Many European powers had expressed their desire to see Wolfowitz leave the World Bank when the scandal broke last week.
NEW DELHI/WASHINGTON DC: Paul Wolfowitz, the World Bank president, is likely to be advised to resign by the bank’s board of directors. The board was scheduled to meet on Thursday afternoon in Washington to formally settle the issue.
On Wednesday, Wolfowitz — accused of being considerate to a staff member who was his lover—was asked to step down by Greame Wheeler, a managing director of the bank. Sources said the act represented an unprecedented event in the bank.
Some senior vice presidents of the bank have supported Wheeler’s call. Many European powers had expressed their desire to see Wolfowitz leave the World Bank when the scandal broke last week.
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But Wheeler’s unambiguous counselling is being termed by bank sources as “historic”. Wheeler, from New Zealand, is the senior-most official under Wolfowitz. Thursday’s meeting of the bank’s 24 directors was expected to endorse Wheeler’s recommendation.
The board meets every Tuesday and Thursday to take stock of the bank’s management and performance on development projects around the world. But this meeting was expected to be dominated by the Wolfowitz affair, a senior bank official said.
Wolfowitz’s favouritism towards Shaha Riza - the bank’s former communications officer - and his authorisation to appoint supporters of Republican policies in key positions is detailed in the complaints made by employees. Some official exchanges also list the charges. The documents are in DNA’s possession.
Wolfowitz had granted Riza a hefty hike and a promotion as she moved to the US State Department. Her relocation, in 2005, was meant to avert the charge of conflict of interest being made against Wolfowitz.
From a series of internal communications that DNA has accessed, it is clear that Wolfowitz bullied the bank to give Riza a massive hike and promotion.
Reports suggest Wolfowitz had personally recommended a 46 per cent pay hike to Riza soon after he took over as the bank’s president. Riza, who now works at the Foundation for the Future, earns an annual tax-free salary of $193,000, more than what Condoleezza Rice, the US secretary of state, earns.
The documents also suggest that he was distrustful of the bank for not allowing him to recuse himself from dealing with Riza, and retaining her in the bank.
Meanwhile, Bush has reiterated that he had “full confidence” in Wolfowitz. White House spokesperson Tony Fratto said: “I think the effort of the World Bank board should be to get to the facts, treat it with fairness, and think of the long-term effectiveness of the institution.” While the White House is not making any further statements on the issue, bank sources told DNA that it may have washed its hands off it.
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