World Bank’s Wolfowitz faces criticism

The debate regarding World Bank President Paul Wolfowitz and his involvement in awarding a huge pay increase to a close female friend, Shaha Riza, comes to center stage on Sunday April 15th, as the World Bank’s steering committee convenes.

The US, France and England, whose governments play a major role in the operational matters of the World Bank, thought it imperative to wait till the results of the inquiry by the board of directors were announced. The US, being the biggest shareholder in the World Bank is supportive of Wolfowitz, and is standing by him amidst this commotion.

According to a statement issued by a Whitehouse Spokeswoman, Dana Parino, “The President has confidence in Wolfowitz, and his work at the World bank”.

The Board at the World Bank had been looking into the matter, which has outshined the 185 nation meetings of the World bank and the International Monetary Fund. This matter had divided the World Bank into two parts, in which half of them wants him to resign, whereas, the other half is supportive of him and favor him as a good employee.

Wolfowitz is apologetic on this matter, and has admitted his mistake concerning Riza’s promotion and pay increase. Shaha Riza was promoted to a higher paying job at the state department in September 2005. However, Riza explains that she has been victimized and was not in the favor of this act from the beginning and knew that this was not going to be in her best interest. Wolfowitz, within two months of his joining the World Bank, had sent a memo to the vice president, human resources, explaining details of the Riza’s promotion and salary increase.

Wolfowitz had been appointed by President Bush himself; he was the main designer of the Iraq war while serving as the deputy Defense Secretary. His appointment to the top level at the World Bank invited a lot of protest from international agencies.

The association of staff at the World Bank wants Wolfowitz to resign; there had been several planned protest demonstrations which could not happen, however, a number of advocacy groups marched outside the bank’s building demanding Wolfowitz to resign.

After announcing the facts publicly, the World Bank’s board has yet to complete the process, even though this scandal has done a lot of damage to the bank’s operations, but still the process has to be completed and respected, one of the World Bank’s official had commented.