I used to be an editor at DMOZ which is the largest website directory on the web. It lists about 5 million sites in half a million categories. Even though it is owned by AOL, it is run by an army of volunteers. Webmasters want to get their websites listed in DMOZ because of a belief (which may or may not be true) that being listed in DMOZ helps a site rank well in the search engines. Because of that belief, there is a lot of angst from webmasters sites who make all sorts of allegations about corruption at DMOZ and that are why they cannot get listed. In my time as an editor of came across nothing that could be construed as corruption or favouritism. There probably is some but is probably so insignificant and does not warrant mentioning. All those making these claims in SEO forums about it, never provide any evidence to support their allegations. Why is that?
These links may help understand it some more: