World Bank boss faces quit calls over job for lover
World Bank President Paul Wolfowitz is facing calls to quit today after he admitted he made a mistake in helping his girlfriend get transferred to a high-paying job.
His apology did not ease concerns among the Washington-based bank’s staff association, which wants him to resign.
The growing controversy has overshadowed major development meetings this weekend and is raising fresh questions about whether Wolfowitz, an American, will stay on the job.
Wolfowitz dodged a question about whether he would resign over the controversy. “I cannot speculate on what the board is going to decide,” he said.
At issue are the generous compensation and pay rises of a bank employee, Shaha Riza, who has dated Wolfowitz.
She was given an assignment at the State Department in September 2005, shortly after he became bank president. The situation has brought accusations of favouritism and cries of outrage from the bank’s staff association.
“In hindsight I wish I had trusted my original instincts and kept myself out of the negotiations,” Wolfowitz said. “I made a mistake, for which I am sorry.”
The World Bank Group Staff Association is demanding that Wolfowitz step down.
“The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group and has destroyed the staff’s trust in his leadership,” the association said. “He must act honourably and resign.”
Wolfowitz said he met the World Bank’s board yesterday and that members were looking into the matter. He declined to discuss what actions, if any, the board could take.
“I proposed to the board that they establish some mechanism to judge whether the agreement reached was a reasonable outcome,” he said, referring to Riza’s transfer. “I will accept any remedies they propose.”
A World Bank spokeswoman would not comment on what range of options the board could consider and did not know when the board would finish its deliberations on the matter.
A White House spokesman said the Bush administration supports Wolfowitz.
“Of course President Wolfowitz has our full confidence,” said spokesman Tony Fratto. “His leadership is helping the bank accomplish its mission of raising living standards for poor people throughout the world. In dealing with this issue, he has taken full responsibility and is working with the executive board to resolve it.”
“I take full responsibility for the details,” of the job transfer, Wolfowitz said. “I did not attempt to hide my actions nor make anyone else responsible,” he said.
The job change was made, he said, to avoid a conflict of interest when he took his post at the World Bank, where Riza already worked.
World Bank rules bar employees from supervising anyone with whom they had a personal relationship.
