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Wolfowitz future still in balance Wolfowitz future still in balance
(about 13 hours later)
The future of beleaguered World Bank chief Paul Wolfowitz remains in the balance despite a defiant statement that he intends to stay.The future of beleaguered World Bank chief Paul Wolfowitz remains in the balance despite a defiant statement that he intends to stay.
His fate lies in the hands of the executive board, which is under pressure to take a decision.
Mr Wolfowitz is still facing calls to resign after admitting helping his partner win a promotion and pay rise.Mr Wolfowitz is still facing calls to resign after admitting helping his partner win a promotion and pay rise.
Bank member governments say the matter is of great concern and the bank staff association said again he should go. His fate lies in the hands of the executive board, which is under pressure to take a decision.
Mr Wolfowitz on Sunday vowed to stay on to continue what he called "important work". But a White House spokeswoman said President George W Bush still had "full confidence" in Mr Wolfowitz.
'Focus on job'
Nancy Perino added that Mr Wolfowitz, formerly deputy defence secretary, had done a "very good job" at the World Bank.
"He is focused on Africa and other areas around the world that need the World Bank's attention," she said. "And the president continues to have confidence in him."
The Bank's board of directors is expected to meet in the next few days to discuss the affair.
Bank member governments have said the matter is of great concern and the bank's staff association have urged him to quit.
Ms Riza was seconded to the US state department
Mr Wolfowitz has vowed to stay on to continue what he called "important work".
"I believe in the mission of this organisation and I believe that I can carry it out," he said."I believe in the mission of this organisation and I believe that I can carry it out," he said.
Urgent choice
The Dutch development minister added his voice to those raising questions about the impact of Mr Wolfowitz's actions, saying he saw the situation as a "substantial crisis for the institution".The Dutch development minister added his voice to those raising questions about the impact of Mr Wolfowitz's actions, saying he saw the situation as a "substantial crisis for the institution".
We don't see how he can regain the credibility that has been lost Alison Cave,World Bank staff association
"I don't want to hide the fact that I have doubts about his functioning," Bert Koenders told Reuters."I don't want to hide the fact that I have doubts about his functioning," Bert Koenders told Reuters.
He said that the bank lacked a clear sense of direction and hoped the board would come to a decision as a matter of urgency.He said that the bank lacked a clear sense of direction and hoped the board would come to a decision as a matter of urgency.
"There is also a lack of trust in the moment in the leadership and in the management, so that is something that has to be resolved," he said."There is also a lack of trust in the moment in the leadership and in the management, so that is something that has to be resolved," he said.
Germany's development minister hinted that the bank may face future difficulty in gaining funding from member states.Germany's development minister hinted that the bank may face future difficulty in gaining funding from member states.
Ms Riza was seconded to the US state department
"An institution like the World Bank lives by its moral authority and its credibility," Heidemarie Wieczorek-Zeul said."An institution like the World Bank lives by its moral authority and its credibility," Heidemarie Wieczorek-Zeul said.
A communique issued by 24 development and finance ministers meeting in Washington said it was important the bank should maintain its credibility and reputation as well as the motivation of its staff. A communiqué issued by development and finance ministers meeting in Washington said it was important the bank should maintain its credibility and reputation as well as the motivation of its staff.
The bank's staff association reiterated calls for their boss to go.
"We don't see how he can regain the credibility that has been lost," said Alison Cave, chair of the association.
"I don't think he fully understands how much this has damaged the organisation."
Controversial nomineeControversial nominee
The row concerns events that occurred shortly after Mr Wolfowitz assumed his position at the World Bank.The row concerns events that occurred shortly after Mr Wolfowitz assumed his position at the World Bank.
His girlfriend, Libyan-born Shaha Riza, was seconded from the World Bank to the US state department to avoid creating a conflict of interest.His girlfriend, Libyan-born Shaha Riza, was seconded from the World Bank to the US state department to avoid creating a conflict of interest.
There she received promotions and pay rises which the bank's staff association say were "grossly out of line" with bank rules.There she received promotions and pay rises which the bank's staff association say were "grossly out of line" with bank rules.
The bank's executive board has said that it did not give its approval for Ms Riza's wage rise.The bank's executive board has said that it did not give its approval for Ms Riza's wage rise.
On Thursday, Mr Wolfowitz issued a statement apologising for the controversy. "I made a mistake, for which I am sorry," he said. On Thursday, Mr Wolfowitz issued a statement apologising for the controversy.
In recent days, although the US has continued to support Mr Wolfowitz, other nations have questioned his position. Mr Wolfowitz was seen as a controversial nominee to the role from the beginning due to his part in driving forward the war in Iraq.
A former deputy secretary of defence under George W Bush, Mr Wolfowitz was seen as a controversial nominee to the role from the beginning due to his part in driving forward the war in Iraq.