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Paul Wolfowitz’s future hung in the balance last night as the White House admitted that “all options are on the table” about the leadership of the World Bank.
The embattled bank president pleaded before the institution’s full board yesterday to be allowed to keep his job and promised changes in his management style after an ethics committee said that he had broken rules by arranging a generous pay rise for his girlfriend.
It said that Mr Wolfowitz’s actions had produced a “crisis of leadership” and so damaged the bank’s reputation that the 24 shareholder governments must now decide whether he was capable of carrying out the organisation’s mandate to fight global poverty.
Britain is among several countries with sizeable votes on the board that remain reluctant to wield the knife against a close ally of the White House who, in his former job at the Pentagon, was an architect of the Iraq war.
Gordon Brown, the Chancellor, is understood to fear opening up fresh divisions between Europe and the US.
Instead, the Bush Administration — which until now has offered unqualified support for Mr Wolfowitz — appears to be offering all sides a way out.
Henry Paulson, the US Treasury Secretary, has been telephoning finance ministers in at least six countries to suggest separating the allegations from questions about Mr Wolfowitz’s future.
Tony Snow, the White House press secretary, reinforced the message yesterday, saying: “We have faith in Paul Wolfowitz”, and insisting that the charges were not “a firing offence”. He then suggested that after the allegations had been resolved, it would be appropriate to consider whether Mr Wolfowitz could remain as bank president.
“Separately, at some point in the future there are going to be conversations about the proper stewardship of the World Bank,” Mr Snow said. “In that sense, all options are on the table.”
It is believed that Mr Paulson has spoken to Hilary Benn, the British International Development Secretary, who has been vocal in expressing dismay at the damage being done to the bank and has criticised Mr Wolfowitz’s emphasis on anti-corruption policies. British sources suggested yesterday that the Government, along with those of other European countries, did not believe that the two issues could be separated.
A British official told The Times: “We are at a very delicate stage and we will be reserving our position in public and, if possible, in private as well.”
Since the bank’s foundation in 1944, no board has dismissed a president, and there is no precedent for how to proceed. After its closed-door meeting with Mr Wolfowitz, the board must decide whether to vote for his dismissal, pass a no-confidence motion, discipline him or take no action.
America, the board’s largest shareholder, is thought to have the support of Japan in keeping Mr Wolfowitz. But the Europeans and Canada would be able to outvote them.
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The curse of hundreds of thousands of Iraqis looms over Wolfowtiz, the 'Super hawk' , whose misplaced enthusiasm opened a pandora's box in Iraq and the entire Middle East. Wolfowitz's dirty traits and loose morale serve as a classic example of the true nature of the rest of the hawks in the Bush administration, who are wolves in the garb of sheeps. With the Iraq invasion which the late Pope John Paul II described as ' a defeat to humanity', Wolfowtitz threw a brazen challenge to the entire world. And now, he has started reaping what he sow.
Yes, the world is striking back...
Mathew, Mumbai, India
I'm surprised that so many of you other posters are blinded by rage and indignation. PW immediately informed the Bank that his partner worked for the bank, albeit 4 layers down. He made the mistake of listening to the ethics board of the bank, which appears to have set a trap for him, by insisting that he couldn't recuse himself when his partner -- as per the board's advice -- was deemed to merit a pay raise for having to leave the bank. (Frankly I can't see why she shouldn't have been allowed to continue to do her bank job.) I don't see why PW should go at all. Xavier Coll and others should resign instead.
Thor, Vancouver, Canada
News item - Bush backs Paul Wolfowitz. News item - Bush backs Alberto Gonsales. News item - Donald Rumsfeld resigns. Poor Rummy, he must be wondering where he fell short.
Sarbo Sen, Calcutta, India
If wolfowitz was not a friend of the white house and was not an american, he would probably be facing criminal charges.
just cause he ia a friend of the administration, he can just walk away? In the "land of the free", it appears some are more free than others.
Akram, London,
It`s not just in the U.K. Did we not learn our lessons fron the Enron debacle? Not to mention other intitutions such as Hewitt- Packard, IBM< and on and on.
When does the general population rise up and say we`re not going to take this deceit anymore ? When are we going to get an administration that will have a conscience and pull in the reins on these nuts. It seems to be their number ONE agenda is to give themselves pay raises. I was taught that you were payed for your performence.( No comment )
James, Denver, U.S.A./ Colorado
Mr Wolfowitz, as Mr Tenet of the CIA, was a Staffer with no experience as an Executive running a large organisation ans was appointed solely as a political loyalist of the President. Apointing people without relevant experience to top jobs is bound to lead to problems.
garth r a wiseman, london, England
What is good for the goose is good for the gander. Sad that while the US is quick (and quite right) to judge the UK over its lack of ethical conduct vis-a-vie Saudi bribery, the UK lacks the gumption to return the favour.
Brown (as chancellor) could act here to show true movement on the US-lap-dog issue of recent years but seems to be failing to take the oppertunity. Not a good start to his rise to prime minister.
Whitter, Edinburgh, Scotland
In money matters we expect financial prudence from every bank and every bank's employee. The leader of the World Bank has clearly been imprudent. I see no reason to expect anything more from Paul Wolfowitz - other than his resignation.
Jimbo, Oslo, Norway
There is no doubt about it. He should resign. This is the second time he has shown a singular lack of judgement. Firstly, as Deputy Secretary of Defence and now as President of the World Bank. Morale of Bank staff ,which is already at an all time low,will plummet further if he remains. If Bank staff are unable to respect or trust their leader the organization will not deliver on its mandate to better conditions in the developing world.
Chip Rowe, Tourtoirac, France
Paul is another Bushie who has in his current role a global responsibility. For him to execute the responsibilities as the WB president he need global support and clearly he does not have that.
Its an issue at two levels - is his offence a "firing offence" and can he continue to be effective in his role. Even if the answer to the first is a no (which in my mind is questionable), the answer to the second question is very clear.
For once Paul needs to do the honorable thing and step down.
Sanjeev, Fremont, California
The evil corrupt man should be sacked and face criminal law charges not just over this but also over Iraq.
simonS, Bolton,
Is it really more important to keep our relations with America sweet at the expense of this type of moral expediency? Or perhaps that 'grubby dictator' Mugabe is'nt such a bad chap after all!
Dallen, Solihull, West Midlands
Know a tree by its fruit. It's axe time. But as has been the case this last six years in America, the guilty stay on and prosper. It's a tight knit club that runs the show these days.
Lenny, Front Royal, Virginia, U.S.A.
GOOD - I hope Wolfowitz is sacked big time. I could never understand why he was given this job in the first place.
He must know that what he did was unethical - nobody should be given a job because he or she is a spouse, friend or lover. It is supposed to be the dawn of a new era and thinking in the C21st.
Ian Payne, LICHFIELD - STAFFS, ENGLAND
Shocking really. The guy has no case at all to keep his job, but all interested parties are prevaricating because of WHO he is (or was?!). Another discredited neocon - lets get rid of the lot of them and their vicious world view. And that includes Tony B Liar as well.
Jeremy Poynton, Fromeville, 51st State
corruption in any form isn't acceptable. he must be sacked
andrew, Ipswich, England
He's as corrupt as they come. Obviously. If I thought writing to my MP made a difference, I would. Do the world a favour and get him out, Gordon.
Martin Blanc, London, UK
"Britain is among several countries with sizeable votes on the board that remain reluctant to wield the knife"
this is not what I read in other newspapers; apparently only Japan is backing the USA; so this is not 'several'.
Jim, London, UK
I trust that Canada and Japan and possibly others, who might find the evidence and the case against against Mr Wolfowitz as unsatisfactory along with the obvious self serving actions of Bank public Servants, may vote for Mr. Wolfowitz.
Is the Board anti anti-corruption? Corruption appears to exist on such a vast in the funding portfolios that the viability of the Bank is threatened and thereby many high paid of incumbent management and staff.
Peter, Quinn, Canada
This is a typical stance of the worlds liver lillied chiefs anyone else would be in jail for corruption.
Sack him and get in a decent guy.
Trevor Nye, Ceauce, France
Wolfowitz joins the long rank of politicians who have wielded power and have been forced to resign or were defeated at the polls ,They include Blair, Rumsfeld,Berusconi ,Gonsalez and others.There are a few dead ducks in Bush ,Cheney and Condi Rice left..Time will only tell on these hypocrites who have created terror in countries where there was no terror before the invasion of Iraq.
Bala Superamaniam, Sydney, Australia
The ethics committee should appoint a "bank tsar" and do an end run around Wolfowitz so that he has no power. Maybe then he will leave.
Charlotte Kelly, Yorktwon, VA
Any adult who is a professional and person of honor should only attempt to lead such a world class organization with the full confidence and approval of its members. If too many of its patrons complain then they should step down and let someone more acceptable take the helm. Of course there are politics in play that are using his mistakes as leverage to get him out of there, but frankly he should take the hint and simply go out of respect for maybe, just possible, so they are correct that he is not the man to lead the organization at this time. Its an act of arrogance to stay on in this manner and as a US citizen it just makes me shake my head. While a small powerful group may like his politics and views, I still don't see any results of a valid work product so what is his utility as president anyways? This should not be about his career, but about the world.
Brian Stewart, Los Angeles,
If he is replaced, I suggest John Bolton be appointed to continue the anti-corruption agenda
Guy, Sydney, Australia
He should definitely be fired.
Eberhard van der Vlugt, Toledo, OR USA
Mr. Wolfowitz could carry on as the president of world bank with a minor reprimand from the board as the offence is not a major one.
Arupkumar Das, Nashik, India