By David Lawder

WASHINGTON, (Reuters) – The International Monetary Fund executive board will increase its investigation into Kristalina Georgieva, the Managing Director of the International Monetary Fund. They will interview her separately and investigate whether she pressured staff at World Bank to change data in favor of China. This is according to people who were present at these meetings.

According to three sources, the board will be questioning WilmerHale attorneys Monday over their World Bank investigation reports. According to the report, Georgieva was the CEO of the bank in 2017. He allegedly used undue pressure to get staff members to change data from the “Doing Business” flagship report in order to favor China.

Georgieva has denied all allegations and will be present in person at the board’s meeting on Tuesday. She is scheduled to give a virtual speech regarding the IMF/World Bank annual meetings, Oct. 11-17 according two sources.

These interviews may prove crucial in building IMF shareholder support or decreasing it for Georgieva.

The fund’s top member countries, which include the United States as a major shareholder, have so far withheld any public comments, opting to allow the process to unfold. Last week, Britain stated in a statement that transparency is a priority in this matter.

WilmerHale was assigned by the World Bank to investigate “Doing Business” data irregularities that were identified in 2020. It issued its findings naming Georgieva less than two weeks ago. Ron Machen, a former U.S. Assistant for the District of Columbia and Co-chair of WilmerHale’s white collared defense and investigations practice, has led this investigation.

Reports from the inquiry claim that Georgieva, former World Bank President Jim Yong Kim and his office pressured staff members to manipulate data so China’s ranking in “Doing Business 2018” study about investment climates rose up to 78th place.

It was believed that this was done to win Beijing’s support for an important capital rise, which was what the bank’s management desired at the time.

A spokesperson for the IMF declined to confirm that meetings were being planned. Washington spokespeople for WilmerHale did not return requests for comment.

Georgieva spokeswoman also declined confirmation of meetings. However, she stated via email that Georgieva was not deterred “by these false allegations and is committed to fulfilling vital IMF mission.”

PROCESS AND EVIDENCE QSTIONS

A source close to the matter said that the WilmerHale investigation team was to be questioned by the board about their process. This included the scope of the assignment, its conduct, and the reasons for publishing the findings. Georgieva received very little notice.

Additional questions will focus on the relationships between China’s changes in “Doing Business” inputs, and China’s capital-raising campaign. These led to an increase of $13 billion in World Bank paid-in capital for 2018, which helped China grow its shareholding.

A source also said that there will be concerns about discrepancies in witness interviews and the conclusions of the report. Also, questions may arise over statements made by at least one interviewee. Shanta Deviajan, an ex-World Bank economist, who oversaw “Doing Business”, 2018, a report that was released in October 2017. He said he didn’t feel pressured by Georgieva and that only half his statements were used by WilmerHale.

Machen has not responded to my request for comment.