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Wolfowitz pledges 'major changes' at World Bank

Posted : Tue, 24 Apr 2007 21:46:00 GMT
Author : DPA
Category : Finance (General)
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Washington - World Bank President Paul Wolfowitz on Tuesday pledged "major changes" in his leadership style as he faced growing calls to step down over a pay raise he engineered for his girlfriend. In an e-mail to World Bank staff published by a watchdog group, Wolfowitz made plain that he expects to keep his job after the bank's board completes an investigation into his conduct.

He hinted at the turmoil inside the 185-nation development bank over his leadership, saying he had a brief, "candid" talk Monday with its vice presidents.

He said he would consult them "for finalizing major changes in the way my office and the senior management team work" to address concerns raised by his critics, according to worldbankpresident.org, which has closely tracked Wolfowitz's tenure.

The former US deputy defence secretary, who helped plan the invasion of Iraq and its aftermath, has caused a staff revolt with a 60,000-dollar pay rise for his companion Shaha Riza and by bringing in personal aides with ties to the Bush administration.

Critics accuse him of favouritism that undermines the global drive against corruption he has made his flagship theme.

Wolfowitz ordered the pay hike as part of a deal, worked out after he became World Bank chief in 2005, that saw Riza loaned out to the US State Department to avoid a potential conflict of interest.

The bank's staff association says the raise was more than twice that allowed under salary rules and has asked Wolfowitz to quit.

A group of former World Bank executives also urged him to resign in a letter published Monday in the Financial Times, saying the bank's anti-poverty mission would otherwise be "fatally compromised."

"He has lost the trust and respect of bank staff at all levels, provoked a rift among senior managers, developed tense relations with the board, damaged his credibility on good governance ... and alienated key shareholders," the group said.

The bank's 24-member board is investigating whether Wolfowitz acted ethically and within staff rules. It has pledged to reach a decision quickly.

Wolfowitz, meanwhile, has hired prominent Washington lawyer Robert Bennett, who once helped Bill Clinton fight sexual harassment claims.

The bank chief's support has eroded among European governments such as Germany, Britain and the Netherlands. But US President George W Bush, who nominated Wolfowitz, is standing by him.

The bank's largest contributor is the United States and its head has traditionally been a US national.

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Wolfowitz
By: D Arsenian , Tue, 24 Apr 2007 22:58:11 GMT

Dear Mr Wolfowitz - the major change we need at the world bank is you gone!



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