Gary Duncan, Economics Editor, Washington
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Paul Wolfowitz, the president of the World Bank, was fighting for his job today after he was forced to make a humiliating apology over ordering a pay rise and a promotion for a bank official, Shaha Riza, who is his girlfriend.
The board of the World Bank met in Washington this morning to discuss the fate of Mr Wolfowitz, the controversial former US Deputy Defence Secretary, amid mounting speculation that he could be forced to resign, or even be sacked, in what would be an unprecedented move.
The World Bank president said he would “accept any remedies” proposed by the institution’s directors, representing its 185 member countries, after he admitted his personal involvement in the pay rise and promotion for his partner.
A chastened and nervous Mr Wolfowitz told a packed press conference: “I made a mistake, for which I am sorry.”
Earlier, it was revealed that he had directly intervened in the arrangements for Ms Riza’s transfer to the US State Department in mid-2005 to avoid a conflict of interest after his contentious appointment as president of the Bank at the behest of the Bush White House. Under World Bank rules, staff are banned for working under a colleague with whom they are romantically involved.
Detailed emerged of a memorandum from Mr Wolfowitz instructing the bank’s head of human resources, Xavier Coll, over the terms for Ms Razi’s secondment, and which led to her being given an exceptional salary increase and enhanced annual pay awards, which raised her earnings to $193,000 a year – an overall rise of $61,000. The memo also set out arrangements for her promotion.
Today, the bank’s staff association, which claims the terms of Ms Razi’s assignment broke its rules, called for full release of all the documents related to the affair.
World Bank embarrassment over the disclosures was compounded as Mr Wolfowitz has come under heavy fire from governments and campaigners after pushing good governance and anti-corruption efforts in poor nations to the forefront of the agenda of the world’s most important development institution.
Mr Wolfowitz told reporters: “In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations.”
He insisted that he had acted throughout in good faith, seeking advice in “extensive discussions” with the chairman of the World Bank’s Ethics Committee over how the handle the conflict of interest over his girlfriend’s role.
He had sought advice because he was concerned over an “unprecedented and exceptional” situation over Mr Razi’s “involuntary reassignment”.
“I believed there was a legal risk if this was not resolved by mutual agreement,” he said. “I did not attempt to hide my actions nor make anyone else responsible.”
He made a plea for understanding: “Not only was this a painful personal dilemma, but I also had to deal with it when I was new to this institution, and I was trying to navigate in uncharted waters.”
He added: “In the larger scheme of things, we have much more important work to focus on.”
WOLFOWITZ’S WOES
Appointment as World Bank president came amid controversy over the continuation of a global “gentlemen’s agreement” that the post always goes to an American with the White House selecting a candidate.
The choice of Mr Wolfowitz, previously US Deputy Defence Secretary, sparked a row amid objections to his role as a key architect of the Bush Administration’s decision to invade Iraq.
His tenure at the helm of the bank has brought mounting criticism of his heavy emphasis on action against corruption in developing nations and accusations that he has attempted to serve US interests.
He has faced charges that he has surrounded himself with a small band of American acolytes, who have prevented him hearing a wider range of advice from experience bank staff.
Last September, Hilary Benn, Britain’s International Development Secretary, threatened to withhold $50 million of UK funding for the bank in protest over Mr Wolfowitz’s policies on corruption and the conditions for bank lending to poor countries.
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Let's wait for the next explanation from Wolfie : that he did it in order to fight terror, promote democracy and spread good governance.
Ronnie, Paris,
It goes to show that no matter how well intentioned the organisation, there is no limit to the nepotism of some executives. Iraq war equals karma for this sleaze.
Jez, Melbourne, Australia
It's the corruption in the developing world which is shocking, not the nepotism and cronyism of the US (moral, christian )leadership!
Acharya, Bangalore, India
Another creep for Bush. It's surprising to learn one of them was motivated by sex.
I guess being heavily personally responsible for the rape of Iraq wasn't enough for "Wolfie."
Terry, Albuquerque, USA
There is no better way to say what has already been said by these scholarly individuals except to echo the fact that Wolfowitz's actions displays that American Arrogance has no comparison.
Emil, BELIZE,
Oh, I did not know that the president of the World Bank had to be an American appointed by the White House. According to the declarations of Richard Pearl in a recent program in the Netherlands on the Jewsih Lobby, (in which 50 American senators invited refused to comment), the translation of the rule is that the president of the World Bank is appointed by the Jewish lobby.
And it is clear that the real winner of the Irak war is Israel, who has Saddam 10 times closer than the US, and got rid of the main promoter of suicide bombings in Israel through his compensation of victims' families. I hope America will recuperate freedom of speech soon. It won't be easy.
Don Quixote, Netherland,
It's just one embarrassment after another this country. If I am not mistaken, one of the major functions of the World Bank is discourage corruption in developing countries, and for the US to appoint an agent of sleaze as its head is truly absurd and shameful.
Patrick, Potrero, California/USA
Perhaps Wolfowitz will also now apologise for being a key architect behind the disasterous Iraq adventure.
joe, london,
Makes me sick... What a disgrace.
tata, Phoenix, AZ
More important things to focus on? Larger scheme of things? Presumably corruption in impoverished countries? How can we continue to place our trust in our own corrupt officials?
A fifty percent pay raise - everyone would like that. Didn't she do well.
If he survives this then the world bank will have no credibility AT ALL.
Where are the days when people who were caught cheating the system and manipulating it to their own needs just RESIGNED. He has enough friends to look after him.
What an example to our young.
Winston Churchill would say that we have here a "Wolf in wolf's clothing."
Disgusted.
Nathanielsz, San Antonio, Texas
Isn't anyone going to defend Mr. Wolfowitz (or at least try to)? Come on, I don't believe that there isn't at least one person out there who doesn't think this isn't a serious enough breach of trust to warrant immediate termination. Perhaps this actually shows some redeeming quality. He did, after all, confess, didn't he?
This is a perfect example of how people can preach morality from the highest pulpit (when it applies to others, of course), but when it comes to their own actions, there is a considerable moral deficiency.
Goodbye, Wolfie. Next!
Stephen Ghantous, Outremont, QC, Canada
I can only pray that, maybe, this house of cards if finally coming down. I would have found it appalling if Bush had received 5% of the vote in the USA much less almost 50%. I can only attribute this to greed and the promise of tax cuts.
I can only hope that our citizens will wake up to the idea that there are some things in this world more important than their pocketbooks.
Michael O'Neal, Desert Hot Springs, California
This guy should not stop at just apology. The right thing is to apologize and resign. He wanted to set governance and anti corruption when he was himself involved in corruption himself. There is no way he can lead this or any other organization. Who is going to trust such a leader at the helm of a top Bank that affects so many people's lives.
john, milpitas, ca/usa
Wolfowitz, like all of the Bushies, thinks that cronyism is the natural order of things.
He has been one of the most vocal proponets for the worst foreign policy choices in US history and because he is "in line" with the administration, instead of being fired or admonished he will probably receive the typical Bush endorsement "I think Paul is doing a terrific job. He is a great public servant." While the rest of the world scratches its collective heads in wonder and we continue to posture about how other nations should conduct themselves.
Jeff Tuttle, Oceanside, Ca.
Mr. Wolfowitz must go!
Klaus Kaufmann, Vancouver, BC
I made a mistake, for which I am sorry. translating this from AmericaSpeak (very similar to newspeak in 1984) into normal English it *actually* means "I made a mistake, for which I am sorry I got found out".
Dave Green, Auckland, New Zealand
This should surprise no one, as The Wolf has long been part of the American Neo-Condrethal Cabal and was principal architect of their destiny manifesto, 'Strategy for U.S. Global Dominance'. But then, with mentors like Chaney and Rumsfeld... pithy apologias in the face of ruthless malfeasance have become de rigueur amongst the Righteous.
Jack Robinson, London, Ontario, Canada
One who has not sinned should have cast the first stone.
Madhu Mehta, Thimphu, Bhutan
Aren't we in the USA proud of our great leaders! Just one more example of the low standards for performance American politicos set for themselves.
Carol Traut, Odessa, tx
This behavior is typical of Bush administration neocons. They are above the rules, or so they think. Wolfowitz helped start a war based on lies and fabrications. He should have a job emptying latrines at an army base, or better yet emptying bedpans at a military hospital, not running around the world dispensing largesse.
The mighty always fall over the small things; if this is what it takes to demote Wolfie to his deserved position in life, so be it.
Jim Houghton, Los Angeles, USA
The only reason Wolfie is sorry is because he got caught. The hypocrisy he brought with him from the Axis of Arrogance White House hasn't diminished one iota.
He should be banned to Baghdad, to live among the misery and havoc he helped create!
Walt Clayton, LAS VEGAS , NV
It is a disgrace to the U.S. Administration that people working in such high levels stoop so low for their personal gains! Wolfowitz should resign gracefully and exit! If not, the World Bank shoud fire him!
V Srinivasan, Dallas, , Texas, U.S.A.
i have always distrusted these American dominated so-called international institutions. This incident shows, how they are corrupted from head to toes. Developing countries can be much better of if they have no relations with these rotten instruments of neocolonialism.
sivanesan, Vancouver, Canada
Mr. Paul Wolfowitz was bad in his previous job and it is obvious to be the same in his present job. Changing jobs does not change the behaviour of bad guys.
Dr. G. Shannan, Damascus, Syria
I'm not surprised, these guys all think they are above the law. He was one of the ones pushing the illegal invasion of Iraq wasn't he?
Laurie, Hawaii, US