Wolfowitz erred says damning report

WASHINGTON – The World Bank was to debate the future of its president Paul Wolfowitz yesterday after a scathing report accused him of breaking the rules by securing a generous pay deal for his girlfriend.

As the panel of bank executives warned of a crisis of leadership at the international lender, US President George W Bush rushed to support Wolfowitz, 63, a former deputy defence secretary and an architect of the Iraq war. In what the panel described as the “central theme” of the matter, Wolfowitz “saw himself as the outsider to whom the established rules and standards did not apply.”A month of scandal surrounding Wolfowitz has divided the bank’s 185 member states, with the United States standing by Wolfowitz and European governments and others pushing for his exit.Wolfowitz was expected to fight hard for his job when he appears before the 24-member executive board, which will discuss and eventually decide his fate.The special panel set up by the board to look into the scandal said Wolfowitz clearly violated the bank’s code of conduct in arranging the pay and promotion package for his girlfriend and fellow bank employee, Shaha Riza.The report echoed the previous findings of an ethics panel.”Wolfowitz did not comply with the provision in his contract that required him to ‘avoid any conflict of interest, real or apparent,’” the panel wrote regarding Riza’s reassignment and promotion after Wolfowitz became boss.It also found Wolfowitz had violated the bank code of conduct “requiring that he withdraw from ‘participation in deliberations or decision-making’ when he involved himself in the specific terms of Ms.Riza’s external assignment.”Documents released by the bank’s executive directors have exposed Wolfowitz’s hand in a pay package worth nearly US$200 000 that was awarded to Riza when she was reassigned to the US State Department in September 2005 to prevent any conflicts of interest with her new boss.”These actions show that the relationship between Mr Wolfowitz and Ms Riza went beyond the appearance of a conflict of interest and constituted an actual conflict of interest situation.”The investigative panel recommended the board “consider whether Mr Wolfowitz will be able to provide the leadership needed to ensure that the bank continues to operate to the fullest extent possible in achieving its mandate.”It said it had considered Wolfowitz’s version of events but “decided that nothing in it alters the central conclusions reached in this report,” and also cited his “questionable judgement and a preoccupation with self-interest over institutional best interest.”Bush continued to stand behind Wolfowitz.Traditionally, the US names the World Bank president and European governments name the head of the International Monetary Fund.Nampa-AFPIn what the panel described as the “central theme” of the matter, Wolfowitz “saw himself as the outsider to whom the established rules and standards did not apply.”A month of scandal surrounding Wolfowitz has divided the bank’s 185 member states, with the United States standing by Wolfowitz and European governments and others pushing for his exit.Wolfowitz was expected to fight hard for his job when he appears before the 24-member executive board, which will discuss and eventually decide his fate.The special panel set up by the board to look into the scandal said Wolfowitz clearly violated the bank’s code of conduct in arranging the pay and promotion package for his girlfriend and fellow bank employee, Shaha Riza.The report echoed the previous findings of an ethics panel.”Wolfowitz did not comply with the provision in his contract that required him to ‘avoid any conflict of interest, real or apparent,’” the panel wrote regarding Riza’s reassignment and promotion after Wolfowitz became boss.It also found Wolfowitz had violated the bank code of conduct “requiring that he withdraw from ‘participation in deliberations or decision-making’ when he involved himself in the specific terms of Ms.Riza’s external assignment.”Documents released by the bank’s executive directors have exposed Wolfowitz’s hand in a pay package worth nearly US$200 000 that was awarded to Riza when she was reassigned to the US State Department in September 2005 to prevent any conflicts of interest with her new boss.”These actions show that the relationship between Mr Wolfowitz and Ms Riza went beyond the appearance of a conflict of interest and constituted an actual conflict of interest situation.”The investigative panel recommended the board “consider whether Mr Wolfowitz will be able to provide the leadership needed to ensure that the bank continues to operate to the fullest extent possible in achieving its mandate.”It said it had considered Wolfowitz’s version of events but “decided that nothing in it alters the central conclusions reached in this report,” and also cited his “questionable judgement and a preoccupation with self-interest over institutional best interest.”Bush continued to stand behind Wolfowitz.Traditionally, the US names the World Bank president and European governments name the head of the International Monetary Fund.Nampa-AFP