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   WASHINGTON, D.C. - Allegations of accounting problems at the World Bank will be reviewed by the Joint Economic Committee, Chairman Jim Saxton announced today. According to former World Bank employees interviewed by committee staff, there have been a number of problems with World Bank financial accounting practices, some of which go back many years. Several of these allegations have been reported by the Dow Jones news service.

   “The allegations of accounting problems made by former World Bank staff are quite serious, even setting aside the question of whether there has been retaliation against the whistleblowers,” Saxton said. “Inaccuracies in the World Bank’s accounts would be problematic in and of themselves, but I am also troubled by the way the World Bank's management may have handled these issues. We will assess the facts, and determine the validity of these allegations,” Saxton concluded.

   One allegation is that problems in a World Bank accounting system had produced tens of millions of dollars in errors, which were then offset by ad hoc adjustments. Although the problem was apparently known for several years, when it was exposed by a World Bank accountant, his managers attempted to present it as a newly recognized issue, and the accountant suffered eventual retribution.

   For more information on World Bank reform, please visit our website at www.house.gov/jec.

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