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Pressure grows on World Bank boss | Pressure grows on World Bank boss |
(10 minutes later) | |
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. | 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. | 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. | 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. | 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. | 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' | '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 href="/1/hi/business/6551901.stm">Wolfowitz statement class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=6034&edition=1">World Bank: Have Your Say | |
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. | 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 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. | "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'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. | 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. | 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. | "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. | He said he had been in "uncharted waters" in his new job and would follow the recommendations proposed by the board. |
'Blatant hypocrisy' | '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 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. | "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. | 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. | 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. | "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. | 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. | 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. | 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 | Aid |
The controversy comes ahead of joint World Bank and IMF spring meetings. | 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. | 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. | 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. | "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. | 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. | The agenda will include issues including fighting diseases and the state of the world economy. |