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International-UN-NGOs
Wolfowitz triggers graft storm at World Bank
2006-01-23
Bolton at the UN, Wolfowitz at the World Bank ....
Paul Wolfowitz, president of the World Bank, has triggered a bitter conflict with the bank’s senior career staff by empowering a group of close political advisers to pursue aggressively what he sees as widespread corruption surrounding bank projects.

The dispute has come to a head with the appointment last week of Suzanne Rich Folsom, a counsellor to Mr Wolfowitz with close ties to the Republican party, as the new director of the Department of Institutional Integrity, the internal bank watchdog that investigates suspected fraud and staff misconduct.

Her appointment has raised objections that a person close to Mr Wolfowitz, and with a political background, has been put into a senior position at a unit that was seen as independent of the president’s office since it was set up in 2001.

Robert Hindle, previously the senior manager of the unit and a long-time World Bank employee, resigned in November largely as a result of what four current and former bank sources said was concern at the targeting of employees who had worked on projects that developed corruption problems, and pressure on two occasions from Ms Rich Folsom to bypass internal rules on investigating the e-mail records of a number of employees.

Ms Rich Folsom, who was brought into the bank by James Wolfensohn, Mr Wolfowitz’s predecessor, denies strongly any breach of internal rules. She insisted that in every case she followed proper procedures that require the bank’s general counsel and another senior manager to approve any investigation of staff e-mails. “I have never asked Robert Hindle to circumvent any procedures,” she told the Financial Times.

Mr Wolfowitz said those alleging violations of e-mail procedure “are trying to get me not to be tough on these issues. I just would like to say I don’t intend to be intimidated. We are in a transition, but I think it’s extremely important that we be moving from talking about corruption to dealing with corruption,” he said in an interview.

The World Bank Staff Association has raised concerns over the process that led to Ms Rich Folsom’s appointment and has heard complaints about e-mail checks from a number of parties. Alison Cave, chair of the association, said: “To clear up any questions, it would be a good idea to have an independent investigation or audit of the department.”

A number of senior bank staff and executive directors representing member countries, who asked not to be quoted, complain of a lack of consultation by Mr Wolfowitz’s advisers, and an atmosphere of suspicion.

Roberto Dañino, the bank’s general counsel and a former prime minister of Peru, this month also announced his resignation because, friends said, he was unhappy at the way the bank was being run by Mr Wolfowitz. Mr Hindle and Mr Dañino both declined comment.

Mr Wolfowitz’s appointment last year was greeted with apprehension by some long-time staff. Many Republicans believe the bank is plagued by corruption. Ms Rich Folsom was hired by Mr Wolfensohn with the task of improving the bank’s relations with Congressional Republicans.
Ahhh ...
Posted by:lotp

#7  He is arrogant, self-righteous, and generally an ass.

Is he as good as he thinks he is, 49 Pan? I find arrogance is bearable when it's really only rude, but honest self-appraisal.
Posted by: trailing wife   2006-01-23 22:22  

#6  I'll second that Frank. LOL!
Posted by: Danking70   2006-01-23 22:16  

#5  nice visual, moose :-)
Posted by: Frank G   2006-01-23 20:43  

#4  There is no sight quite like an honest cop raiding a whorehouse. The bitter protestations from the whores and the madam that they have already paid their bribes, and are thus being unfairly persecuted is just music to the ears.
Posted by: Anonymoose   2006-01-23 20:11  

#3  had the duty to work with Wolf on a few trips. He is arrogant, self-righteous, and generally an ass. That said he is the perfect guy to fix the inbred corruption at the work bank.
Posted by: 49 Pan   2006-01-23 12:00  

#2  Not quite, Jake. Not for many many years - he is deeply aligned with the neo-conservative movement.
Posted by: lotp   2006-01-23 11:39  

#1  If I recall, Wolfowitz is a Democrat.
Posted by: Jake-the-Peg   2006-01-23 11:31  

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