Identifier
Created
Classification
Origin
06DHAKA846
2006-02-15 09:47:00
CONFIDENTIAL
Embassy Dhaka
Cable title:  

LEGAL PROCESS PUTS WORLD BANK COUNTRY DIRECTOR AT

Tags:  EFIN EAID CVIS BG WB 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

150947Z Feb 06
C O N F I D E N T I A L DHAKA 000846 

SIPDIS

SIPDIS

STATE FOR EB\IFD\OMA

E.O. 12958: DECL: 02/15/2016
TAGS: EFIN EAID CVIS BG WB
SUBJECT: LEGAL PROCESS PUTS WORLD BANK COUNTRY DIRECTOR AT
RISK IN BANGLADESH


Classified By: A/DCM Dundas McCullough; reason 1.4(d)

C O N F I D E N T I A L DHAKA 000846

SIPDIS

SIPDIS

STATE FOR EB\IFD\OMA

E.O. 12958: DECL: 02/15/2016
TAGS: EFIN EAID CVIS BG WB
SUBJECT: LEGAL PROCESS PUTS WORLD BANK COUNTRY DIRECTOR AT
RISK IN BANGLADESH


Classified By: A/DCM Dundas McCullough; reason 1.4(d)


1. (C) World Bank Bangladesh Country Director Christine
Wallich met February 12 with CDA Chammas and Econoff
concerning a long-running court case involving termination of
a former, politically well-connected employee. Court
decisions in the case have called into question the immunity
of the World Bank and its employees under the World Bank
membership agreement and implementing legislation in
Bangladesh. As a result, the World Bank has pushed for legal
changes to overturn the court decisions and reaffirm the
legal immunity of the bank and its employees. Although the
government has submitted the immunities law to Parliament, it
remains pending in the face of substantial local political
opposition spearheaded by several NGO's. IMF and ADB immunity
is not under challenge, due to technical differences in their
respective immunities clauses.


2. (C) Of immediate concern for Wallich, and the reason
for her meeting, is a court summons to Wallich and four other
bank employees to appear for a hearing on February 20 over
possible violation of an earlier court injunction in the
case. The summons states that failure to appear is
punishable by six-months jail and/or seizure of personal
property. Wallich, an American citizen, said she merely
wanted to inform CDA "in case something happens." She
strongly discouraged the USG from intervening at this time,
saying such action would probably be counter-productive. She
will appear through counsel at the February 20 hearing.


3. (C) Wallich also expressed concern over the ability of
the five bank employees to travel abroad. She said Prafel
Patel of the WB strongly considered instructing her not to
return to Bangladesh from a recent trip to Washington. Three
of the individuals named in the summons are Bangladeshi
nationals scheduled to travel abroad for bank sponsored
training. If they are stopped at the airport, Wallich said,
the bank will probably withdraw its entire expatriate staff
from Bangladesh. Wallich said she has explored alternative
routes out of the country and has taken the precaution of
obtaining a multiple entry visa for India.


4. (C) The underlying case concerns a 2001 decision by the
World Bank not to offer permanent employment to Ishmet Khan
at the end of her two year probationary period as an external
affairs assistant. Khan objected and the issue was referred
to an independent alternative dispute resolution (ADR) forum
as provided in WB policies and contracts. According to
Wallich, the ADR procedure confirmed the WB's decision not to
retain Ms. Khan, but awarded some form of settlement to Khan,
which the bank paid. Khan was not satisfied with the outcome
and filed suit seeking reinstatement and substantial monetary
damages. The dispute has grown increasingly bitter over the
years, and Wallich thinks Khan will settle for nothing less
than total vindication, reinstatement, and sizable damages.
"She wants to humiliate the WB; its become David against
Goliath," said Wallich.


5. (C) Wallich described Khan as very politically
well-connected "to the Law Minister, half the Supreme Court
and NGOs" and said she even had supporters within the WB
itself who kept her informed of WB actions affecting her
case. She suspected Khan was behind unsuccessful attempts by
the Law Secretary to eviscerate the immunities bill before it
went to Parliament. Khan has also been successful stirring
up heated public opposition to immunity for the WB, to the
point where Wallich felt the WB's own outside lawyers were
reluctant to provide more than token support for the case.
CHAMMAS