Premium
This is an archive article published on May 4, 2007

Panel may say Wolfowitz broke rules

Members of a World Bank board committee investigating the conduct of Paul D Wolfowitz, the bank president...

.

Members of a World Bank board committee investigating the conduct of Paul D Wolfowitz, the bank president, are leaning towards finding that he violated the institution8217;s rules against conflicts of interest when he arranged a pay raise and promotion for his companion, bank officials said.

A conclusion that Wolfowitz broke the bank rules and the terms of his own contract, which bars conflicts of interest, is likely to increase the pressure on him to resign despite his vow not to do so in the face of such charges. But it was unclear how harsh the committee8217;s judgment would be or what penalty would be recommended to the 24-member board of directors that will decide his fate.

8220;They have had long meetings late into the night to ensure that they are following due process,8221; said a bank official briefed on the committee8217;s discussions, noting that its work was occurring in secret in a highly charged atmosphere throughout the bank.

At issue is a raise, promotion and promise of future raises that Wolfowitz arranged in 2005 for Shaha Ali Riza, his companion and a bank employee. Wolfowitz said that he did so at the behest of top bank officials and that they cleared his actions.

Bank officials said the committee investigating the matter planned to present its findings on Friday to Wolfowitz and give him time over the weekend to respond. The plan is to submit both the recommendation and his response to the full bank board for possible action next week.

In another sign of pressure on Wolfowitz, European officials said ministries in Germany, Spain, France, the Netherlands and the Nordic countries had warned that their parliaments were so unhappy with the bank that they might withhold future funds if he remained in office.

8211;STEVEN R WEISMAN

 

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement