Whistleblower Exposes World Bank Corruption

The World Bank & Inspection Panel's headquarte...

The World Bank & Inspection Panel’s headquarters in Washington, D.C. (Photo credit: Wikipedia)

World Bank whistleblower exposes endemic corruption & money laundering which goes all the way to the Whitehouse.


Transcript of Abby Martin talking to Karen Hudes, former senior executive at the World Bank, about her experience blowing the whistle on the high level corruption within the international financial system and how her story was censored by mainstream media:

Abby Martin (Interviewer):  What if I told you the most powerful banking entity in the world was laundering money, and that our corporate bureaucrats go to great lengths that their illegal activities are never discovered.  But right now you’re probably thinking that’s not news.  But stay with me here … The world bank is an international financial institution that designated to help developing countries by providing loans, all in the name of quote “reducing global poverty“.

However the global giant has been accused of INCREASING global poverty by keeping the third world in perpetual debt and servitude to the first world.  But aside from its obvious critiques there is blatant criminal corruption taking place at the highest levels at the financial institution.  One woman has risked everything to shed light on this truth.  She exposes information that reveals the extent of the collusion between financial groups and foreign governments.

Her name is Karen Hudes.  She was senior counsel at the bank for twelve years and from blowing the whistle, she is here to talk to me about her experience and what it all means for the rest of us.  I’m joined by Karen Hudes.  Thanks so much for coming on Karen.

Karen Hudes:  Thanks so much for having me (shake hands).

Interviewer:  So can you briefly explain what the impetus was for you to speak out – what did you see?

Karen Hudes:  I was a lawyer and I saw securities fraud.  I saw financial information that was not being disclosed to $180 billion dollars worth of bond holders.  It was my job to make sure that financial statements were correct, so first I reported it up the corporate ladder to the Audit Committee.  When that didn’t work I went to the US (United States) Treasury Department, and when that didn’t work I went to the US Congress.  Senator Lugor(sp?) wrote three letters to the bank saying don’t fire this lady, and they promptly fired me.  

This means the US congress does not have the information that it needs, so they’re stuck with the problem.  After I was fired, three senators asked for a G.A.O. Enquiry into the corruption that I was reporting at the World Bank:  Senators Lugor, Lahey and Bigh (sp.?)

Interviewer:  Walk us through what exactly – where was this money being laundered and to whom?

Karen Hudes:  They money was going every which way because anybody who reported misconduct was fired.  So in one case the borrowers were being overcharged.  In another case I was reporting corruption in the Phillipines.  $900 million dollars that should have gone to fight poverty in the Phillipines instead went to a corrupt man, Lucio Tong (sp.?) who was in default on his loans.  Phillipine National Bank went into default.  There was a run on the bank … Phillipine National Bank … the investment company tried to bail out the bank for $500 million dollars and then the Board was lied to.  And my story is about trying to uncover the corer-up.  The cover-up went all the way to Congress, and then it went to 188 Ministers of Finance.  So this is corruption in the entire world.  And until it’s set straight, what we’re going to have is we’re going to have a CURRENCY WAR.  

Interviewer:  So you think this is just a microcosm of what’s happening across the entire institution – you just saw one aspect of this kind of laundering?

Karen Hudes:  It wasn’t just me.  There’s a group of World Bank whistleblowers.  There’s one of us from the United Kingdom, one of us from Mexico; there’s one of us from India; there’s one of us from Ethiopia (sp.?); and we’re all reporting the same thing.  Corruption from top to bottom of that institution.  The money is going every which way but where it needs to go to fight poverty.  

Interviewer:  You were kind of stifled.  You went to the Government and you had a couple of senators on your side – congress people   Ahm, what about the corporate press?  You said you continuously tried to go to them with this story to cover it and you were shunned as well?

Karen Hudes:  Absolutely, and the reason why I found out is because the corporate press is owned by ONE mega conglomorate.  All of the financial institutions in the world, just about, are part of this scheme to rip off everybody … every single citizen on this planet.  That’s what I’m talking about and its not just my idea.  There was a very accurate report on this from the Federal Institute of Technology in Zurich, Switzerland.  Three mathematicians  looked at accurate corporate data on 43,000 trans-national companies and they reported through very clever interlocking corporate directors, these groups managed to grab ten times the power than they otherwise had in their finances, so they own forty percent of all the assets of all the companies traded on the capital markets of the world, and they own sixty percent of the earnings for every year.  This means that the Central Banks of the world are issuing paper money with absolutely NO accountability to the people who are using this money, and pretty soon, in a matter of weeks probably, the whole system is going to come to a screeching halt with something called Gold-back Redemption (?)

Interviewer:  So let’s back up a little bit because basically there’s no oversight over these institutions.  Aside from laundering money … plainly they’re also laundering money off-shore, hidden … hidden in these off shore bank accounts.  I want to talk about how much power the banking system has over geo-politics, I mean you just broke down that all these people are interlocking.  Would you say they control the government as well?

Karen Hudes:  Absolutely.  What I have documented is “State Capture“.  I tried to have information go to the voters before the Presidential elections because Robert Zelleck was Mitt Romney‘s National Security Transitional Planning Chief.  CBS wouldn’t report it.  If the voters don’t know who they’re voting for … I asked CBS to have a question on international corruption.  They figured the American public didn’t need to know.  So if the public doesn’t really know what’s going on then … then you don’t have a democracy, and that’s what we’re talking about.  

Interviewer:  Can you  name any names of who you think are the real power players here, because I know that a little bit of digging can really reveal who these people are who are pulling the strings here?

Karen Hudes:  What you need to do is look at the ownership of these corporations.  They’re the ones we hear about all the time … Goldman Sachs.  You were talking about Bank of America … they are actuall all ONE BANK.  That’s what happened when we saw the LIBOR crisis.  These big institutions are ONE BIG CONGLOMERATE that think they control the world and they think they are above the law, and they’re not.  

Interviewer:  What about the guise of the IMF (International Monetary Fund) and World Bank … looking back since you’ve served so long in this institution, what do you think about  what they present and sell themselves to the entire world … I mean the whole structural addressment policies keeping the third world perpetually in debt ,,, do you think that’s an entire ruse to maintain their profit structure?

Karen Hudes:   I think these are institutions that if they’re cleaned up can do a lot of good – they can provide a basis for a peaceful transition.  It’s very clear that we need to have some regularity in our international financial system … we certainly don’t need a currency war and that’s what we’re on track for unless and until we start to get to the bottom of this corruption.  And it’s very simple actually to do because most of the people know that the corporate media – seventy percent of American people in a recent gallup poll distrust their media because it’s owned by these banks.

Interviewer:  Karen, to wrap it up. why do you think that whistleblowers such as yourself obviously exposing the massive corruption within these financial institutions are not incurring the full wrath of “The State” as we see … someone like Edward Snowden or Bradley Manning?

Karen Hudes:  That’s a very interesting question.  I think it’s because we have the people behind us, and enough people know about us, and because we’re working together, but I have to say I’m very curious as to why the media is now covering Edward Snowden.  I’m worried that this is to get people riled up when what they really need to know is that I told ALL the Ministers of Finance,  all of the Governors, I have told all of the State’s Attorney-General.  I bought a bond and I had a lawsuit and 188 Ministers of Finance settled my lawsuit.  It’s Eric Holder who’s holding up the settlement of my case.

Interviewer:  Well I won’t deny we have some criminals in the government Karen.  Thank you so much for coming on.  We’ll be following your case and covering it as it develops.  Karen Hudes, former Senior Counsel at the World Bank – appreciate it.

Karen Hudes:  Thanks for having me.  



Coming Referendum Fails Constitutional Rules

Queensland Government Treasury Buildings, Quee...

Queensland Government Treasury Buildings, Queen Street, Brisbane, ca.1907 (Photo credit: State Library of Queensland, Australia)

The coming referendum has failed the Constitutional Rules, and the State Governments and Federal Parliament have already not adhered to its conventions.  The Australian Constitution has been changed illegally over a hundred times without Referendum by various governments who just ignore it’s directions in how government should be run.  For instance, the Gonski plan for Education is an utter farce as the Federal Government has no rights to impose a national curriculum on States.  It sounds good in theory, however a National curriculum sets the boundaries for what can be taught in schools that are funded by the government.

The subject of history is particularly problematic, given that lies told often enough, become truth, and our young are led astray, as their whole world view becomes skewed.  Take for example the fact that schools used to teach that Australia was “settled”, but now the High Court has declared in a historic decision, that Australia was not settled, but was rather “invaded”. Simple enough declaration, but this hidden history also hid the genocide that was carried out in the name of the imperialist seeking Crown.

Another problem in our schools is that schooling is focused on “industry” which is short-lived, especially technology.   A classical education teaches literature (not English), classical art and music and critical thinking by using logic among other subjects.  There consists a communist conspiracy to dumb down our children which started after WWII, picking up the pace as each decade progressed.

In essence, the Gonski Funding plan is a red herring because improving education starts with what is considered “education” not the funding of such.  Children could receive as good an education in a park, but its nice to have a roof incase it rains, and technology as an aid to learning.  To read a free e-book called the ‘Dumbing Down of America’ by Charlotte Iserbyt, see the link in the side bar under Free E-books.

However, back to the Referendum, below is a copy of a letter I received which was sent to Senator Smith by Mr G. (Gerrit) H. Schorel-Hlavka O.W.B., where he asks why they are even bothering to ask people?  It is of course another trick question, which is to allow bigger government which means more and more and more taxes, until Australians wake up enough to march in the streets.

Break your trance, wake up and smell the tyranny.


Email sent to:  senator.smith@aph.gov.au

Dear Senator Smith,

I am a CONSTITUTIONALIST, and have grave concerns about the coming referendum (re s96), and the misleading details provided about it.

As a retired Professional Advocate I view that any debate about the legal consequences of a s96 amendment must be FAIR and PROPER.

In my view, to amend s96 would be dissasterous. I would undermine the very principles embedded in the constitution.

 Hansard 17-3-1898 Constitution Convention Debates
QUOTE Sir EDWARD BRADDON.- When we consider how vast the importance is that every word of the Constitution should be correct, that every clause should fit into every other clause; when we consider the great amount of time, trouble, and expense it would take to make any alteration, and that, if we have not made our intentions clear, we shall undoubtedly have laid the foundation of lawsuits of a most extensive nature, which will harass the people of United Australia and create dissatisfaction with our work, it must be evident that too much care has not been exercised.  END QUOTE

.Hansard 8-2-1898 Constitution Convention Debates
QUOTE:  Mr. OCONNOR (New South Wales).-The honorable and learned member (Mr. Isaacs) is I think correct in the history of this clause that he has given, and this is [start page 672] one of those instances which should make us very careful of following too slavishly the provisions of the United States Constitution, or any other Constitution. No doubt in putting together the draft of this Bill, those who were responsible for doing so used the material they found in every Constitution before it, and probably they felt that they would be incurring a great deal of responsibility in leaving out provisions which might be in the least degree applicable. But it is for us to consider, looking at the history and reasons for these provisions in the Constitution of the United States, whether they are in any way applicable; and I quite agree with my honorable and learned friend (Mr. Carruthers) that we should be very careful of every word that we put in this Constitution, and that we should have no word in it which we do not see some reason for. Because there can be no question that in time to come, when this Constitution has to be interpreted, every word will be weighed and an interpretation given to it; and by the use now of what I may describe as idle words which we have no use for, we may be giving a direction to the Constitution which none of us now contemplate. Therefore, it is incumbent upon us to see that there is some reason for every clause and every word that goes into this Constitution.  END QUOTE

.I would also urge you to pursdue the s101 Inter-State Commission, which the Framers of the Constitution held should always be in place. It means that the Inter-State Commission and not a political minded government would be dealing with funding to what may be in the interest of each State,

.Hansard 1-3-1898 Constitution Convention Debates
QUOTE:  Mr. WISE.If the Federal Parliament chose to legislate upon, say, the education question-and the Constitution gives it no power to legislate in regard to that question-the Ministers for the time being in each state might say-“We are favorable to this law, because we shall get £100,000 a year, or so much a year, from the Federal Government as a subsidy for our schools,” and thus they might wink at a violation of the Constitution, while no one could complain. If this is to be allowed, why should we have these elaborate provisions for the amendment of the Constitution? Why should we not say that the Constitution may be amended in any way that the Ministries of the several colonies may unanimously agree? Why have this provision for a referendum? Why consult the people at all? Why not leave this matter to the Ministers of the day? But the proposal has a more serious aspect, and for that reason only I will ask permission to occupy a few minutes in discussing it.  END QUOTE

This too indicates that Education is a State matter and Commonwealth fuinding cannot be used to interfere and undermine State authority as to education as now is being done.

The (federal) constitution, in which the States in s106 are created, has a principle of separation of powers between the legislators, the executive and the judiciary. Municipal councils clearly have no such doctrine within themselves.

The Framers of the Constitution referred to the “State Government” as being the “Local Government“, and the “Federal Government” being the “central government”. It begs the question; How can “municipal councils” be a “local government” when the State Governments, that is constitutionally, already are their “local governments”?

Also, if “municipal councils” are corporations in some States and in NSW and Queensland now (since 2012) part of the Crown, then how can one elect councils for a State Department, as councils are once they become part of the Crown?

Also, consider the wage and other cost explosions once councillors take the position that they are entitled as Members of Parliament(s), for the same remunerations, perks, etc?

As you are a Senator to represent State interest, I look forwards to hear from you.

This email is very limited in context because it may turn you off if I sent a large volume, but my blog http://www.scrib.com/inspectorrikati has numnerous documents regarding constitutional issues.

For the record, I defeated on 19 July 2006, in the County Court of Victoria, the Commonwealth as to compulsory voting as the Framers of the Constitution held that registration and compulsory voting legislative powers should not be given to the Commonwealth.

 Hansard 8-3-1898 Constitution Convention Debates (Official Record of the Debates of the National Australasian Convention) 
QUOTE Mr. ISAACS.-We want a people’s Constitution, not a lawyers’ Constitution.END QUOTE

Lawyers tend to misinterpret what the true meaning and application of the constitution is about.


Mr G. (Gerrit) H. Schorel-Hlavka O.W.B.

Blog (constitutional issues) http://www.scribd.com/inspectorrikati
Website: http://www.schorel-hlavka.com

Australian Royal Commission into Paedophilia Fails Justice

14 June 2013

Australian Royal Commission into Paedophilia fails any test of justice for the victims, and the test for investigative powers.

Family Court

Family Court (Photo credit: lewisha1990)

Bruce Bell of http://www.realjustice.org has sent a letter on 3rd June 2013 to all Australian politicians, both Labor and Liberal politicians, as well as the Greens and Independents, alerting them to the unpleasant facts that our justice system has failed and is continuing to fail any test for justice for the victims of sexual abuse and the children’s parents by due process in the Family Law courts.

Realjustice.org points out some disturbing facts about corruption in our government and in our courts that is endemic.  Unfortunately though this is not a localised problem restricted to Australia, because late one night several years back the Federal Police held a press conference which was aired on the ABC about 11pm at night, where they declared that the white slave (sex trafficking) trade links went all the way to the United Nations.  Shortly after that Mick Keelty retired from the AFP.  This subject did not get any more media attention, but was rather buried by the press’ propensity to distract our attention with the antics of the Prime Minister, Julia Gillard or the Federal Opposition Leader, Tony Abbott.

This is by no means a small or minor blimp on the radar of what gets passed off as news. The failure of the Royal Commission to investigate the courts leaves gaping holes in our justice system, which is akin to declaring war on the Australian people, while simultaneously demonizing the ‘problem’ of paedophilia to corrupt church officials.

Many people who unofficially are part of the worldwide “Justice Movement” say that Australia is sliding into communism, as is the world sliding into a fascist dictatorship ruled by satanists who sexually molest and murder in the name of a good time.  When peace becomes war and when speaking the truth gets you thrown in jail (gaol) or worse, then you know you live in a fascist state.  John Pilger interviewed a freedom fighter once who said that the people who live under dictatorships had one thing in their favour over their western counterparts, and that was at least the people knew they were being fed propaganda.

Like all corrupt western governments, the Australian government is posing as providing a solution to the problem of paedophilia, while simultaneously creating the problem and protecting the problem by protecting the courts.  Realjustice.org has real evidence of corruption.  Consider the following:

  • Federal and State courts are criminally corrupt, particularly the Family Court;
  • Unsuitable appointees appointed to hear evidence in the Royal Commission;
  • Royal Commission is restricted on who they can investigate;
  • Parents being purposely bankrupted without recourse;
  • Real property being stolen from parents by the courts;
  • External supervision of courts has been dropped;
  • Government refuses to control Administrative Rules of the court (due process);
  • Government is OVER funding departments where children are forced into “care” while simultaneously under funding other departments;
  • Governments are appointing unsuitable people as judges, magistrates and other  high positions;
  • Government are creating and allowing SECRET courts (s 121 of Family Law Act provides up to a year in jail for anyone disclosing an identity of a child (even a dead child) involved in family law proceedings;
  • Government allows Family courts to selectively suppress evidence while allowing hearsay;
  • Government allows Family courts to prohibit parents from using independent, unbiased expert witnesses in their own defence;
  • Government has blessed the Family Court with the status of a superior court, meaning the Family court is as powerful as the Supreme Court of Appeal.
  • Only the High Court can hear appeals from the Family court or disciplinary reviews;
  • Government (ASIO) harasses whistleblowers by interferring with vehicles and communications, including malicious damage.
  • Well known crime writer, Bob Bottom has revealed corrupt police in the drug trade have a symbiotic (mutual business) relationship with the paedophile network;
  • The High Court registry has for at least the past fifteen years been treasonously defying s 75 of the Constitution which requires the High Court to deal with the main categories of errors judges can make, by “losing” filed documents (Mr Thompson’s and Mr K….’s), refusing to file Writs, and refusing to deal with any such Applications for Justice whenever corrupt judges are the defendants;
  • Realjustice.org alleges it has proof in the form of signatures of Justices Bell, Crennan and Keifel on High Court letterhead, where they refused to file Constitutional Writs to rectify illegal child stealing and property theft by labelling the cases “Frivolous and Vexatious”, while ignoring the solid and unrebutted evidence of two boys who had suffered life-long sexual abuse.

Read Bruce Bell’s letter here.

Realjustice.org has requested that the politicians respond by 27 June 2013.  Watch this space for updates.