White House signals change on Wolfowitz
White House signals change on Wolfowitz
Copyright The Financial Times Limited 2007
Published: May 15 2007 20:16 | Last updated: May 15 2007 21:20
The White House for the first time on Tuesday signalled that it might be prepared to see Paul Wolfowitz step down as World Bank president, as the US administration struggled to prevent an early push to drive him out over ethics violations.
“All options are on the table,” spokesman Tony Snow said. He held out the prospect of a separate discussion of Mr Wolfowitz’s tenure once the issue of the ethics violations was settled.
“At some point in the future there are going to be conversations about the proper stewardship of the World Bank … Mr Wolfowitz himself says what you need to have is a full, fair conversation about what is going to be best for the future of the bank.”
However, the US bid to postpone this discussion for another day ran into immediate opposition from European and other governments determined to resolve the bank crisis once and for all this week.
The intensifying diplomatic engagement came after the publication of a devastating report on Monday by a panel charged with investigating Mr Wolfowitz’s handling of a secondment package for his girlfriend Shaha Riza. Mr Wolfowitz was set to appear before the board late on Tuesday.
The Group of Seven leading industrialised nations failed to agree a way forward, as European nations and Canada pushed back against US pressure to delay consideration of whether Paul Wolfowitz can any longer be effective in his job.
A conference call scheduled by US Treasury broke up without agreement, with only Japan supporting US calls to put some time between consideration of the ethics violations and a judgment on his continued tenure.
People familiar with the discussion said European states were not necessarily averse to an initial reprimand over the ethics violation, but were insistent on moving immediately on to decide the bigger question of Mr Wolfowitz’s effectiveness.
The administration – which has not given up hope of saving Mr Wolfowitz – meanwhile made a co-ordinated effort to argue that he should not be fired over the ethics violations. Mr Snow said “what we have said is yes, he made mistakes. That pretty much is obvious. On the other hand, it is not a firing offence.”
European officials said the offer of a future discussion on Mr Wolfowitz’s presidency was an effort to persuade critics not to press for his ousting now. However, a senior official said “that strategy is obviously going nowhere.”
World Bank executives weighed in against any delay in an unprecedented letter to Mr Wolfowitz and the board signed by 37 of the World Bank’s 39 country directors. They stopped short of calling for his resignation, but demanded the bank “practice what it preaches on governance and accountability.” They warned ““failure to act credibly … risks both the reputation and the mission of the institution.”
The European Union on Tuesday called for a quick resolution to the crisis, with development ministers meeting in Brussels hinting heavily that Mr Wolfowitz should stand down. “We need a rapid decision from the board,” Heidemarie Wieczorek-Zeul , of Germany, said.
“All of us development ministers want the integrity and the credibility of the bank to be maintained and reinstated. We need a strong bank, a strong president.”
Meanwhile, aides said several Democratic senators are considering introducing a non-binding resolution that would call on the US representative on the bank’s board to “vote for the removal of any bank official, including the president, who is determined by the board to have engaged in significant ethical violations”.
By Krishna Guha, Demetri Sevastopulo and Eoin Callan in Washington, Andy Bounds in Brussels, Hugh Williamson in Berlin and Delphine Strauss in Paris
Timeline:
Spring 2005
Paul Wolfowitz nominated for World Bank president
Mr Wolfowitz advises the bank’s ethics committee of his romantic involvement with Shaha Riza, a bank employee. The president offers to recuse himself from personnel decisions but not professional contact with Ms Riza. Committee rejects this solution.
Mr Wolfowitz directs the head of human resources to award generous pay and promotion package to Ms Riza.
Spring 2006
An angry member of staff sends an anonymous email to the board about the terms of Shaha Riza’s secondment package.
Spring 2007
The FT discloses that Mr Wolfowitz directed the terms of Ms Riza’s secondment.
White House tests the level of support for Mr Wolfowitz but meets European resistance.
A bank report finds Mr Wolfowitz broke its code of conduct.
Copyright The Financial Times Limited 2007
Published: May 15 2007 20:16 | Last updated: May 15 2007 21:20
The White House for the first time on Tuesday signalled that it might be prepared to see Paul Wolfowitz step down as World Bank president, as the US administration struggled to prevent an early push to drive him out over ethics violations.
“All options are on the table,” spokesman Tony Snow said. He held out the prospect of a separate discussion of Mr Wolfowitz’s tenure once the issue of the ethics violations was settled.
“At some point in the future there are going to be conversations about the proper stewardship of the World Bank … Mr Wolfowitz himself says what you need to have is a full, fair conversation about what is going to be best for the future of the bank.”
However, the US bid to postpone this discussion for another day ran into immediate opposition from European and other governments determined to resolve the bank crisis once and for all this week.
The intensifying diplomatic engagement came after the publication of a devastating report on Monday by a panel charged with investigating Mr Wolfowitz’s handling of a secondment package for his girlfriend Shaha Riza. Mr Wolfowitz was set to appear before the board late on Tuesday.
The Group of Seven leading industrialised nations failed to agree a way forward, as European nations and Canada pushed back against US pressure to delay consideration of whether Paul Wolfowitz can any longer be effective in his job.
A conference call scheduled by US Treasury broke up without agreement, with only Japan supporting US calls to put some time between consideration of the ethics violations and a judgment on his continued tenure.
People familiar with the discussion said European states were not necessarily averse to an initial reprimand over the ethics violation, but were insistent on moving immediately on to decide the bigger question of Mr Wolfowitz’s effectiveness.
The administration – which has not given up hope of saving Mr Wolfowitz – meanwhile made a co-ordinated effort to argue that he should not be fired over the ethics violations. Mr Snow said “what we have said is yes, he made mistakes. That pretty much is obvious. On the other hand, it is not a firing offence.”
European officials said the offer of a future discussion on Mr Wolfowitz’s presidency was an effort to persuade critics not to press for his ousting now. However, a senior official said “that strategy is obviously going nowhere.”
World Bank executives weighed in against any delay in an unprecedented letter to Mr Wolfowitz and the board signed by 37 of the World Bank’s 39 country directors. They stopped short of calling for his resignation, but demanded the bank “practice what it preaches on governance and accountability.” They warned ““failure to act credibly … risks both the reputation and the mission of the institution.”
The European Union on Tuesday called for a quick resolution to the crisis, with development ministers meeting in Brussels hinting heavily that Mr Wolfowitz should stand down. “We need a rapid decision from the board,” Heidemarie Wieczorek-Zeul , of Germany, said.
“All of us development ministers want the integrity and the credibility of the bank to be maintained and reinstated. We need a strong bank, a strong president.”
Meanwhile, aides said several Democratic senators are considering introducing a non-binding resolution that would call on the US representative on the bank’s board to “vote for the removal of any bank official, including the president, who is determined by the board to have engaged in significant ethical violations”.
By Krishna Guha, Demetri Sevastopulo and Eoin Callan in Washington, Andy Bounds in Brussels, Hugh Williamson in Berlin and Delphine Strauss in Paris
Timeline:
Spring 2005
Paul Wolfowitz nominated for World Bank president
Mr Wolfowitz advises the bank’s ethics committee of his romantic involvement with Shaha Riza, a bank employee. The president offers to recuse himself from personnel decisions but not professional contact with Ms Riza. Committee rejects this solution.
Mr Wolfowitz directs the head of human resources to award generous pay and promotion package to Ms Riza.
Spring 2006
An angry member of staff sends an anonymous email to the board about the terms of Shaha Riza’s secondment package.
Spring 2007
The FT discloses that Mr Wolfowitz directed the terms of Ms Riza’s secondment.
White House tests the level of support for Mr Wolfowitz but meets European resistance.
A bank report finds Mr Wolfowitz broke its code of conduct.
posted by Carlos T Mock @ 6:19 PM
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