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Statement - Executive Directors Review Report, Release Documents

Available in: Français, العربية, русский, Español, 中文

Washington, April 12, 2007 - The Executive Directors of the World Bank Group at a meeting on April 6 formed an ad hoc group to investigate the facts concerning a contract for a staff member closely associated with the President.   The Executive Directors met today, April 12, to review the report and the documents obtained by the ad hoc group.   The Executive Directors welcomed the report, which they are disclosing publicly immediately together with the associated documents reviewed by the ad hoc group.

The Executive Directors recalled that, in negotiations between the President and the Board concerning his employment contract, he revealed a conflict of interest involving a staff member.   At the request of the Executive Directors, the President sought guidance from the Ethics Committee.   The guidance given on an informal basis was that the employee should be re-located to a position beyond potential supervising influence by the President or assigned to external service and compensated for the potential disruption to her career by an in situ promotion as consistent with the practice of the Bank, and that the President, with the General Counsel, should communicate this advice to the Vice President, Middle East and North Africa, and the Vice President, Human Resources, so as to implement it with immediate effect.   The President then sent the Vice President, Human Resources, a written memorandum directing him to reach an agreement with the staff member and specifying in detail the terms and conditions.

The Executive Directors noted that the group found that the Ethics Committee, including its Chairman, had not been involved in the discussions with the concerned staff member.   Neither did it find that the terms and conditions of the agreement had been commented on, reviewed or approved by the Ethics Committee, its Chairman or the Board.

The Executive Directors will move expeditiously to reach a conclusion on possible actions to take.   In their consideration of the matter the Executive Directors will focus on all relevant governance implications for the Bank.

Report of the Ad Hoc Group

Ethics Committee Case No 2 and President's Paper





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