White House support boosts Wolfowtiz’s survival chances
By Our Correspondent
WASHINGTON, April 15: A strong support from the White House appears to have boosted World Bank chief Paul Wolfowtiz’s chances for survival, although he is still under a cloud.
World Bank sources told Dawn that the pressure on Mr Wolfowtiz to resign during the spring meetings, started to ease up after the White House made it obvious that it was not going to ask him to step down.
The sources said that the bank’s board of governors would continue to investigate the allegation that Mr Wolfowtiz gave an unprecedented pay raise to his girlfriend, Shaha Riza, but it’s under no pressure to decide soon.
The board reviewed the matter on Friday and is “likely to continue its deliberations after the spring meetings of the bank and International Monetary Fund,” which ended on Sunday, said a source.
In an e-mail to bank staff on Saturday night, Mr Wolfowitz complained that people were basing their opinions about the alleged pay raise on “misleading information.” The White House has said that President Bush has “full confidence” in Mr Wolfowitz and continues to “support him.” On Sunday US Treasury Secretary Henry Paulson said that despite the scandal, there has been no” lessening of support” for the bank’s president by the United States.
Traditionally, the World Bank’s president is nominated by the US while that of the IMF, a sister body, is a European.
Mr Paulson called Mr Wolfowitz “a very dedicated public servant” and said the bank’s board of directors should continue the process.
On Sunday, he presented reports to the bank's policy-setting Development Committee. As Mr Wolfowitz entered the meeting room, he received a pat on the back from the IMF chief Rodrigo de Rato.
The United States, Britain and France, whose governments have a major role in bank operations, said it was important to await the outcome of the board investigation into Mr Wolfowitz's actions.
But British development minister Hilary Benn said on Saturday that” this whole business has damaged the bank and should not have happened.”
Some African finance ministers attending the spring meetings of the World Bank and the IMF in Washington also expressed support for Mr Wolfowitz, saying he has made the continent a greater priority at the bank.
But the bank’s staff association, which represents more than 10,000 employees in Washington and abroad, continued to demand his resignation.
Alison Cave, the association’s chair, said that Mr Wolfowitz “must act honourably and resign.”
The World Bank media office, when asked to comment on the possibility of Mr Wolfowitz resigning during the spring meetings, said: “No decision has been made yet.”
Asked if the bank’s board of governors is considering the issue, the official said: “They met yesterday and since they have made no decision yet, the meetings will continue.”
Asked if he thinks the board will take a decision by Sunday, when it finishes its spring consultations, the official said: “I assume they would meet again in the near future.”
