US Features

Divided World Bank wrangles with Wolfowitz's fate

By Tony Czuczka May 8, 2007, 17:45 GMT

World Bank President Paul Wolfowitz attends a news conference with  European Commissioner for Development and Humanitarian Aid Louis Michel (not pictured) at the end of a conference on aid given to developing nations to improve education at the EU Headquarters in Brussels, Belgium, 02 May 2007. Wolfowitz said the bank must follow \'due process\' in its response to accusations about ethics violations.  EPA/OLIVIER HOSLET

World Bank President Paul Wolfowitz attends a news conference with European Commissioner for Development and Humanitarian Aid Louis Michel (not pictured) at the end of a conference on aid given to developing nations to improve education at the EU Headquarters in Brussels, Belgium, 02 May 2007. Wolfowitz said the bank must follow \'due process\' in its response to accusations about ethics violations. EPA/OLIVIER HOSLET

Washington - A trans-Atlantic power struggle over World Bank President Paul Wolfowitz's fate may be coming to a head after an internal probe reportedly found him guilty of breaching ethics rules.

Attention is expected to shift this week to the bank's board of directors, which ordered the investigation and could vote to oust the former US deputy defence secretary from his post.

But a source close to the 24-member board said the body is split over how far to push the confrontation with Wolfowitz, a key architect of the Iraq war who is vocally opposed by key European countries but has kept US support.

In the search for a face-saving deal, European governments signalled they would let the US choose the bank's next chief if Wolfowitz stepped down, the New York Times reported Tuesday.

The US has chosen the bank's heads since its founding in 1944, but this year's crisis has prompted calls by aid groups and others to dump that tradition. The US is the development lender's biggest shareholder, but could be outvoted by a broad front of opponents.

At issue is a promotion and pay raise that Wolfowitz arranged for his World Bank-employed girlfriend three months after he became the bank's president in June 2005.

Under the deal, Shaha Riza was loaned to the US State Department to avoid a potential conflict of interest, but kept on the bank's payroll.

Wolfowitz, who was nominated by US President George W Bush, has denied wrongdoing, accused his foes of a smear campaign and insisted he will not quit under an ethics cloud. He says the bank's ethics committee was aware of the Riza arrangement.

But a seven-member committee investigating Wolfowitz's leadership at the bank concluded that he violated ethics rules with the deal, media reports said Monday.

Wolfowitz has received a copy and will be allowed to respond before the report goes to the World Bank's board, Bloomberg News reported.

Wolfowitz's top public relations aide at the bank announced his resignation Monday.

Kevin Kellems, a former spokesman for US Vice President Dick Cheney, came to the bank with Wolfowitz in 2005 and has drawn the ire of bank staffers upset with his senior appointments.

The ethics scandal has sowed turmoil and paralysed the bank's work over the past month. The board, which represents the 185 member countries, is also looking into Wolfowitz's choices for senior posts.

These include Kellems and Wolfowitz's counsellor Robin Cleveland, previously a senior official at the White House Office of Management and Budget.

Critics accuse Wolfowitz of installing senior officials in an attempt to promote Bush administration policies on issues such as Iraq and birth control through the World Bank.

© 2007 dpa - Deutsche Presse-Agentur


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Get rid of itMay 8th, 2007 - 18:21:55

How embarrassing; yet another republican buddy of Bush going down in flames. I keep wondering what has to happen in order for ignorant republicans to finally confront their leadership. To me, this is just another example of the republican red pillaging our country. Keep the rich rich, and the poor poor. It's one of the oldest tactics around.

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DCMay 8th, 2007 - 18:41:43

The world view of the idiots (like SP4) still blindly cheer-leading Bush and his cronies, is so distorted, enlightenment will never happen. Fortunately sanity has already started to prevail. Democracy in the US is far from perfect because too few people care about what is happening (or are too stupid to understand). But eventually the populace will get it right leaving the idiots (like SP4) in irrelevancy.

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Shirley StewartMay 8th, 2007 - 18:49:13

After watching the obvious lies by Gonzales, Bush is still supporting him. Now this man obviously used his position to not only help his girlfriend but also two Republicans from the White House were hired at exhorbitant salaries. If this proves nothing else it proves that George W Bush has no moral compass and he doesn't care who knows it. As long as he and his friends get richer and they can help their friends get richer all is right in his world.

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EM IshimineMay 8th, 2007 - 19:26:41

The World Bank does not need a man like him. If it wasn't for him the our ex-secretary of defense, the USA would not have been in this mess today. Both of them shunned Chief of Staff General Shinseki's advice about how the war should planned out before congress. This resulted in Shinseki's early retirement and USA entering the Iraq war using ill advised strategy.

Our President would have been a hero today had he listened and followed the advice of Shinseki instead of Wolfowitz. Many of our young men could have still been alive today.

Get rid of him, he is only trouble. The only Army he can lead is maybe the Salvation Army.

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tonny from belgiumMay 8th, 2007 - 20:55:10

not to worry aboyt wolfowitz anymore,here today gone tomorrow.No worries.He is bound to be ousted in less than 24 jours.

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It's Time For Wolfowitz To Go!May 8th, 2007 - 21:52:34

How does this administration stand behind Wolfowitz when he has been caught so grevioulsy abusing his power? Its time that Mr. Bush set aside his cronyism and consider the image such blind loyalty sends to the world.
Mr. Wolfowitz came to the World Bank in vocal criticism of the corruption and ennabling posture that the bank had been accused of. He disregarded the rank and file and surrounded himself with his own cabal of cronies to fix the problem. Instead he gets caught demonstrating how corruption works on high. If America is to hold on to a smidgeon of the image it once had of standing for fairness, the Administration will sacrifice Wolfowitz and try to act like the leader it says it is.

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MICKMay 8th, 2007 - 23:05:47

It would be interieting to see the US's responce if Kofi Anan was caught trying to get laid on UN money

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JorgeMay 9th, 2007 - 04:35:32

Jeez Mick . . . can't spell and your facts are wrong. The raise was at the State Dept job. Where is Al Sharpton when you need him?

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question.allMay 9th, 2007 - 04:38:07

i understand that if wolfie holds on untill the first of june then he gets a four hundred thousand dollar bonus. then he can withdraw honorably. this is soooo strange.

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to hell with wolfowitzMay 11th, 2007 - 02:40:08

i really want him to get fired and his image crapped on. i dont have enough middle fingers to extend towards him.

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