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Bank to act quickly on Wolfowitz US 'expects Wolfowitz to stay on'
(about 5 hours later)
World Bank directors have vowed to make a speedy decision on the future of the bank's embattled chief Paul Wolfowitz. The US says it expects beleaguered World Bank president Paul Wolfowitz to remain in his position despite widespread criticism of his behaviour.
Mr Wolfowitz is under mounting pressure to quit after he admitted helping his partner, Shaha Riza, win a promotion and hefty pay rise at the bank. Mr Wolfowitz has been under pressure to quit after admitting helping his partner, Shaha Riza, win a promotion and hefty pay rise at the bank.
But despite widespread criticism of his behaviour, the US government expects Mr Wolfowitz to hold onto his post. World Bank directors have vowed to make a speedy decision on his future.
The controversy has overshadowed this weekend's meeting of the World Bank and International Monetary Fund.The controversy has overshadowed this weekend's meeting of the World Bank and International Monetary Fund.
At their meeting in Washington, the two organisations are expected to focus on the task of fighting global poverty.
On Friday, the bank's executive board adjourned a day-long meeting to consider Mr Wolfowitz's future as bank president.
But the group has pledged to "move expeditiously to reach a conclusion on possible actions to take".
'Victimised''Victimised'
Documents released by the bank also show that Ms Riza said she was forced to leave her job because of her close relationship with the Bank's chief. US Treasury Secretary Henry Paulson said on Friday he had "very high regard" for Mr Wolfowitz.
"Paul Wolfowitz is a very dedicated public servant," Mr Paulson said.
The President has full confidence in Paul Wolfowitz White House Wolfowitz statement World Bank: Have Your SayThe President has full confidence in Paul Wolfowitz White House Wolfowitz statement World Bank: Have Your Say
The BBC's Justin Webb in Washington says Mr Wolfowitz is hanging on, but his position is looking very weak, with the White House the only player coming out squarely in his favour.
On Friday, the bank's executive board adjourned a day-long meeting to consider Mr Wolfowitz's future.
The group has pledged to "move expeditiously to reach a conclusion on possible actions to take".
Documents released by the bank also show that Ms Riza said she was forced to leave her job because of her close relationship with the bank's chief.
"I have now been victimised for agreeing to an arrangement that I have objected to and that I did not believe from the outset was in my best interest," she said in a note to the World Bank board,."I have now been victimised for agreeing to an arrangement that I have objected to and that I did not believe from the outset was in my best interest," she said in a note to the World Bank board,.
When Mr Wolfowitz was appointed, Ms Riza was seconded to the US State Department to avoid creating a conflict of interest.When Mr Wolfowitz was appointed, Ms Riza was seconded to the US State Department to avoid creating a 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 raised questions.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 raised questions.
'Out of line'
Initially Mr Wolfowitz denied any involvement in a decision about her salary. However he later admitted: "I made a mistake, for which I am sorry."Initially Mr Wolfowitz denied any involvement in a decision about her salary. However he later admitted: "I made a mistake, for which I am sorry."
The executive board of the World Bank has moved to distance itself from the scandal. It said it had never given its approval for the wage rise for Ms Riza ordered by Mr Wolfowitz, despite claims to the contrary by the World Bank president.
Widespread anger
Both World Bank staff and global development agencies have been demanding Mr Wolfowitz's resignation claiming his behaviour has undermined trust in the international lending agency.
Wolfowitz's apologyWolfowitz's apology
The executive board of the World Bank has moved to distance itself from the scandal.
It said it had never given its approval for the wage rise for Ms Riza ordered by Mr Wolfowitz, despite claims to the contrary by the World Bank president.
Both World Bank staff and global development agencies have been demanding Mr Wolfowitz's resignation claiming his behaviour has undermined trust in the international lending agency.
The bank's staff association said the pay rises and promotions Ms Riza received were "grossly out of line" with bank rules, had destroyed staff trust in his leadership and "compromised the integrity and effectiveness" of the bank.The bank's staff association said the pay rises and promotions Ms Riza received were "grossly out of line" with bank rules, had destroyed staff trust in his leadership and "compromised the integrity and effectiveness" of the bank.
The case has caused huge embarrassment to Mr Wolfowitz, who has campaigned against corruption and for sound governance since he was appointed head of the bank in 2005.The case has caused huge embarrassment to Mr Wolfowitz, who has campaigned against corruption and for sound governance since he was appointed head of the bank in 2005.
But despite the uproar, the White House has said it expected Mr Wolfowitz to hold onto his job.
"The President has full confidence in Paul Wolfowitz," said White House spokeswoman Dana Perino.
"He has done a remarkable job at the World Bank where they are working to lift people up out of poverty from around the world.
"He has apologised for the matter and his board is undergoing an internal review and we expect him to remain as World Bank President," she added.