World Bank dumps Wolfowitz

[Linda]

Wolfowitz quits World Bank as US relents on trying to save corrupt Neocon

'Unable to overcome charges of ethical misconduct, Paul Wolfowitz resigned as World Bank president yesterday within hours of getting a final White House signal that he should abandon a fierce battle save to his job.'

http://www.moneyweb.co.za/mw/view/mw/en/page94?oid=91959&sn=Detail


Wolfowitz quits World Bank as U.S. relents

Wolfowitz resigned as World Bank president, brought down by allegations that he misused his position to secure raises and promotions for his girlfriend.
Neil King jr. And Greg Hitt, Wall Street Journal
18 May 2007

WASHINGTON -- Unable to overcome charges of ethical misconduct, Paul Wolfowitz resigned as World Bank president yesterday within hours of getting a final White House signal that he should abandon a fierce battle save to his job.

Mr. Wolfowitz will leave the poverty-fighting agency June 30, brought down by allegations that he misused his position to secure a big pay-and-promotion package for his girlfriend, longtime bank employee Shaha Riza. Public disclosure of his actions provoked international calls that he resign and touched off a much larger debate about his management style and priorities as president.
[Paul Wolfowitz]
Wolfowitz

President Bush intends to name a successor quickly at the multilateral bank, which is traditionally led by an American. "The president will have a candidate to announce soon, allowing for an orderly transition that will have the World Bank refocused on its mission," White House spokesman Tony Fratto said. He said Mr. Bush still supported Mr. Wolfowitz. "We would have preferred that he stay at the bank, but the president reluctantly accepts his decision."

For all the vitriol of the past several weeks, both Mr. Wolfowitz and the bank's board issued complimentary statements last evening. The board released a conciliatory statement that came very close to the exoneration Mr. Wolfowitz sought when he entered negotiations over his potential departure. The board said "a number of mistakes were made by a number of individuals." It also acknowledged that changes had to be made to the "governance framework of the World Bank Group," a nod to a shared blame within the lender that both the U.S. and Mr. Wolfowitz wanted.

The board's statement cited a long roster of achievements during Mr. Wolfowitz's two-year tenure, a list that closely corresponded to his own accounting. "We thank Mr. Wolfowitz for his leadership and for championing the Bank's work across so many areas," the statement said.

Mr. Wolfowitz, in turn, said he was pleased the board "accepted my assurance that I acted ethically and in good faith in what I believed were the best interests of the institution, including protecting the rights of a valued staff member." He said he was stepping down because it was "in the best interests of those whom this institution serves for that mission to be carried forward under new leadership."

A possible list of candidates for that new leadership emerged quickly yesterday. Some names thought to be on the short list are former Deputy Secretary of State Robert Zoellick and current Deputy Treasury Secretary Robert Kimmitt. Another name is that of former Senate Majority Leader Bill Frist, a Tennessee Republican.

Mr. Wolfowitz came to the poverty-fighting institution from his post as the No. 2 at the Pentagon, where he helped plan the Iraq war. Mr. Wolfowitz looked forward to getting a fresh start, and the chance to lead the bank took him away from a war that had become increasingly chaotic and bloody. But his reputation from the war cast a cloud over his tenure from the start.

Since taking office in June 2005, Mr. Wolfowitz alienated the bank's tradition-bound bureaucracy by relying on a coterie of forceful, sometimes brash aides with ties to the Bush administration. Among other things, he gave them free rein to challenge career staffers and insert themselves into daily policy.

He also battled the bank's influential board, which represents the institution's 185 members, especially over a campaign to curb corruption. Critics saw his approach as a threat to the bank's core mission of alleviating poverty, contending that cutting off funds to corrupt countries would only hurt the poor there more.

Mr. Wolfowitz fought hard for his job after the scandal broke last month. But his chances dimmed this week when a report by a subcommittee of the bank's board found he violated the bank's ethics rules and said the controversy had damaged bank credibility.

Mr. Wolfowitz's final days became an effort to bow out gracefully, beginning talks Wednesday on a possible exit. By yesterday morning his fate looked certain when a clearly pained Mr. Bush appeared to concede Mr. Wolfowitz was on his way out. "I regret that it's come to this," said Mr. Bush, who had previously offered strong endorsements.

Hours later, Mr. Wolfowitz and the board issued their statements.

As World Bank officials drafted the statement yesterday, there was heavy Bush administration input on Mr. Wolfowitz's behalf. The administration insisted the bank essentially clear Mr. Wolfowitz of wrongdoing and give him until the end of June to leave. Those six weeks also let the White House have time to find a successor. Treasury Secretary Henry Paulson will lead the search, saying he will have consultations "around the world."

Mr. Wolfowitz will have limited responsibilities during his final weeks and won't be allowed to make major decisions, the bank said. Even so, the bank's Staff Association, which represents bank workers and stirred up opposition to Mr. Wolfowitz, condemned the arrangement. "He cannot continue to be the face of the World Bank," the association said.

Development groups yesterday repeated demands that Washington consider non-American candidates. There was even talk within the bank's board yesterday of offering an independent nominee instead of having the U.S. pick. That possibility would likely gain traction only if the U.S. pursues a candidate with weak support abroad.

U.S. officials made clear the White House intends to assert tradition in picking the bank's 11th president since it was founded in the late 1940s. A European normally leads the bank's sister agency, the IMF.

The resignation saved the bank from having to stage an open vote on Mr. Wolfowitz's leadership. The past month has brought unprecedented strains to the institution, and a vote threatened a deep rift in the board.

In his resignation statement, Mr. Wolfowitz described wistfully -- and at length -- the bank's work in Africa. When Mr. Wolfowitz took office two years ago, he pledged to make Africa the bank's No. 1 priority, and he said yesterday that if he has "touched the hearts of Africans...then the last two years have been worth it."

[Busker]

He should have been sacked, not allowed to quit.

[xmasdale]

And now Tony Blair is being tipped to succeed him. God help us all.

[rodin]

My money was on Bono...

But if it is Bliar says a lot about his loyalties

[Mark Gobell]