The World Bank has launched an investigation into its handling of a $1 billion loan from China after the bank's treasurer queried whether the process may have violated bank rules.
External lawyers have been hired to lead the probe into the transaction, which was endorsed by the chief financial officer, and the outcome is due to be handed to the bank's leadership this week. In a note to staff on Tuesday Jim Yong Kim, the president, said "there has been no suggestion of any staff misconduct".
But the questions over the loan, which were first reported by the Wall Street Journal, are the latest to confront Mr Kim, the American whose leadership has been dogged by questions over his management style and a massive restructuring that has left many staff on edge.
The controversy also pits Bertrand Badré, the World Bank's chief financial officer whose generous bonus had angered staff, against the bank's treasurer, Madelyn Antoncic.
At question is how the bank processed a $1 billion loan from China in 2013 that came as part of the World Bank's regular fundraising for the International Development Association, the fund used to back its work with poor countries.