Governor Sir John Vereker is on a panel probing the World Bank department which investigates fraud.

The review team is reporting to under-fire World Bank president Paul Wolfowitz, who is at the centre of a separate probe into claims he unfairly handed his girlfriend a promotion and lucrative pay package.

Sir John is part of an independent six-man panel reviewing the Department of Institutional Integrity, which investigates allegations of fraud, corruption and coercion within projects financed by the bank, as well as serious staff misconduct.

Former World Bank employee Sir John was asked to sit on the panel due to his vast experience in international development finance.

The team, led by former Federal Reserve chairman Paul Volcker, will meet with World Bank executive directors, senior managers and staff representatives to carry out a comprehensive review of how the department operates.

The review was ordered by the executive board last year after staff members complained over the way the investigations were conducted, and that director Suzanne Folsom caused upset with her heavy-handed style.

Yesterday, the Governor said he was not able to comment because it was agreed only Mr. Volcker would speak to the press.

In a message to World Bank staff earlier this week, Mr. Volcker said the group would “review and evaluate the mandate and authorities, the policies, procedures, practices, independence, reporting lines and oversight mechanisms” related to the department.

A dedicated e-mail address has been made available for staff members who have particular concerns and would like to meet the panel. The final report will be presented in September.

Sir John, who worked for the World Bank from 1970 to 1972, spent eight years running the UK’s Department for International Development.

Due to his long career in the field, he is considered to have an understanding in the impact of corruption and the importance of anti-corruption measures in international development finance.

The Government in Bermuda and the UK have both consented to let him serve on the panel — but Sir John stressed his duties as Governor will always come first. It is the latest in a string of key roles the Governor has been asked to perform since arriving on the Island five years ago.

In 2002, he presented a paper on managing resources for development and the financing of public infrastructure to the Commonwealth Finance Ministers.

Two years later, he played an advisory role in the UN’s Millennium Development Project which aims to tackle global poverty among other goals.

In 2005, he presented a technical paper to the World Bank’s Small States Forum on the possible design of a scheme for insuring small states against natural disasters — a scheme which is now being piloted following a contribution from the Bermuda Government.

Mr. Wolfowitz has faced calls for his resignation from bank staff, the European Parliament, aid groups and politicians, who have attacked his management style and accused him of nepotism.

A probe is investigating whether he violated bank rules in his handling of the 2005 promotion of bank employee Shaha Riza to a high-paying State Department job.