Lawmakers Bash U.S. IMF Representative
By Adam Entous
WASHINGTON (Reuters) - Members of a congressional panel Tuesday accused
Washington's representative at the International Monetary Fund of flouting
U.S. law and a senior Treasury official said backers of the IMF were losing
ground.
The Treasury official, who asked not to be identified, told Reuters he
doubted Congress would approve an administration request to provide $18
billion of new funds for the IMF.
"As far as we can tell, it's very bleak," the official said, when asked about
the legislation's prospects in the House. But he said lawmakers might approve
one small part of the funding package.
The package, designed to replenish reserves drained by three
multibillion-dollar Asian rescue deals, has been approved by the Senate, but
it faces stiff opposition in the House.
Rep. Bernard Sanders, an independent from Vermont, said Karin Lissakers, U.S.
executive director to the IMF, had failed to push for human and labor rights
at the international agency, and he said this violated U.S. law.
"You have not obeyed the law of the land," Sanders told Lissakers at a House
Banking Oversight Subcommittee hearing.
"The director is not using her vote to accomplish the goals that the Congress
has set out for you," added Rep. Dennis Kucinich, a Democrat from Ohio.
Lissakers and Assistant Treasury Secretary Timothy Geithner said the United
States was using its "voice and vote" at the IMF to increase transparency and
respond to Congressional criticism. "We have made enormous strides,"
Lissakers told the panel.
But the attacks in Congress have hurt the IMF, and damaged White House
efforts to secure $18 billion in new funds.
Republican Sen. Ted Stevens, the pro-IMF chairman of the Senate
Appropriations Committee, said the package was in trouble in the House. "I'm
very frustrated," he said, adding that he was "not hopeful" the House would
move quickly.
"I don't think the House is hearing from the business community," Stevens
said. Business groups have been lobbying lawmakers to support the IMF.
During Tuesday's acrimonious inquisition of Lissakers and Geithner,
subcommittee chairman, Alabama Republican Rep. Spencer Bachus, said the IMF
was too secretive despite U.S. efforts to increase transparency.
"The IMF should not be permitted to operate like a private club with public
money," he said.
Sanders accused both Lissakers and the IMF management of ignoring Indonesian
President Suharto's record on human rights abuses and a history of corruption
when she backed a $40 billion IMF-led rescue package for Indonesia.
House Speaker Newt Gingrich said Monday that lawmakers were becoming
increasingly skeptical about giving the big international lending institution
additional funds.
"It's weaker now than it was six weeks ago -- dramatically weaker. There are
more good arguments for not doing it," Gingrich said.
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