After taking office on December 1st and becoming the first woman to lead the Central American Bank for Economic Integration (CABEI), Gisela Sánchez Maroto says that during her tenure, her priority will be to ensure that the bank’s resources are used in the best possible manner. She was the official candidate from Costa Rica and ran against over 200 professionals from the region. Additionally, she succeeds Honduran Dante Mossi, who did not succeed in securing reelection for the second term allowed by the institution and was undoubtedly the most controversial executive president the CABEI has had.
Among Sánchez Maroto’s goals for her term from 2023 to 2028 is to maximize the positive impact that the CABEI can generate among its Central American partners, as well as among those outside the region who use the institution to strengthen ties with Central America. She hopes that the strategy she employs to achieve these goals will make a difference compared to her predecessors. Additionally, she is convinced that she will succeed, believing that when women have professional opportunities, they make the most of them and go the extra mile to ensure things work as best as possible.
CABEI has been criticized for its predecessor Dante Mossi’s unconditional support for Daniel Ortega, regardless of the abuses he commits. What changes will it promote to improve the image of the bank?»
First and foremost, we need to strengthen everything related to governance, ethics, transparency, and accountability. There is undoubtedly an opportunity to continue making an impact in the countries, but we have to ensure that the bank’s resources are used in the best possible way. Therefore, strengthening governance is one of my priorities.
Lea también: Dante Mossi, aliado de Ortega, lanza su primer dardazo contra la nueva presidenta del BCIE
The second issue is how we achieve greater efficiency within the bank. When we look at the current financial indicators and administrative expense ratios, there is a significant opportunity for improvement. My commitment is to work rigorously to utilize resources in the best possible manner. Ultimately, these are the resources of the citizens of the member countries. Therefore, my responsibility is to ensure greater efficiency, emphasizing austerity, and hopefully, agility as well.
In addition to the focus on ethics and transparency externally, and efficiency and austerity internally, I believe we also have the responsibility to engage in more dialogue with regulatory bodies, media outlets, and allies to enhance transparency in all aspects of accountability. For instance, there was a policy for a two-month response time to the media, but as of December first, I instructed that our response time be within 24 hours, ideally even less if the information is readily available. Of course, if information needs preparation, we will ask the media for time to generate the required information.
Will there be changes in the decision-making schemes for project approval?
Obviously, we will be working on designing the bank’s strategy for the next five years, which I hope to have ready within the next three to four months at the most. However, my number one priority is to decisively address the current risks facing the institution. Additionally, it’s crucial to seize opportunities to better communicate our initiatives, strengthen governance, and proactively offer genuine financial solutions to countries. More than just credit, countries indeed need financial solutions that encompass financing, knowledge, and strategic alliances serving the region.
Puede leer también: Costa Rica se queda con la presidencia del BCIE y pone fin a cinco años de polémica administración de Dante Mossi
In addition to these changes, many sectors have recommended auditing Dante Mossi’s management. Will this audit be conducted?
From the very first minute, since assuming the position on Friday, I have met with the bank’s management committee, internal audit, and the officers and departments reporting to the board. This is to swiftly prepare a diagnostic plan.
In fact, I just finished a meeting with the compliance officer, and my commitment is, first, to analyze what we have done in the past, and second, to determine how to strengthen it. Because beyond what has been done, which we certainly need to understand, the most important aspect is how we proceed moving forward.
So, I’ve requested that we work on procurement policies and everything related to strengthening anti-money laundering and anti-corruption efforts, which we aim to begin implementing at the start of 2024. We’ll also focus on anti-fraud programs, ethical integrity best practices, and compliance, as well as strengthening internal controls. While there have been positive initiatives, I believe there are numerous opportunities for improvement. My primary commitment as the president of CABEI revolves around ethics and transparency, aiming to significantly alter many existing practices.
Is that diagnosis already underway?
I believe we have a responsibility, not only fiduciary but also ethical, to do things right. I think, as a woman, it’s one of my goals. I want my legacy to leave CABEI strengthened in terms of compliance, in the way we work, in how we are accountable for the bank’s resources. This includes both how we spend internally in the budget and the resources offered to countries through loans.
So, as I mentioned, I have people working on it, and I’ve had meetings since Friday to request the analysis of many things. In fact, last Friday, I signed the cancellation of several consultancy contracts that I didn’t agree with. My interest is that in a very short time frame, the media can have not only my commitment but also compelling evidence that we are doing things in the best way possible.
Was any of these consultancies related to a project in Nicaragua?
I’m not entirely sure, but I can inquire about it. However, they were related to questions that have arisen in the media. Even though those contracts were ending shortly, it was crucial for me to cancel them from the first day of my tenure… Those consultants were hired discretely.
What bothered you about those consultants?
They were quite strongly criticized, especially in studies conducted by the Columbia Journalism School. For me, if there’s something relevant in a consultant, it’s the issue of ethics and transparency. So, that’s not the way I want to work. In fact, I talked to my team to exercise extreme caution in everything related to consultancies in the future. It was very important to me that those contracts under analysis or investigation were canceled, not continued. I believe the best way to demonstrate my commitment to ethics and integrity is by taking decisive and swift action on those things that have been questioned.
In Nicaragua, CABEI finances several projects that have also been questioned. Could they halt disbursements while determining if there are indeed irregularities?
It’s an excellent question. One of the things we will announce very soon relates to the Governance Strengthening Program, which also includes a component regarding the supervision of operations. So, I believe there is a great opportunity for the bank not only to strengthen things like the procurement policy, which is crucial as it ensures the best use of resources, but also to strengthen project supervision once it’s underway.
More than discussing a specific case or a particular country, I can tell you that we are going to rigorously start working on that governance plan. It will allow us to assure our stakeholders that we will strengthen controls, enhance governance, and try to ensure that project supervision occurs in the best possible manner, ensuring projects flow as approved. I see it as an opportunity for improvement that I’ve been examining with my team since I started.
So, I can tell you with complete transparency that on my first day at work, I identified a lot of things that we need to do in the next two or three months because they are urgent. My number one priority is ethics and transparency, and the second is internal efficiency and austerity. Therefore, what you highlight as concerns about ensuring the use of resources externally and ensuring the best use of resources internally are also my top two priorities.
When errors are being corrected, it can indeed halt a project that’s under scrutiny.
What we are planning to do is analyze the projects rather than halt them outright. If they’re not performing well, adjustments will be made. The priority is ensuring that projects run smoothly and effectively.
One of the allegations against Dante Mossi was that he approved credits based on political criteria. Will that practice come to an end?
Without a doubt, yes. My primary commitment lies with ethics, transparency, and ensuring that the bank’s funds are used with the utmost technical criteria and rigor possible. As a financial institution, we bear that responsibility. Undoubtedly, the bank was facing a complex situation, but fortunately, my leadership style is deeply committed to technical criteria and rigor. We will return to that approach. Of course, we must address each country’s needs, but always under the strictest technical criteria and rigor possible.
Former CABEI official, Ottón Solís, denounced the excessive luxuries provided by the bank to its officials two years ago. Is that going to change?
Yes, of course, it’s already begun to change. Let me provide an example. It’s something I explained to each of the bank’s employees on Friday morning during my first address where all officials were present. We’ve decided to handle many things with great austerity, changing a lot, obviously. Anything related to the rights of the officials and such needs to be maintained, but yes, my current policy is one of absolute austerity.
I’ll give you three examples. Previously, for internal events, we used to bring in a master of ceremonies. I said, let’s use internal staff for that. So, we lit the Christmas tree with an internal master of ceremonies. For the Christmas party, officials from all countries used to travel to Tegucigalpa (Honduras) for the celebration. Now, each office will celebrate in their respective country. We won’t bring officials here; it’s not necessary. We need to change how we operate internally. The lunch with the Executive Committee on the day of my inauguration was held using the BCIE cafeteria, meaning with the resources we have. So, from Friday, my first day at work, I made decisions to demonstrate greater austerity in resource use. It’s just a start, but it begins to make a difference.
The management of Dante Mossi has been associated with an increase in administrative expenses at CABEI due to the opening of new offices and hiring personnel. Will there be layoffs or office closures?
In fact, I also had a meeting regarding the budget and requested cuts for the 2024 budget, which I assure you will be lower than the current year’s. I also asked for information to understand the relevance of each office. I believe we can effectively maintain operations in a country without incurring in significant costs for the bank. So, one of my priorities is evaluating the impact and return that each of these investments in the countries where they were opened has. I think they could have been done with fewer resources, in a more austere manner.
Regarding the number of personnel, that’s also among my top priorities in the first few weeks. We’re going to evaluate the organizational structure, which has significantly expanded in recent years, as seen in the Financial Indicators. The Administrative Expense Index has deteriorated, and my commitment is, first and foremost, no more new hires; that’s the first step. Secondly, with great responsibility, we’ll assess the current structure to ensure we have the most suitable one possible.
Are you concerned that this might cause conflict among the employees?
I believe it’s far more appealing to be a president who creates, hires, and expands. However, that won’t be my focus. My responsibility lies in returning to austerity and efficiency, seeking ways to become more resource-efficient. Hence, I believe that the upcoming board-approved budget will undoubtedly be smaller than what’s being executed this year, despite potential growth due to inflation or portfolio expansion. But my aim is a reduced budget. There’s a strong message I’d like to convey as the new CEO, and that’s my commitment to austerity and efficiency in the bank’s resource utilization.
Otro tema relacionado: Dante Mossi admite que es de los pocos que puede hablar con el régimen y llama a Ortega el “líder electo”
The performance of your predecessor generated a lot of criticism and rejection towards the CABEI. What do you say to those detractors?
We have many opportunities to have a positive impact, not only economically in our countries but also socially and environmentally, which is another one of my priorities. Secondly, we will strengthen internally, summarized as operational excellence, to be more efficient, have better comprehensive risk and compliance control, and, of course, improved accountability. I believe communication isn’t just about speaking; there are leadership styles that involve saying a lot. For me, it’s about going out and saying, ‘This is what I’ve already done, this is my commitment, and these are the compelling facts that support it.’ Thirdly, I would say my main priority is to strengthen governance and ensure transparency and ethics in everything we do.
