April 25, 2007

Calls for resignation

Calls for the resignation of World Bank President Paul Wolfowitz grew Wednesday as the European Parliament voiced its displeasure over allegations that he showed favoritism in arranging a promotion and pay package for his girlfriend.

The demand by the European Union's legislature that the development chief step down comes as a special bank panel is probing whether Wolfowitz violated bank rules in his handling of the 2005 promotion of bank employee Shaha Riza to a high-paying State Department job.

The World Bank's 24-member board, which was meeting Wednesday, will ultimately decide what action, if any, to take.

Many of the bank's staff, former World Bank executives, aid groups and some Democratic politicians have pressed for Wolfowitz to resign. They fear the matter has tarnished the reputation of the institution, which is focused on fighting global poverty, and could hobble efforts to raise billions of dollars for a World Bank program to help poor countries.

Wolfowitz has acknowledged making a mistake and apologized, but he has said he won't quit. He was asked to appear before the special bank panel on Wednesday but didn't because he needed time to prepare, a person close to the investigation said.

At the White House on Wednesday, President Bush took care to offer a positive mention of Wolfowitz at an event to mark Malaria Awareness Day. Wolfowitz was seen there, chatting enthusiastically with other attendees.

Hoping to repair relations with staff and boost morale, Wolfowitz said Tuesday he'll make "major changes" in the way his office and the senior management team work to address the concerns.

Wolfowitz has been running the bank for nearly two years. Riza, who was working at the bank before Wolfowitz took over, was detailed to duties outside the bank in an effort to avoid any conflict of interest.

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