World Bank’s INT Director Quits after Steady Criticism

(Washington, D.C.) – Suzanne Rich-Folsom, controversial head of the World Bank Department of Institutional Integrity (INT), tendered her resignation to Bank President Robert Zoellick today. Ms. Folsom’s departure comes after increasing criticism of her own integrity and effectiveness from a variety of sources, including an independent review prepared by the Government Accountability Project (GAP), a Bank commissioned report from a panel headed by Paul Volcker, and a rising tide of dissatisfaction among her staff. The INT is in charge of investigating allegations of misconduct, fraud, and corruption at the Bank, and designs anti-corruption measures to safeguard Bank resources.

“This is long overdue,” stated GAP International Reform Director Bea Edwards. “The Bank and INT staff deserve a new director who is truly committed to an anti-corruption agenda and experienced in conducting investigations and protecting witnesses.”

As Counselor to former Bank President Paul Wolfowitz, Folsom generated controversy by serving in dual positions when Wolfowitz named her Director of INT. Her conflict of interest became apparent when she failed to react to complaints of impropriety involving Wolfowitz himself and another World Bank staff member. While these complaints ultimately led to Wolfowitz’ resignation, Folsom stayed on.

As INT lost credibility under Folsom, whistleblowers on the Wolfowitz matter and other corruption issues sought counsel from GAP. In response to their disclosures, GAP released a review of INT practices in September 2007, which found that:

  • Folsom’s dual positions undermined her credibility as an agent of effective and impartial oversight.
  • US nationals were disproportionately represented among INT staff, especially at the higher levels, and diversity in the department was lacking.
  • INT management was excessively critical of department personnel as indicated by the number of staff members on remedial performance improvement programs.
  • Attrition among INT staff was dramatically higher than in other units of the Bank.
  • A climate of distrust, miscommunication and secrecy badly strained relations between INT and operations personnel, limiting INT’s ability to influence Bank projects efficiently and positively.

In selecting a new Director for the Department of Institutional Integrity it is imperative that:

  • The appointee be free from conflicts of interest;
  • A credible, transparent and selection process be conducted;
  • The new Director be retained on a five-year, fixed-term contract, renewable once by the Board of Directors. Criteria for renewal should include an evaluation of case opening, closure and carry-over data, as well as the ability to integrate anti-corruption safeguards into lending policies

Contact: Bea Edwards, International Director

Phone: 202.408.0034 ext 155

Email[email protected]

Contact: Shelley Walden, International Program Associate
Phone: 202.408.0034 ext 156
Email[email protected]

Contact: Dylan Blaylock, Communications Director
Phone: 202.408.0034 ext 137, 202.236.3733 (cell)
Email[email protected]

Government Accountability Project

The Government Accountability Project is the nation’s leading whistleblower protection organization. Through litigating whistleblower cases, publicizing concerns and developing legal reforms, GAP’s mission is to protect the public interest by promoting government and corporate accountability. Founded in 1977, GAP is a non-profit, non-partisan advocacy organization based in Washington, D.C.