The World Bank’s board on Friday deferred a final decision on the fate of bank president Paul Wolfowitz, whose role is under scrutiny after the accusations of favoritism shown to his girlfriend at the bank.
The World Bank’s board of directors expressed ‘great concern’ over the controversy and appointed a special panel to look into the allegations. After a late hour meeting, the 24-nation board said that it had decided on a procedure to deal quickly with the issue.
Wolfowitz, nominated for WB’s presidency by George Bush in 2005, has been accused of getting his girlfriend, Shaha Riza, a high-paying job in the bank. Wolfowitz, admitted to having made this ‘mistake‘ and has already apologized. He said that he welcomed ‘the decision of the board to move forward and resolve this very important issue.’ He also said he looked forward to implementing the recommendations of the board.
Despite several of the bank’s employees demanding his resignation, it remains unclear what action, if any, the board has in mind. Over the last few weeks, public opinion has gathered momentum in favor for his early departure (he still has 3 years of his term remaining) from the World Bank.
However, White House has continued to throw its weight behind Paul Wolfowitz, former US deputy secretary of defense. US Treasury Secretary, Henry Paulson, in a TV interview, referred to Wolfowitz as “a dedicated, committed public servant.’
The members of the panel appointed by the World Bank have not been identified but Bush administration officials confirmed their absence from the ad hoc group. This reduces the chances of the ultimate decision being influenced by America - bank’s largest contributor - who enjoys tremendous clout.
The board asked the panel to look into Wolfowitz’s handling of Riza’s compensation package with regard to bank rules and “conflict of interest, ethical, reputational and other relevant standards.” The panel has also been instructed to look into ‘issues around employment contracts made in the Office of the President,” a reference to packages of Kevin Kellems and Robin Cleveland. Each of the two is paid more than $200,000 a year. The panel is expected to come out with a verdict next week.
Source: statesman
