On the World Financial institution’s annual conferences final 12 months in Morocco, the group’s new president, Ajay Banga, outlined a sweeping imaginative and prescient for the way he needed to rid the world of poverty whereas conserving the planet liveable.

4 months later, Mr. Banga, who assumed the highest job final June, is confronting his first huge administration take a look at and a few early indicators of unrest which have little to do together with his aspirations to modernize the financial institution and supercharge its ambitions to fight local weather change.

The problem is expounded to an funding that the World Financial institution made a decade in the past in a series of faculties in Kenya. The academic challenge was partially funded by means of the Worldwide Finance Company, the financial institution’s funding arm. It grew to become a supply of controversy when allegations emerged in 2020 about widespread sexual abuse on the colleges, prompting an investigation by the financial institution’s inside watchdog.

The chief board of the I.F.C. has been reviewing a revised “motion plan” that might take impact as quickly as this week.

In current months the World Financial institution’s management has been engaged in fraught deliberations over how a lot duty to simply accept and whether or not to compensate the victims. The talk has divided the nations which might be invested within the financial institution and put a highlight on Mr. Banga, who might be liable for finalizing and finishing up the motion plan.

The case has drawn the scrutiny of growth specialists and lawmakers, amid strategies that the World Financial institution did not police how its cash was getting used and even took steps to cowl up wrongdoing.

Whereas fielding questions at an occasion sponsored by the Middle for World Growth in early February, Mr. Banga, a former finance govt, stunned some within the viewers when he dismissed the potential of a cover-up. In response to a different query about employment disputes and the integrity of the financial institution, he expressed frustration a few job that only a 12 months in the past he traveled the world campaigning to safe.

“I’d be comfortable to be fired, by the best way,” Mr. Banga stated. “I can return to my private-sector life. Way more fascinating.”

Mr. Banga was chosen by President Biden to bolster the financial institution’s efforts to fight local weather change and inject a brand new sense of urgency right into a lumbering establishment that was based within the aftermath of World Battle II.

His appointment got here after the resignation of David Malpass, who was appointed by President Donald J. Trump and who pissed off the Biden administration and plenty of Democratic lawmakers when he equivocated in regards to the causes of local weather change.

In his first 12 months on the job, Mr. Banga has inspired rich nations to extend their contributions to the financial institution, and he not too long ago took steps to restructure its mortgage assure program to extend personal renewable power investments.

World Financial institution presidents have usually confronted thorny administration exams, and though the most recent controversy surrounding the financial institution’s investments in Bridge Worldwide Academies in Kenya predates Mr. Banga, it’s now his downside.

“The honeymoon is over,” stated Paul M. Cadario, a former senior supervisor on the World Financial institution, who posed the query to Mr. Banga on the discussion board in February. He stated he discovered Mr. Banga’s response to be flippant.

The World Financial institution held a $13 million stake in Bridge Worldwide Academies from 2013 to 2022. It divested from this system following complaints of sexual abuse on the colleges, which led to inside investigations in regards to the episodes and a evaluation of how the Worldwide Finance Company oversees such applications.

A draft of the report by the financial institution’s ombudsman, which was reviewed by The New York Occasions, detailed greater than a dozen instances of kid intercourse abuse at colleges operated by Bridge in Kenya. The report, which was disclosed final 12 months by The Intercept, additionally criticized the I.F.C. for its lack of oversight of the challenge and urged that it had been wanting the opposite means when complaints emerged. It really helpful counseling and compensation for the victims.

The chief board of the I.F.C., which is overseen by the World Financial institution’s members and Mr. Banga, has spent the final a number of months struggling to agree on a plan of motion. Nations which might be members of the financial institution have been divided over how a lot duty the I.F.C. ought to take for the abuse on the faculty and whether or not instantly compensating the victims would create a precedent that might complicate different World Financial institution initiatives.

Civil society teams have known as on the financial institution to do extra to assist the victims and have expressed alarm over an settlement between the I.F.C. and Bridge to maintain among the findings of its investigation confidential. They’ve additionally criticized a plan proposed by the I.F.C. that may indirectly compensate victims of abuse.

“I.F.C.’s proposed response to one of the vital egregious instances of hurt that has resulted from a due diligence failure on an ill-conceived funding is not any treatment in any respect for the individuals who had been truly harmed,” stated David Pred, the manager director and co-founder of Inclusive Growth Worldwide, a human rights group.

Justin Sandefur, a senior fellow on the Middle for World Growth, stated that whereas the difficulty may be a small monetary matter for the World Financial institution, it had broader implications for Mr. Banga as a pacesetter who’s making an attempt to forge extra partnerships with the personal sector.

“I believe symbolically now it’s began to change into a giant deal in that’s he prepared to shoot straight and switch over a brand new web page on this,” Mr. Sandefur stated.

The proceedings are additionally being watched carefully by lawmakers, who’re liable for approving the cash that the US supplies to the financial institution. In a letter to Mr. Banga in January, Senator Elizabeth Warren, Democrat of Massachusetts, and Senator Peter Welch, a Vermont Democrat, warned that the longer term funding for the World Financial institution might rely on his dealing with of the investigation into the Kenya faculty.

“We view the Bridge case as a litmus take a look at for the dialog at the moment happening round I.F.C.’s duty to treatment social and environmental hurt attributable to its initiatives,” the senators wrote, “particularly these the place I.F.C. will not be following its personal insurance policies, which we see as an vital basis for any proposal to extend the funds accessible to the World Financial institution Group.”

Ms. Warren and Mr. Welch have additionally raised considerations with the Treasury Division, which steered the number of Mr. Banga to the World Financial institution and helped him by means of the nomination course of. In late December, a senior Treasury official instructed the lawmakers that the division was analyzing the claims of violence on the colleges and was involved in regards to the allegations that the I.F.C. sought to hide them.

“We share your profound concern and alarm on the prospect that kids could have been sexually abused within the context of an I.F.C. challenge,” wrote Corey Tellez, the performing assistant secretary of the Treasury’s Workplace of Legislative Affairs. “Treasury vehemently condemns violence in opposition to kids and another violations of human rights.”

A World Financial institution spokesman declined to make Mr. Banga accessible for an interview. The board, which didn’t agree on an motion plan in January, is planning to reconvene to think about a “survivor centric” response.

In the course of the public dialogue in February, Mr. Banga stated that he didn’t consider a intercourse abuse scandal was coated up and famous that different foundations in addition to the I.F.C. had been additionally invested within the Bridge colleges.

“I believe there’s a collection of issues administration might have accomplished higher, and that’s the dialogue we’re going to have with the board shortly,” Mr. Banga stated.

The board assembly was imagined to happen in February however has but to be scheduled. In response to an individual aware of the method, the revised motion plan will take impact on Thursday if the board doesn’t convene a gathering to evaluation it additional.