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) 
 
¶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