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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

December 5, 2018

Dear People,

Yesterday was a long day; back online with a few thoughts. What did I forget to tell you? That I am here in a dialogue with the critical mass of people that are reclaiming our world. There is no getting around that. I will show you three things that I found online--these are just part of our dialogue.

https://twitter.com/KarenHudes/status/1069395258939715586 https://twitter.com/KarenHudes/status/1067236847187836928

https://twitter.com/KarenHudes/status/1069755391393890304 I will show you screenshots, hopefully with active links at the end

Our discussion is going to continue. We are going to do our best to filter out the garbage and disinfo that the Banking Cartel is trying to interject. The Banking Cartel is most unwelcome, and what is more, we are going to wind them down.

https://youtu.be/qCdcXsormzk

The US-Japan Committee Under the Status of Forces is going to make sure that the US will honor its defense pact with Japan. This is only possible with the US monetary gold reserves in the Global Debt Facility. The weakness of the Federal Reserve Note in terms of gold, along with the US National War College's accurate power transition model, explains our coalition. The world's people are directing this coalition, and will retrofit any decisions after a Global Currency Reset that will exchange the corrupt

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paper currencies issued by the Banking Cartel for the world's gold and for local currencies issued by villages and towns.

There are many claims for restitution by people who have been harmed by the Network of Global Corporate Control, including claims of indigenous peoples, peoples harmed by colonialism, trading of their birth certificates, peoples tortured by the Network of Global Corporate Control, slavery, climate modification, peoples subjected to mind control and other hidden DARPA technologies, people whose health has been impacted by GMOs and other hidden carcinogens and toxins, hidden cures for diseases, to list just a few claims. If it is left to the Board of Governors to deal directly with these claims, there is going to be a huge risk that we create an institution that oppresses.

How to compensate people who are holding Treaty of Versailles bonds outside the Global Debt Facility is another claim in the list. I expect we are going to have our hands full initially in helping people to understand how necessary it is that we have a peaceful transition so that they thank those 1%ers that are making the peaceful transition possible.

We will have the Global Currency Reset just as soon as the dufuses in the Black Nobility have realized that a critical mass of humanity is not going to back down (and neither am I).

Teleprompter: https://s3.amazonaws.com/khudes/dctvteleprompt12.4.18.pdf

https://s3.amazonaws.com/khudes/Twitter12.2.18.2.pdf

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https://s3.amazonaws.com/khudes/Twitter12.18.1.pdf https://www.scribd.com/document/394225247/The-Board-of-Governors-of-the-World-Bank-and-IMF-Are-Ending-the-Corruption-in-the-World-s-Money-By-Replacing-Worthless-Paper-Currency-for-Currency-Min

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Note how my replies were hidden by the 1 more reply buttons:

https://s3.amazonaws.com/khudes/dctvteleprompt12.4.18.pdf

Sincerely, Karen Hudes Acting General Counsel, International Bank for Reconstruction and Development Overseer Mandate Trustee, Global Debt Facility, TVM-LSM-666 Attachments: teleprompter for latest DCTV segment contact information

INTRO

Good evening, I am your host Karen Hudes. This show is a Series that has been coming to you from DCTV since 2015 in a weekly program called the Network of Global Corporate Control. Today’s program is called “For Whom the Bell Tolls” That is a quote from John Donne: "No man is an Island, intire of it selfe... any mans death diminishes me, because I am involved in Mankinde; And therefore never send to know for whom the bell tolls; It tolls for thee. " The title of Earnest Hemingway's famous book about the Spanish Civil War is "For Whom the Bell Tolls"

Thank you to DCTV, Carmen Stanley, Project Director; Maurice Jackson, Studio Director; and Krushae Starnes, Audio and Prompter.

This Series is about the world's wealth, which was put into a trust managed by the Boards of the World Bank and IMF at the end of WWII. Many of the things we talk about in this series have been kept hidden from you. It is the central banks and the group directing the central banks called the Black Nobility that have been hiding the truth from you. I speak for a coalition that is in control of the world's wealth. The coalition also includes the world's military powers. This coalition was predicted by an accurate power transition model from the US national war college that came to me in the world bank's legal department in 2004. I mentioned this coalition the day after I wrote to the US Defense attaché in Tokyo. Japan's military troops are an important part of this coalition. Yesterday I tweeted a comment on an article in Veterans Today that I wrote in 2014. The US-Japan Committee Under the Status of Forces is going to make sure that the US will honor its defense pact with Japan. This is only possible with the US monetary gold reserves in the Global Debt Facility. This graph shows the weakness of the Federal Reserve Note in terms of gold. This graph, along with the US National War College's accurate power transition model explains our coalition.

The unconstitutional Federal Reserve Note is simply an imposter -- the US Dollar is alive and well, and living here, in the Global Debt Facility: https://s3.amazonaws.com/khudes/Twitter12.3.18.pdf

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The world's people are directing this coalition, and will retrofit any decisions after a Global Currency Reset that will exchange the corrupt paper currencies issued by the Banking Cartel for the world's gold and for local currencies issued by villages and towns. There is another reason that our coalition is facing down the Banking Cartel. It is because people do not want to be pushed around by corrupt bankers. That was true at the end of WWII, when the world's wealth was deposited in the World Bank, and it is true today. It took me several hours to show that the countries of the world insisted that they have a voice at the World Bank and that was evident from a statement that the US Governor made to the members of the world Bank in 1946. It took me hours to post this statement on the internet. http://documents.worldbank.org/curated/en/326411468153863895/pdf/833530BR0Bank00Box0382087B00PUBLIC0.pdf

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I have attached it to the memorandum which I gave the Board when I was reinstated as Acting General Counsel: https://s3.amazonaws.com/1947memo.pdf Do not be put off if any of my statements seem unlikely. I can document all of my statements, because they are all true. There are also electromagnetic weapons that affect your ability to accept this information -- more than two-thirds of the people are very susceptible to these weapons. The EMF scalar weaponsy were used in the Iraq war, and there were stories about these weapons when they were used on some of the people at the US Embassy in Cuba. I noticed that the brain imaging science sometimes shows up in magazine articles:

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Information on mind control and advanced weapon experiments on civilians https://s3.amazonaws.com/khudes/Twitter12.1.18.2.pdf

We the people are confronting the Banking Cartel in a fight to stay out of WWIII. We are planning to wind down the Banking Cartel, which is bankrupt from the 2 quadrillion in Treaty of Versailles bonds that were issued between WWI and II to some of the elite in exchange for their gold. José Rizal and Ferdinand Marcos gathered most of these bonds into the Global Debt

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Facility. We have already heard from "Sir Ralph" who has two trillion worth of these bonds. Sir Ralph offered to help solve Greece's financial problems with them. https://s3.amazonaws.com/khudes/Twitter5.14.18.2.pdf This is what I said to Sir Ralph (https://s3.amazonaws.com/khudes/Twitter7.25.15.pdf

So that you understand, the paper currency fiat system is coming down, and the Federal Reserve system and the rest of the Bank for International Settlements and that giant conglomerate referred to by Vitali, Glattfelder, and Battiston of ETH Zurich, as the “super-entity” http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf is in receivership in the Global Debt Facility that holds the world’s wealth. Greece's and other countries' debts are getting offset against the Treaty of Versailles bonds held by the Global Debt Facility. There are many persons who are trying prevent the Board of Governors of the Bretton Woods institutions from dismantling the Network of Global Corporate Control. The Board of Governors of the Bretton Woods institutions administers the Global Debt Facility. The International Court of Justice, CIA, Committee of 300, and Ferdinand Marcos' son, Tiburcio Villamor Marcos, to name a few, tried to steal the world’s monetary gold reserves and other assets in the Global Debt Facility, and the Network of Global Corporate Control keeps breaking link where I disclosed this: https://s3.amazonaws.com/khudes/steal+gold2.pdf The Board of Governors of the World Bank and International Monetary Fund is dealing with the question about what to do with excess currencies held by speculators. They are going to have to decide how to carve up the Network of Global Corporate Control's subsidiaries when winding down that giant conglomerate.

There are many claims for restitution by people who have been harmed by the Network of Global Corporate Control, including claims of indigenous peoples, peoples harmed by colonialism, trading of their birth certificates, peoples tortured by the Network of Global Corporate Control, slavery, climate modification, peoples subjected to mind control and other hidden DARPA technologies, https://s3.amazonaws.com/khudes/Twitter7.14.15.1.pdf , peoples whose health has been impacted by GMOs and other hidden carcinogens and toxins, hidden cures for diseases, to list just a few claims. The Network of Global Corporate control has been killing those doctors who can restore people's health.

If it is left to the Board of Governors to deal directly with these claims, there is going to be a huge risk that we create an institution that oppresses. If people can accept that the Global Debt Facility will handle currency and Fukushima only, because we are facing extinction if these problems are not solved, and leave the other issues to each peoples in each country, we have a fighting chance. This is a dialogue, and I will do what I can to further the dialogue. Sequencing will be key -- helping people get their health and reasoning back so they can make informed decisions seems like a plan. How to compensate people who are holding Treaty of Versailles bonds outside the Global Debt Facility is another claim in the list. I expect we are going to have our hands full initially in helping people to understand how necessary it is that we have a peaceful transition so that they thank those 1%ers that are making the peaceful transition possible. This difficult question of amnesty was debated here:

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https://s3.amazonaws.com/khudes/Twitter6.24.15.2.pdf and it is often raised in the comments to me. It may just be that we never get around to compensating the elite still holding the Treaty of Versailles bonds. We the people are having a dialogue among ourselves about the Global Currency Reset. You can see this dialogue in the archives of this Series on YouTube. Many people are asking when we are going to start exchanging currencies. My answer:

We will have the Global Currency Reset just as soon as the dufuses in the Black Nobility have realized that a critical mass of humanity is not going to back down (and neither am I). https://s3.amazonaws.com/khudes/Twitter12.1.18.pdf

As I already told you, if the Banking Cartel were going to win, they would have silenced me and kept me from speaking for our coalition. I am obviously still getting through. That is what I mean when I say that part of my job is to be a canary in the coalmine. Miners would bring a canary with them into the coalmine to serve as a warning. I am your canary in the coalmine. So long as I am getting through, you know that the Global Currency Reset is on track:

Of course it is taking time to deliver concrete results. We are talking about a fundamental transformation, and the biggest change is in our knowledge about what it means to be human and how we deal with each other. Another question that people have is how I got this job of being the lawyer for the Global Debt Facility containing much of the world's wealth. The short answer is that I was in the right place at the right time. The World Bank's Legal Department stands between the Banking Cartel and the world's wealth in the Global Debt Facility. My reports of corruption at the World Bank, and refusing to back down as the corruption kept getting

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deeper, helped the Boards of the World Bank and IMF, in charge of the Global Debt Facility to notice me. Last week I tweeted the chronology in my 2011 testimony to the European Parliament.

A cover-up at the apex of the international financial system must be resolved. https://s3.amazonaws.com/khudes/Twitter12.2.18.pdf …

https://www.scribd.com/document/394714671/The-Cover-up-of-Corruption-Twitter12-2-18

I also tweeted my reports to the world's accountants.

None of the accountants, none of them, were willing to admit their role in any of this fraud and corruption I reported. The accountants did not add up. https://s3.amazonaws.com/khudes/accounting1.pdf https://www.scribd.com/document/394708933/Fraud-in-the-Accounting-Profession-Accounting-1

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I will attach this information to the teleprompter.

Two more points I want to make today in my prepared remarks. I am going to read you the statement that Donald Trump failed to answer in my affidavit for the commercial lien in which I bankrupted Donald Trump. When some people say that I did not get Donald Trump's attention, I can assure you that I did, and I also got the attention of his legal team. How do I know this for sure? Well, Nita Johnson tried to bribe me after Trump faked the elections, which were not legal because the Constitution was not in effect. Trump is a liar and he is continuing to lie. He was never duly elected by the American people because a military government was already secretly in place, stealing all Americans' properties under war powers. https://s3.amazonaws.com/khudes/dctvteleprompt3.21.17.1.pdf

27. Donald J. Trump has failed to acknowledge that the United States is not operating under the Constitution of 1789 nor has he acknowledged that the US' monetary gold reserves are administered by the Board of Governors of the World Bank and International Monetary Fund because they are in a Trust established at the end of WWII by General Eisenhower and President Truman. Instead, Donald Trump has perpetuated the hoax on the American people, despite having had the opportunity to rectify these falsehoods https://s3.amazonaws.com/khudes/trump1.pdf Donald Trump has harmed me personally with these lies and falsehoods, as this has prevented me from returning to the World Bank's headquarters and working on the Global Currency Reset agreed to by the Board of Governors of the World Bank and IMF, and returning the Constitution of 1789 of the United States via an Article V Constitutional Convention. " Donald Trump failed to respond, and he is in default and owes me as Overseer Mandate Trustee of the Global Debt Facility. The last point I want to make is about title to property. This is an important point. The Banking Cartel has stolen your property, all of it. When you register land and cars with the state authorities, the title to all your property is now registered in the name of the bankers. Youtube erased this information when I answered a comment, and so I will give you the missing question and answer now.

[YouTube hid Mike Wilson's question behind this button: ]

Karen Hudes what about the titles for cars and the Deeds for homes those are also fraudulent how are they planning to fix that? http://freeamerican.com/Images/METROchapter1.pdf In the old days before FDR ran this greatest of scams all the records of deeds and property used to be filed in every state in what was known as The Great Register. It was during the Roosevelt years that the Great Registers started to disappear from the keeping places in the State. Under the "Emergency" and the bankruptcy, the land of property holding citizens was claimed as collateral. All the Deeds and Titles were taken. Nowadays you either get a Certificate of Deed, Warranty deed, or Deed in Trust document when you get your property paid off. This is because you don't have true title to your land or your home. The government holds all your property in trust because you have been deemed "incompetent" under their law to manage your own affairs.

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When you buy a new car the MSO, which is technically the Bill of Sale from the manufacturer, is sent to the State and the State issues you a Certificate of Title. The Certificate serves the same purpose for your cars as it does for your real estate. People, you own nothing of major value that you think you do. Even you and your labor are nothing but collateral to the bogus bankruptcy. When did you stop being "personnel" and become a "human resource?" Folks, you don't even own the skin you live in! You are economic slaves, in the absolute truest sense of the word, to the Federal reserve and the International Bankers, and Metro

OUTTRO

We are not islands, we know we suffer a loss when anyone is harmed. We all care that our brethren are exploited and oppressed. That is what will enable us to work our way out of the Bankers' fractional reserve fiat money scam. Until next week, I am your host, Karen Hudes

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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

Sunday, December 2, 2018 Dear People, In this tweet, I am showing you the chronology when I reported corruption at the World Bank. I gave this chronology to the European Parliament and US Congress. I have gone up the ladder, reporting the rot to all of the authorities, up to the Universal Postal Union, which presides over the world's financial system. The world's central banks owe us over 2 quadrillion dollars. I have recorded this debt with the secretaries of state in the states where the US Federal Reserve has its branches. All of the world's military powers are on board, and they are going to maintain the peace while we clean up the corruption, and establish legitimate governments. Each of the respective people in the world's countries are going to be in charge of reestablishing their legitimate governments. We are not in a rush. We now own all of the banks. All of the illegal governments are accountable to us, the people of the world.

https://s3.amazonaws.com/khudes/Twitter6.7.15.2.pdf To: Barnette, Jeffrey (OCFO) Subject: FW: CONT Hearing May 25, 2011 Corruption/WorldBank/Whistleblower.mp4 http://www.youtube.com/watch?v=c7E9SUwlooE

Senior Counsel for the World Bank legal department reports corruption to US Congress, the World Bank's other member countries, and the public.

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an online file https://docs.google.com/file/d/0Bzss7Q0pShvzSk94eVUyWlpaVU0/edit?usp=sharing

Dear Mr. Barnette,

I would appreciate if you would inform members of the DC government about the unresolved governance issues at the Bretton Woods Institutions that we discussed, because as I mentioned, the World Bank will continue to decentralize jobs at headquarters to other countries until the largest shareholder plays by the rules. The above version of my paper on whistleblower protections in the EU went to the US Congress and the members of the European Parliament Committee on Budgetary Control. The chronology (pages 24-34) did not appear on the Committee's website for the public hearing on May 25, 2011.

http://www.europarl.europa.eu/document/activities/cont/201105/20110518ATT19540/20110518ATT19540EN.pdf

Best, Karen Law Offices of Karen Hudes From: karenhudes To: christoph.nerlich@europarl.europa.eu Subject: RE: CONT Hearing May 25, 2011 Date: Mon, 16 May 2011 08:04:14 -0400 Christoph,

Thank you so much for asking. A cover-up at the apex of the international financial system must be resolved. An issuer of bonds on the capital markets may not remain out of compliance, and its regulators must also be held accountable. The code of professional responsibility for the legal profession is quite explicit under these circumstances. My obligations as an economist familiar with the international monetary system also came into play. I attach the stakeholder analysis which I mentioned in footnote 8.

Best,

Karen

Jacek Kugler, Ron Tammen and Brian Efird: “The War Presidency: Options Taken and Lost”, International Studies Association Meetings, Montreal, Canada, published February 2004, available here: http://citation.allacademic.com//meta/p_mla_apa_research_citation/0/7/4/2/7/pages74272/p74272-1.php

Corruption/WorldBank/Whistleblower.mp4

Go to YouTubePlay video

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Senior Counsel for the World Bank legal department reports corruption to US Congress, the World Bank's other member countries, and the public.

00:11:17

Added on 4/12/11

267 views

Subject: RE: CONT Hearing May 25, 2011 Date: Mon, 16 May 2011 13:41:38 +0200 From: christoph.nerlich@europarl.europa.eu To: karen hudes Dear Karen, thank you very much for your understanding.

What do you mean by "discharge my obligation" to US Congress. I would understand that you are not directly accountable to the US Congress but you see this as your moral and maybe professional obligation?

Best regards,

Christoph

From: Karen Hudes Sent: 16 May 2011 12:45 To: NERLICH Christoph Subject: RE: CONT Hearing May 25, 2011 Dear Mr. Nerlich, Thank you for circulating the full version of the written contribution to the Members of Parliament. I also appreciate your informing me that you have given this document to the World Bank. I had provided an earlier version of the chronology to the World Bank and possess documentation to substantiate all of the matters mentioned in the chronology.

I would also like to inform you that yesterday I hand delivered my full written contribution to a senior official in the US Congress in order to discharge my obligation as a legal officer of the World Bank to disclose these breaches in the World Bank's charter to its oversight agencies.

I look forward to the hearing next week and hope that it will be possible to meet you.

Sincerely,

Karen Law Offices of Karen Hudes

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Subject: RE: CONT Hearing May 25, 2011-part 2 Date: Mon, 16 May 2011 11:57:38 +0200 From: christoph.nerlich@europarl.europa.eu To: karenhudes CC: angelina.gros-tchorbadjiyska@europarl.europa.eu; carmen.castillo@europarl.europa.eu; donella.boldi@europarl.europa.eu; ries.baeten@europarl.europa.eu

Dear Karen,

thank you for sending the slightly revised versions. I would like to inform you about the recommendation of the Parliament's Legal Service which we will follow with regard to publishing your written contribution:

- All Members of the European Parliament attending the hearing will receive a full version of your written contribution.

- The version published (both printed version and version put on the internet) will need to be redacted. The mentioning of Mr. Scott Bloch on page 7 of part 1 will need to be blackened. Part 2 will be published in full. Part 3 will not be published at all.

I thank you very much in advance for your understanding. Please be assured that we were aiming to strike an appropriate balance between the public interest in transparency on the one side and any privacy interest of the persons concerned on the other. Furthermore, we were advised by our Legal Service that we should inform the World Bank about the material to be used at the hearing.

We look forward to an interesting hearing on whistleblowing next week. Please do not hesitate to contact me in case of any question.

Best regards,

Christoph Christoph NERLICH European Parliament Committee on Budgetary Control RMD 02J040- Rue Wiertz 60 - 1047 Brussels Tel. +322 283 26 35- Fax +322 284 49 07 christoph.nerlich@europarl.europa.eu https://s3.amazonaws.com/khudes/fekete.pdf

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Chronology of Internal Control Lapses at the World Bank

Date Event 3/17/00 Ms. Hudes, Senior Counsel in the Legal Department of the World Bank,

advised Vinay Bhargava, Country Director for the Philippines, to inform Government of the Philippines that the World Bank could not disburse the second and third tranches of the Banking Sector Reform Loan. Ms. Hudes wrote a draft letter to be sent to Mr. Pardo, Secretary Department of Finance, explaining that the investment advisors had cautioned that the conditionality requiring the transparent sale of a controlling interest in Philippine National Bank (the second largest bank in the Philippines) to a strategic private investor could no longer be met after Lucio Tan’s purchase of PNB shares. An article in the Business World appeared on that date entitled “PNB sell-off controversy no longer a condition for bank sector reform loan.” Lucio Tan owned Philippine Airlines, a major borrower of PNB’s

6/6/00 Ms. Hudes reiterated her advice to Vinay Bhargava and Hemant Shah that the loan conditionality in the BSRL was not met

6/15/00

Vinay Bhargava requested Mohan Gopal to reassign Ms. Hudes from working on the Philippines portfolio

6/28/00

Jemal-ud-din Kassum, Vice President for East Asia Region, overruled Vinay Bhargava’s recommendation to disburse second tranche of the Banking Sector Reform Loan, following Ms. Hudes’ advice that a waiver from the Board was needed for the tranche release conditionality, which had not been met.

9/1/00 Ms. Hudes reported misconduct of Mohan Gopal to Ms. Anita Baker, Ethics Officer. Mr. Gopal wrongfully refused to exonerate Ms. Hudes after Mr. Gopal erroneously reported to senior management in the Legal Department that there was an ongoing investigation in the Ethics Office. The investigation had been called off months earlier because Ms. Hudes’ Statement of Expenditure did not have any significant discrepancies, all of which had been fully disclosed. Mr. Gopal was placed on mandatory administrative leave the following month.

9/28/00 Ms. Hudes protested being reassigned from the Philippines. In an email to Douglas Webb (manager in the Legal Department) Ms. Hudes stated that the Legal Department cannot fulfill its mandate if its lawyers have to worry about reassignment for taking an independent position.

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10/00 The Government of the Philippines loaned $493 million to PNB after

depositors made heavy withdrawals.

11/15/00 Ms. Hudes was placed on a performance improvement plan based upon Mr. Gopal’s retaliatory Overall Performance Evaluation (OPE).

6/30/01 The Philippines Banking Sector Reform Loan was cancelled without disbursement of the second and third tranches aggregating $200 million; the $200 million undisbursed balance of the Japan Eximbank cofinancing was also cancelled.

12/6/01 In a meeting with James Wolfensohn and Pieter Stek, the Executive Director (ED) for the Netherlands, Ms. Hudes informed James Wolfensohn about the Philippines Banking Sector Reform Loan. During the meeting James Wolfensohn said that Wilmer, Cutler and Pickering, the Bank’s outside counsel, should investigate the BSRL; instead James Wolfensohn told Ko-yung Tung, General Counsel, that Ms. Hudes had reported to him that she was being retaliated against. Apparently Mr. Wolfensohn failed to raise the BSRL with Wilmer, Cutler and Pickering.

7/10/02 Jacquelyn Gates, Ethics Officer after Ms. Baker, advised Kathy Sierra, VP Human Resources, to intervene to end the retaliation by the Legal Department, but Kathy Sierra refused

11/25/02 Ms. Hudes requested the Evaluation Department to revise the Bank’s satisfactory rating in the Implementation Completion Report for Bank supervision of the Philippines Banking Sector Reform Loan.

12/13/02 Ms. Hudes sent email to James Wolfensohn informing him that INT had not opened an investigation although this had been requested by Jacquelyn Gates, Ethics Officer, and that the Evaluation Department had refused to correct its inaccurate report to the Board on Bank performance on the BSRL.

1/8/03 INT refused to honor Jacquelyn Gates’ 10/31/02 request for an investigation into whether Ms. Hudes had been retaliated against, stating that it had no jurisdiction because allegations of wrongdoing were made to INT after the retaliation had occurred. There was no response to Ms. Hudes’ argument that previous allegations of Mr. Gopal’s misconduct to the Ethics Office on 6/26/00, 9/1/00 and to management of the Legal Department on 8/8/00 fell within the definition of retaliation in the World Bank's Staff Rule 8.01. This Staff Rule was later revised on June 10, 2008 to incorporate an explicit whistleblower policy. The policy did not follow the requirement for access to external arbitration mandated under US appropriations legislation. Its weak provision for independent investigations was not observed in Ms.

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Hudes' case. The external reviewer was appointed by the Ethics office although the Ethics office was implicated in Ms. Hudes' case. The Ethics office permitted Mr. Gopal to give Ms. Hudes a retaliatory evaluation on the eve of his departure from the Bank on mandatory administrative leave after Ms. Hudes' report of Mr. Gopal's misconduct. The Ethics office also permitted tampered documentation concealing Ms. Hudes' illegal separation from the Bank to be used in the Bank's conflict resolution system. The Ethics office also permitted the Bank's health office to contact Ms. Hudes' physicians without her consent. The external reviewer ignored four letters from the US Congress requesting a review and report and held that Ms. Hudes was not a whistleblower in an evident device to avoid application of the ineffectual whistleblower regime in the World Bank. Ms. Hudes was counseled by one of the World Bank's Ethics Officers and the Deputy General Counsel of the IMF that the World Bank's whistleblower regime was ineffectual.

2/28/03 Ms. Hudes sent the Implementation Completion Report for the Philippines Banking Sector Reform Loan and her comments thereon to William Holder, Deputy General Counsel of the IMF. The IMF was involved with the Philippines Banking Sector. Mr. Holder confirmed Ms. Hudes’ analysis of what had happened on the BSRL, but advised her to drop the matter because it would be difficult for her to prevail. Instead on March 4, 2003 he sent a reference to Pat Neill and Elizabeth Adu, “I regard Ms. Hudes as a distinguished professional whose substantial contribution in the field over many years deserves recognition.”

3/20/03 10/2/03

Todd Crawford of US ED’s office sent email that Jacquelyn Gates’ decision to resign from the Bank was “made as a result of considerable frustration.” Bob Holland, U.S. Alternate, and Todd Crawford “came away from our meeting [with Jacquelyn Gates] with certain concerns that we have shared with both the Audit Committee and senior management.” Ms. Hudes discussed World Bank compliance issues with Jacquelyn Gates and Anita Baker at Annual Conference of the Ethics and Compliance Officer Association held in Orlando, Florida

6/2/04 Ms. Hudes requested the Audit Committee to look into lapses in the Bank’s internal control system on the Philippines Banking Sector Reform Loan.

6/4/04 Elizabeth Adu, Deputy General Counsel, sent a letter informing Ms. Hudes that she violated the policy on communications with EDs, whereby correspondence from staff on business issues is routed through the VP and not directly to the EDs.

11/16/04 Ms. Hudes was placed on a Performance Improvement Plan for a trip to Nigeria which was approved under normal Bank procedures.

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1/13/05 Mr. Robert-Jan Sieben of Netherlands Ministry of Foreign Affairs confirmed Pieter Stek’s meeting of 12/6/01 with Mr. Wolfensohn and Ms. Hudes, and stated: “We feel that your allegations should be put on the agenda of the Bank’s Audit Committee and be discussed there. We requested our constituency office to be represented at such a meeting.”

11/2/05 INT's Report to Audit Committee concluding that Ms. Hudes was not a whistleblower and was not subjected to retaliation, based upon 10/31/05 report of Douglas Herbert, consultant appointed by the INT, which obfuscated the issues by focusing on the Nigeria Micro Small and Medium Enterprise Project rather than the Philippines BSRL. The single issue on the MSME Project raised by Ms. Hudes for the Audit Committee was whether the Board was misled during its 12/16/03 discussion concerning ownership of the Nigerian Government for the design of that Project.

11/4/05 Administrative Tribunal held that the Legal VPU failed to follow the procedural requirements of the Staff Rules, defaming Ms. Hudes in the process by publishing Mr. Gopal’s spurious allegations of fraud and his retaliatory evaluation.

1/26/06 Memorandum of Understanding was signed, but the MOU was breached on February 3, 2006 when Mr. Freestone, her new supervisor, was included in a Management Review Group that referred to the Performance Improvement Plan in confirming Ms. Hudes’ 2005 OPE. The Legal Vice Presidency used white-out to obscure the Management Review Group’s breach of the MOU in its submission to the Administrative Tribunal. Mr. Freestone reassigned and cancelled projects that Ms. Hudes task managed, canceled her supervision missions, and prevented other projects from being approved. He also obstructed Ms. Hudes’ transfer to other departments by calling said departments to make negative remarks and by undermining the proposed global partnership on rule of law.

5/8/06 Denise Grant of Russell Reynolds interviewed Ms. Hudes for the General Counsel position. During that interview, Ms. Hudes provided Ms. Grant with the recommendation of William Holder, Deputy General Counsel of the IMF. Pieter Stek was former Chair of the Board’s Committees for Audit and Development Effectiveness, and Executive Director of the Netherlands Constituency. His affidavit on Ms. Hudes’ case in the Administrative Tribunal was also provided: “In a multilateral institution which should be governed by the rule of law and high standards of probity the charge of concealment from the Board of Executive Directors of information relevant to the exercise of its duty of supervising management and the persecution of the person who brings this to light is extremely serious. If correct, which I believe, this poisonous cocktail undermines good governance and ultimately the effectiveness of the Bank in fulfilling its mandate. I shall continue to assist Ms. Hudes in her efforts to have due process brought to bear, preferably by the Bank itself, on these issues of

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governance.”

1/11/07 The President and Executive Director of the American Bar Association met with Ms. Hudes concerning a global partnership on rule of law under the Bank’s Global Partnership Program; Sweden’s International Legal Assistance Consortium and Holland’s Center for International Legal Cooperation agreed to collaborate with the ABA on February 1, 2007.

2/8/07 and 2/9/07

Ms. Hudes advised Messrs. Eckhard Deutscher, German Executive Director and Dean of the Board; and Svein Aass, Nordic Executive Director and Chair of the Committee on Governance, that the global partnership on rule of law was being sabotaged.

2/16/07 Ms. Hudes advised Mr. La Via, the Bank’s Chief Financial Officer, that his refusal to provide Russell Reynolds’ report to Ana Palacio, the Bank’s General Counsel, on grounds of confidentiality, was incorrect. “Under the Bank’s COSO (auditing) Framework, those aspects of the Russell Reynolds report which concern this matter of corporate governance are required to be fully disclosed so that ongoing internal control lapses can be properly resolved.”

2/23/07 Ms. Robin Cleveland, Counsellor to Mr. Wolfowitz, sent email to Ms. Hudes, copied to Ms. Palacio, refusing to engage on outstanding governance issues, stating: “I am copying your managers on this email in order to have them address the matters with you as appropriate.”

3/1/07 Mr. Freestone informed Ms. Hudes that she had not been keeping him informed of projects that she was pursuing, and that additional instances may result in summary dismissal.

3/8/07-4/11/07

Meetings with Nilmini Rubin, Jay Branegan and James Greene, Senate Foreign Relations Committee, regarding internal control lapses within the Bank

5/21-6/8/07

Ms.Hudes sent emails to Patrick Grasso, Independent Evaluation Group, requesting end to the cover-up on the Philippines Banking Sector Reform Loan.

5/10-6/22/06

Ms. Hudes sent emails to Graeme Wheeler, Managing Director, requesting end to cover-up and retaliation as well as compliance with Senate Foreign Relations Committee request for documentation.

6/15/07 Ms. Hudes sent email to Dean of Board, Chair of Board Committee on Governance and ED’s Administrative Matters; Audit Committee; Personnel Committee; Ethics Committee; and Committee on Development Effectiveness (“CODE”), copied to US ED and Alternate EDs concerning

6

whistleblower retaliation, and an end to the cover-up.

7/6/07 Memorandum to Mr. Robert Zoellick, requesting his support for Ms. Hudes’ transfer out of Legal Department and an end to retaliation.

7/10/07 Email from Cathy Cardona, Manager Human Resources, refusing to comply with Keith Luse’s request to provide the President of the Bank with a transcript of Denise Grant's briefing on Ms. Hudes’ candidacy for General Counsel.

7/12/07 Email to Jiayi Zou, copied to members of Board CODE, requesting interim protection for whistleblowers, and end to cover-up on Philippines BSRL, followed up by meeting on July 13, 2007.

7/23/07

Meeting with Robert Zoellick and the Legal Vice Presidency. Ms. Hudes asked Mr. Zoellick how he expected to get a clean audit of the Bank’s internal controls, and Mr. Zoellick asked if there were a Sarbanes-Oxley problem in the Bank. When Ms. Hudes informed Mr. Zoellick that this was indeed the case, Mr. Zoellick asked her to help correct the internal control lapses. Mr. Zoellick’s office later referred the matter back to Ms. Ana Palacio, the Bank’s General Counsel.

7/25/07 Ms. Hudes advised Mr. Mitchell, Head of Development Communications Unit in EXT, that Ms. Palacio was trying to sabotage Ms. Hudes’ transfer to EXT.

7/26/06

Ms. Hudes asked Mr. Zoellick to permit her to transfer to EXT in order to work on the global partnership for rule of law.

7/27/07

Meeting with Mr. Sven Aass, Executive Director for the Nordic Countries. Mr. Paul Volcker updated the Board on 7/23/07 on the investigation of INT that did not address INT’s independence or integrity issues.

7/30/07

Ms. Hudes asked Whitney Debevoise, Executive Director, to provide whistleblower protection by informing the head of the Bank’s mediation office, Ms. Deborah Laufer, that Ms. Hudes was about to transfer from the Legal Vice Presidency to the Development Communications unit of EXT.

8/2/07 4/17/08

Ms. Hudes denied access to the Main Complex when the Security Office improperly refused to issue her retiree ID card. The ID card was subsequently issued on 9/14/07. After the Board requested Ms. Hudes' reinstatement on 8/20/09, the retiree ID card was revoked again without cause. Senators Richard Lugar, Patrick Leahy, and Evan Bayh requested the US

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10/10/08 10/21/08 11/3/08 11/17/08 2/28/09 6/8/09 6/9/09 8/6/09

Government Accountability Office to carry out a study to assess whether the World Bank's criteria for measuring the success of its projects are ensuring the effective use of public funds, and whether Bank programs are being hampered by internal resistence to increased transparency and accountability. Letter from France's Ambassador, Pierre Vimont, "I have received a copy of your remarks on World Bank gouvernance and I thank you for this transmission. But as I am not competent on such issues, I can only forward your memorandum to Ambroise Fayolle and his staff." Letter from Canada's Ambassador, Michael Wilson, "I note that you have kept the Canadian Executive Director's office informed of developments. The Executive Director's office is the appropriate responsibility center for keeping Canada informed of this matter." Letter from Australia's Ambassador, Dennis Richardson, "I am informed that the Australian Executive Director to the World Bank, Dr Jim Hagan, is aware of your concerns and is considering the best way to proceed with the issues raised in your correspondence." On 9/8/08 Mr. Chris Van Hollen, Congressman, wrote to Ms. Hudes, "Your letter to Speaker Pelosi regarding your termination from the World Bank was forwarded to me because I am the Member of Congress representing Maryland's Eighth Congressional District, in which you reside." Letter from Mr. Van Hollen to the World Bank requesting a review and report concerning Ms. Hudes' relationship with the World Bank. In a meeting Ms. Hudes requested A. Almofadhi, chair of the Board's Audit Committee, to require an external audit of IBRD's internal control over financial reporting. Ms. Hudes discussed internal control lapses on Philippines Banking Sector Reform Loan with M. Hasan, chair of the Board's Ethics Committee. Audit Committee appointed KPMG to audit IBRD's internal control over financial reporting. Ms. Hudes sent S. Aass, chair of the Board's Committee on Governance and Administration, an email: "The Board was never informed of the World Bank's failed supervision on the Philippines Banking Sector Reform Loan. I was fired in retaliation for trying to preserve the authority of the Board under the Articles of Agreement. HRS has misinformed the US authorities about the terms of my illegal separation from the World Bank. The Board has never considered INT's or the Office of Ethics and Business Conduct's role in perpetuating the cover-up to the Board of Executive

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8/20/09 8/25/09 9/2/09 10/13/09 12/10/09 2/2/10

Directors. EBC is now violating the Bank's whistleblower policy by conducting a review of its own malfeasance. The World Bank's conflict resolution system is unable to resolve these corporate governance issues involving the mandate of the Board of Executive Directors. Staff are too intimidated to report misconduct after I was fired illegally. I attach relevant documentation and would appreciate your assistance in bringing these issues before COGAM for proper resolution." Mr. Aass met with Ms. Hudes and reinstated her as an Advisor to the High Level Commission on World Bank Governance and Acting General Counsel. Mr. E. Miagkov met with Ms. Hudes and concurred with this decision on behalf of A. Kvasov, Dean of the Board. Ms. Hudes sent an email to Messrs. Aass and Miagkov that she had emailed the High Level Commission on World Bank Governance: "During a meeting on August 20th, Mr. Aass informed me that he took the view as Chair of COGAM that the Board's mandate needs to return to the original powers set out in the World Bank's Articles of Agreement in order to address outstanding governance problems, and that the 1947 memorandum circumscribing the Board's authority to take the initiative was no longer appropriate. It is my understanding that Mr. Miagkov supports this view as well." The World Bank barred Ms. Hudes from entering its headquarters buildings. Ms. Hudes commenced litigation against IBRD for violation of the US securities laws in IBRD's retaliation against Ms. Hudes when she informed the US Congress of corporate governance irregularities at IBRD. After KPMG failed to follow Generally Accepted Accounting Standards in auditing IBRD's internal control over financial reporting, on 8/26/10, Ms. Hudes joined KPMG in the lawsuit. Letter from Susanna Moorehead, UK Executive Director, in response to Ms. Hudes' letter to Ambassador Sheinwald: "In Mr. Paulssen's unilateral decision to suspend the [World Bank Administrative Tribunal] proceedings on my case, he has allowed the [Ethics and Business Conduct office] to complete an ultra vires investigation designed to discredit me in violation of the World Bank's whistleblower policy. This undermines the World Bank's ethics, the mandate of the Board of Executive Directors, and the right of World Bank staff to report securities law violations and corruption without fear of retaliation." Ms. Moorehead responded, "I have noted the contents of your letter and attachments." Ms. Hudes advised Jason Waskey, Maryland Director of President Obama's Organizing for America, "I have been working with the Maryland Delegation in Congress on some issues." Jason emailed in response on

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3/10/10 5/27/10 7/30/10 9/1/10 9/15/10

March 2, "I just wanted to let you know that I've sent your packet on to the appropriate people, and am waiting to hear back." In a phone conversation on March 9th, Jason advised Ms. Hudes that bipartisan support on rule of law at the World Bank would be welcome. Senator Lugar issued a report, The International Financial Institutions: A Call for Change A Report to the Committee on Foreign Relations, http://www.foreignpolicy.com/files/fp_uploaded_images/int_fin_inst2.pdf On page 24 of the report, Senator Lugar revealed that GAO had stated in March 2009 that it could not carry out the study requested by Senator Lugar to determine whether IBRD programs are being hampered by internal resistance to increased transparency and accountability "because of challenges we recently faced in gaining access to World Bank officials." Ms. Hudes informed the US National Advisory Council on International Monetary and Financial Policies consisting of the Secretaries of the Treasury, State Department, Commerce, Chairmen of Board of Governors of the Federal Reserve System, US Export Import Bank, and SEC, Administrator of US Agency for International Development and US Trade Representative that: "The Senate and House of Representatives intended to protect persons who assist the legislature in oversight of the International Bank for Reconstruction and Development against retaliation, and the employee protection provisions of Title VIII of the Sarbanes-Oxley Act of 2002, Section 806, repealed in part IBRD's temporary exemption from the US securities laws." Letter from Jean-Louis Rioda, Acting Head of EC's Anti-Fraud Office, OLAF: "I hereby acknowledge receipt of your correspondence received on 18/05/2010 in which you provide OLAF with information regarding 'the impaired ethics and legal functions in the World Bank'. The information has been evaluated, but unfortunately the European Anti-fraud Office (OLAF) is not competent in this matter." Ms. Hudes informed the National Advisory Council that KPMG failed to comply with Generally Accepted Auditing Standards in conducting the audit of IBRD's internal control over financial reporting commissioned by IBRD's Audit Committee. The NAC has authority to remove IBRD's temporary exemption from the US Securities laws. In hearings on the World Bank's capital increase, the Senate Committee on Foreign Relations stated that the GAO inquiry into transparency at the World Bank had to be completed and necessary reforms in place before appropriated funds for a capital increase would be disbursed. http://foreign.senate.gov/hearings/hearing/?id=33c66777-5056-a032-525a-a0a5806634e9

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9/28/10 11/28/10 12/2/10

Ms. Hudes discussed IBRD's internal control lapses in a meeting with Barry Collins, Principal Intelligence Officer of the UK's Serious Fraud Office, but the U.S. Securities and Exchange Commission declined to provide any information to the SFO on 10/12/10 when Mr. Collins called Mr. Arevalo, Assistant Director, Enforcement Matters, Office of International Affairs, to follow up. Ms. Hudes reported to Carlos Braga, Acting Executive Secretary of the Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund On the Transfer of Real Resources to Developing Countries, that "the Board of Governors is required to fulfill its mandate under the Articles of Agreement in order to provide strategic guidance and shareholder oversight when information is concealed from the Board of Executive Directors and this will impair IBRD's access to the capital markets." Ms. Hudes followed up with a letter to the Board of Governors that "it is necessary for the Board of Governors of the World Bank to provide strategic guidance and shareholder oversight when information is concealed from the Board of Executive Directors. The President, officers and staff of the International Bank for Reconstruction and Development, in the discharge of their offices, owe their duty entirely to the Bank and to no other authority."

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List of Acronyms and Bodies ABA The American Bar Association, a professional organization of

lawyers Audit Committee A standing committee of the World Bank's Board of Executive

Directors established to assist the Board in oversight of the World Bank's finances, accounting, risk management and internal controls

Board of Governors Each of the World Bank’s 187 member countries is represented on

the Board of Governors by a government official, usually its Minister of Finance or Minister of Development. Under the Articles of Agreement, all powers of the IBRD are vested in the Board of Governors

BSRL Banking Sector Reform Loan, $300 million loan from the World Bank for reform of the financial sector in the Philippines following the East Asia financial crisis, with a matching $300 million loan from Japan. CODE Board of Executive Directors Committee on Development

Effectiveness COGAM Committee on Governance and Executive Directors'

Administrative Matters, a standing committee established to assist the World Bank's Board of Executive Directors on issues related to the governance of the institutions of the World Bank Group, the Boards’ own effectiveness, and the administrative policy applicable to Executive Directors’ offices

COSO Committee of Sponsoring Organizations of the Treadway

Commission (the US accounting regime, less stringent than the Generally Accepted Accounting Principles and Standards normally applied on the capital markets)

Development Joint Ministerial Committee of the Boards of Governors of the Committee Bank and the Fund On the Transfer of Real Resources to

Developing Countries, a forum of the World Bank and the International Monetary Fund established in 1974 to facilitate intergovernmental consensus-building on development issues

ED Executive Director Ethics Office Office of Ethics and Business Conduct EXT World Bank's External Affairs, or public relations department

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GAO US Government Accountability Office, Congress' auditors HR Human Resources High Level Com- Commission appointed by Robert Zoellick, President of the mission on World World Bank, chaired by former Mexican President Ernesto Zedillo, Bank Governance which recommended controversial reforms in the World Bank's Governance in October 2009, including elimination of the Board of Executive Directors of the World Bank. Germany's representative resigned from the High Level Commission. IBRD International Bank for Reconstruction and Development. The

original institution established at the Bretton Woods Conference, which makes loans to middle-income countries for financing of development projects, or to provide quick-disbursing loans for policy lending with conditionalities

ID Identification card IMF International Monetary Fund INT Institutional Integrity Department, the World Bank's anti-fraud

agency. The abuses of INT are now public knowledge. http://www.whistleblower.org/press/press-release-archive/484-bar-complaintcharges-former- world-bank-official- with-ethics- violations

KPMG An audit, tax and advisory firm MoU Memorandum of Understanding MSME Micro Small and Medium Enterprise NAC US National Advisory Council on International Monetary and

Financial Policies consisting of the Secretaries of the Treasury, State Department, Commerce; Chairmen of Board of Governors of the Federal Reserve System, US Export Import Bank, and SEC; Administrator of US AID and US Trade Representative

OLAF Office Lutte Anti-Fraude, the European Union's anti-fraud office OPE Overall Performance Evaluation PIP Performance Improvement Plan

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PNB Philippines National Bank Sarbanes-Oxley Securities legislation enacted after Enron to strengthen corporate

governance and provide greater information to shareholders on capital markets

SEC Securities and Exchange Commission, the US regulatory agency

that oversees the stock markets SFO Serious Fraud Office, the UK anti-fraud agency Staff Rule 8.01 Staff Rule on Disciplinary Proceedings. Section 2.03 prohibits retaliation against any person who in good faith provides information about suspected misconduct. VPU Vice Presidency Unit Wilmer, Cutler and Outside counsel to the World Bank in 2000 Pickering

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Persons Svein Aass Nordic Executive Director and Chair of the World Bank Board’s

COGAM Elizabeth Adu Deputy General Counsel of the World A. Almofadhi Chair of the Board's Audit Committee Mr. Arevalo SEC's Assistant Director, Enforcement Matters, Office of

International Affairs Anita Baker Ethics Officer, received a report of misconduct of Mohan Gopal by

Ms. Hudes on 1 September 2000; succeeded by Ms. Gates, Ms. Borrero, and later Ms. Taylor

Evan Bayh US Senator Vinay Bhargava Country Director for the Philippines Carlos Braga Acting Executive Secretary of the Development Committee (Joint

Ministerial Committee of the Boards of Governors of the Bank and the Fund On the Transfer of Real Resources to Developing Countries), replaced by Jorge Familiar, former ED for Mexico

Jay Branegan Staffmember on the US Senate Foreign Relations Committee Cathy Cardona Manager Human Resources, refused to comply with Keith Luse’s

request to provide the President of the Bank with a transcript of Denise Grant's briefing on Ms. Hudes’ candidacy for General Counsel

Ms. Robin Cleveland Counsellor to Mr. Wolfowitz Barry Collins Principal Intelligence Officer of the UK's Serious Fraud Office Todd Crawford Official at the US Executive Director’s office, sent email that

Jacquelyn Gates’ decision to resign from the Bank was “made as a result of considerable frustration.”

Whitney Debevoise Executive Director for the US Eckhard Deutscher Executive Director for Germany, Dean of the Board Jorge Familiar former ED for Mexico, replaced Carlos Braga as Executive

Secretary for Development Committee following Ms. Hudes' letter to Board of Governors,

Ambroise Fayolle France’s ED Mr. Freestone New supervisor of Ms. Hudes,, was included in a Management

Review Group Jacquelyn Gates Ethics Officer after Ms. Baker Mohan Gopal Boss of Ms. Hudes , asked by Mr. Bhargava to reassign Ms. Hudes

from working on the Philippines portfolio Denise Grant Worked at Russell Reynolds, interviewed Ms. Hudes for the

General Counsel position Patrick Grasso Staffmember of the Independent Evaluation Group James Greene Staffmember on the US Senate Foreign Relations Committee Jim Hagan The Australian Executive Director to the World Bank Douglas Herbert Consultant appointed by the INT William Holder Deputy General Counsel of the IMF Bob Holland U.S. Alternate Executive Director

15

Karen Hudes Senior Counsel in World Bank's Legal Department for 20 years, reinstated on 8/21/09 by decision of S. Aass and E. Miagkov as legal advisor to the High Level Commission on World Bank Governance and Administrative Matters ("COGAM") and Acting General Counsel and barred from World Bank's headquarters the following week

Jemal-ud-din Kassum Vice President for East Asia Region A. Kvasov Dean of the World Bank's Board of Executive Directors Deborah Laufer Head of the Bank’s mediation office Patrick Leahy Senator Richard Lugar Most senior Republican Senator, former chair of the Senate

Committee on Foreign Relations, author of the report, "The International Financial Institutions: A Call for Change. A Report to the Committee on Foreign Relations United States Senate"

Keith Luse Senator Lugar's staffmember on the Senate Committee on Foreign Relations. Requested Ms. Cardona to provide the President of the Bank with a transcript of Denise Grant's briefing on Ms. Hudes’ candidacy for General Counsel

Eugene Miagkov Alternate Executive Director for Russia Mr. Mitchell Head of Development Communications Unit in EXT, was informed by Ms. Hudes that Ms. Palacio was trying to sabotage Ms. Hudes’ transfer to EXT Susanna Moorehead UK Executive Director Pat Neill A manager in the Human Resources Department Ana Palacio The Bank’s former General Counsel. Tried to sabotage Ms. Hudes’

transfer to EXT Mr. Pardo Secretary Philippines Department of Finance Dennis Richardson Australia's Ambassador Jean-Louis Rioda Acting Head of unit of the European Commission’s Anti-Fraud

Office, OLAF Nilmini Rubin Staffmember on the US Senate Foreign Relations Committee Hemant Shah Task team leader on the BSRL Sheinwald UK's Ambassador to US Robert-Jan Sieben Official at the Dutch Ministry of Foreign Affairs Kathy Sierra Vice President Human Resources, advised by Ethics Officer Ms.

Gates to intervene to end the retaliation by the Legal Department, but she refused

Pieter Stek former Chair of the Board’s Committees for Audit and Development Effectiveness, and Executive Director of the Netherlands Constituency

Lucio Tan Owner of Philippine Airlines, a major borrower of PNB, who purchased PNB shares

Ko-yung Tung former General Counsel Chris Van Hollen Member of Congress representing Maryland's Eighth

Congressional District, in which Karen Hudes resided

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Pierre Vimont France’s ambassador (now deputy secretary general of the EU’s foreign affairs branch)

Jason Waskey Maryland Director of President Obama's Organizing for America Douglas Webb Manager in the Legal Department where Ms. Hudes worked Graeme Wheeler Managing Director of World Bank Michael Wilson Canada's Ambassador James Wolfensohn Former President of the World Bank Robert Zoellick President of the World Bank Jiayi Zou ED for China, Chair of CODE , addressee of a request for interim

protection for whistleblowers and an end to cover-up on Philippines BSRL

- * -

Governance World Bank

The World Bank is like a cooperative, where its 187 member countries are shareholders. The shareholders are represented by a Board of Governors, who are the ultimate policy makers at the World Bank. Generally, the governors are member countries' ministers of finance or ministers of development. They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund.

Because the governors only meet annually, they delegate specific duties to 25 Executive Directors, who work on-site at the Bank. The five largest shareholders, France, Germany, Japan, the United Kingdom and the United States appoint an executive director, while other member countries are represented by 20 executive directors.

• The President of the World Bank, Robert B. Zoellick, chairs meetings of the Boards of Directors and is responsible for overall management of the Bank. By tradition, the Bank president is a U.S. national and is nominated by the United States, the Bank's largest shareholder. The President is selected by the Board of Executive Directors for a five-year, renewable term.

• The Executive Directors make up the Boards of Directors of the World Bank. They normally meet at least twice a week to oversee the Bank's business, including approval of loans and guarantees, new policies, the administrative budget, country assistance strategies and borrowing and financial decisions.

About 6,000 employees work at the World Bank's headquarters in Washington D.C. and an additional 4,000 work in more than 100 offices in the World Bank's other member countries.

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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

Sunday, December 2, 2018

Dear People,

I am attaching my emails to and from accountants. These show massive fraud and corruption wherever you look. None of the accountants, none of them, were willing to admit their role in any of this fraud. The accountants did not add up.

Sincerely, Karen Hudes Acting General Counsel, International Bank for Reconstruction and Development Overseer Mandate Trustee, Global Debt Facility, TVM-LSM-666

From: Karen Hudes To: howard.isaac@international.gc.ca Sent: Wed, Apr 28, 2010 9:08 am Subject: Fwd: The World Bank's Internal Controls Dear Howard, Jules Muis is the World Bank's former Controller. Jules put me in touch with Ian Ball, who heads the International Federation of Accountants, which develops standards for the accounting profession. I met with IFAC several months ago. Are you aware that the April 25, 2010 statement of James Flaherty at this year's spring meetings is not available--instead last year's statement is posted. http://web.worldbank.org/WBSITE/EXTERNAL/DEVCOMMEXT/0,,menuPK:60001657~pagePK:64001141~piPK:64001176~theSitePK:277473,00.html Is there any way to schedule a briefing session for the Board of Executive Directors so that the World Bank's compliance issues can be dealt with properly? We cannot leave the heavy lifting to the US institutions by themselves or it may backfire. Sincerely, Karen

-----Original Message----- From: Karen Hudes To: julesmuis@verizon.net; ianball@ifac.org Cc: mmordasini@worldbank.org

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Sent: Wed, Apr 28, 2010 9:00 am Subject: Fwd: The World Bank's Internal Controls

Dear Jules and Ian,

KPMG's lawyer is trying to prevent its team auditing the World Bank's internal controls from having to answer the specific issues raised by my case.

I am going to see if the Public Company Accounting Oversight Board will help. But PCAOB is now under duress, because the US Supreme agreed to review the constitutionality of PCAOB (the SEC appoints PCAOB's board members, rather than the US President) http://www.webcpa.com/news/Supreme-Court-Questions-PCAOB-Constitutionality-52678-1.html PCAOB has had many comments on previous audits carried out by KPMG. If the US accounting oversight agency (PCAOB) cannot correct KPMG's external audit of the World Bank's internal controls, the World Bank's Board may have to correct its corporate governance problems without reference to the internal audit. I am copying Mr. Michel Mordasini, the Swiss ED on the World Bank's Board, for his information, because KPMG is a Swiss cooperative. KPMG international is supposed to maintain uniform standards of work, and enhance the name of KPMG. I have also informed advisers who work on governance issues in the German and Canadian Executive Directors' offices of this problem. Best, Karen _

-----Original Message----- From: Karen Hudes To: Tips@pcaobus.org Sent: Wed, Apr 28, 2010 8:02 am Subject: Fwd: The World Bank's Internal Controls

My calls to the tip line and to Mike Plotnick for the past week have not been returned. I am coming to PCAOB this morning in order to speak with someone. Sincerely, Karen Hudes -----Original Message----- From: Karen Hudes To: ugehlen@worldbank.org; cmacwilliam@worldbank.org Sent: Tue, Apr 27, 2010 6:45 pm Subject: Fwd: The World Bank's Internal Controls

For your information. KPMG's own control environment was called into question by a UNDP whistleblower who reported corrupt practices in KPMG's Nairobi branch. [1]

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[1] UNDP Whistleblower Details Comprehensive Wrongdoing in Somalia Projects, May 14, 2008, available at: http://www.whistleblower.org/content/press_detail.cfm?press_id=1373

-----Original Message----- From: Karen Hudes To: dshontz@kpmg.com Cc: Tips@pcaobus.org; ianball@ifac.org; karrt@sec.gov Sent: Tue, Apr 27, 2010 6:12 pm Subject: Re: The World Bank's Internal Controls

Dear Mr. Shontz, My recollection of our first conversation was that I lamented the same failures in the World Bank's Legal Department as GAO diagnosed in their 1999 report, and that by default I was trying to do what I could to compensate for the resultant control lapses. I do not recall your ever raising any misgivings about our conversations, either verbally or in writing. It is unusual that KPMG would not want the head of their audit to communicate with me directly, but to go through counsel. This is especially unfortunate in light of your hostile attacks out of context. I would like a written acknowledgment from the head of KPMG's team that is evaluating the World Bank's internal controls that he knows of my Sarbanes Oxley complaint and the issues I have raised about the IBRD's compliance on the bond markets, specifically:

my advice to the World Bank's Audit Committee about breaches in the securities laws in the Philippines, inaccurate evaluation of World Bank supervision of the Philippines Banking Sector Reform Loan, and my comments on INT's defective report to the Audit Committee

the Legal Department's falsification of evidence in the World Bank Administrative Tribunal, and the General Counsel's promotion to ICSID of Nassib Ziade, the WBAT Executive Secretary, two weeks after he admitted the tampered evidence

the Legal Department's refusal to permit me to have external arbitration of the validity of the Memorandum of Understanding, as required by US appropriations legislation in 2005,

the refusal of the President of the World Bank Administrative Tribunal to allow me to continue my employment despite the express breach of the Memorandum of Understanding, his active arbitration practice with ICSID, and his exceeding his authority by

4

unilaterally imposing a stay, and thereby preventing other judges on the Administrative Tribunal from considering falsified evidence

the failure of the Office of Ethics and Business to sanction ethics violations in the Legal and Health Departments and breach of the World Bank's whistleblower protection policy by assigning EBC the task of supervising a consultant to review my claims of retaliation when EBC was precluded from further involvement in my case

the failure of the internal audit department to correct the inaccurate evaluation on the Philippines Banking Sector Reform Loan

that the Staff Association has stated that staff morale has been impaired by the above internal control lapses

that the World Bank refused to answer the letters from Senator Lugar on my case and refused to cooperate with the GAO inquiry

what the World Bank's Audit Committee has done with respect to the above internal control lapses, other than appointing KPMG to audit the World Bank's internal controls

Thank you. Sincerely, Karen Hudes _

-----Original Message----- From: Shontz, David B <dshontz@kpmg.com> To: Karen Hudes Sent: Tue, Apr 27, 2010 11:36 am Subject: RE: The World Bank's Internal Controls

Ms. Hudes: I have no idea why you would be telling an administrative assistant at KPMG that you were once on the long list for General Counsel at the World Bank. In fact, you told me in our first call that you were the Acting General Counsel for the World Bank even though you had been fired (and I do not understand the logic of that either). But to be clear, I have not suggested that you proceed along any lines whatsoever other than that you not contact my clients, and instead direct communications though me, their attorney (or through the Hotline or the Ombudsman). Any communications to me should be in writing. David B. Shontz, Associate General Counsel

Office of the General Counsel, KPMG LLP, 757 Third Avenue, New York, NY 10017

Cell: 914.714.5479; Cell2: 914.479.9092; Office: 212.909.5305; Office2: 914.630.4298 Fax: 212.954.5439

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The information in this email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else is unauthorized. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful.

From: Karen Hudes [mailto:Karen Hudes] Sent: Tuesday, April 27, 2010 11:19 AM To: Shontz, David B Cc: Aalmofadhi@worldbank.org; Tips@pcaobus.org; heidi_crebo-rediker@foreign.senate.gov; joe.onek@mail.house.gov; Daniel.McGlinchey@mail.house.gov; Chris_Armstrong@finance-rep.senate.gov; cory_gill@foreign.senate.gov; dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov; nbjorksten@crs.loc.gov; ianball@ifac.org; rtreffers@worldbank.org; nmotapinto@worldbank.org; jhagan@worldbank.org; smoorehead@worldbank.org; mmordasini@worldbank.org; mhasan@worldbank.org; swatson1@worldbank.org; gmajnoni@worldbank.org Subject: Re: The World Bank's Internal Controls Dear Mr. Shontz, Thank you for responding to unresolved corporate governance and ethics problems at the World Bank which I raised in my email to you and to the Chairman of KPMG. I followed up this morning with a fax to Mr. Timothy Flynn since I did not have his correct email address and will direct a copy of this response to him as well. I regret having to communicate complex issues to KPMG through your administrative assistant (whom I simply asked to put me in touch with the individual at KPMG who is directing KPMG's audit of the Bank's internal controls commissioned by the Bank's Audit Committee. She must have misheard my statement to her that I was once on the long list for the Bank's General Counsel). The SEC, PCAOB, United States District Court for the District of Maryland, Bar Counsel of the District of Columbia Court of Appeals, Government Accountability Office, and US Congress are all involved in this protracted matter, and I think it is counterproductive to proceed along the lines you suggest. Sincerely, Karen Hudes _

-----Original Message----- From: Shontz, David B <dshontz@kpmg.com> To: Karen Hudes; tflynn@kpmg.com Cc: Aalmofadhi@worldbank.org; Tips@pcaobus.org; heidi_crebo-rediker@foreign.senate.gov; joe.onek@mail.house.gov; Daniel.McGlinchey@mail.house.gov; Chris_Armstrong@finance-rep.senate.gov; cory_gill@foreign.senate.gov; dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov; nbjorksten@crs.loc.gov; ianball@ifac.org; rtreffers@worldbank.org;

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nmotapinto@worldbank.org; jhagan@worldbank.org; smoorehead@worldbank.org; mmordasini@worldbank.org; mhasan@worldbank.org; swatson1@worldbank.org; gmajnoni@worldbank.org Sent: Tue, Apr 27, 2010 9:51 am Subject: RE: The World Bank's Internal Controls

Ms. Hudes: You apparently did not understand my prior email. I am not asking you to maintain “secrecy” on this matter, or asking you to ignore what you believe to be your professional and ethical obligations. You obviously may email or call whomever you wish outside of KPMG about anything thing you wish to bring to their attention about the World Bank or any other matter. I am asking you to stop communicating with our staff (the latest two calls occurred yesterday, including one where you apparently advised an administrative assistant that you were the General Counsel of the World Bank and another where you apparently advised one of our operations personnel that you had been fired from the World Bank). As you point out, you are an attorney, and not an individual in this context. If you wish to communicate further with KPMG LLP on this matter, please refer all communications to me as the attorney for KPMG (except to the extent you choose instead to communicate matters to the KPMG hotline, or for that matter, to the KPMG Ombudsman). I will direct your communications to the appropriate individuals within KPMG LLP. Thank you for your attention to this email. David B. Shontz, Associate General Counsel

Cell: 914.714.5479; Cell2: 914.479.9092; Office: 212.909.5305; Office2: 914.630.4298 Fax: 212.954.5439

From: Karen Hudes [mailto:Karen Hudes] Sent: Monday, April 26, 2010 9:14 PM To: Shontz, David B; tflynn@kpmg.com Cc: Aalmofadhi@worldbank.org; Tips@pcaobus.org; heidi_crebo-rediker@foreign.senate.gov; joe.onek@mail.house.gov; Daniel.McGlinchey@mail.house.gov; Chris_Armstrong@finance-rep.senate.gov; cory_gill@foreign.senate.gov; dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov; nbjorksten@crs.loc.gov; ianball@ifac.org; rtreffers@worldbank.org; nmotapinto@worldbank.org; jhagan@worldbank.org; smoorehead@worldbank.org; mmordasini@worldbank.org; mhasan@worldbank.org; swatson1@worldbank.org; gmajnoni@worldbank.org Subject: Re: The World Bank's Internal Controls Dear Mr. Shontz, I do indeed question your instructions and do not agree to comply with them. I am not an individual in this context; I am an in-house lawyer who is obligated under the

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Articles of Agreement of the International Bank for Reconstruction and Development, US securities laws, and the DC bar code of professional conduct to bring the IBRD into compliance on the capital market. KPMG has been entrusted with the audit of a public international organization, and your demand of secrecy also contravenes ethics codes of the accounting profession and KPMG's professed values. Instead, I intend to forward your email to the chairs of committees of the Board of Executive Directors of the World Bank, and to IBRD's oversight agencies, as I am obligated to do and as the public interest requires. Sincerely, Karen Hudes _ -----Original Message----- From: Shontz, David B <dshontz@kpmg.com> To: Karen Hudes Sent: Mon, Apr 26, 2010 6:35 pm Subject: RE: The World Bank's Internal Controls

Dear Ms. Hudes: I’m sure you understand that we cannot comment to individuals on matters relating to our clients. The issues you raise have been directed to the appropriate individuals within KPMG. To the extent you have any additional information, please submit that information only to me, or to the Hotline that you have referred to in your past communications. I am the attorney for KPMG on this matter, so, please do not contact anyone else at KPMG regarding these matters (other than any Hotline communications you may wish to engage in). I will direct any comments that you send to me to the appropriate parties. Please let me know if you have any questions about my instructions above. Otherwise, as an attorney yourself, I assume you will comply with them. Regards, David B. Shontz, Associate General Counsel

From: Karen Hudes [mailto:Karen Hudes] Sent: Monday, April 26, 2010 6:09 PM To: Shontz, David B Subject: Fwd: The World Bank's Internal Controls

Dear Mr. Shontz, What conclusion does KPMG draw about my Sarbanes Oxley complaint and the IBRD's compliance issues?

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As I mentioned to you, the SEC and the DC Court of Appeals are evaluating IBRD's compliance on the capital market after the Legal Department falsified evidence in the World Bank Administrative Tribunal, and the WBAT Executive Secretary was promoted two weeks after admitting the tampered evidence. GAO also has issues with the IBRD's failure to comply with 2005 appropriations legislation granting access of lawyers and accountants to external arbitration when making protected disclosures to the IBRD's Audit Committee and the World Bank's oversight committees in US Congress. Please acknowledge receipt of this email and all five attachments. Best, Karen Hudes _ -----Original Message----- From: Karen Hudes To: dshontz@kpmg.com Sent: Mon, Apr 26, 2010 2:28 pm Subject: Re: The World Bank's Internal Controls

Dear Mr. Shontz, The attached summons in connection with the IBRD's violation of US securities laws was served on the International Bank for Reconstruction and Development on April 22, 2010. Other court filings are at clearviewconnects.com, login 30795, password 72ef7b4. I have also complained to the District of Columbia Court of Appeals about violations by IBRD's legal department of professional ethics. Correspondence with the Assistant General Counsel of the SEC, Counsel to the Inspector General of the SEC, and DC Bar Counsel on this matter is attached for your information as well. I also forward an email to the EC's representatives in Washington, in an attempt to settle this matter prior to the recently concluded Spring meetings of the World Bank. The chairs of the World Bank Board's Audit, Governance, and Ethics Committees, the PCAOB, as well as US Congressional Committees responsible for oversight of the World Bank, are also apprised. As soon as I have completed filing the Affidavit of Service with the US District Court for the District of Maryland, I will give you a call. Sincerely, Karen Hudes

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-----Original Message----- From: Karen Hudes To: info@capitolprocess.com Sent: Wed, Apr 21, 2010 1:21 pm Subject: Re: Job ID 10-037584

Mr. Green has refused to accept service of the summons and complaint. Please print out the above pdf file and serve the World Bank at 1818 H St. NW. In case they refuse to accept the summons, just leave the papers near the individual who refuses to accept the papers and put a copy of this email on top. http://openjurist.org/703/f2d/1305/novak-v-world-bank Best, Karen

-----Original Message----- From: Green, Jeffrey T. <jgreen@Sidley.com> To: Karen Hudes Cc: Richardson, Rebecca <rebecca.richardson@sidley.com>http://openjurist.org/703/f2d/1305/novak-v-world-bank Sent: Wed, Apr 21, 2010 12:15 pm Subject: RE: Sarbanes-Oxley Complaint against the International Bank for Reconstruction and Development

Dear Ms. Hudes – Thank you for the e-mail below. I will await further information. Please find attached a letter from me regarding the Amended Complaint. Best, J. Jeffrey T Green Sidley Austin LLP 1501 K St NW Washington, DC 20005-1401 202-736-8291 (desk) jgreen@sidley.com From: Karen Hudes To: jgreen@Sidley.com Cc: rebecca.richardson@sidley.com Sent: Wed, Apr 21, 2010 2:15 pm Subject: Re: Update on Possible Settlement of World Bank Sarbanes-Oxley Case

Dear Mr. Green,

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Thank you for your email. If the Board is not prepared to resolve matters in time for the Spring meetings, I would be very happy to meet you and/or Ms. Richardson in the Hay Adams (16th & H) at 11:30 on Sunday morning. Sincerely, Karen Hudes

-----Original Message----- From: Karen Hudes To: vlassia.vassikeri@ec.europa.eu; despina.manos@ec.europa.eu; geraldine.dufort@ec.europa.eu Sent: Wed, Apr 21, 2010 1:59 pm Subject: World Bank

Dear Geraldine, Vlassia and Despina, I wanted to update the European Commission with regard to the issues discussed during my meeting of July 1, 2009 with Vlassia and Despina. Since then, the World Bank has refused to comply with an investigation of the Government Accountability Office requested by the US Congess that was prompted by the attached disclosure to the US Senate Committee on Foreign Relations. Senator Lugar is now demanding reforms before approving a capital increase. The link to Senator Lugar's report is: http://thecable.foreignpolicy.com/posts/2010/03/10/lugar_no_more_money_for_development_banks_until_reform

I requested the Securities and Exchange Commission to remove the World Bank's exemption from reporting and registration requirements, and complained about ethics violations at the World Bank to Bar Counsel in the DC Court of Appeals. Last Friday the Assistant General Counsel of the SEC requested Bar Counsel to inform him about the ethics violations which I reported. (See attached letter to the DC Board on Professional Responsibility). I have sued the International Bank for Reconstruction and Development in Federal Court for the Southern District of Maryland for its violations of US securities laws. I have requested the Chairs of the World Bank Board Audit, Governance, and Ethics Committees to suggest a counterpart to settle this lawsuit in order to protect the World Bank from reputational risk. I hope that the EC will be able to assist in prompt resolution of this matter. Sincerely, Karen -----Original Message-----

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From: Karen Hudes To: SullivanMB@SEC.GOV; karrt@sec.gov Cc: Tips@pcaobus.org; heidi_crebo-rediker@foreign.senate.gov; joe.onek@mail.house.gov; Daniel.McGlinchey@mail.house.gov; Chris_Armstrong@finance-rep.senate.gov; cory_gill@foreign.senate.gov; dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov; nbjorksten@crs.loc.gov; EHontz@cipe.org; ianball@ifac.org Sent: Fri, Apr 16, 2010 9:34 am Subject: Governance Crisis at the World Bank

Dear Ms. Sullivan and Mr. Karr, The International Bank for Reconstruction and Development has rebuffed the efforts of Congress and the Government Accountability Office to resolve compliance issues of the International Bank for Reconstruction and Development which I reported to them (see attached). After IBRD refused to reinstate me, on April 9, 2010 I served the summons and complaint on IBRD for the Sarbanes-Oxley case in the United States District Court for the District of Maryland. On April 12, 2010 I met with Mr. Gene Shipp, Jr., Bar Counsel of the District of Columbia, concerning ethics violations at IBRD. I provided the documentation in my case to KPMG, external auditors commissioned by the IBRD's Audit Committee, at www.clearviewconnects.com log-in ID 30795, password 72ef7b4. I would appreciate knowing what the SEC has decided to do with the issues I have raised, what the grounds were for the decision, and what the time frame is going forward. Sincerely, Karen Hudes _ From: Karen Hudes [mailto:Karen Hudes] Sent: Monday, April 19, 2010 9:50 AM To: Green, Jeffrey T. Subject: Re: Sarbanes-Oxley Complaint against the International Bank for Reconstruction and Development Dear Mr. Green, I refer to our telephone conversation last week. The Board has been waiting for a long time for the US to acknowledge the internal control deficiencies at the IBRD. I would appreciate your cooperation in settling the Sarbanes-Oxley litigation at this time in order to minimize the reputational risk to the IBRD. Best, Karen Hudes

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----Original Message----- From: Shontz, David B <dshontz@kpmg.com> To: Karen Hudes Sent: Mon, Apr 26, 2010 11:04 am Subject: RE: The World Bank's Internal Controls April 25th 11:30 am Concorde Room Hay Adams

Thank you. David B. Shontz

---------- Forwarded message ---------- From: Karen Hudes <> Date: Sun, Feb 12, 2012 at 8:44 AM Subject: Re: Compliance of International Bank for Reconstruction and Development To: lael.brainard@do.treas.gov Dear Ms. Brainard, Domestic and international oversight agencies of the World Bank community including the securities markets, international organizations, academics, civil society and legislatures are all assisting in bringing Mr. Zoellick to account, as per the attached.

Sincerely, Karen Hudes Law Offices of Karen Hudes

---------- Forwarded message ---------- From: Karen Hudes <> Date: Sun, Feb 12, 2012 at 8:29 AM Subject: Fwd: Compliance of International Bank for Reconstruction and Development To: micah@adbusters.org ---------- Forwarded message ---------- From: Karen Hudes <> Date: Fri, Feb 10, 2012 at 5:07 AM Subject: Re: Compliance of International Bank for Reconstruction and Development To: sharon.raj@fitchratings.com, rebecca.mirza@fitchratings.com Dear Ms. Raj, I spoke with Ms. Kerry-Ann Kirby, who referred me to you concerning the compliance of the International Bank for Reconstruction and Development. KPMG's audit of the IBRD's internal control over financial reporting, requested by the IBRD's Audit Committee, did not comply with generally accepted audit principles, including Standard No. 5 of the Public Company Accounting Oversight Board. This matter is also

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before the International Organization of Supreme Audit Standards, the UK Parliament, and the US Congress.

http://www.huffingtonpost.com/social/Karen_Hudes/china-financial-reform_n_1191600_127701808.html

In the attached email, I have informed the head of staff of the Vice President of the European Commission that I requested IBRD's Committee on Governance and Administrative Matters of the Board of Executive Directors to bring the IBRD into compliance at its upcoming meeting next week. The chronology of internal control lapses was presented to the European Parliament's Committee on Budgetary Control in testimony on May 25, 2011.

Please confirm receipt of this email and attachments. I would be happy to answer any further questions. Sincerely, Karen Hudes Law Offices of Karen Hudes

---------- Forwarded message ---------- From: Karen Hudes <> Date: Thu, Feb 9, 2012 at 4:27 PM Subject: Re: Rule of Law To: henrik.hololei@ec.europa.eu

The Committee on Governance and Administrative Matters of the World Bank's Board of Executive Directors is meeting next week to discuss this paper:

http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/04/07/000356161_20110407011348/Rendered/PDF/607990CR0SU2011OFFICIAL0USE0ONLY191.pdf

From: karenhudes@hotmail.com To: s-duff@dfid.gov.uk; ps-mason@dfid.gov.uk; wouter.biesterbos@minbuza.nl; stefanie.teggemann@gtz.de; annika.calov@kfw.de; michael.krempin@gtz.de; shaukat.hassan@acdi-cida.gc.ca; julia.thompson@acdi-cida.gc.ca; infoausaid@ausaid.gov.au; sheena.graham@ausaid.gov.au Subject: FW: Compliance of the IBRD http://thecable.foreignpolicy.com/posts/2012/08/09/who_will_get_top_jobs_in_a_r

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omney_administration#.UCPKU0cthsQ.email Date: Fri, 10 Aug 2012 06:31:14 -0400

Over a year ago, I wrote the u4 governments on the attached problem of corruption. I have asked the Chair of the Development Committee, Marek Belka, to put my case in the US Court of Appeals into mediation. I am hoping that you will see to it that this happens. Otherwise, there is a greater than 90% risk of a currency war. I have been trying to end the cover-up at the World Bank for years. Best, Karen Hudes Law Offices of Karen Hudes begin_of_the_skype_highlighting FREE end_of_the_skype_highlighting From: Karen Hudes Sent: Thursday, June 30, 2011 10:56 AM To: s-duff@dfid.gov.uk; ps-mason@dfid.gov.uk; wouter.biesterbos@minbuza.nl; stefanie.teggemann@gtz.de; annika.calov@kfw.de; Michael.Krempin@gtz.de; shaukat.hassan@acdi-cida.gc.ca; julia.thompson@acdi-cida.gc.ca; infoausaid@ausaid.gov.au; Sheena.Graham@ausaid.gov.au Cc: Fylkesnes Gunvor Knag Subject: Fwd: Compliance of the International Bank for Reconstruction and Development on International Securities Markets

I am forwarding you my request that the u4 governments assist in efforts to strengthen the dialogue with the US Congress on the functioning of the Bretton Woods institutions. I am also forwarding you information on outstanding compliance issues of the International Bank for Reconstruction and Development together with my background paper for the European Parliament's Committee on Budgetary Control.

Over a year ago, I wrote the u4 governments on the attached problem of corruption. I have asked the Chair of the Development Committee, Marek Belka, to put my case in the US Court of Appeals into mediation. I am hoping that you will see to it that this happens. Otherwise, there is a greater than 90% risk of a currency war. The US system is too corrupt to cure itself, as you can see from the attached. I have been writing the CFR to ask them to end the cover-up for years. The rest of the US press (and the world's press for that matter) are refusing to report the story too.

Best, Karen Hudes Law Offices of Karen Hudes

From: karenhudes@hotmail.com To: tjohnson@cfr.org Subject: FW: Compliance of the IBRD http://thecable.foreignpolicy.com/posts/2012/08/09/who_will_get_top_jobs_in_a_r

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omney_administration#.UCPKU0cthsQ.email Date: Fri, 10 Aug 2012 06:14:34 -0400

Dear Ms. Johnson, I see that you are deputy editor at CFR and that you traveled to India to report on a story about Muslims. The World Bank's members have been supporting me in my efforts to fight this corruption every step of the way. The whole issue is now in front of the World Bank's Development Committee. I traveled to India in February: India is one of the countries who has been helping me the most. I am forwarding an email which sets out clearly where things stand. Either we end the cover-up in the US first, or the rest of the world will do it for us. CFR can help. Best,KarenLaw Offices of Karen Hudeswww.kahudes.net http://blogs.cfr.org/campaign-2012/2012/08/09/midday-update-zoellick-to-lead-romney-defense-foreign-policy-transition/#comment-1849 Posted by Karen HudesAugust 10, 2012 at 5:49 am

Your comment is awaiting moderation. Gayle Putrich has missed entirely what it meant when Romney picked Robert Zoellick as his national security transition planning chief. Putrich thinks Zoellick’s “foreign policy realism” is what makes Zoellick’s pick so controversial. The real issue is corruption. I am a lawyer/economist who worked 20 years in the World Bank’s legal department. Zoellick fired me in retaliation the month after I reported corruption at the World Bank to the Senate Committee on Foreign Relations. The US Congress, UK Parliament and EU Parliament have joined forces in a battle to fight the corruption that Zoellick promoted at the World Bank. I should also add: the 3 credit rating agencies are looking on as this saga unfolds. We will all suffer if the cover-up does not end.

I am suing the World Bank, its auditor KPMG, the lawyer hired to investigate my whistleblower claims, and the Bank’s medical insurance administrator (who broke medical confidentiality laws by disclosing my doctors’ names to the World Bank’s medical department), in the DC Court of Appeals for the District of Columbia.

From: karenhudes@hotmail.com To: john.hardy@usaexport.org; jmcpherson@naag.org; wijnand.marchal@minbuza.nl; piotr.nowinakonopka@ep.europa.eu; info.eco@economie.fgov.be; j.hooper@frc.org.uk; ianball@ifac.org; direction@cssf.lu; intosai@rechnungshof.gv.at; fcc@fsa.gov.uk; clare.wells@europarl.europa.eu; elizabeth.noel@fco.gov.uk Subject: FW: Compliance of the IBRD http://thecable.foreignpolicy.com/posts/2012/08/09/who_will_get_top_jobs_in_a_romney_administration#.UCPKU0cthsQ.email Date: Thu, 9 Aug 2012 10:43:12 -0400 Mr. Zoellick refused to end the corruption that is now squarely before the International Bank for Reconstruction and Development's 3 credit rating agencies. The Romney campaign's anxiety to distance themselves from Zoellick (as witnessed in this current article) is not enough to solve the problem, though, of IBRD's compliance on the capital markets after Zoellick's mismanagement there. Why would Romney want advice from someone whose spectacular corruption just left so many insoluble problems in his

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wake? See my previous comment at: http://thecable.foreignpolicy.com/posts/2012/08/08/zoellick_pick_roils_romney_campaign#.UCM2-nrrsiM.email

From: karenhudes@hotmail.com To: john.hardy@usaexport.org; jmcpherson@naag.org CC: wijnand.marchal@minbuza.nl; piotr.nowinakonopka@ep.europa.eu; info.eco@economie.fgov.be; j.hooper@frc.org.uk; ianball@ifac.org; direction@cssf.lu; intosai@rechnungshof.gv.at; fcc@fsa.gov.uk; clare.wells@europarl.europa.eu; elizabeth.noel@fco.gov.uk; tom.scholar@hmtreasury.gsi.gov.uk Subject: Re: Compliance of the IBRD Date: Thu, 9 Aug 2012 08:51:03 -0400

Dear Messrs. Hardy and McPherson, Mr. Zoellick refused to end the corruption that is now squarely before the Board of Governors of the IMF and World Bank. It is clear that the world will experience a currency war unless there is an end to the lawlessness that I have so meticulously documented these past ten years and which has brought the International Bank for Reconstruction and Development out of compliance on the world's capital markets. We seem to have a sequencing problem. I am leaving it in your capable hands what happens first. Best, Karen Law Offices of Karen Hudes

From: karenhudes@hotmail.com To: jonathan_davidson@bennet.senate.gov; roger_low@bennet.senate.gov Subject: FW: http://thecable.foreignpolicy.com/posts/2012/08/08/zoellick_pick_roils_romney_campaign#.UCM2-nrrsiM.email Date: Thu, 9 Aug 2012 08:35:14 -0400

From: Brian_Appel@bennet.senate.gov To: karenhudes@hotmail.com Subject: Automatic reply: http://thecable.foreignpolicy.com/posts/2012/08/08/zoellick_pick_roils_romney_campaign#.UCM2-nrrsiM.email Date: Thu, 9 Aug 2012 11:42:47 +0000

I will be out of the office from Wednesday, August 8 through Friday August 10.

I will check e-mail on a periodic basis.

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From: karenhudes@hotmail.com To: brian_appel@bennet.senate.gov Subject: http://thecable.foreignpolicy.com/posts/2012/08/08/zoellick_pick_roils_romney_campaign#.UCM2-nrrsiM.email Date: Thu, 9 Aug 2012 07:42:44 -0400

Dear Brian, I wanted to update Senator Bennet on what is happening on my lawsuit. I heard back that the World Bank's Development Committee is following this closely, and are hoping for the US to resolve this. I have contacted the Democratic Party to ask whether we couldn't expose the cover-up and corruption now that Robert Zoellick is national security adviser for the Romney campaign. It would be an elegant solution. Here's my comment: The US will have no national security if Robert Zoellick plays any role. Zoellick was not offered a second term at the World Bank for good reason. The reason is that Zoellick lost the Gentlemen's Agreement for the US to appoint the president of the World Bank unilaterally. Fed up with corruption at the World Bank, on April 25, 2010 the 187 members rescinded the Gentlemen's Agreement for the US to name the World Bank president http://www.imf.org/external/np/cm/2010/042510.htm, The US Congress was also fed up with Zoellick's corruption. The requirements in US 2012 Appropriations legislation are in Section 7082 of H.R. 2055: http://www.whistleblower.org/storage/documents/whistleblowerlanguageinHR2055.pdf Zoellick's last blooper: blowing up NATO. Our closest allies are now trying to help -- the UK Parliament has posted my testimony:http://www.publications.parliament.uk/pa/cm201213/cmselect/cmintdev/writev/402/contents.htm The press' coverage of this debacle is less than stellar. http://www.forbes.com/sites/richardbehar/2012/06/27/world-bank-spins-out-of-control-corruption-dysfunction-await-new-president/ (hit expand all comments twice) Where does FP stand? www.kahudes.net Best, Karen

From: Appel, Brian (Bennet) [mailto:Brian_Appel@bennet.senate.gov] Sent: Tuesday, July 24, 2012 3:35 PM To: Karen Hudes Subject: Follow up on Behalf of Jonathan Davidson

Karen: Jonathan Davidson asked me to follow up with you regarding the World Bank. I would be happy to talk with you about the issue at your convenience.

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Brian

From: pwilson@glenecovapor.com To: karenhudes@hotmail.com Subject: RE: Karen Hudes v. Aetna Life Insurance Company, et al "Appellant/Petitioner Brief Filed" (1:10-cv-01444-JEB) Date: Wed, 8 Aug 2012 11:54:12 -0400

Good luck to ya.

From: Karen Hudes [mailto:karenhudes@hotmail.com] Sent: Wednesday, August 08, 2012 11:00 AM To: Jacek Kugler; g.smrkolj@uva.nl Subject: Karen Hudes v. Aetna Life Insurance Company, et al "Appellant/Petitioner Brief Filed" (1:10-cv-01444-JEB)

On Monday I filed my appeal in the Court of Appeals, DC Circuit.

-----Original Message----- From: Karen Hudes To: SullivanMB@SEC.GOV; karrt@sec.gov Cc: Tips@pcaobus.org; heidi_crebo-rediker@foreign.senate.gov; joe.onek@mail.house.gov; Daniel.McGlinchey@mail.house.gov; Chris_Armstrong@finance-rep.senate.gov; cory_gill@foreign.senate.gov; dgetter@crs.loc.gov; thomas_caballero@legal.senate.gov; nbjorksten@crs.loc.gov; EHontz@cipe.org; ianball@ifac.org Sent: Fri, Apr 16, 2010 9:34 am Subject: Governance Crisis at the World Bank

Dear Ms. Sullivan and Mr. Karr, The International Bank for Reconstruction and Development has rebuffed the efforts of Congress and the Government Accountability Office to resolve compliance issues of the International Bank for Reconstruction and Development which I reported to them (see attached). After IBRD refused to reinstate me, on April 9, 2010 I served the summons and complaint on IBRD for the Sarbanes-Oxley case in the United States District Court for the District of Maryland. On April 12, 2010 I met with Mr. Gene Shipp, Jr., Bar Counsel of the District of Columbia, concerning ethics violations at IBRD. I provided the documentation in my case to KPMG, external auditors commissioned by the IBRD's Audit Committee, at www.clearviewconnects.com log-in ID 30795, password 72ef7b4.

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I would appreciate knowing what the SEC has decided to do with the issues I have raised, what the grounds were for the decision, and what the time frame is going forward. Sincerely, Karen Hudes _ From: Karen Hudes [mailto:Karen Hudes] Sent: Monday, April 19, 2010 9:50 AM To: Green, Jeffrey T. Subject: Re: Sarbanes-Oxley Complaint against the International Bank for Reconstruction and Development Dear Mr. Green, I refer to our telephone conversation last week. The Board has been waiting for a long time for the US to acknowledge the internal control deficiencies at the IBRD. I would appreciate your cooperation in settling the Sarbanes-Oxley litigation at this time in order to minimize the reputational risk to the IBRD. Best, Karen Hudes

From: Karen Hudes [mailto:karenhudes@hotmail.com] Sent: Wednesday, August 08, 2012 11:00 AM To: Jacek Kugler; g.smrkolj@uva.nl Subject: Karen Hudes v. Aetna Life Insurance Company, et al "Appellant/Petitioner Brief Filed" (1:10-cv-01444-JEB)

On Monday I filed my appeal in the Court of Appeals, DC Circuit.

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Karen has 3 files to share with you on SkyDrive. To view them, click the links below.

appeal117brief.pdf

appeal117addendum.pdf

appeal117appendix.pdf

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Date: Mon, 6 Aug 2012 17:50:35 -0400 From: ecfnoticing@cadc.uscourts.gov To: karenhudes@hotmail.com Subject: KAREN HUDES v. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, KPMG LLP, AETNA LIFE INSURANCE COMPANY, AND MARK E. SCHREIBER, US Court of Appeals Case Number 11-7109 ***NOTE TO PUBLIC ACCESS USERS*** Judicial Conference of the United States policy permits attorneys of record and parties in a case (including pro se litigants) to receive one free electronic copy of all documents filed electronically, if receipt is required by law or directed by the filer. PACER access fees apply to all other users. To avoid later charges, download a copy of each document during this first viewing.

United States Court of Appeals for District of Columbia Circuit

Amended 08/06/2012 17:50:35: Notice of Docket Activity The following transaction was entered on 08/06/2012 at 5:04:56 PM EDT and filed on 08/06/2012

Case Name: Karen Hudes v. Aetna Life Insurance Company, et al

Case Number: 11-7109

Document(s): Document(s)

Docket Text: APPELLANT BRIEF [1387774] filed by Karen Hudes [Service Date: 08/06/2012 ] Length of Brief: 6959 words. [11-7109] (Hudes, Karen)

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Notice will be electronically mailed to: Bryan D. Bolton: bbolton@fblaw.com, mreed@fblaw.com, crobertson@fblaw.com Mr. Michael Patrick Cunningham: mcunningham@fblaw.com, mreed@fblaw.com, crobertson@fblaw.com Marc B. Dorfman: mdorfman@foley.com, cursin@foley.com Mr. Jeffrey T. Green: jgreen@sidley.com, kblackstone@sidley.com, desprit.smith@sidley.com, hingram@sidley.com Ms. Karen Hudes: karenhudes@hotmail.com Mr. David S. Petron: dpetron@sidley.com Stanley James Reed: sjreed@lerchearly.com

From: karenhudes@hotmail.com To: jtuohey@globe.com Subject: Re: UK Preserves Rule of Law -- Saves Transatlantic Alliance Date: Sun, 15 Jul 2012 10:34:32 -0400

I am a Yale Law school-educated lawyer and economist who worked in the World Bank's legal department for 20 years. In 2007 Robert Zoellick, then President of the World Bank, fired me in retaliation after I reported a governance crisis at the World Bank to the Senate Committee on Foreign Relations. www.kahudes.net http://www.forbes.com/sites/richardbehar/2012/06/27/world-bank-spins-out-of-control-corruption-dysfunction-await-new-president/

Mr. Behar has left out how the Bush Administration attempted to prevent Paul Wolfowitz’ resignation from the presidency of the World Bank by threatening to reveal sensitive information about the Executive Directors on the Board. Herman Wijffels, the Dutch Executive Director at the World Bank, led the Board’s inquiry into illegal pay raises to Wolfowitz’ romantic interest, Shaha Riza. Riza, who worked at the World Bank prior to Wolfowitz’ appointment, received a 35% raise just months after Wolfowitz assumed the presidency of the World Bank.

Wijffels reported, “There was digging into my past in a shocking manner. In my case there was nothing to find. Very clear efforts to disqualify my fellow Directors led to consternation.” I am a Yale Law educated lawyer and University of Amsterdam educated economist who worked in the World Bank’s legal department for 20 years. I reported to the Senate Committee on Foreign Relations, then chaired by Vice President Joe Biden, the risks to the reputation of the United States. Robert Zoellick fired me in retaliation in 2007. I also reported the corrupt take-over of Philippines National Bank, the second largest bank in the Philippines. Lucio Tan, a crony of then-President of the Philippines Joseph Estrada, acquired stock owned by government employees in Philippines National Bank in violation of Philippines securities laws. Tan owned Philippines Airlines, in default on

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its loans from PNB. The government of the Philippines loaned $493 million to PNB after PNB’s depositors made heavy withdrawals. $200 million from a World Bank loan and $200 million from a Japanese loan was cancelled. Estrada was ultimately impeached, and in 2007 an anti-corruption court in the Philippines required Estrada to refund graft he had plundered. The World Bank’s Country Director in the Philippines reassigned me when I asked him to warn the Philippines’ government that the World Bank could not disburse its loan. The World Bank’s Internal Audit Department refused to correct the satisfactory evaluation of the World Bank’s supervision performance or the flawed report of the Institutional Integrity Department to the Audit Committee of the Board of Executive Directors. The Audit Committee requested an inquiry into the Institutional Integrity Department. The Paul Volcker Panel investigation into the Institutional Integrity Department was discredited after “deliberate and substantial interference with this supposedly independent commission” came to light. http://www.commondreams.org/newswire/2010/04/06-3 The World Bank stonewalled four letters from Congress into my disclosures. The World Bank also stonewalled a Government Accountability Office inquiry into transparency at the World Bank requested by Senators Richard Lugar, Evan Bayh, and Patrick Leahy. http://citizenoversight.com/pdf/blwb.pdf I warned the Joint Economic Committee an accurate political science stakeholder analysis was predicting that without rule of law at the World Bank the United States would lose the Gentlemen’s Agreement for the US to appoint the president of the World Bank The analysis uses modern game theory to simulate a bargaining process among stakeholders and is 90% accurate. The 187 member countries of the World Bank rescinded the 66 year old Gentlemen’s Agreement in 2010. http://www.imf.org/external/np/cm/2010/042510.htm The World Bank’s Board of Executive Directors selected Dr. Kim as the World Bank’s president from a field of three nominees, including Nigeria’s Finance Minister, Ngozi Okonjo Iweala and Colombia’s former Finance Minister, Jose Antonio Ocampo. The US Congress is requiring results that eliminate retaliation against whistleblowers in the 2012 appropriations legislation for the World Bank capital increase. You can read more about my whistleblower retaliation case in the US Court of Appeals, DC Circuit at www.kahudes.net

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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https://www.youtube.com/user/KarenHudes

www.kahudes.net

interviews: https://s3.amazonaws.com/khudes/Bibliography1.pdf

MEMORANDUM

TO: Board of Executive Directors

FROM: Karen Hudes

RE: Mandate of the Board of Executive Directors

DATE: September 1, 2009

The Articles of Agreement of the International Bank for Reconstruction andDevelopment (IBRD) confer broad powers to the Executive Directors, including underArticle IX(a) decisions on questions of interpretation of the Articles. All of the powers ofthe IBRD are vested in the Board of Governors, and except for certain reserved powersregarding membership and appeals from the Board's interpretations of the Articles ofAgreement, these powers may be delegated to the Executive Directors. Section 4(a) ofArticle V provides that "[t]he Executive Directors shall be responsible for the conduct ofthe general operations of the Bank, and for this purpose, shall exercise all the powersdelegated to them by the Board of Governors."

The powers of the President to conduct the ordinary business of IBRD under Article V,Section 5(b) are "under the direction of the Executive Directors." "Subject to the generalcontrol of the Executive Directors, [the President] shall be responsible for theorganization, appointment and dismissal of the officers and staff."

On June 4, 1947, the Executive Directors accepted in a Memorandum with Regard toOrganization and Loan Procedure that "[t]he Executive Directors are responsible for thedecision of all matters of policy in connection with the operations of the Bank, includingthe approval of loans," and "[tjhe Management is responsible for developingrecommendations in all matters of policy requiring decision by the Executive Directors.""Whenever, in connection with the operations of the Bank, decision of a question ofpolicy becomes necessary, the President will submit such question to the ExecutiveDirectors with the recommendation of the management as to the action to be taken..."

Under Article IX of the Articles of Agreement, Executive Directors have authority tointerpret the Articles consistent with the rights conferred to Executive Directors for theexercise of general control over IBRD's organization, appointment and dismissal ofofficers and staff. There is no obligation under the Articles of Agreement for ExecutiveDirectors to wait for the President to recommend specific actions to be taken. Canada'sReview of Internal Governance Conclusions and Proposals has noted that the Boardremains accountable under IBRD's Articles of Agreement for delegated tasks.

It is for the Executive Directors to determine if they are now obligated to avail of the fullrange of powers in the original mandate of the Executive Directors contained in theArticles of Agreement.

https://twitter.com/KarenHudes,

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

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

https://www.youtube.com/user/KarenHudes

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

https://twitter.com/KarenHudes,

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

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

https://www.youtube.com/user/KarenHudes

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