Warren Probes EXIM President and Chairman Jovanovic on Failure to Respond to Committee Questions on Bank’s Approach to Corruption, Conflicts of Interest, Foreign Influence

Warren Probes EXIM President and Chairman Jovanovic on Failure to Respond to Committee Questions on Bank's Approach to Corruption, Conflicts of Interest, Foreign Influence

"It is critical that you provide transparency into EXIM, its operations, and the policies of the Bank under your leadership as Congress works to reauthorize EXIM's charter this year."

Text of Letter (PDF) | Jovanovic's QFR Response (PDF)

Washington, D.C. - Today, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to the President and Chairman of the Export-Import Bank of the United States (EXIM), John Jovanovic, urging that he immediately revise and resubmit the inadequate written responses he provided for the record following his testimonybefore the Committee in March on the bank's reauthorization.

"Like many of my colleagues on both sides of the aisle, I strongly support EXIM and its mission," wrote Ranking Member Warren. "But I have serious concerns about your incomplete, non-responsive, and evasive answers to direct questions on key matters-a troubling lack of transparency as both Republican and Democratic members of the Committee work on reauthorizing the Bank's charter this year."

In questions for the record, Ranking Member Warren questioned Chairman Jovanovic about safeguards against corruption and conflicts of interest at EXIM, the firing of EXIM Inspector General Parisa Salehi, the Former Acting Chief Banking Officer and former First Vice President nominee Bryce McFerran's ties to the Russian government, and Project Vault. The responses that Chairman Jovanovic subsequently submitted for the record were incomplete, unresponsive, and dismissive of the significance of the concerns facing EXIM.

For example, questions for the record, Ranking Member Warren asked, "Have any entities associated with the Trump family applied for or received loans from EXIM Bank?" Chairman Jovanovic did not provide a clear and acceptable answer to this direct question, stating that "EXIM expects all supported transactions to comply with applicable ethics, conflict-of-interest, and legal requirements. The Bank applies its standard review processes and safeguards consistently."

Chairman Jovanovic also evaded Ranking Member Warren's question on whether "EXIM officials discuss(ed) the removal of (Inspector General) Salehi with President Trump or staff within the White House?" In response to this straightforward question, Chairman Jovanovic responded, "Questions regarding the Inspector General are better addressed to the White House."

Ranking Member Warren also asked questions about EXIM's financing for Project Vault, a new entity to stockpile critical minerals. She asked, "Will EXIM have the ability to withdraw its financing in the event that Project Vault violates binding ethics and anti-corruption standards?" Chairman Jovanovic responded that, "EXIM expects all supported transactions to comply with applicable ethics, anti-corruption, and legal requirements." The Chairman did not cite any binding requirements that will apply to Project Vault, and he did not state how EXIM would respond if Project Vault or a transaction participant violates any legal or ethical requirements.

"My questions for the record attempted to seek clarity on how you would identify financial conflicts and prevent corruption-and you failed to address these concerns," wrote Ranking Member Warren.

"I ask that you revise your responses to provide full and complete responses to the Committee as soon as possible," concluded Ranking Member Warren.

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