30 March 2006
Following several days of heightened attention on corruption at the World Bank, the institution's staff association has spoken out about potentially misleading claims asserted in the press.
Following several days of heightened attention on corruption at the World Bank, the institution's staff association has spoken out about potentially misleading claims asserted in the press.
Of particular concern is the erroneous suggestion that bank staff are either lax on corruption or are corrupt themselves. The association also refuted suggestions that bank staff and World Bank President Paul Wolfowitz are at odds over his efforts to stamp out corruption. The statement furthermore argues that Wolfowitz should better promote the long-standing efforts of bank staff to combat corruption.
US News & World Report is featuring a series of articles on corruption at the World Bank. The US Committee on Foreign Relations also discussed multilateral development banks, effectiveness and corruption in a hearing on March 28. Find links to articles on both below.
Read the World Bank Staff Association statement
Staff Association
03/29/2006 05:24 PM
Subject
Staff Association Statement on the Fight Against Corruption
Dear Colleagues,
The Staff Association has received an outpouring of messages from staff, outraged and demoralized by the way in which World Bank Group staff have been portrayed in recent news stories, most notably a January 23rd article in the Financial Times and a series of US News & World Report articles which came out in print on Monday. These articles create the impression that Bank staff are lax on corruption or are themselves corrupt. By attacking the reputation of the Bank and its staff, they not only insult us but also make it all the harder for us to have credibility with our clients when we push for better governance and transparent procurement. Furthermore, the articles give the strong and distrubing impression that the President and Bank staff are at odds over the anti-corruption agenda, which is not true. The Staff Association believes that the President missed an opportunity in these news reports to put forward the truth - that staff in this institution long have been on the front lines in the fight against corruption and that we fully support this initiative and are ready and eager to do more.
Staff of this institution are hard-working, dedicated and honest—we uphold the highest standards of integrity. Over the 11 years since Mr. Wolfensohn launched the Bank’s public fight against corruption, we have developed some of the best tools to guard against corruption of any development institution (our procurement rules, loan and credit agreements, quality assurance reviews and audits). As in any organization, a few staff have been found to have engaged in fraud and corruption. However, contrary to statements in the US News & World Report articles, these cases usually have been reported by other staff, investigated thoroughly, and, when corroborated, appropriate actions have been taken. In INT's last Annual Report (February 2005), of 88 allegations of internal fraud and corrruption, 12 were substantiated, and disciplinary measures (including termination and barring from rehire) were implemented (this in a staff numbering 10,000 or so).
Just as Bank Group staff have been on the front lines in the fight against corruption, we are encouraged to see Mr. Wolfowitz focusing on this as well. However, staff are frustrated by the lack of clear guidelines, empowerment and protections that would allow us to do more to ensure that all project funds reach their intended beneficiaries. A report on whistleblower protections, commissioned by management, was issued a year ago, yet the contents of the report have not been disclosed nor have its recommendations been acted upon. Bank staff would appreciate and welcome more transparency and communication on the President’s initiatives to defeat the “cancer on development.”
The Staff Association will be issuing a letter to the editor of US News & World Report to set the record straight. Normally we do not talk to the press, but we will do so actively and vigorously in this case to defend the reputation of our staff and our institution. We call on the President to join us. To be effective in the fight against corruption, we must be united, staff and management, working together in mutual trust.
As always, we want to hear from you. We have established a confidential comment line, which allows you to contribute anonymously or not. These comments - without identification - will be posted on the Staff Association's website and forwarded to Mr. Wolfowitz.
Alison Cave,
Chair, Staff Association
Other resources
- A hot seat for the World Bank's new president. Edward T. Pound, US News & World Report, March 28, 2006. (US News & World Report website)
- Cleaning Up The World Bank. By Edward T. Pound and Danielle Knight, US News & World Report, April 3, 2006. (US News & World Report website)
- Senator bashes World Bank corruption. By Edward T. Pound, US News & World Report, March 28, 2006. (US News & World Report website)
- Anatomy of a 'bribe'. By Danielle Knight and Edward T. Pound, US News & World Report, March 27, 2006. (US News & World Report website)
- Committee on Foreign Relations discusses multilateral development banks, effectiveness and corruption. Bank Information Center, March 28, 2006. (Bank Information Center website)