World Bank President Wolfowitz at the centre of a corruption scandal

[Don Rizzle]

Pressure grows on World Bank boss
 
Wolfowitz's apology 
The executive board of the World Bank has said it did not approve a hefty pay rise ordered by its president Paul Wolfowitz for his partner.
Mr Wolfowitz has faced calls to resign after admitting he helped his partner Shaha Riza win a promotion to a high-paying job at the World Bank.

The board of the international lender earlier adjourned a day-long meeting held to consider Mr Wolfowitz's future.

Mr Wolfowitz has apologised for his handling of the situation.

But the scandal has weakened him at a time when he is facing controversy over an anti-corruption drive that has led to the suspension of aid to some countries.

'Possible actions'


 The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank
Alison Cave, World Bank staff association representative
 

In a statement, the World Bank's board said it had never given its approval for a wage rise for Ms Riza ordered by Mr Wolfowitz, despite claims to the contrary by the World Bank president.

The board said the World Bank's ethics committee "had not been involved in the discussions with the concerned member of staff".

"The executive directors will move expeditiously to reach a conclusion on possible actions to take," the board added.

Ms Riza's promotion and pay rise has attracted strong criticism from staff within the bank.

Ms Riza, who remains a World Bank employee, was moved to the US state department on secondment when Mr Wolfowitz took the World Bank's top job in 2005.

Mr Wolfowitz - a former US deputy secretary of defence - at first denied that he was involved in the decision about her salary.

"In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations. I made a mistake, for which I am sorry," Mr Wolfowitz said.

He said he had been in "uncharted waters" in his new job and would follow the recommendations proposed by the board.

'Blatant hypocrisy'

The bank's staff association said the pay rises and promotions Ms Riza received were "grossly out of line" with the World Bank's staff rules.

"The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group," said staff association representative Alison Cave.

She added that his actions had destroyed the staff's trust in his leadership.

In an editorial, Britain's Financial Times newspaper called for Wolfowitz to step down.

"If the president stays, (the World Bank) risks becoming an object not of respect, but of scorn, and its campaign in favour of good governance not a believable struggle, but blatant hypocrisy," it said.

Ms Riza had been a high-ranking communications employee at the bank working in the Middle East section.

When Mr Wolfowitz took over at the bank in mid-2005, Ms Riza - then a World Bank employee for eight years - was transferred to work for the US state department, to avoid any conflict of interest.

But rapid rises in her tax-free World Bank salary to about $193,000 - more than the $186,000 Secretary of State Condoleezza Rice receives before tax - have aroused ire among other bank employees.

Aid

The controversy comes ahead of joint World Bank and IMF spring meetings.

While facing press questions about the case, Mr Wolfowitz has tried to shift focus back to the bank's remit of fighting global poverty.

He said the world's richest nations had given 5% less aid over the past 12 months.

"We have yet to see evidence of significant new flows translate into real resources for development programmes on the ground," he said.

Ministers and trade leaders from the 185-nation organisation are to meet on Saturday and Sunday in Washington.

The agenda will include issues including fighting diseases and the state of the world economy.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/6550995.stm

Published: 2007/04/13 10:26:52 GMT

[7even]

Terrific news!

Well, the Wolfowitz-getting-fucked-part of it, not the rest.

[virtuoso]

Lol nevermind the fact that the IMF and world bank install dictators to blow out developing economies then, this is the big scandal to be concerned about instead priceless media BS.

[TraceOneInfinite]

This guy is another prominent Jewish man in power who has great power to influence policy and either reward or bring harm to a large number of people through economic means. 

[Don Rizzle]

Lol nevermind the fact that the IMF and world bank install dictators to blow out developing economies then, this is the big scandal to be concerned about instead priceless media BS.

lol is there anything in this world you have a positive view about?

[LyRiCaL_G]

This guy is another prominent Jewish man in power who has great power to influence policy and either reward or bring harm to a large number of people through economic means. 

LMAO.....homie!! smile, look up once in a while! haha....i mean your probably smiling while your posting that news...but really, try being a lil mo positive man!