Financial Times, May 16 2007 The US State Department has launched an inquiry into its role in helping Paul Wolfowitz resolve conflicts of interest that arose when he became president of the World Bank, say officials. The department is reviewing anomalies in security vetting and legal complications in the transfer of Shaha Riza from the bank to its Middle East section, said two officials.
Reuters World Bank Panel Finds Wolfowitz Broke Rules
AP Wolfowitz Broke Rules
FT Wolfowitz Broke Bank Rules
Washington, D.C., May 14, 2007 - The World Bank Board of Executive Directors received the second report of the ad hoc group on Monday afternoon. In the interests of transparency they published the report and all associated documentation. They will meet with Mr. Wolfowitz at 5:00 p.m. on Tuesday as part of their deliberations on the report.
The report finds Wolfowitz guilty of engaging in an actual conflict of interest, and violating the Bank's Code of Conduct and numerous staff rules.
General Counsel Excluded - Coll silenced
"From the time Ms. Riza presented her terms to Mr. Coll (head of human resources) until Mr. Wolfowitz instructed Mr. Coll to accept those terms, neither Mr. Wolfowitz nor Mr. Coll consulted with Bank counsel concerning whether the terms were in the Bank's interest. Mr. Coll states that during his August 10 meeting with Mr. Wolfowitz and Ms (Robin) Cleveland, they told him he "could not talk to anyone" including the General Counsel about his conversation with Ms. Riza. Mr. Wolfowitz has not denied that the General Counsel was excluded from the negotiations. However, he explains that he did not consult with the General Counsel because he considered the General Counsel to be conflicted from providing advice to both the Ethics Committee and management." (Note 47, page 21 )
No Evidence Wolfowitz disagreed with Ethics Committee advice
"Mr. Wolfowitz states that he had disquiet with his understanding of the advice (of the Ethics Committee) but that he nevertheless followed it. The Ethics Procedures make clear that Mr. Wolfowitz could have taken the matter up with the Executive Directors directly if he did not believe the advice he had been given was correct. He (Wolfowitz) has repeatedly claimed that he protested vehemently to the Ethics Committee that he did not wish to be involved, but the Ad Hoc Group did not find any convincing documentary evidence of such a protest. " (Note 84, page 31)
In its recommendations the ad hoc group asks the Board to consider
1. Whether Mr. Wolfowitz will be able to provide the leadership needed to ensure that the Bank continues to operate to the fullest extent possible in achieving its mandate.
2. To undertake a review of the governance framework of the World Bank Group with the aim of ensuring that it is capable of effectively dealing with the challenges raised for the institution. (page 52)
Volcker Panel Update on April 23 2007
The Volcker Panel was established in February this year in response to a call from the World Bank's Board in August 2006 about the manner in which the Department of Institutional Integrity was conducting its investigations.
The Department of Institutional Integrity is headed by Ms. Suzane Rich Folsom. Email: sfolsom@worldbank.org telephone: 202-473-1700. See Terms of Reference below for the Volcker Panel and memo from Paul Wolfowitz to staff in February.
Mr. Volcker has been less than zealous in moving forward with his independent review and his independent panel members all appear to work for Ms. Palacio, the Bank's Chief Counsel.
To date we understand that no staff involved in the cases that caused the Board concern (India, Cambodia, Kenya, or Democratic Republic of Congo) have been interviewed by Mr. Volker's panel.
The Staff Association has apparently been asking to meet with Mr. Volker and his panel since the panel was formed.
We welcome Mr. Volker's update on his activities, although we find the timing curious.
- MEMO -
From: Chairman Paul Volcker
Volcker Panel Update
Date: April 23, 2007 - 15:40
Sponsor: Legal Department
I would like to update you on the work of the recently appointed independent Panel of experts that I am leading to review INT's roles, responsibilities and working relationships as part of the Bank's Governance and Anti-Corruption Strategy.
The composition of the Panel has now been finalized and we are commencing our work. Under our Terms of Reference, we will "review and evaluate the mandate and authorities, the policies, procedures, practices, independence, reporting lines, and oversight mechanisms related to INT."
In addition to myself, the Panel members include:
Mr. Gustavo Gaviria, (Email: ggaviria@worldbank.org, tel: 202-458-0092, currently listed in the World Bank directory as working for Ana Palacio); Mr. John Githongo, (Email: jgithongo@worldbank.org, currently listed in the World Bank directory as working for Ana Palacio); Ben W. Heineman; Mr. Walter Van Gerven, (currently listed in the World Bank directory as working for Ana Palacio); Sir John Vereker...
See comments for more
April 20, 2007—The Executive Directors met on April 19 to address the current situation in the Bank, which is of great concern. Based on the clear guidance of the Development Committee, the Executive Directors agreed on a process to deal with the situation urgently, effectively, and in an orderly manner.
Having reviewed the April 11 report of the Executive Directors’ ad hoc group and the associated documents, the Executive Directors discussed questions related to conflicts of interest and possible violations of Staff Rules. They identified a number of issues requiring further consideration.
See Comments for Full Communication
