World Bank Whistleblower: Karen Hudes
Published on Oct 19, 2013
Four Senators wrote Letters to Congress on behalf of Ms. Hudes in response to her disclosure that the Debt of the U.S.A was headed for collapse- as far back as 2005. She discovered Corruption beyond belief. She said that Americans would be astounded to know what is truly going on behind the scenes – and said our world is run by mobsters and mafia style governments. (My conclusion is that the people cannot see how their life source is nothing more than feeding those at the top. Once your work years are done, you are considered expendable and useless.) Feel free to download and reshare.
Here is the first letter she wrote. I encourage you to visit her website and make up your own minds.
Senator RIchard G. Lugar
306 Hart Senate Office Building
Washington, D. . 20510-1401
Dear Senator Lugar,
December 28, 2006
As a member of the World Bank’s Legal Department for twenty years, and a
member of the DC Bar, I am obligated by the DC Rules of Professional Conduct to
report a weak control culture in the Bank. On June 2,2004 I informed tne Audit
Committee of the Board of Executives Director about sensitive governance issue
concerning interference in the Board’s access to information. The Operation Evaluations
Department refused to reveal to the Board the role of the Bank’s poor supervision of the
Philippine Banking Sector Reform Loan in the corrupt take-over of the second largest
bank in the Philippine resulting in a 550 million banking failure, cancellation of $200
million from the Bank’s loan to the Philippine, and cancellation of $200 million in
co-financing from Japan.
Two of the Bank’s former Ethics Officer tried in vain to protect me from
retaliation for reporting the lapse in internal controls. Anita Baker placed my divisIon
chief. Mohan Gopal, on mandatory administrative leave for his retaliation against me.
After Jacqueline Gates replaced Anita Baker, Ethic Officer, she asked the Institutional
Integrity Department (INT) and the Human Resource Department (“HRD”) to end the
retaliation, then both INT and HRD refused. Ms. Gates resigned in frustration. I have
reported the risk to the reputation of the U for probity in it oversight of the Ban to
Senior management ,the U.S. Executive Director’s office. and the Secretary
Department. Documented in the attached correspondence.
The Netherland constituency intervened in 2005, and the Audit Comittee
requested INT to look into the matter. The resulting INT report of October 31,2005 was
evasive and sought to discredit me rather than to address the serious issues which I raised. The Executive Directors are now requiring an audit of INT. The attached work program of the Board’s committee on Governance is aimed at achieving better access to
information and greater voice in Bank management.
The review of the bank’s conflict resolution system and policies for protection of
whistleblowers, mandated by US law, is proceeding in a closed process that exclude.
the Board, after a task force with a broader mandate that would have consisted of former
members of the Board was rejected. I learned yesterday from the Staff Association that
the new whistleblower rule had been finalized without provision for review of the final
draft by the Board or by experts.
Mr, Eckhard Deutscher, Dean of the Board, has informed me that the World Bank Board is treated like a mushroom, “kept in the dark, and covered with fertilizer,” It is necessary for the review of the Bank’s conflict resolution system to be put on track to achieve consensus for much needed reform in order to minimize risk to the Bank,
I sought to mediate my personnel grievances with HRS, but was referred instead to the Bank’s Appeals Committee and the Administrative Tribunal. The performance of the Administrative Tribunal on my case documents the weaknesses in the Bank’s conflict resolution system, HRS is refusing to mediate and demanding for me to leave the Bank in July, 2007. If I am required to leave the Bank, this will dissuade any other employee who would report serious internal problems from establishing a direct line of communication with the Board.
I am currently working with Kevin Kellum on the Farm Journal forum to be held
in December 2007, I sincerely hope that you will help me to remain at the Bank so that I can continue my work on RULE OF LAW.