The World Bank staff association, the Financial Times and European civil society groups have called for the resignation of World Bank president Paul Wolfowitz, following his admission that he personally intervened in the pay rise and promotion of his girlfriend. Alison Cave, chair of the Bank staff association, has said that Bank president Paul Wolfowitz "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. He must act honourably and resign."
After initially denying any involvement, Wolfowitz has now conceded the charges against him. Riza, who had worked in the Bank for eight years before Wolfowitz's arrival in June 2005, was moved to the US state department to avoid any conflict of interest. Rapid rises in her salary from $136,000 to $193,000 tax free - which violated internal Bank rules - were approved by Wolfowitz. Her salary continues to be paid by the Bank. The Bank's board has said that it never gave its approval for the wage rise, despite claims to the contrary by Wolfowitz's aides. The board said the Bank's ethics committee "had not been involved in the discussions with the concerned member of staff".
The Bank's board of executive directors met in emergency session on Thursday, considering the report of a committee investigating his actions and considering his future. One Bank source quoted in the Washington Post said that Ana Palacio, the former Spanish foreign minister Wolfowitz appointed as general counsel after her predecessor resigned in late 2005 over the Riza issue, was asked to leave the room during the panel's deliberations. Troublingly the staff association have been told by some Bank board members that the board's enquiry is "not being properly conducted". Accordingly, they have demanded "that the Board release all of the documents that it has collected in this case", which include: a dated memorandum from the president to the human resources vice president instructing him to agree on the terms for Riza's external assignment; the contract formalising these terms; and testimony from the former chair of the ethics committee, the former legal counsel Roberto Dañino; and the vice president of human resources, Xavier Coll. The report of an ad hoc group formed to investigate the allegations for the board has been made public (see link below).
At an open meeting of the staff association on Thursday, Wolfowitz said that he was "constrained to talk about the details" of the situation and that his "biggest mistake was that
didn't try hard enough to stay out of it" in reference to Riza's external assignment. Finally, Wolfowitz stated that he "will abide by any remedies the board proposes." As Cave rebutted his comments members of the crowd began chanting "resign". Visibly uncomfortable, Wolfowitz left with his advisors while Cave continued taking comments and questions.
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