Tim Reid in Washington
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Paul Wolfowitz resigned as president of the World Bank last night, ending weeks of turmoil over the lavish pay rise he arranged for his girlfriend that triggered the worst crisis in the institution’s history.
Mr Wolfowitz’s departure was announced by the Bank’s 24-member board, which had spent two days negotiating a “face-saving” deal for the embattled president, after an ethics panel found him guilty on Monday of breaking institution rules over the $50,000 (£25,000) a year, tax-free pay rise he negotiated for Shaha Riza, his British-born girlfriend.
In a statement released by the board, Mr Wolfowitz, the former US deputy Defence Secretary and a controversial World Bank head after his role as one of the chief architects of the Iraq war, said that he would resign on June 30.
In its statement, the board appeared to fall short of Mr Wolfowitz’s demands of the past 48 hours that he be exonerated by the Bank before he agreed to go, in particular his request that the institution took partial responsibility for poor advice given to Mr Wolfowitz before he dictated the terms of Ms Riza’s pay rise.
“He assured us that he acted ethically and in good faith in what he believed were the best interests of the institution and we accept that,” the board said in its announcement of Mr Wolfowitz’s resignation. But it did concede that the advice given to Mr Wolfowitz was “not a model of clarity”.
Mr Wolfowitz said in his statement: “The poorest people in the world . . . deserve the very best we can deliver. Now it is necessary to find a way to move forward.” He said he was pleased the bank had accepted his assurance that he had acted ethically and in good faith.
The deal means that the board, which in the Bank’s 63-year history has never dismissed a president, did not have to put Mr Wolfowitz’s fate to a vote. Several European nations, particularly Britain, were thus spared having to publicly wield the knife against a close ally of President Bush.
Until Monday Mr Bush had refused to budge on the question of Mr Wolfowitz. The US President, and many US conservatives, viewed the fate of Mr Wolfowitz as a proxy battle — fuelled by European anti-Americanism — against the Administration’s policies.
But Mr Bush, during a White House press conference with Tony Blair hours before Mr Wolfowitz’s announcement, made clear that he could no longer save him. “I regret that it’s come to this,” he said.
The US has traditionally chosen the head of the World Bank, and there were signs last night that part of the deal — despite recent calls by European members that the practice should end — would allow Washington to choose Mr Wolfowitz’s successor.
Henry Paulson, the US Treasury Secretary, said that it was important for an American to continue to be appointed World Bank president. Early speculation on US candidates centred on Robert Kimmitt, the Deputy Treasury Secretary, and Robert Zoellick, the former Deputy Secretary of State.
Mr Wolfowitz dictated the terms of his girlfriend’s pay rise, but maintained in an impassioned plea before the board on Monday night that he intervened in her job status only after being requested by the bank’s ethics committee, and after he had sought its advice on how he should act.
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looks like the bushies are starting to get picked off one by one with cheney-like precision for their misdeeds and ineptitude. it's like getting capone on tax evasion, you know he's done way worse stuff, but at least you got him on something.
jake, oak park, illinois
So what happens to the woman? does she get to keep her job? While she doesn't seem at fault so far except for her poor choice of men, she does not deserve to get that kind of pay either
Cherie, Kaysville, Utah
Sorry, but how did he not realise that his actions did not contravene the ethics policy, in any other business he should have been dismissed for such an obvious breech on code of conduct.
but aparently politics intervened and made one rule for them and another for us. so why was he allowed to resign while "the bank admitted he was poorly advised" maybe he should be investigated for bringing the bank into disrepute?
Ben, folkestone, UK
First, lets deal with the issue of why an American should run the World Bank. This dates back to Bretton Woods when Europe and America agreed that the former would nominate the head of the IMF and the Americans would nominate the President of the Bank. If the Wolfowitz fiasco brings this practice into question that can only be a good thing.
Secondly, Bank literature repeatedly condemns corruption and nepotism in the developing states and the Bank is involved in governance programmes that are supposed to combat state corruption in the Third World. Wolfowitz's apparent involvement in nepotism made the Bank's claims to moral authority in this area look ridiculous. It was an amazing piece of effrontery that he tried to weather this storm given the circumstances. But does the rot stop with Wolfowitz or does it reflect a wider malaise in the Bank? If the Bank wishes to lecture others on open, honest and accountable governance let it prove that it observes those principles itself.
Trevor Parfitt, London, UK
there are enough masters of the universe now to establish a wall street boutique: , rumfsfeld, wolfowitz, perle, feith, lybby - waiting for gonzalez to join them
eric, Lucerne, switzerland
Of course it will Doug. Listen to the facts. The European anti-American side of the board gave Wolfowitz the advice he asked for, and they used it against him to slit his throat by trying to mislead people through a false media blitz. The President has always had the right to hire and fire people, at the will of the WBO's board membership. And Wolfowitz did exactly that. The only crime here is watching the socialists try to defraud poor people all around the world, again. And doing so by relying on the extreme ignorance portayed with the media corporations. And they do it well. Sorry Africa, better luck next century.
Joel, Breckenridge, TX
As the architect of the failed Iraq war and as the architect of an incredibly bad mistake at the World Bank Wolfowitz has two strikes against him. Will his next(sure to come soon) mistake result in life in exile under the common three strike law in the US. Perhaps he will be incarcerated in the Washington Democratic Party control of the Capitol.
Richie in Canada, Qualicum Beach, British Columbia
I very much doubt the interests of the poorest people in the world were at the forefront of Wolfowitz's mind when he was negotiating a pay rise of such magnitude for his girlfriend. The worlds poorest deserve a better person than Paul Wolfowitz to help them out.
Rob Hicks, Johannesburg, South Africa
At last, he has done the decent thing...resigned. How dare he believe that the bank should take some responsibility. He was the President of the World Bank, he has to be seen and behave above anybody else with morals. Also why, oh why, should the US say who becomes President of the World Bank. The clue is there, it is the World Bank, why does America think that it has a right to dictate who does what everywhere in the world? It is not anti-Americanism but perhaps they should ask themselves the question 'where are we going wrong?' as they are having so much backlash around the world by their actions. Britain should be strong enough, once and for all to stand up and say enough is enough, on many issues and not stand beside the American flag and believe that all her people feel the same. The world desperately needs true visionary leaders, there are enough who are 'feathering their own nests', for once look at the devastation around you and start LEADING.
Gail Windsor, Dubai, UAE
All Wolfowitz did was reveal clearly his personal and professional ethics.
He has none.
It said Bush is considering Blair.
Can't they get an honest man for this job?
John Chuckman, Toronto, Canada
For once the World Bank had a reasonable and decent person as president. Those of us in the Third World realized that the bank had changed it's approach to dealing with our governments. Just in case y'all first worlder's didn't know, the bank was a barefaced liar, creating conditions for aid that almost always were altered just at the time the conditions were met. Under Wolfowitz if the bank told you you would get aid at point x, then at that point x you were certain to get aid. Sad, the ignoramuses had their way.
Dan, Thika, KENYA
I hope the President of the United States makes a better/more competent choice to the World Bank. Leadership of all forms requires "right minded" people w/proven ability in the field of leadership they assume. Cronyism simply doesn't "cut the mustard".
PTSweet, Canandaigua, New York/USA
I think that President Bush should honor Wolfowitz like he has done with others with the Medal of Freedom.
Of course, the meaning of the medal has changed somewhat from its original intention, and become the medal of freedom from any moral compass or ethical restraint.
Wolfowitz has earned it quite well, and maybe he and his girlfried can share it at night as she rolls in the tax fee $50,000 (£25,000) a year pay raise.
Notice that nobody is suggesting the raise be rolled back, even it it was an under the table deal?
John Brady, San Luis Obispo, USA/California
WHO decided that the president of the WB had to come out of the US....there's the first big mistake! Like all the other cock ups they make when they are 'in charge' - whose surprised???
Chris bruce, Brisbane,
All very well to say it was partly their fault, but he didn't need to ask them what was ok and what not, he knew but thought he could get away with it. Had he gotten her a job elsewhere, this would not have been happening. He should have been avoiding at least the appearance of impropriety but probably figured as a loyal Bushie he would be safe. It's getting late in the game for that assumption though....
Linda, Albany NY,
If the World Bank's charter is to help poor and developing countries, why is Wolfowitz getting a $500,000.00 severance package? is this a reward for incompetance, corneyism, Bushism and other isms?
who's money pays that?
oskar , san diego, CA
I think the only thing left for Mr Wolfowitz to do to complete his image is to be found clubbing baby seals. But seriously... He has already driven US foreign policy (and posibly the world!) into chaos, and he has shown his true colors as a 'fighter against corruption' in the World Bank....what is his now to do? God help us.
Tony, NY, NY, USA
It is easy to criticise President Bush for standing up for his embattled supporters. I for one, would love to have a boss who so strongly, and at personal cost , supports me even when I make mistakes.
Every one of you would love that support as well. I admire President Bush for his steadfast support of people he trusts and depends on, even when thay make mistakes.
Rob, Chicago, IL
Wolfowitz has no qualifications for the job, and was not deserving of the 'plum' reward for his horrific and selfish promotion of the Iraq war. Bush should go with him.
Al Rossi, Thomaston, CT
What about the U.S. taxpayer?
We're so focused on the world bank side of the scandal that we forget the U.S state department side... Is it OK that the state department take instructions from Wolfowitz to hire his girlfriend, pay inflated wages and raises?
Are there no ethics guidelines at the state Department?
Does anyone care how the US looks to the world?
Burt Faure, New York, NY
The fact that he tried to hold his position shows he should not have been in the post in the first place, something that many realised and showed more bad judgement on the part of the Bush administration.
Andy B, London, UK
I have never found anything admiral about Wolfowitz and I am not surprised his arrogance and attitude have finally brought censure. How GWB can defend this man is beyond me. Is there something in the water in Texas that makes them believe "loyalty above all else"?
Robert L. Hime, Sarasota, FL
The Wold Bank excepted his assurance that he acted in the institutes best interest... hmm. An institution that helps the worlds poor and he hooks his girl friend up with an upgrade position and 50,000. free and clear, then they take in part responsibility for not telling him what he was about to do was wrong... This is a soft institute. Hey Wolfowitz,way to stand up like a man! we don't need anymore leaders who can't account for their actions.
nico Alba, los Angeles, usa
Maybe I"m naive, but why does the US always get to pick the World Bank presidents? I'm sure there are candidates elsewhere that as just as qualified...
Linda, Winnipeg, CA - formerly US
First - Jerry, Vancouver. Read and learn about the UN. Zou still have time. Second, It seems a lot of ignorant commentators here, have either not read, or have ignored the whole story. His "girlfriend" was doing a good job, but US law, or PC thinking, now has it that relationships between people in organisations is NOT ALLOWED... so hard luck to the one that was installed rightfully in a job. Sorry you have to go. So not unreasonably she negotiates a move. Wolfowitz was daft to get involved, but come on. She is being demonised for his involvement in the run up to what a lot believe was an illegal invasion (question -are not 99% ). It has NOTHING whatsover to do with Iraq. Get off your high moral horses. signed, An Englishman, fair and free...
HUBBLE , France,
Your take is quite different from the Wall Street Journal's and even from the Washington Post's. It was clear that he originally brought the conflict of interest to the bank's attention but was asked to handle the problem anyway, and did. Then, later, it became an "ethical" problem, seemingly in hindsight. I can't help thinking that disagreement with his management style or his politics or both was behind the furor. But I hope the next bank president is equally committed to reducing the amount of money invested in Africa ending up in the wrong hands.
Kevin McCarthy, Vienna, Virginia
Know that Mr. Wolfowitz has resigned can the world expect Mr. Cheny yo also resign.
Rene Aramayo, San Sebastian, Spain
more evidence we would have been better off with Bono as president of the World Bank.
james, philadelphia , pa/usa
Paul Wolfowitz was doing good work at the WB; it's just a shame he is being personally attacked and tried for perceived "war crimes" in his role as a key architect to redefine the Middle East. Despite mismanagement and missteps, it was a good plan. Had it worked, we'd all be in a better place.
However, we definitely need another American to run the show at the WB. Too much at stake to risk the leadership/direction falliing into the hands of an outsider.
J. Randoph, Washington, D.C.
To get to be President of an International Institution where politics is the name of the game... the person who gets appointed needs to be savvy, cunning, wise, apparently fair and dignified. I guess Mr. Wolfowitz was none.
ian platovsky, rancho santa fe, USA
Bush always backs the loosers including Gonzales who also should have also gone long ago.
I used to like the Republicans but Bush has made sure a Democrat will win in 2008.
He will go down in history as one of the worst presidents ever.
gerard blitz, Hong Kong,
Wolfowitz and his dragon lady deserve each other. A bad man brought down by an evil woman. No one seems really concerned that he is implicit, as an architect, in the war crimes of the present Anglo American wars. That judgement still awaits.
oldasiahand, Guildford, UK
Pity that Dr Wolfowitz messed up so badly. Let's hope that this is not used as an excuse to let the World Bank return to it's days of being very cozy with corrupt regimes.
Doug, Glasgow,
Agenda Jerry: It's the World Bank, not the UN.
Alan Roche, London,
Wolfowitz is the prototypical Bush aide who encapsulates all that is wrong with the White House: incompetence, devious, self-serving corruption and monumental arrogance. The World Bank can well do wihout this shameless wolf at its door!
Vernon Ram, Hong Kong, SAR China
we can't take it for granted that Mr Wolfowitz did not take the major role in his girlfriend' pay, it's evident that he deserves his resignation, and it is not for the war in irak..., money, power, that's what the core of the situation is about.
Marie, Noisy le Grand,
Unrepentant to the last, and continuing the Bush Administration's passion for Goebbelsian grandstanding and denial of plain fact.
Monty Goel, Calcutta, India
at first the thought of Wolfowitz trying to share blame with the World Bank reeks of selfishness. i thought only the young generation would refuse to accept full resposibility for their actions. i read some other articles where they pointed out Shaha Riza's good points. what would have happened if the 50K payrise was not approved? would she leave the world bank? does the world bank lack equally capable people to replace her? can she get another job with the same benefits? it seems like the only logical reason wolfowitz agreed to support the pay raise was a political one - the US probably need someone like Shaha Riza for their middle-east policies
Chi Hian, Kuala Lumpur, Malaysia
There is no doubt that he had to go, cannot understand
how he could hang around for so long. I expect his girl
friend will still retain her new job plus the big salary rise.
Barry Holmes, Christchurch, New Zealand
I think it is about time to forget the buddy system and hire John Brown to lead the world bank.
If he could be as successful as he was with BP I am sure there would be a lot of improvements,
He has lots of experience with world and global affairs.
sadelsor, Hong Kong, China
It is extremely difficult if not impossible to feel sorry for Wolfowitz. The man deserves it. It is an indirect punishment for the "architect " of the Iraq invasion that has brought so much deaths, destruction, and misery to thousands in Iraq. There is a God after all. Who is next in line for HIS retribution? I have a sundry list.
Enceef, Richmond, Canada
He was a fairly good World Bank chief, sharpening up the organisation's aid policies and delivery mechanims.
He is being unfairly victimised. This issue is used to get at him. The main unlying issues is that he was one of the architects of the unpopular Iraq war.
He avoided a conflict of interest at the bank by transferring his girlfriend out. What happens at the State Department particularly in relations to recruitment and pay issues is not his decision.
I never imagined a fighter like him would RESIGN. I was expecting him to fight and fight and fight and the controversy to eventually blow over.
abraham, bandar seri begawan, brunei
It's ironic that the Wolf's resignation came while tony Blair was in town. Could it be that your PM gave some final help to Bush? If that is the case I would like to say Thank You!
Ken McLaughlin, Tulsa, OK
Not to be too pedantic, but Shaha Riza is actually Libyan-born.
Timothy White, Oxford, UK
he is not the only one, he just got caught. lining your pockets is #1 at the u.n. disband this body !!! corrupt throu out . human rights etc etc.
jerry, vancouver, bc canada
Now that he has gone and that the World Bank is reaffirming very strong governance principles, the Bank has no choice but to forcefully apply these recently re-discovered principles both within the Bank itself and in its relations with countries and governments. For some reason I am not optimistic, but I wish I were wrong.
Francois conil, Pau, France
HIP ,HIP, HIP Hooray!!!
CONCEIT and DECEIT. Sadly this man epitomises the arrogant abuse and disregard for morality that pervades the current American Administration. Will he have the decency to marry the woman and make her respectable??
She's seen him at his best, so she won't....
John Tee., Lagos, Portugal
Saving face should be the least of Wolfowitz's concerns. How to explain all the blood on his hands when he meets his maker is his number one problem.
chasemonster, Chicago, Illinois