Taiwan’s Finance Ministry mentioned it has been demanding reforms on the Central American Bank for Economic Integration (CABEI), which was uncovered by OCCRP for funding initiatives that facilitated corruption and authoritarianism.
The financial institution’s mission is to advertise “balanced economic and social development” in Central America. But an investigation by OCCRP and companions discovered it has funded initiatives that led to environmental destruction, and others the place loans had been diverted for corrupt practices or used to fund the pet initiatives of dictators.
The monetary establishment has additionally confronted criticism for lending billions of {dollars} to authoritarian governments accused of widespread rights abuses in Central America.
Taiwan’s Finance Ministry is “actively overseeing the approval of loans from the Central American Bank, continuously demanding increased transparency and strengthening bank governance to ensure the bank complies with international standards,” the ministry mentioned in a press release responding to “today’s media reports accusing the Central American Bank (CABEI) of fostering corruption and authoritarianism.”
The assertion famous that the financial institution’s present president, Dante Mossi, can be stepping down on the finish of this month and mentioned there have been hopes a brand new chief “can encourage reforms within the bank, improve the loan approval process, and enhance the bank’s governance system.”
CABEI’s board of administrators handed a reform plan this 12 months targeted on the establishment’s governance, administration administration, credit score, and finance, it added.
“We also urge enhanced transparency of loan flows to ensure that the post-approval use of funds aligns with the bank’s mission,” the Ministry mentioned.
After investigating CABEI for over a 12 months, OCCRP and 10 companions discovered proof the financial institution had ignored purple flags when investing in initiatives, together with lending money for hydroelectric dams even after violent crackdowns on protesters. The establishment has additionally disbursed loans that had been later used to pay bribes, the investigation reveals.
In a separate case, reporters discovered a mortgage to help small businesses in El Salvador via the pandemic was diverted to fund the president’s failed plan to make Bitcoin a nationwide forex.
CABEI’s communications division didn’t reply to OCCRP’s repeated requests for remark earlier than the publication of its investigation. However, the outgoing president Mossi defended the financial institution’s monitor report, whereas noting that some initiatives undertaken earlier than he joined CABEI in 2018 had been poorly conceived.
