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Pressure grows on World Bank boss Pressure grows on World Bank boss
(10 minutes later)
The executive board of the World Bank has said it did not approve a hefty pay rise ordered by its president Paul Wolfowitz for his partner.The executive board of the World Bank has said it did not approve a hefty pay rise ordered by its president Paul Wolfowitz for his partner.
Mr Wolfowitz has faced calls to resign after admitting he helped his partner Shaha Riza win a promotion to a high-paying job at the World Bank.Mr Wolfowitz has faced calls to resign after admitting he helped his partner Shaha Riza win a promotion to a high-paying job at the World Bank.
The board of the international lender earlier adjourned a day-long meeting held to consider Mr Wolfowitz's future.The board of the international lender earlier adjourned a day-long meeting held to consider Mr Wolfowitz's future.
Mr Wolfowitz has apologised for his handling of the situation.Mr Wolfowitz has apologised for his handling of the situation.
But the scandal has weakened him at a time when he is facing controversy over an anti-corruption drive that has led to the suspension of aid to some countries.But the scandal has weakened him at a time when he is facing controversy over an anti-corruption drive that has led to the suspension of aid to some countries.
'Possible actions''Possible actions'
The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Alison Cave, World Bank staff association representative href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=6034&edition=1">What is the World Bank for? The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Alison Cave, World Bank staff association representative href="/1/hi/business/6551901.stm">Wolfowitz statement class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=6034&edition=1">World Bank: Have Your Say
In a statement, the World Bank's board said it had never given its approval for a wage rise for Ms Riza ordered by Mr Wolfowitz, despite claims to the contrary by the World Bank president.In a statement, the World Bank's board said it had never given its approval for a wage rise for Ms Riza ordered by Mr Wolfowitz, despite claims to the contrary by the World Bank president.
The board said the World Bank's ethics committee "had not been involved in the discussions with the concerned member of staff".The board said the World Bank's ethics committee "had not been involved in the discussions with the concerned member of staff".
"The executive directors will move expeditiously to reach a conclusion on possible actions to take," the board added."The executive directors will move expeditiously to reach a conclusion on possible actions to take," the board added.
Ms Riza's promotion and pay rise has attracted strong criticism from staff within the bank.Ms Riza's promotion and pay rise has attracted strong criticism from staff within the bank.
Ms Riza, who remains a World Bank employee, was moved to the US state department on secondment when Mr Wolfowitz took the World Bank's top job in 2005.Ms Riza, who remains a World Bank employee, was moved to the US state department on secondment when Mr Wolfowitz took the World Bank's top job in 2005.
Mr Wolfowitz - a former US deputy secretary of defence - at first denied that he was involved in the decision about her salary.Mr Wolfowitz - a former US deputy secretary of defence - at first denied that he was involved in the decision about her salary.
"In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations. I made a mistake, for which I am sorry," Mr Wolfowitz said."In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations. I made a mistake, for which I am sorry," Mr Wolfowitz said.
He said he had been in "uncharted waters" in his new job and would follow the recommendations proposed by the board.He said he had been in "uncharted waters" in his new job and would follow the recommendations proposed by the board.
'Blatant hypocrisy''Blatant hypocrisy'
The bank's staff association said the pay rises and promotions Ms Riza received were "grossly out of line" with the World Bank's staff rules.The bank's staff association said the pay rises and promotions Ms Riza received were "grossly out of line" with the World Bank's staff rules.
"The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group," said staff association representative Alison Cave."The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group," said staff association representative Alison Cave.
She added that his actions had destroyed the staff's trust in his leadership.She added that his actions had destroyed the staff's trust in his leadership.
In an editorial, Britain's Financial Times newspaper called for Wolfowitz to step down.In an editorial, Britain's Financial Times newspaper called for Wolfowitz to step down.
"If the president stays, (the World Bank) risks becoming an object not of respect, but of scorn, and its campaign in favour of good governance not a believable struggle, but blatant hypocrisy," it said."If the president stays, (the World Bank) risks becoming an object not of respect, but of scorn, and its campaign in favour of good governance not a believable struggle, but blatant hypocrisy," it said.
Ms Riza had been a high-ranking communications employee at the bank working in the Middle East section.Ms Riza had been a high-ranking communications employee at the bank working in the Middle East section.
When Mr Wolfowitz took over at the bank in mid-2005, Ms Riza - then a World Bank employee for eight years - was transferred to work for the US state department, to avoid any conflict of interest.When Mr Wolfowitz took over at the bank in mid-2005, Ms Riza - then a World Bank employee for eight years - was transferred to work for the US state department, to avoid any conflict of interest.
But rapid rises in her tax-free World Bank salary to about $193,000 - more than the $186,000 Secretary of State Condoleezza Rice receives before tax - have aroused ire among other bank employees.But rapid rises in her tax-free World Bank salary to about $193,000 - more than the $186,000 Secretary of State Condoleezza Rice receives before tax - have aroused ire among other bank employees.
AidAid
The controversy comes ahead of joint World Bank and IMF spring meetings.The controversy comes ahead of joint World Bank and IMF spring meetings.
While facing press questions about the case, Mr Wolfowitz has tried to shift focus back to the bank's remit of fighting global poverty.While facing press questions about the case, Mr Wolfowitz has tried to shift focus back to the bank's remit of fighting global poverty.
He said the world's richest nations had given 5% less aid over the past 12 months.He said the world's richest nations had given 5% less aid over the past 12 months.
"We have yet to see evidence of significant new flows translate into real resources for development programmes on the ground," he said."We have yet to see evidence of significant new flows translate into real resources for development programmes on the ground," he said.
Ministers and trade leaders from the 185-nation organisation are to meet on Saturday and Sunday in Washington.Ministers and trade leaders from the 185-nation organisation are to meet on Saturday and Sunday in Washington.
The agenda will include issues including fighting diseases and the state of the world economy.The agenda will include issues including fighting diseases and the state of the world economy.