Business | Banking
World Bank promises quick action on Wolfowitz scandal
The World Bank's board expressed fresh concern late on Tuesday over bank president Paul Wolfowitz's handling of a hefty pay package for his girlfriend and promised a decision soon in a controversy that has led to calls for his resignation.
- AP
- Published: 00:00 May 3, 2007
Washington: The World Bank's board expressed fresh concern late on Tuesday over bank president Paul Wolfowitz's handling of a hefty pay package for his girlfriend and promised a decision soon in a controversy that has led to calls for his resignation.
The 24-member board met several hours with a bank panel that over the past two days had heard from Wolfowitz, his girlfriend and bank employee Shaha Riza and other present and former bank officials about Riza's promotion and pay raise to $193,590.
In a statement, the directors said they "remain very concerned about the impact on the work of the bank group and are committed to the earliest possible resolution of the matter."
The board said the next step is for the special panel to "draw its conclusions from the information obtained from the documents and during the course of the interviews" and expeditiously submit a report to the directors.
Ultimately, the directors will decide what action should be taken, if any. The board could ask Wolfowitz to resign, signal it lacks confidence in his leadership, reprimand him or take no action. There might also be a compromise under which Wolfowitz would be found to have acted in good faith and he would resign later.
Earlier, the special panel was told by the former chairman of the bank's ethics committee that his group was not consulted and didn't approve Riza's compensation package.
Wolfowitz told the panel on Monday that the bank's ethics panel had access to all details surrounding the arrangement involving Riza "if they wanted it."
Melkert said the panel was not consulted, nor did it approve details of Riza's compensation package.
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