WASHINGTON - World Bank President Paul Wolfowitz appears to be on his way out after a panel of executives concluded that he had violated the Bank's laws by giving his girlfriend a substantial pay rise.
The panel said they have arrived at their conclusions, but it was up to the full board to decide if Wolfowitz was competent enough to provide effective leadership after this fiasco.
"[The board must 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," the panel added.
Wolfowitz's girlfriend Shaha Riza left the World Bank in 2005 when he took over as President. But he is said to have stage-managed her move to the State Department and offering her pay package that is far in excess of what one normally makes in her position.
"The salary increase Ms. Riza received at Mr. Wolfowitz's direction was in excess of the range established by Rule 6.01," the panel agreed. "He (Wolfowitz) did not accept the bank's policy on conflict of interest, so he sought to negotiate for himself a resolution different from that which would have applied to the staff he was selected to head."
However Wolfowitz reacted strongly to this findings calling them "unbalanced and flawed" and said the panel did not review the documents which in fact aid him in this whole affair.
