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POLITICS: Combative Wolfowitz Slams "Circus-like" Process
By Emad Mekay
WASHINGTON, Apr 30 (IPS) - Embattled World Bank President Paul Wolfowitz,
who is fighting for his job, warned Monday against a forced exit and
called the Bank directors' description of his actions in a scandal
besetting him and his girlfriend and co-worker "unjust and" and
"hypocritical".
In a seven-page statement, Wolfowitz appeared in his most combative mode
since the emergence six weeks ago of revelations that his girlfriend,
Shaha Riza, had received unusually high pay and promotions, which appear
to violate Bank protocols.
The controversy prompted charges of nepotism and worldwide calls for his
ouster, including by the Bank's own Staff Association.
But on Monday, the 63-year-old World Bank president, who two weeks ago was
making a humiliating apology for "a mistake", was pointing fingers and
warning of damage to the Bank's reputation if he is forced out.
"I will not resign in the face of a plainly bogus charge of conflict of
interest," he told an ad hoc committee looking into his actions.
Wolfowitz's offensive came Monday just as he received a major boost from
U.S. President George W. Bush, who said he wants to see his former deputy
defence secretary and the notorious architect of the ill-fated Iraq war
remain at the helm of the Bank.
"My thought is that he ought to stay; he ought to be given a fair
hearing," Bush said in a press conference in the White House Rose Garden.
"He's helped the World Bank recognise that the eradication of world
poverty is an important priority for the Bank."
Earlier in the day, Wolfowitz, flanked by his lawyer Robert Bennet, read a
statement before the ad hoc committee looking into his case where he
rebuked the board and spoke of a "rush to judgment" and "orchestrated
leaks of false, misleading incomplete and personal information".
He spoke of a "conscious campaign" and a "smear campaign" to undermine his
effectiveness in the Bank that professes fighting global poverty.
Wolfowitz warned of negative consequences to the World Bank if he was "to
be forced out in this manner."
"It will send a terrible message to anyone who might even think about
taking the job in the future. It will send a terrible message that the
Bank does not care about reform," he said.
In his statement, seen by IPS, Wolfowitz defiantly tried to shift the
blame to the Bank's Ethics Committee and insisted that it had approved the
deal with Riza, which included two large salary increases for a total of
193,590 dollars per year in her posting at the U.S. State Department.
Wolfowitz, who said he was working in "good faith", charged the Ethics
Committee knew about the details of the controversial arrangement with
Riza.
"For the directors now to declare my actions to be improper and to
criticise me would be unjust and frankly hypocritical. Such a change of
course would not survive public scrutiny," he said.
Wolfowitz also came down heavy on Ad Melkert, the former chairman of the
Ethics Committee, who is now associate administrator of the United Nations
Development Programme.
He said the details of the salary package for Riza were shared with
Melkert, a former Dutch politician.
"At the time, the Ethics Committee surely knew that Ms. Riza received a
promotion, which necessarily entailed a salary increase... I do not know
whether the Ethics Committee was aware of the other details of the
compensation arrangement at the time, but certainly they had access to
that information if they wanted it," Wolfowitz said.
The beleaguered World Bank President also claimed that the 24-member
Board, which runs the day to day affairs of the Bank, and the Ethics
Committee had another chance to review the deal when in January 2006 they
received an anonymous email alleging that Riza's promotion and salary
increases were improper and that Wolfowitz had violated Bank rules.
Wolfowitz charged that the Board did not find new information in the email
and took no action.
Wolfowitz also alluded to lapses by the Board. He cited the example of how
former Managing Director Shengman Zhang, who was among dozens of former
top World Bank officials calling for Wolfowitz's resignation, was allowed
to have his wife work under him in the Bank without being required to
relocate.
Wolfowitz denied that he tried to hide the details of Riza's compensation
from the Ethics Committee but admitted that he told the Bank's human
resources chief, Xavier Coll, that "he was to keep this sensitive matter
confidential." He justified the request by saying that "all personnel
information is confidential under Bank rules."
"Let me say that I regret the tumult this has caused the Bank," he said,
but warned again that criticising him, as the committee appears prepared
to do, "would be unwarranted and grossly unfair. Moreover, it would be
harmful to the institution."
Wolfowitz claimed that he was making progress raising funds for the Bank's
soft-loans arm, the International Development Association (IDA). Bank
officials seek replenishment for the IDA every three years. Now is the
15th round for raising such funds. European countries have suggested that
they may withhold or cut down on their contributions if Wolfowitz stays
on.
"If I am forced out in a circus-like process, it will only give those who
are already looking for a reason not to contribute to IDA 15 the excuse
they are seeking," he said.
(END/2007)
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