Friday, April 13, 2007


Pressure grows on World Bank boss


Wolfowitz's apology
The executive board of the World Bank has said it did not approve a hefty pay rise ordered by its president Paul Wolfowitz for his partner.

Mr Wolfowitz has faced calls to resign after admitting he helped his partner Shaha Riza win a promotion to a high-paying job at the World Bank.

The board of the international lender earlier adjourned a day-long meeting held to consider Mr Wolfowitz's future.

Mr Wolfowitz has apologised for his handling of the situation.

But the scandal has weakened him at a time when he is facing controversy over an anti-corruption drive that has led to the suspension of aid to some countries.

'Possible actions'

In a statement, the World Bank's board said it had never given its approval for a wage rise for Ms Riza ordered by Mr Wolfowitz, despite claims to the contrary by the World Bank president.

The board said the World Bank's ethics committee "had not been involved in the discussions with the concerned member of staff".

"The executive directors will move expeditiously to reach a conclusion on possible actions to take," the board added.

Ms Riza's promotion and pay rise has attracted strong criticism from staff within the bank.

Ms Riza, who remains a World Bank employee, was moved to the US state department on secondment when Mr Wolfowitz took the World Bank's top job in 2005.

Mr Wolfowitz - a former US deputy secretary of defence - at first denied that he was involved in the decision about her salary.

"In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations. I made a mistake, for which I am sorry," Mr Wolfowitz said.

He said he had been in "uncharted waters" in his new job and would follow the recommendations proposed by the board...[Open in new window]

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