Amid reports that the Volker Panel’s audit of Suzanne Rich Folsom’s INT is likely to be a whitewash, the Government Accountability Project is doing its own audit. From GAP:
One of Paul Wolfowitz’ most contentious appointments at the World Bank was Suzanne Rich Folsom, whom he named to head the Department of Institutional Integrity (INT), the unit that investigates internal fraud, corruption and misconduct. After Folsom assumed the post in January, 2006, allegations surfaced that she coordinated investigations with Wolfowitz’ office and followed the directives of his close advisers. To address these and other complaints, the Board of Directors instructed Wolfowitz to appoint a panel to audit INT, which he did in February, 2007. Paul Volcker heads the six-member panel, but Volcker himself has close ties to former INT staff members now working for an INT contractor. To ensure an impartial review of the practices of INT, the Government Accountability Project (GAP) is therefore launching a parallel audit. For details see www.whistleblower.org. or contact beatricee@whistleblower.org
GAP were a pretty good outfit before Bea Edwards hijacked their agenda. They were making decent progress in pushing the MDBs to improve whisteblower protection. Now, GAP just looks so biased; everything they say looks like it was written by the World Bank’s staff association (small wonder, as close as Bea and Alison Cave are…). I think it’s a stretch to suggest that Volcker is easily led and, having read GAP’s press release, the supposed ties between him and anyone in INT are tenuous at best. If Volcker also has a bias, his record seems to indicate he’s biased against corruption in international institutions. That’s not the same as being biased against the Bank or INT, as GAP appears to be.
I wish that the tightly-strung PG county closet cases would stop crying ‘putsch’ and ‘unfair’ when they defend their bosses against well-deserved criticism. Suzanne Folsom’s biggest problem is that her management skills are poor and her staff survey results confirm that. She has alienated Bank colleagues who agree that the Bank has to do a better job on corruption. She has no internal allies and does not seem to be doing anything to get any.
And given how she has smothered Paul Volcker with ‘help’, I’ll bet that GAP will do just as good a job as his team will do, if not a better one. Because it’s not subject to ‘influence’ by Suzanne or by her erstwhile patron, Jim Wolfensohn, who brought her on as part of his campaign team for a third team, GAP’s findings are likely to be more believable. And GAP will talk to anyone who contacts them, unlike the Volcker investigation. INT needs to be audited, and the more that is found out about how they really operate, the better. GAP can help keep everyone honest.
Having GAP investigate INT separately from someone who is known for his integrity and who uncovered the lunacy going on at the UN in the Oil-For-Food disaster is mind boggling.
Folsom was hired by Wolfensohn when she came to the Bank and not Wolfowitz. There are a lot of rice bowls at the Bank that don’t want to be disturbed; revenue from middle income countries won’t support G & A forever when MICs can source loans from other providers. Change now or change later…