Wolfowitz Offers Changes at World Bank

washington post

WASHINGTON -- Fighting to keep his job, World Bank President Paul Wolfowitz is offering to make management changes at the institution, officials close to the situation said Thursday.

The overture _ which came during a meeting of bank vice presidents on Wednesday _ was made as Wolfowitz is facing mounting calls for his resignation. The controversy is over Wolfowitz's role in arranging a high-paying job for Shaha Riza, a bank employee who he has dated.

World Bank President Paul Wolfowitz listens during a news conference at the conclusion of the 2007 Spring meetings at IMF headquarters in Washington, Sunday, April 15, 2007. The controversy involving Wolfowitz and his involvement in a pay increase awarded to a close female friend has put his position in jeopardy but President Bush has stated his confidence in the embattled World Bank president. Wolfowitz a former deputy defense secretary and was one of the architects of Bush's Iraq war strategy.

World Bank President Paul Wolfowitz listens during a news conference at the conclusion of the 2007 Spring meetings at IMF headquarters in Washington, Sunday, April 15, 2007. The controversy involving Wolfowitz and his involvement in a pay increase awarded to a close female friend has put his position in jeopardy but President Bush has stated his confidence in the embattled World Bank president. Wolfowitz a former deputy defense secretary and was one of the architects of Bush's Iraq war strategy.

The World Bank's 24-member board is expected to meet behind closed doors on Thursday to discuss the matter. It is not clear what action, if any, the board might take. Wolfowitz has said he made a mistake and has apologized.

At Wednesday's meeting, Wolfowitz stated anew that he did not intend to step down, according to the officials, who spoke on condition of anonymity because they are not permitted to speak on behalf of the bank. They said Wolfowitz spoke in general terms for the need to improve the bank's management, including that of his inner office, and to soften his management style. He also invited recommendations.

The United States _ the bank's largest shareholder _ has been standing by Wolfowitz. "As we've said before, the president has confidence in Paul Wolfowitz," White House spokeswoman Dana Perino said Thursday in a fresh statement of support. She also said it is appropriate to let the board's review process take place.

Although they have not said so publicly, some European governments would like to see Wolfowitz go but do not want to provoke a fight with the United States over the issue.

Under an informal agreement, the United States names the head of the World Bank and the Europeans chose the leader of its sister institution, the International Monetary Fund. The controversy over Wolfowitz could bring this informal arrangement into question if he resigns or is fired.

Documents released last week showed that Wolfowitz had a direct hand in securing a State Department job for Riza in September 2005 that pays her $193,590. Before the transfer, Riza was earning close to $133,000 as a communications adviser in the bank's Middle East department.

Riza remains on the World Bank's payroll even though she left the State Department job in 2006 and now works for Foundation for the Future, an international organization that gets some money from the department. "I have now been victimized" for agreeing to the arrangement, Riza said in a memo to the bank last week.

The bank's staff association, which accounts for around 7,000 of the bank's 10,000 employees worldwide, wants Wolfowitz to resign, saying his actions have tarnished the reputation of the bank. "His conduct to date does not reflect respect for good governance," said Alison Cave, head of the staff association.

Bea Edwards, international director of the Government Accountability Project, a watchdog group, said: "Wolfowitz has shown himself to be a poor leader, guilty of misjudgment if nothing else."