Board of Governors had performed their duties as laid down in the Rules and regulations of the Bank.
Unfortunately, the US Government, through the US Treasury Secretary, has written a public letter (that was also distributed to the Press globally) to disagree with the conclusions of the Ethics Committee of the Board of Directors and the Chairman of the Board of Governors of the Bank. Instead of accepting the exoneration of the President of the Bank, they called for an "independent investigation". This is outside of the rules, laws, procedures and governance systems of the Bank. The US Treasury Secretary disparaged the Bank and ridiculed the entire governance system of the Bank, which has been in place since 1964. This is unprecedented in the annals of the African Development Bank Group. If we do not rise up and defend the African Development Bank, this might mean the end of the African Development Bank, as its governance will be hijacked away from Africa.
I therefore propose that we all collectively issue a press statement to support the laid down procedures embarked upon to evaluate the allegations against the President of the Bank and to recommend that the Board of Governors as well as the Ethics Committee of the Bank should firmly stand by their process and its outcome. We should speak against the introduction of alien practices being recommended by some parties given that such recommendation falls outside the laid down procedure, laws, rules and regulations of the Bank. It is also critical that we emphasize the need for the AfDB to remain an Africa-focused development Bank rather than one which serves interests outside Africa.
I have taken the liberty to offer a draft of the
proposed joint statement for your kind review, input and/or endorsement. My
aide, Atom Lim, will share the draft statement and collate your respective
responses for me. He is reachable via atom_lim@yahoo.com.
Please accept, Your Excellencies, the assurances of
my highest esteemand consideration.
CC:
H.E Boni Yayi (Former President of Benin)
H.E Festus Mogae (Former President of Botswana)
H.E Hailemariam Desalegn = (Former Prime Minister
of Ethiopia)
H.E John Kufour (Former President of Ghana)
H.E Ellen Johnson Sirleaf (Former President of
Liberia)
H.E Joyce Banda (Former President of Malawi)
H.E Joaquim Chissano (Former President of Mozambique)
H.E Tandja Mamadou (Former President of Niger)
H.E Thabo Mbeki (Former President of South Africa)
H.E Kgalema Motlanthe (Former President of South
Africa)
H.E Benjamin Mkapa (Former President of Tanzania)
H.E Jakaya Kikwete (Former President of Tanzania)
H.E Mohamed Marzouki (Former President of Tunisia)
About the Author
Olusegun Obasanjo served as the President of
Nigeria from 1999 to 2007
Re: Ethics Committee report and decision of
the Chair of the Board of Governors on whistleblowers allegations against the
President of the Bank
The Nigerian Government has been following very closely the above matter, subsequent to the conclusion and submission of the formal report of the Ethics Committee and the decision of the Chair of the Board of Governors, Honorable Minister Kaba NIALE of Cete d'Ivoire.
2. The Ethics Committee, following three months of
work to examine the whistleblowers' allegations made against the President,
dismissed each and every one of the allegations of the whistleblowers against
the President as unsubstantiated and baseless.
3. The Nigerian Government welcomes this conclusion
of the Ethics Committee and the decision of the Chair of the Board of
Governors.
4, The Ethics Committee in carrying out its work,
as clearly stated in their report, called on oversight organs of the Bank
(Anti-Corruption, Auditor General, Human Resources) to answer questions and
provide any relevant information related to the allegations. They did so and
these were clearly stated in the Ethics Committee report. The Committee also
called on the whistleblowers to submit any additional evidence, facts and
documents to buttress their allegations but they did not.
5. The Ethics Committee has conducted and completed
its work following the rules, laws, procedures and guidelines as laid down by
the Resolution of the Board of Governors. That Resolution calls for the Ethics
Committee to submit its report, and supporting documents, to the Chair of the
Board of Governors.
6. The Chair of the Board of Governors followed the
laid down rules, procedures, guidelines, and the governing laws of the Bank,
and ruled appropriately that she concurred with the report and conclusion of
the Ethics Committee that dismissed all allegations against the President.
7. The call for an "independent investigation" of
the President is outside of the laid down rules, procedures and governing
system of the Bank and its Articles as it relates to the Code of Conduct on
Ethics for the President. As Board of Governors we must uphold the rule of law
and respect the governance systems of the Bank. If there any governance issues
that need improvement, these can be considered and amendments proposed for
adoption inline with laid down procedures.
8. The re-election of Dr. Adesina as President of
the African Development Bank originally planned to be held on May 28, 2020 has
now been postponed to 23-27 August 2020. Dr. Adesina is the sole candidate for
the election. He has delivered impactful programs and impressive results at the
Bank.
9, Honourable Minister, we commend the action you
have taken and urge that the bank's laid down process be followed to protect
and preserve our bank.
10. Please accept the assurances of my warm
regards.
Related Links
1.
Letter from HE Olusegun Obasanjo on AfDB
2.
Letter from the
Honourable Minister of Finance to the Chairman, Board of Governors, AfDB
3.
A Portrait of the
Trump Loyal Destabilizing the AfDB
4.
Press Statement by AfDB
President
6.
U.S. Letter by the
Dept of Treasury to the Chair of Board of Governors of AfDB
7.
8.
Press Statement
by African Leaders on Dr. Adesina Leadership of AfDB
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