World Bank group voices concern over Wolfowitz

 group of about 50 World Bank officials at the forefront of the bank’s anti-corruption fight on Thursday expressed deep concern with the crisis surrounding bank chief Paul Wolfowitz.In a letter to Wolfowitz and the bank’s board, the group called for “clear and decisive actions” to resolve the crisis “in a way that demonstrates to all our stakeholders the bank’s commitment to the highest standards of integrity in leadership and accountability.”

The letter by the Governance and Anti-Corruption group offered the clearest sign yet that the controversy over Wolfowitz’s role in the promotion and pay increase of his girlfriend was affecting the bank’s operations around the globe.

The officials said they could no longer credibly implement the bank’s anti-corruption strategy, which Wolfowitz zealously campaigned for in his first two years at the bank.

Critics of Wolfowitz, a former U.S. deputy defence secretary and an architect of the invasion of Iraq, have accused him of double standards over his handling of the promotion for his bank-employed girlfriend, Shaha Riza.

“As is known, there are reports from the field offices of concrete cases where the bank’s policy dialogue and operational work on governance and anti-corruption are being undermined,” the group wrote.

“The credibility of our front line staff is eroding in the face of legitimate questions from our clients about the bank’s ability to ’practice what it preaches’ on governance.”

The Governance and Anti-Corruption group includes senior and mid-level World Bank staff both in Washington and in country offices who help to implement and advise developing countries on the bank’s strategy to fight corruption.

The group said it was important for the legitimacy and trust of the institution that the crisis was resolved in a way that would allow the bank to function effectively.

2007 Reuters

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