The European Ombudsman has asked the European Investment Bank (EIB) to improve its rules on potential conflicts of interest after finding maladministration in how it handled the move of one of its vice-presidents to become CEO of a ‘national promotional bank’ in Italy.

During her inquiry, the Ombudsman found that the former vice-president had participated in approving financing agreements between the EIB and the national promotional bank in the weeks before his appointment as its CEO. National promotional banks are financial intermediaries between the EIB and small-scale projects that benefit from EIB investments. The former vice-president took part in the approval of these agreements despite advice from the EIB’s chief compliance officer to avoid any business with the national promotional bank while his appointment procedure was underway.

The Ombudsman has asked the EIB to strengthen the role of its ethics and compliance committee when it comes to overseeing the intended new jobs of management committee members. Specifically, the ethics and compliance committee should be able to impose measures to mitigate any potential conflicts of interest risks it identities. To improve monitoring and compliance, the Ombudsman has proposed the EIB make the ethics and compliance committee’s decisions on mitigation measures public shortly after their adoption.