Wolfowitz remains defiant amid turmoil
Wolfowitz remains defiant amid turmoil
ByKrishna Guha, Javier Blas, Eoin Callan and Scheherazade Daneshkhu in Washington
Copyright The Financial Times Limited 2007
Published: April 15 2007 20:01 | Last updated: April 16 2007 00:04
World Bank president Paul Wolfowitz remained defiant on Sunday as finance and development ministers from around the world expressed “great concern” over the turmoil at the bank.
In an unprecedented statement, ministers representing all the bank’s member governments, including the US, said “we have to ensure that the bank can effectively carry out its mandate and maintain its credibility and reputation as well as motivation of staff”.
Staff are in open revolt over revelations that Mr Wolfowitz was personally involved in securing an attractive secondment deal for Shaha Riza, a bank official with whom he was romantically involved.
The ministers went on to say: “We endorse the board’s actions in looking into this matter and we asked it to complete its work.” They added: “We expect the bank to adhere to a high standard of internal governance.”
The statement puts renewed pressure on Mr Wolfowitz to consider whether he can stay on in his job.
However, Mr Wolfowitz declared “I intend to stay.” Pressed time and time again by journalists as to whether he would resign, he said he still believed he could carry out the bank’s mission and had important work to do, in particular in Africa.
A senior European official told the Financial Times that unless the White House withdrew its support, European countries were not sufficiently united to succeed in an immediate attempt to force Mr Wolfowitz’s removal.
But a series of European ministers voiced sharp public criticism of Mr Wolfowitz at the weekend and the affair overshadowed the formal agenda of IMF and World Bank spring meetings.
Heidemarie Wieczorek-Zeul, Germany’s development minister, said Mr Wolfowitz had to decide “whether he still has the credibility to represent the position of the World Bank”.
Hilary Benn, the UK development minister, said “this whole business has damaged the bank and should not have happened”.
Europe’s position was not united, according to the European official. Germany and the UK were leading the fight against Mr Wolfowitz, with France holding back for tactical reasons and Spain willing to sit on the sidelines.
The White House has twice declared its backing for the bank president and several African leaders stood up in support. Antoinette Sayeh, finance minister of Liberia and a former World Bank official, reflected the African stance, praising Mr Wolfowitz’s “visionary leadership”.
Separately, two sources told the Financial Times that Xavier Coll, the bank’s senior human resources officer, was not consulted over the terms and conditions offered to Robin Cleveland and Kevin Kellems, former Bush administration officials who Mr Wolfowitz brought with him to the bank.
Ms Cleveland and Mr Kellems were given salaries of about $250,000 (£126,000) net of tax – the same amount paid to the highest ranked career bank officials, who typically have 25 years of development experience
World Bank policy is that the president has the authority to make an appointment at any level, but it would be normal for the head of HR to be consulted over the terms of such appointments, two sources told the FT. It is understood that mid-ranking HR officials were consulted over the appointments.
The FT’s revelations are potentially damaging because they suggest that irregular processes over appointments under Mr Wolfowitz were not limited to his personal involvement in the Riza affair.
Ministers were upbeat about the prospects for the world economy, expecting strong growth this year and next.
ByKrishna Guha, Javier Blas, Eoin Callan and Scheherazade Daneshkhu in Washington
Copyright The Financial Times Limited 2007
Published: April 15 2007 20:01 | Last updated: April 16 2007 00:04
World Bank president Paul Wolfowitz remained defiant on Sunday as finance and development ministers from around the world expressed “great concern” over the turmoil at the bank.
In an unprecedented statement, ministers representing all the bank’s member governments, including the US, said “we have to ensure that the bank can effectively carry out its mandate and maintain its credibility and reputation as well as motivation of staff”.
Staff are in open revolt over revelations that Mr Wolfowitz was personally involved in securing an attractive secondment deal for Shaha Riza, a bank official with whom he was romantically involved.
The ministers went on to say: “We endorse the board’s actions in looking into this matter and we asked it to complete its work.” They added: “We expect the bank to adhere to a high standard of internal governance.”
The statement puts renewed pressure on Mr Wolfowitz to consider whether he can stay on in his job.
However, Mr Wolfowitz declared “I intend to stay.” Pressed time and time again by journalists as to whether he would resign, he said he still believed he could carry out the bank’s mission and had important work to do, in particular in Africa.
A senior European official told the Financial Times that unless the White House withdrew its support, European countries were not sufficiently united to succeed in an immediate attempt to force Mr Wolfowitz’s removal.
But a series of European ministers voiced sharp public criticism of Mr Wolfowitz at the weekend and the affair overshadowed the formal agenda of IMF and World Bank spring meetings.
Heidemarie Wieczorek-Zeul, Germany’s development minister, said Mr Wolfowitz had to decide “whether he still has the credibility to represent the position of the World Bank”.
Hilary Benn, the UK development minister, said “this whole business has damaged the bank and should not have happened”.
Europe’s position was not united, according to the European official. Germany and the UK were leading the fight against Mr Wolfowitz, with France holding back for tactical reasons and Spain willing to sit on the sidelines.
The White House has twice declared its backing for the bank president and several African leaders stood up in support. Antoinette Sayeh, finance minister of Liberia and a former World Bank official, reflected the African stance, praising Mr Wolfowitz’s “visionary leadership”.
Separately, two sources told the Financial Times that Xavier Coll, the bank’s senior human resources officer, was not consulted over the terms and conditions offered to Robin Cleveland and Kevin Kellems, former Bush administration officials who Mr Wolfowitz brought with him to the bank.
Ms Cleveland and Mr Kellems were given salaries of about $250,000 (£126,000) net of tax – the same amount paid to the highest ranked career bank officials, who typically have 25 years of development experience
World Bank policy is that the president has the authority to make an appointment at any level, but it would be normal for the head of HR to be consulted over the terms of such appointments, two sources told the FT. It is understood that mid-ranking HR officials were consulted over the appointments.
The FT’s revelations are potentially damaging because they suggest that irregular processes over appointments under Mr Wolfowitz were not limited to his personal involvement in the Riza affair.
Ministers were upbeat about the prospects for the world economy, expecting strong growth this year and next.
posted by Carlos T Mock at 12:12 PM
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