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World Bank staff wants Wolfowitz to resign

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Posted 14 April 2007 @ 05:49 pm GMT

World Bank President Paul Wolfowitz has acknowledged that he erred in helping a close female friend get transferred to a high-paying job, and said he was sorry.

AP - Fri Apr 13, 12:14 PM ET This picture made available by the World Bank on April 11, 2003 shows Shaha Riza. The World Bank's executive directors were meeting Friday April 13, 2007 to consider the future of its president, Paul Wolfowitz, who has ac
AP - Fri Apr 13, 12:14 PM ET This picture made available by the World Bank on April 11, 2003 shows Shaha Riza. The World Bank's executive directors were meeting Friday April 13, 2007 to consider the future of its president, Paul Wolfowitz, who h...

However, his apology did not ease concerns among the bank's staff association, which wants him to resign.

The growing controversy has overshadowed major development meetings this weekend and is raising fresh questions about whether Wolfowitz will stay on the job. The White House, however, expressed confidence in the embattled bank president.

At issue are the generous compensation and pay raises of a bank employee, Shaha Riza, who has dated Wolfowitz. She was given an assignment at the State Department in September 2005, shortly after he became bank president.

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

The World Bank Group Staff Association is demanding that Wolfowitz step down.

"The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group and has destroyed the staff's trust in his leadership," the association said. "He must act honorably and resign."

Wolfowitz said he met Thursday morning with the World Bank's board and that members were looking into the matter. He declined to discuss what actions, if any, the board could take.

"I proposed to the board that they establish some mechanism to judge whether the agreement reached was a reasonable outcome," he said, referring to Riza's transfer. "I will accept any remedies they propose."

Wolfowitz dodged a question about whether he would resign over the flap. "I cannot speculate on what the board is going to decide," he said.

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