@KarenHudes .@Hazel1215 No publisher ever accepted my book proposal to tell about Lucio Tan’s corruption in the Philippines

15 Nov

.@Hazel1215 No publisher ever accepted my book proposal to tell about Lucio Tan’s corruption in the Philippines https://s3.amazonaws.com/khudes/book+proposal1.pdf




WORLD BANK WHISTLEBLOWER gives readers an insider’s view of the fight against corruption in the world financial system. The book will describe what happened when I bought a World Bank bond to overcome the World Bank’s immunities and shared my insider’s knowledge with the US Congress, US Courts, UK Parliament, European Parliament, the 50 state capitals, and ultimately the Ministers of Finance of the 188 member countries of the World Bank’s Board of Governors.

I am a Yale Law School-educated lawyer/ University of Amsterdam-educated economist who worked in the World Bank’s legal department for 20 years. I live in Washington.

I started the fight against corruption in the Philippines at the end of the 1990’s and reported the corruption up the internal chain of command at the World Bank. The corruption in the Philippines ended with the impeachment of Joseph Estrada, then President of the Philippines. An anti-graft court ordered Estrada to return his plunder. But the cover-up at the World Bank continued. The World Bank rated its supervision on the project to reform the banking sector in the Philippines as satisfactory.

Estrada had sold employee shares in the second largest bank in the Philippines to hiscrony, Lucio Tan. Tan owned Philippine Airlines and was in default on his loans from Philippines National Bank. I was reassigned two weeks before the decision meeting to disburse the World Bank’s loan. I went to the decision meeting anyway and reminded the country director who reassigned me that the loan conditions had not been met since Philippines National Bank could no longer be privatized.

The following year there was a run on Philippines National Bank when depositors withdrew their money, and the Philippines government had to bail out PNB with a $493 million dollar loan. $200 million from the World Bank loan and $200 million from a parallel Japanese loan were cancelled. I was put on probation for trying to correct the satisfactory evaluation of the World Bank supervision on the project.

When the World Bank’s Audit Committee did not end the cover-up, I went to the World Bank’s oversight agencies in the United States: the Treasury Department and the Securities and Exchange Commission. As the cover-up continued, I went to the Senate Committee on Foreign Relations. The World Bank ignored three letters from Senator Lugar and fired me. Nancy Pelosi asked my Congressman to follow up and the World Bank stonewalled an inquiry from Chris Van Hollen. Congress fought back against this contempt of Congress. When the World Bank refused to cooperate with a GAO investigation into corruption at the World Bank ordered by three senators, Congress required “satisfactory progress” in whistleblower protections before the World Bank’s capital increase could be disbursed.

The World Bank’s member countries also responded. The World Bank’s Audit Committee commissioned an external audit, but the audit firm KPMG cooked the books. The UK Serious Fraud Office called the US Securities and Exchange Commission. The Institute of Chartered Accountants in England and Wales forwarded my report of corruption to their Head of Investigation. I testified before the European Parliament and the UK Parliament published my testimony on their website. I was invited to present a paper on whistleblowing in New Delhi for the 40th International Institute of Sociology World Congress.

A cover-up in a bank which issues bonds on the capital markets is illegal. A cover-up at the World Bank, in the center of the international financial system, cannot be willed away, and certainly not when a Yale law school-educated bondholder brings a lawsuit. As in any cover-up, the problem escalates. I will lead readers down the trail of corruption to the controversial appointment of a national security adviser in the US Presidential campaign.

This book recounts the unique and heart-warming story of the whistleblowers, journalists, political scientists, government officials, Members of Congress, US companies, newsbreakers, universities and others who joined me in the fight against corruption. Anecdotes of real men and women make the story come alive. This book will be completed in two months. Its length will be about 70,000 words, plus a bibliography and an index.

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