Paul Volcker to lead independent investigation of World Bank's integrity unit
20 February 2007
The Department plays a critical role in rooting out fraud and corruption within the World Bank - a focus many claim is underplayed in the institution's development of its Governance and Anti-Corruption Strategy.
Criticisms of the department focus on the seemingly arbitrary way in which staff conduct investigations of misconduct, as well as the department's head - Suzanne Rich Folsom. Folsom, a close political ally of World Bank President Paul Wolfowitz, was appointed to lead the department last year.
"We welcome [the review] with open arms," Folsom told the Financial Times. "It cannot happen soon enough."
The Department of Institutional Integrity investigates claims of fraud and corruption in Bank-financed activities, as well as allegations of staff misconduct. The Department recently released its Fiscal Year 05/06 Report (World Bank website), in which it claimed to have debarred 112 firms and individuals for fraud and corruption in the fiscal year 2005-06.
Paul Volcker has previously served as the Chairman of the Federal Reserve. In 2004, he was appointed to investigate corruption in the UN's Oil for Food Program in Iraq. Volcker is currently the Chairman of the Board of Trustees of the Group of Thirty.
Resources
Department of Institutional Integrity independent review Terms of Reference 22 Feb 2007 (doc, 30 KB)