World Bank divided on Wolfowitz

European countries have put pressure on World Bank president Paul Wolfowitz over a scandal involving a promotion for his girlfriend...

European countries have put pressure on World Bank president Paul Wolfowitz over a scandal involving a promotion for his girlfriend, with Britain saying it had damaged the bank and Germany questioning whether he still had the credibility to lead the institution.

But African ministers came out in support of him, with Liberia calling him a 8220;visionary8221; and Mauritius saying he had done a good job.

The scandal has overshadowed the meetings of the World Bank and International Monetary Fund, one of the few occasions where rich and developing nations can discuss common issues.

Wolfowitz has apologised for his handling of the high-paying promotion of his girlfriend, Shaha Riza, who was assigned for the bank to the State Department to avoid any possible conflict of interest. 8220;While this whole business has damaged the bank and should not have happened, we should respect the board8217;s process,8221; British development minister Hilary Benn said in a statement. 8220;I am sure these views will be shared by other governors who will also be considering their responses.8221;

German development minister Heidemarie Wieczorek-Zeul said it was important Wolfowitz8217;s actions did not compromise the moral authority of the institution, which spends around 25 billion annually to fight poverty in poor countries. 8220;He himself has to decide whether he still has the credibility to represent the position of the World Bank,8221; she said.

While bank member countries cautioned not to judge Wolfowitz until a closer examination by the bank8217;s board of the issue is completed, bank staff and development groups stepped up questions over what they called his 8220;double standards8221; on governance and fighting corruption.

Alison Cave, who heads the bank8217;s staff association, which last week demanded Wolfowitz explain himself, said the reputation of the bank had been damaged and it was up to the bank8217;s shareholders to act to safeguard the credibility and effectiveness of the bank in the developing world.

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The White House on Friday came to Wolfowitz8217;s defense, saying President George W. Bush had full confidence in him. Speaking in Washington, African ministers said Wolfowitz had played a key role in promoting development in Africa. 8220;We have seen visionary leadership and steadfast progress under him,8221; said Antoinette Sayeh, finance minister of Liberia and a former World Bank official. 8220;He has certainly championed Africa8217;s cause in the two years of his leadership.8221; Others like Zambia8217;s Finance Minister N8217;Gandu Magande said they would stand by any decision made on Wolfowitz8217;s future. 8220;We think he has done a good job,8221; said Rama Sithanen, the deputy prime minister and finance minister of Mauritius.

8211;Lesley Wroughton