Israel Rafalovich: Wolfowitz’ Troubles Not Over Yet
Washington, D.C.
The World Bank executive directors have said that there are still a number
of issues concerning Paul Wolfowitz, the embattled World Bank president, regarding his role in the promotion of his girlfriend Shaha Riza.
A statement issued on Friday, by the World Bank Board said that the board has agreed on the process to deal urgently with the controversy, in an effective and orderly manner.
On Thursday, the 24-member board of executive directors discussed the recent revelations that Mr. Wolfowitz was instrumental in securing a huge pay raise, as well as a new job, for Ms Riza when he took over the bank, in 2005.
Mr. Wolfowitz’ fate will be decided this coming this week when the board will determine whether or not the promotion he approved was handled properly, informed sources at the World Bank have said.
The board will concentrate on whether Mr. Wolfowitz abused his powers as World Bank president and/or committed ethical lapses.
In an internal note to staff on Friday, he said that he is looking forward to implementing the board's recommendations.
The calls for Mr. Wolfowitz’ resignation have gone global. Now, a consensus has been reached by European countries: Britain, France, The Netherlands and the Nordic countries, saying that Mr. Wolfowitz has lost the ability to lead the World Bank, not only because of the controversy, but also because of policy disputes over the last two years.
Last week, one of his two World Bank deputies told him that for the well being of the bank, he should resign.
According to informed sources at the World Bank, its work is being paralysed because of the scandal, with meetings being dominated by discussions over aspects of the controversy; the atmosphere is described as "civil war."
Meanwhile, a new controversy is brewing, regarding the time Mr. Wolfowitz was serving as U.S. Deputy Secretary of Defence, when he personally recommended that his girlfriend, Shaha Ali Riza, be awarded a contract for travel to Iraq in 2003, to advise the American government. At the time, Ms Riza was a World Bank employee, in the Middle East Communications Department.
The board of World Bank executives is examining a contract that requires employees to get permission for outside consulting work, to see if it complies with World Bank rules. Furthermore, at the time when the contract was signed, it was World Bank policy not to have dealings with Iraq, as it was a country under foreign military occupation.
The details were revealed in an undisclosed inquiry by the Pentagon Inspector General.
The White House has constantly voiced support for the World Bank president - but, the White House has signalled that its patience is wearing thin. In a carefully crafted comment, a White House spokeswoman said: "I think the effort of the World Bank should be to get to the facts, treat it with fairness and think of the long-term effectiveness of the institution."
Translation, it indicates that the White House may be washing its hands of Mr. Wolfowitz.
The question now remains, if in the coming week, the executive board will put on the table a judgment so critical of Mr. Wolfowitz’ conduct, that he - or those who still support him - will find it impossible for him to remain in office.
Israel Rafalovich
U.N. OBSERVER & International Report
Please also see:
Israel Rafalovich:
News Analysis; The Wolfowitz Controversy, a Wake-Up Call for Europe http://www.unobserver.com/index.php?pagina=layout4.php&id=3383&blz=1
The World Bank http://www.worldbank.org
The Whirled Bank Group http://www.whirledbank.org
Washington, D.C.
The World Bank executive directors have said that there are still a number
of issues concerning Paul Wolfowitz, the embattled World Bank president, regarding his role in the promotion of his girlfriend Shaha Riza.
A statement issued on Friday, by the World Bank Board said that the board has agreed on the process to deal urgently with the controversy, in an effective and orderly manner.
On Thursday, the 24-member board of executive directors discussed the recent revelations that Mr. Wolfowitz was instrumental in securing a huge pay raise, as well as a new job, for Ms Riza when he took over the bank, in 2005.
Mr. Wolfowitz’ fate will be decided this coming this week when the board will determine whether or not the promotion he approved was handled properly, informed sources at the World Bank have said.
The board will concentrate on whether Mr. Wolfowitz abused his powers as World Bank president and/or committed ethical lapses.
In an internal note to staff on Friday, he said that he is looking forward to implementing the board's recommendations.
The calls for Mr. Wolfowitz’ resignation have gone global. Now, a consensus has been reached by European countries: Britain, France, The Netherlands and the Nordic countries, saying that Mr. Wolfowitz has lost the ability to lead the World Bank, not only because of the controversy, but also because of policy disputes over the last two years.
Last week, one of his two World Bank deputies told him that for the well being of the bank, he should resign.
According to informed sources at the World Bank, its work is being paralysed because of the scandal, with meetings being dominated by discussions over aspects of the controversy; the atmosphere is described as "civil war."
Meanwhile, a new controversy is brewing, regarding the time Mr. Wolfowitz was serving as U.S. Deputy Secretary of Defence, when he personally recommended that his girlfriend, Shaha Ali Riza, be awarded a contract for travel to Iraq in 2003, to advise the American government. At the time, Ms Riza was a World Bank employee, in the Middle East Communications Department.
The board of World Bank executives is examining a contract that requires employees to get permission for outside consulting work, to see if it complies with World Bank rules. Furthermore, at the time when the contract was signed, it was World Bank policy not to have dealings with Iraq, as it was a country under foreign military occupation.
The details were revealed in an undisclosed inquiry by the Pentagon Inspector General.
The White House has constantly voiced support for the World Bank president - but, the White House has signalled that its patience is wearing thin. In a carefully crafted comment, a White House spokeswoman said: "I think the effort of the World Bank should be to get to the facts, treat it with fairness and think of the long-term effectiveness of the institution."
Translation, it indicates that the White House may be washing its hands of Mr. Wolfowitz.
The question now remains, if in the coming week, the executive board will put on the table a judgment so critical of Mr. Wolfowitz’ conduct, that he - or those who still support him - will find it impossible for him to remain in office.
Israel Rafalovich
U.N. OBSERVER & International Report
Please also see:
Israel Rafalovich:
News Analysis; The Wolfowitz Controversy, a Wake-Up Call for Europe http://www.unobserver.com/index.php?pagina=layout4.php&id=3383&blz=1
The World Bank http://www.worldbank.org
The Whirled Bank Group http://www.whirledbank.org