SMRs and AMRs

Saturday, April 14, 2007

Wolfowitz Dictated Girlfriend's Pay Deal

World Bank Board Weighs Its Options
By Karen DeYoung and Krissah Williams
Washington Post

World Bank President Paul D. Wolfowitz personally dictated the terms under which the bank gave what it called his "domestic partner" substantial pay raises and promotions in exchange for temporarily leaving her job there during his tenure, according to documents released by the bank's executive board yesterday.

The board issued a statement saying it will "move expeditiously to reach a conclusion on possible actions to take," amid rising speculation over whether the embattled Wolfowitz will resign or be asked to step down. Board deliberations over his future were suspended yesterday morning as the bank began its spring meeting, an annual rite attended by finance ministers and central bank presidents, and one now being overtaken by the controversy surrounding Wolfowitz.

"He has apologized, and there is a process in place," Treasury Secretary Henry M. Paulson Jr. said after a meeting with his counterparts from the world's richest nations yesterday. "I don't intend to comment on that here. I do not want that to be read as a lessening of U.S. support for Paul Wolfowitz."

Wolfowitz joined the bank in 2005 after working at the Pentagon, where as deputy defense secretary he was a principal architect of the Iraq war. This made him a controversial figure at the bank, where he fostered resentment among its member nations and 7,000 Washington employees. A number of the bank's leading donor nations, including Britain, expressed public concern about aspects of his leadership long before the current uproar over his girlfriend, Shaha Riza, which began when details of her pay package were publicly revealed last month.

(Continued here.)

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