Tom Baldwin in Washington
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Paul Wolfowitz will plead to keep his job as President of the World Bank today before a special investigating committee, which is said to have concluded that he breached ethics by engineering a pay rise for his girlfriend.
The fate of Mr Wolfowitz, who in his former role at the Pentagon was one of the architects of the Iraq war, has opened up a new split between EU countries and the US.
The issue may overshadow White House talks today between President Bush, who nominated Mr Wolfowitz for the job in 2005, and Angela Merkel, the Chancellor of Germany, which holds the rotating EU presidency.
On Wednesday the European Parliament demanded Mr Wolfowitz’s resignation and called on EU officials with Mrs Merkel to tackle Mr Bush over his continued defence of the World Bank chief.
Earlier on the same day Mr Bush had once again praised Mr Wolfowitz — who was sitting in the front row of an event at the White House — for his leadership in the bank’s fight against global poverty.
European countries led by Germany and France, but including Britain, the Netherlands and Norway, have raised concerns that Mr Wolfowitz’s position is now untenable.
Privately backed by Japanese officials, the Europeans suggest that Mr Wolfowitz may not be able to meet his target of raising $30 billion (£15 billion) over the next three years for low-cost loans and assistance to the world’s poorest countries. In a letter published today the development charity Oxfam says “the role of the World Bank in the fight against poverty is being deeply compromised”.
The crisis arose from revelations over an alleged conflict of interest in decisions to transfer his girlfriend, Shaha Ali Riza, to a the US State Department where she received a tax-free $60,000 (£30,000) pay rise.
Mr Wolfowitz will argue however that the ethics panel was aware of the pay rise in advance, citing a letter they sent to him last year.
Newspaper reports over the weekend claimed that the committee had delayed issuing a final report recommending Mr Wolfowitz’s resignation so that he has time to “consider his position and go quietly”.
Many of the bank’s employees are wearing blue ribbons to symbolise their opposition to Mr Wolfowitz. One source close to the committee said: “He still doesn’t get it, he thinks he can tough it out but we’ve got the votes needed to remove him.”
Although the US is the largest shareholder at the bank, it still has only 16 per cent of the votes on the board. The EU’s combined total is twice that, but it is still not certain they would all vote for Mr Wolfowitz’s removal.
Power base
185 member countries nominate a governor
—The board meets annually
24 Executive directors, 5 are appointed by the members with the most shares – US, Japan, Germany, France and UK
— Rest are elected by other members
—They approve President’s contract
—Have the authority to remove him
President
— Chairs meetings of directors
— Responsible for the overall management of the bank
— Elected by the governors for a five-year, renewable term
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Having worked with the multilateral agencies for many yeasr I can say6 that the US is frequently a malign influence on them, more so in recent years. As parliament said to Cromwell 'In the name of God, go!'
oldasiahand, Hong Kong,
Hasn't Wolfowitz caused the U.S. enough grief? Just go, Paul. Go!
Doug, Malone, Florida
Even if "the euros and the left" have an underlying sinister motive for wanting to remove Wolfowitz from the World Bank, suggesting that the US "take out every penny of the untold billions" that it contributes is exactly the arrogant, mis-guided and ultimately self-destructive attitude that Americans always seem to take.
Okay, so the man has shown a "conflict of interest" (or not), his character and leadership have come into question, even his employees at the World Bank are showing dissent and the hounds are baying for his blood. That's normal in politics and business.
Making him stay despite the opposition of everybody else just because you can isn't very democratic and it would build resentment, and foster dissent among the ranks.
Joe, London, UK
Deathmonger. And corrupt. Good riddance.
Phil, Hong Kong,
Lets be clear about this, Bush took advantage of our own naive Prime Minister ,Tony Blair, in order to bolster support for the Iraq war (cannot really call it a "war" in the strictest sense) and I dont think that there is a "special relationship" anymore between USA and UK (or even Europe) anymore even if there was one in the first place. All Bush is interested in is taking advantage of the UK and Europe for the USA's benefit. Lets get real and realise this, even if Tony Blair can't !.
John, Woking, UK
Eric - what untold billions? The US is notoriously stingy when it comes to actually forking over any of the money it keeps promising. It's the poorer countries of the world that actually bother to stand by their commitments, whereas organisations like the UN and the World Bank are left floundering over cash shortages. Meanwhile, the US keeps promising aid and delivering hot air.
I tell you what. You can take your imaginary 'untold billions' and we'll see if we can manage without all those empty promises to rely on.
Victoria, London,
Eric, the euros and the left?
Don't you mean the whole world on one side, that's about 200 countries on one side, and the US on the other. Mind you its probably not even othe whole of the US just George Bush and his cronies.
Wolfowitz is not on trial for being a neocon, he is on trial for corruption. Typical cowboy attitude, lets ignore the evidence and go in all guns blazing. No wonder the Americans are doing so well in Iraq, led by a similar sentiment. I hope that the sensible Americans will step forward once again after the Bush era is over and replace these idiots. Wolfowitz in any other company would be facing criminal charges for nepotism.
Akram, London,
Disgrace it is even under "consideration." He should go without delay.
M McGregor, Tunbridge Wells, Kent
Just imagine what kind of person was a leading hawk in getting Iraq invaded. He was probably planning to give his girlfriend options on oilfields.
Ronald E. Watts, Nicosia, Cyprus
This man must leave or be removed from this position. The position of the Bank in fighting corruption would be untenable if this man with his blatant disregard for ethical behaviour is allowed to preside over the Bank's activities. How can childrenlearning obout theWorld Bank be tought ethical behaviour if organisations of the stature of the Bank endorse his corrupt behaviour. The Bank must be seen to be independant of the Whitehouse, or lose credibility around the world.
Chris Nestor, Wynyard, Tasmania/Australia
The US only contributes 16% of the total - so the rest of the world would only have to stump up about 20% more of their current contribution to the world bank if the US departs. It would give China, Japan and the EU a controlling stake in the financing of the developing world, its leadership, and selecting the contractors who do the work.
Perhaps the US is not indispensable after all.
Grant, Auckland,
Yes, Eric, from Plymouth, I agree with you. Let the US out of the world bank. It will probably work better. Perhaps with less money, but probably better.
Don Quixote, Groningen, Netherlands
US taxpayer dollars? Ha Ha Ha. The dollars the US "spends" are on credit, from the Chinese and the Japanese. The US is a black hole: all goes in, nothing comes out. If they stop buying treasuries you can see your econony being flushed down the toilet.
Alab, Switzerland,
Let us dispense with the charade surrounding this matter: it's simple, the euros and the Left don't like current, or former, neo-conservatives. That's all this is about.
But hey, let the euros and the Left knock themsleves out. If Wolfowitz gets fed up enough with aforementioend Bozos, and resigns under non US/UK pressure, then I want my government in D.C. to take out every penny of the untold billions of US taxpayer Dollars managed by the World Bank.
Let the euros and the Left for once in their lives put their money where the mouths are: let them underwrite all world aid.
Eric, Plymouth, Massacusetts, USA