Published: January 31 2006 06:18 | Last updated: January 31 2006 06:18
The World Bank’s internal investigations unit has received an anonymous complaint that the bank’s rules and procedures were stretched in the appointment of close advisers to Paul Wolfowitz, the bank’s president.
In the latest example of simmering tensions between Mr Wolfowitz and some members of the bank’s staff, a complaint to the bank’s whistleblower hotline this month raised questions about what it alleged were excessive pay and open-ended contracts for Robin Cleveland and Kevin Kellems, previously colleagues of Mr Wolfowitz in the administration of George W. Bush, who came to the bank with him.
The complaint also questioned the terms on which Karl Jackson was retained as a consultant. Mr Jackson worked with Mr Wolfowitz in the administration of George H. W. Bush, and is a professor at the School of Advanced International Studies at Johns Hopkins University, where Mr Wolfowitz used to be dean.
The e-mail complaint was sent to the Department of Institutional Integrity’s whistleblower hotline, which encourages bank staff to come forward anonymously using procedures designed to safeguard their identity. It was copied to the bank’s 24 executive directors, who represent its 184 member countries on the board.
Bank insiders said it appeared to have been sent by an individual or group of bank staff who had access to high-level personnel files.
Separately, the bank’s staff association has raised concerns about some of Mr Wolfowitz’s appointments, after what it said were expressions of concern from a large number of staff.
Last week the association sent an e-mail to all 10,000 bank employees complaining that procedures were not followed in the appointments of Suzanne Rich Folsom, as head of the Department of Institutional Integrity, and of Mr Kellems, who was named director of strategy in the bank’s internal relations department.
In addition to their new appointments, they remain counsellor and senior adviser to Mr Wolfowitz, respectively.
Several of the bank’s executive directors, who asked not to be identified for this story, said they were aware these concerns about Mr Wolfowitz’s appointments had been circulating, but that now that complaints had been brought formally to the board’s attention they expected the matter would be looked into by the integrity department.
They also said that Mr Wolfowitz had the prerogative to make appointments as he saw fit as long as no bank rules were violated.
Graeme Wheeler, acting managing director of the World Bank – in a statement responding to FT inquiries – cited the bank’s articles of agreement, which gave the president responsibility for the internal management and staff appointments. “President Wolfowitz strongly supports the practice of making senior appointments through a competitive process and he has demonstrated this in his tenure at the bank.
“Following the practice of previous presidents and consistent with the articles of agreement, this does not preclude him from making appointments for key positions at his discretion.”
Mr Wheeler said: “The grade and salary levels of the advisory positions are within bank policy and reflect their level of responsibility.”
Ms Cleveland, previously associate director of the White House Office of Management and Budget, was formerly an aide to Senator Mitch McConnell. Mr Kellems, who worked for Mr Wolfowitz at the Pentagon and for Vice-President Dick Cheney, was previously an aide to Richard Lugar, chairman of the Senate foreign relations committee.
Mr Wolfowitz’s supporters say the bank has a history of difficult transitions under new presidents – indeed much of former president James Wolfensohn’s first term at the bank was overshadowed by tensions with the staff .
Mr Wolfowitz has made clear he intends to shake up the way the bank works. He is expected to make several new senior management appointments, and has expressed dissatisfaction internally about some of the banks vice-presidents, and departments, which has stirred up resentment in the ranks. A former vice-president at the bank is also under investigation on corruption charges.
The carefully worded e-mail sent to the integrity department asked questions about who had made the decisions on the terms of his advisers’ appointments – noting that Mr Wolfowitz may not have been aware of the details – and asking what precedents were invoked in the decisions or whether exceptional circumstances were seen as applying. It is the integrity department’s policy to pursue all complaints it receives and decide whether they warrant further investigation. Since it was set up in 2001, the director of the integrity department has reported to the bank president.
Mr Wolfowitz is not considered a staff member, although advisers and consultants he appoints are subject to the bank’s normal rules.
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