The World Bank Tokyo Office Telephone: (03) 3597 6650

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 10F, Fukoku Seimei Building Fax: (03) 3597 6695
INTERNATIONAL DEVELOPMENT ASSOCIATION 2-2-2, Uchisaiwai-Cho Cable: INTBAFRAD TOKYO
Chiyoda-ku, Tokyo 100, Japan
Thursday, January 24, 2019

Dear People,

We are starting to have fun as the corruption that has been in place
since 9200 BC begins to unravel. I graduated from the University of
Amsterdam with a graduate degree in economics. I am not able to go
to this alumni event with the Netherlands' representative on the
Board of Governors of the World Bank and IMF. Wopke Hoekstra is
totally corrupt, and is going to be replaced, along with all of the other
corrupt officials on the Board of Governors. The Governments of the
Breton Woods' member countries are illegitimate corporations.
http://pubdocs.worldbank.org/en/627731541108831255/BankGovernors.pdf

1
Dear Karen,

For the 4th successive year the Amsterdam School of Economics (ASE)
and the student associations SEFA and VSAE are organising ASE NEXT!
Here are 3 reasons not to miss this event on 27 February.

It's a chance to learn from the best as Minister Wopke Hoekstra gives the
keynote speech. You'll then find out about the career stories of another
inspirational alumni: Roelien Timmer (European Central Bank in Frankfurt).

Finally, you'll have the opportunity to meet with fellow students and alumni
over drinks afterwards.

See you there!

Kind Regards,
Prof. dr. Roel Beetsma & Prof. dr. Massimo Giuliodori
Amsterdam School of Economics

When KPMG refused to follow

Generally Accepted Audit
Standards after being duly
appointed by the World Bank's
Audit Committee to conduct an
external audit of the World
Bank's internal control over
financial reporting, I commenced
litigation against KPMG in
United States District Court for
the District of Columbia, case no.
1:10-cv-11444-JEB. The case was
ultimately settled by the Board of
Governors, but as the US Courts
are simply corrupt agencies of
the Banking Cartel (see the
fringes around the flags that hang
in the courts), the US Courts
refused to accept the settlement.
www.kahudes.net

I am showing you a 2010 email to my PR representative, Larry Garrison, and an

exchange of emails in 2005 with the former representatives of the Netherlands and
France on the Board of Executive Directors of the World Bank.
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-----Original Message-----
From: Karen Hudes
To: Larry Garrison
Sent: Mon, Oct 11, 2010 10:00 am
Subject: Cover-Up at the World Bank

Dear Larry,

I've been trying to get this story in the US press for some time. It is a little different
from your usual stories, but I think it would sell. Like Enron, only bigger.

The problem started ten years ago, when a crooked President in the Philippines,
Joseph Estrada, stole money from the Philippines' people and was impeached. In 2007
Estrada was convicted and had to pay back the money he stole. But in the meantime, as
a lawyer on the case at the World Bank, I reported the World Bank's failure to end the
corruption in the Philippines. I was reassigned, and complained to the World Bank's
Board of Directors. But the World Bank's failure in the Philippines was only covered-up.

A political scientist ran a model of the problem in 2004, and predicted that if the US
didn't end the cover-up, the US would lose the right to appoint the President of the
World Bank. I warned the Treasury Department, but they ignored me. I went to
Congress in 2006, and Senator Lugar wrote 3 letters to the World Bank, but I was fired
anyway. At the spring meetings of the World Bank in April the rest of the world agreed
that the US could no longer appoint the President of the World Bank. But still the
cover-up continued, and so at the Annual meeting of the World Bank that just ended on
October 10, 2010, the rest of the world decided to move World Bank jobs in Washington
outside the country. I am attaching my letter to Senator Lugar, some correspondence
on the problem with the European Community, and a letter from the former
representative of the Dutch Government to a former Adviser of the French Government.

Senator Lugar asked GAO to investigate the World Bank in 2008, but the World
Bank only stonewalled. On September 15, 2010, Senator Lugar told the Treasury
Department during hearings on the World Bank's capital increase that Congress would
not give the World Bank any more money until the World Bank ends the cover-
up. http://foreign.senate.gov/hearings/hearing/?id=33c66777-5056-a032-525a-
a0a5806634e9

What do you think?

Best,
Karen Hudes

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visit+an issue

From: Pieter Stek

To: Ann Wallace Scoffier
Sent: Wed, February 23, 2005 2:16:58 PM
Subject: RE: visit+an issue
Ann, thank you for reacting so quickly! The situation has got out of hand because
nobody including a number of EDs is taking it in hand. Karen should tell you about it.
She will also tell you about a visit she and I made to JDW [James Wolfensohn] at my
request well before I left; she reported the mishandling by the Bank of a loan in spite of
her raising the alarm and JDW promised to let Lloyd Cutler look into this, which
promise he broke by giving the issue to Ko-yung Tung – not the man with the strongest
incentive to deal with it objectively. I have now written an affidavit for the Tribunal for
her case on the JDW episode. Your comment that she could lose her job is only too true
and very close. On top of this it is utterly stupid that the Bank would be risking its
reputation in an area where Congress is watching like a hawk for slip-ups.

And thank you for the invitation to come to your house! We would love to catch up with
you and one or two of the old regulars, such as Ray/Marilee and Achim/Beatriz. [Ray
Rist is also an old friend of mine KH]

Pieter

-----Original Message-----
From: Ann Wallace Scoffier
Sent: February 23, 2005 3:37 PM
To: Pieter Stek
Subject: RE: visit+an issue

Dear Pieter,

We will be SO happy to see you and Iet.

For Karen, I will be glad to speak to her on background. You know my deep belief
that cover-ups are the worst thing that can happen to an institution. And, that
when management won’t act, trustees must. That’s why these corporate
structures are formed the way they are – even multilateral corporate structures.
When I get a feel for what this may be, [i.e., what the politics of it may be, what
sort of country] I think she may want to speak to Pierre Duquesne, who is
Chairman of the Audit Committee and whom we see very regularly. I believe that
Pierre is quite clever at figuring out how to ask for something (for example, to
examine the material issues of a case) without divulging that he may have been
guided a bit in his request. Is Ad Melkert on the Audit Committee? Is Mr.
Deutsch? [Duquesne ultimately asked for the Intitutional Integrity Department
to be investigated. That investigation led nowhere, but that is a separate story -
KH]

4
I will e-mail Karen from my personal e-mail and perhaps speak a moment on the
week-end. What do you think? Knowing the bank, if this is not handled
elegantly, she could lose her job. So, we must be very careful and elegant.

Ann Scoffier
[Ann is right, I was fired in 2007, and then reinstated in 2009 by the
Norwegian Executive Director, Svein Aass, in collaboration with the
Russian Executive Director, Eugene Miagkov. The Board of
Governors also confirmed my reinstatement many times]

-----Original Message-----
From: Pieter Stek Yahoo
Sent: Wednesday, February 23, 2005 8:30 AM
To: Ann Wallace Scoffier
Subject: visit+an issue

Dear Ann,

We shall be in DC from March 23 – April 5 and are looking forward

immensely to it. The ‘causa movens’ is that I have a meeting on March 21
in Bermuda of all places (no shady offshore stuff but the highly respectable
International Assoc. for Digital Publications, led by Angus Scrimgeour
meets there, at the invitation of John Vereker, the Governor-General and a
fellow member of IADP’s Board of Trustees) and we are flying over DC in
order to use my United miles before they melt away in a plausible melt-
down of that company. The deeper reason, of course, is that we have been
seeking an opportunity to come back because of our friends and because
there is so much to see that neither Iet nor I had time for earlier. We
certainly hope it will be possible to see you and Marco!

The issue: Karen Hudes of the Legal Department has a problem and I
think it would be very useful for her to hear a passionate dispassionate
view from an intelligent person who knows the Bank. The passion would
be for the Bank, truth, and fairness; the dispassionateness would come
from intelligence and a bit of distance. Karen has bitten into a case of
failure of the Bank, harm to a country, cover-up, failure of evaluation,
failure of controls, and threatening failure of the Board (Audit Committee)
to take up the issue. The corollary is not hard to envisage: the Bank runs
the risk of being caught with its pants down (in an area where it is
lecturing the developing world on how to dress) and the whistleblower
(who has not whistled in public) is at imminent risk of being dismissed,
due to failure of the checks and balances in the Bank meant to protect
individuals (the Integrity Directorate, the Ombudsman, the Tribunal, the
President himself). I hope you will be willing to talk with her and give her
the benefit of your thoughts.

In my opinion, somebody in the Bank needs to be interested and brave

(staff) or a bit brave (Board). By far the most elegant way forward would
be for the Audit Committee to discuss the material case from the point of

5
 view of whether the accusations against the handling of the case are
correct and, if so, whether there could be a systemic aspect to this kind of
failure.

One thing in my view is certain: if the truth is withheld from the Board and
the Board does not even react when it has indications that this may be the
case, the Board is negligent in exercising its responsibility and, therefore,
also at risk. An underlying issue is whether a staff member has the duty to
inform the Board if he or she hits upon a cover-up. Is one’s duty towards
the Bank or towards one’s bosses? The parallels with other corporate, US
Administration, and European Commission cases is obvious, not to speak
of broader and more emotional analogies from recent history.

With love from us both,

Pieter

https://twitter.com/KarenHudes,

https://www.facebook.com/karen.hudes.10/

On Tuesdays at 7:00 pm EST http://dctv.org/Live

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www.kahudes.net
interviews: https://s3.amazonaws.com/khudes/Bibliography1.pdf