Chris Otaigbe
Fela’s evergreen hit, with its immortal lyrics, best captures the AfDB drama concerning the coming election for the presidency of the prestigious bank. While African Shareholders of the Bank are convinced its President is not corrupt, America and its allies say they are not convinced. But the curious issue, here, is America’s President, Donald Trump and its Treasury Secretary, Steve Mnuchin, who are pushing this claim, are themselves not clean.
When news of the resignation of the Bank’s Vice President for Agriculture, Human and Social Development, Dr Jennifer Blanke, many who did not get the detail would have concluded that her resignation was a fall out of the Akinwunmi Adesina probe saga.
As it turned out, Blanke resigned to go take care of her family.
In her resignation letter announced on Wednesday, June 10, 2020 slated to take effect from next month July, Blanke cited personal family reasons for leaving after joining the Bank in early 2017 and has since overseen a number of the Bank’s key programs.
“l am leaving purely for family reasons to re-join my family in Switzerland, after a very good time at the Bank. I will miss the Bank and the excellent team we have built. I will continue to strongly support the Bank from wherever I am.” Said the outgoing Vice-President.
She thanked President Akinwunmi Adesina for his strong leadership, guidance and support “which have undoubtedly motivated and helped my team and to play a key role in the transformation of the Bank. I feel privileged to have been given an opportunity to contribute to the Bank’s agenda for accelerating Africa’s social and economic transformation,” Blanke said.
Of course, in his response, the bank’s President and the man at the center of the Trumped-up storm, Dr. Akinwunmi Adesina expressed his delight to have worked with the outgoing Vice President, “l have been delighted to work with Dr Jennifer Blanke over the past three and a half years. She has demonstrated genuine leadership skills and moved the needle on so many fronts especially in the area of food security, women’s financial empowerment, and job creation. I wish her all the best and look forward to continued partnerships and engagement with Jennifer.” He said.
The resignation of the Swiss-born Blanke came at a very critical curve in the United States sponsored demand for a fresh probe of the Nigerian-born President of the Pan-African development Bank, even after he had been cleared of the charges levied against him.
Rejecting plans by the African Development Bank’s board to end investigation into its president, United State (U.S)’s Treasury Secretary, Steven Mnuchin called for an independent probe into allegations against him.
Dated May 22, in the US letter addressed to Niale Kaba, Chairwoman of the bank’s board of governors, Mnuchin expressed America’s disagreement with conclusions by the bank’s ethics committee that “totally exonerated” Adesina.
Coming two weeks after the ethics committee found no evidence to support allegations of favoritism by Adesina, the intervention by the bank’s biggest non-African shareholder, appears to be a deliberate ploy to frustrate the 60-year-old bank chief’s unopposed return to the Presidency of the Bank.
Adesina, who has repeatedly refuted the allegations, is the only candidate up for election as president at the bank’s annual general meeting scheduled for August. Still, Trump’s America is hell bent on removing the AfDB Leader.
“We have deep reservations about the integrity of the committee’s process, instead, we urge you to initiate an in-depth investigation of the allegations using the services of an independent outside investigator of high professional standing.” Mnuchin said.
According to Mnuchin, Adesina was accused by a group of unidentified whistleblowers of handing contracts to acquaintances and appointing relatives to strategic positions at the Abidjan-based lender.
“Considering the scope, seriousness, and detail of these allegations against the sole candidate for the bank’s leadership over the next five years, we believe that further inquiry is necessary to ensure that the AfDB’s president has broad support, confidence, and a clear mandate from shareholders,” the US Treasury Secretary said.
With 6.5% stake in the lender, the U.S. has the largest shareholding after Adesina’s home country of Nigeria as of November 2019.
U.S. criticism of the bank’s internal processes may not be unconnected with comments credited to World Bank President, David Malpass, in February, that multilateral lenders including the AfDB tend to provide loans too quickly, and, in the process, add to African nations’ debt problems. AfDB’s rebuttal of the statements, was swift as it was pungent, declaring such unhealthy comments as “inaccurate and not fact-based.”
Pioneer representative at the Bank, nominated by President Reagan to serve as the first U.S. Executive Director of the African Development Bank from 1983-85, Harold Doley, in an open letter he addressed to Trump’s cabinet member, appealed to the Treasury Secretary to support Adesina.
In the letter, Doley stated Adesina’s enviable leadership of the bank in taking initiatives that advance the objectives and visions of the Pan-African Bank.
“Since taking office in 2015, the current and 8th President of the Bank, the U.S. trained and globally renowned Akinwunmi Adesina, restructured the bank and refined its focus through a strategy that has directly impacted the lives of millions of Africans. This has been through strategic investments in energy and electricity, agriculture technologies that significantly improve food security, access to private sector finance, improved transport infrastructure, and water and sanitation.” He stated.
Being America’s founding rep at the Bank, Doley should know if the Bank’s policies and standard operating practice (SOP) is hurting or helping US interest under the leadership of the Nigerian.
In 2019, with U.S. support, Doley stated that the African Development Bank’s shareholders approved a General Capital increase (GCI) of $115 billion, the largest in the Bank’s 56-year history, an increase that has more than doubled capital from $93 billion to $208 billion.
Also, the former US rep informed that in 2019, the Bank’s concessional window, African Development Fund (ADF), received a 35% replenishment with donor contributions. U.S. shares of $499,695,200, representing 7.81% of total subscriptions, which are a critically needed resource for Low Income Countries (LICs) and Transition States.
Ultimately, supporting Africa’s private sector, Doley advised, is critical for social and economic development, adding that in 2018, Adesina led an unprecedented effort to attract global investments into Africa through the inaugural Africa Investment Forum, which mobilized $78.8 billion in investment interests between 2018 and 2019.
According to him, the United States’ International Development Finance Corporation (DFC) signed a $5 billion facility agreement with the African Development Bank at the 2019 event, maintaining that the U.S. Treasury and State Department’s support has certainly led to a greater understanding of Africa’s dynamic investment landscape for American businesses.
“Adesina has astutely led the Bank’s bold and decisive COVID-19 response with a $10 billion COVID-19 Response Facility to cushion economic and social impacts of the pandemic on the continent. This is in addition to the successful launch of an oversubscribed $3 billion Fight COVID-19 social bond on the London Stock Exchange, making the largest US dollar denominated social bond ever in world history.” He stated.
The Bank’s 2019 innovative Desert to Power initiative, he stated, will develop 10,000 Megawatts of solar power across 11 countries in the Sahel Region and provide electricity for 250 million people. When completed, the $20 billion investment will be the world’s largest solar zone.
“Adesina’s ground-breaking Affirmative Action for Women in Africa (AFAWA), launched at the 2019 G7 Summit in Biarritz, France and at the Global Gender Summit in Rwanda, has received strong support from President Macron, the G7 leaders ($251 million), African Presidents, and an additional $61.8 million from Ivanka Trump’s Women Entrepreneurs
Finance Initiative (WeFi) AFAWA will leverage $3 billion in women business financing.” Stated Doley.
Noting US’ discomfort for the growing ‘Sinocentric’ influence across the African continent and possible impact on the bank, Doley calmed Mnuchin’s fears, assuring him of America’s formidable hold on the bank as its largest non-African contributor.
“While there have been concerns in some circles about China’s role in Africa, American enterprise thrives on competition and is poised to play a more influential economic role in the years ahead. America’s role at the AfDB and other multi-lateral development banks is crucial for the global economy.” He stated.
As one versed with the Bank’s rules and regulations, Doley noted, “Recently, in conformity with the governance rules and procedures of the Board’s Ethics Committee, the Bank cleared Adesina of wrongdoing stemming from several allegations levelled against him.”
Sticking his neck out for Adesina, Doley defended the Nigerian-born President’s character stating that it is an acknowledged fact that Akinwunmi Adesina is a global player of impeccable character who has helped mobilize billions of dollars for Africa and helped accelerate the continent’s development.
“It is why the Executive Committee of the Africa Union, speaking for 55 African countries, unanimously endorsed him as the sole candidate for re-election to a second term. This is vital for Africa’s continued economic growth, infrastructure and investment. It is traditional at multilateral development institutions that sole candidates be re-elected by acclamation.
Therefore, Mr. Secretary, the people of America implore you to use your good offices to continue to support Africa, the African Development Bank and President Adesina in his bid for re-election; and that you walk in lockstep with your fellow African Governors.” Stated Doley.
Put together, the combined moral forces (if any) of both Donald Trump and Stave Mnuchin can never be compared to the revered moral standing of Doley whose record of achievements speaks volume about his priceless pedigree.
In 1982, Ambassador Doley was appointed the founding Director of the Minerals Management Service (MMS) at the U.S. Department of Interior. Ambassador Doley managed MMS, an organization of more than 5,000 employees with a budget of $1.2 billion and its collection of $12 billion in income due the United States Treasury. This represented the second largest income source to the U.S. Government.
Mr. Doley had prior experience in this realm, having served in 1980, as a board member of the Louisiana State Mineral Board, a gubernatorial appointment.
So, if Doley is talking, Mnuchin and Trump are supposed to humbly accept the experienced diplomat’s intervention without resistance. However, with a disturbing history of ‘kindergarten-like’ tearing down of every agreement and conventions signed by his Predecessors, especially Barak Obama, it is unlikely Trump will want to listen to Doley, let alone take his well-articulated advice.
Those who come to equity, they say, must come with clean hands. Can Trump and Mnuchin truly beat their chest and say they come to this equity with clean hands?
According to a report published in the February 4, 2017 edition of The Wrap, an online publication, titled: Steve Mnuchin Accused of Fraud in New $110 Million Relativity Media Suit, Donald Trump’s Treasury Secretary, Steven Mnuchin was named in a fraud lawsuit by financing company RKA Film Financing, stemming from his days as a board member of the now-defunct Relativity Media.
The company, which has a long and contentious legal history with former Relativity CEO Ryan Kavanaugh, according to the report, filed an updated claim, that week on the “repeated misrepresentations about an illusory investment opportunity” in the studio behind films like Henry Cavill’s “Immortals” and the recent Zach Galifianakis comedy “Masterminds.”
In a claim filed in New York State Supreme Court, RKA said that Relativity borrowed money for P&A, prints, advertising and other costs related to promoting the release of its movies — and then used those funds instead to finance operations and pay executive bonuses. It is seeking $110 million in damages. Mnuchin is named alongside seven other individuals.
“In reality, all of the Defendants knew that Relativity was a failing enterprise, and that, rather than financing P&A expenses, the P&A Facility was always intended to, among other things: pay salaries and bonuses of Relativity personnel, its contractual debts, and its other general corporate expenses,” the papers said.
RKA’s three rounds of investment in Relativity came over the course of a harrowing bankruptcy saga, in which the studio attempted to release films such as Kate Beckinsale’s “The Disappointments Room,” Halle Berry’s “Kidnap,” Kate Bosworth’s “Before I Wake” and “Masterminds.”
“Kidnap” and “Before I Wake” are still unreleased, which is the basis for RKA’s claims that their funds have not been applied to release campaigns.
The suit also alleges the Relativity financier Colbeck Capital was given priority to “decrease their financial exposure in the event of Relativity’s financial demise.”
The amended suit claims fraud, fraudulent inducement, and negligent misrepresentation.
Also, in 2019, Mnuchin had another case to answer, this time more scandalous, in the April 18, 2019 edition of the Politico, in a report titled: Sears sues Mnuchin alongside former CEO for alleged multibillion-dollar theft.
Sears named Mnuchin in a lawsuit against the company’s former CEO, Edward Lampert, alleging that Mnuchin was part of a group of board members who assisted Lampert and his hedge fund in stripping the bankrupted retailer of more than $2 billion in assets. Lampert and his hedge fund, ESL Investments, the report stated, were the largest shareholders in Sears, holding between 47.8% and 62% of its stock during the time of the alleged violations, from 2011 to 2015, according to the lawsuit.
Along with two other major shareholders named in the suit, the report stated that they received the vast majority of the benefit of spinning off five different company assets, according to the complaint.
Politico reported that prior to becoming Treasury secretary, Mnuchin was an investor in ESL and a member of ESL’s board of directors at all relevant times.
“By far the largest share of the value siphoned from the Company went to Lampert himself, ESL and other insider Defendants. These transfers were unmistakably intended to hinder, delay, and defraud creditors and/or occurred when the company was insolvent and had insufficient capital to continue its operations and to repay its billions of dollars in debt.” the lawsuit stated.
The suit, brought on behalf of Sears debt holders, also argues that Sears “repeatedly produced financial plans reflecting fanciful, bad-faith predictions that the Company would experience an immediate and dramatic turnaround from deep and mounting losses to sudden profitability.”
Mnuchin, who was Lampert’s roommate at Yale University, and worked with him at Goldman Sachs, is named as one of four Sears board members who “aided and abetted” the shareholders by voting to approve the spinoffs.
Sears declared bankruptcy last October and was acquired by an affiliate of ESL, Transform Holdco, in February.
Trump on the other hand, has been allegedly accused of Tax and Securities fraud as catalogued in series of special publications by New York Times and Washington Post among other media in the United States.
Therefore, these two gentlemen, whose interest and opposition to Africa’s consensus candidate to the position of AfDB presidency unopposed, lacks any moral foundation as they are far too low, morally, to even broach such an idea, let alone seat in judgement over a globally acclaimed decent man at the helm of Africa’s only multilateral lending institution.
