Nordic donors are ‘following closely’ after Canada’s sudden break with Chinese AIIB bank

On Wednesday, June 14, 2023, the former Global Communications Chief at the Asian Infrastructure Investment Bank Bob Pickard, a Canadian national, resigned from his position, stating that the bank is dominated by Communist Party members and has “one of the most toxic cultures imaginable.”

The same day, Canada’s Deputy Prime Minister and Finance Minister Chrystia Freeland announced that Canada was halting all government-led activity at the Bank and launching a review of the allegations raised and of Canada’s involvement in the AIIB.

Officials Development Today has spoken to in the Nordic capitals are monitoring the evolving situation closely and consulting with each other. “The government of Sweden is following the accusations very closely. It is crucial that AIIB upholds international standards of good governance and transparency, both in its internal and external operations,” a spokesperson of the government in Stockholm says.

All five Nordic governments are members of the AIIB, which was established in 2015, billed as a Chinese rival to the US-dominated World Bank. Sweden, Norway, Denmark, and Iceland are in one constituency along with Switzerland, which holds the position of executive director. Finland is in a separate constituency led by Italy and including France, Germany, the Netherlands, and other European countries.

The day after Pickard's resignation, AIIB Vice President, the German Ludger Schuknecht, said in a statement that AIIB welcomes the review being carried out by the Canadian government and “will be cooperating fully. Transparency is essential to the trust of our 106 members.” That day, the AIIB Board discussed Pickard’s allegations, which AIIB described as “baseless and disappointing.” It was decided that AIIB will undertake its own internal management review of this matter, led by AIIB’s General Counsel, the Brazilian Alberto Ninio. It will report to an ad-hoc group made up of board members.

“It is important that the AIIB has initiated an internal review surrounding the allegations and that the Board of Directors have established a working group which AIIB management will report to. The [Swedish] government is closely monitoring the developments and finds it very important that the accusations are investigated thoroughly,” the spokesperson of the Swedish government said.

Officials Development Today has spoken to underline that it is important to give the bank time to investigate. The bank has indicated that it intends to complete the review quickly.

Nordic members of Asian Infrastructure Investment Bank:

Source: AIIB