12 April 2007
The chair of the World Bank Staff Association, Alison Cave, said that Paul Wolfowitz "must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group and has destroyed the staff's trust in his leadership. He must act honorably and resign."
At 10:30am this morning the Staff Association held an open press conference at the Atrium of the main World Bank building. The Chair of the World Bank Staff Association read a set of prepared remarks regarding the terms of Ms. Shaha Riza's external assignment and the manner in which the situation has been handled. Ms. Cave said that because Mr. Wolfowitz is "the most visible face of the institution" and because he has compromised the integrity of the organization and the trust of the staff, he should resign.
In addition, the Staff Association demanded "that the Board release all of the documents that it has collected in this case, which we have confirmed to include: "
- A dated memorandum from the President to the HR Vice President instructing him to agree on the following terms for Ms. Riza's external assignment (in spite of the obvious conflict of interest). In addition to those facts already released in the press.
- The actual negotiated contract formalizing these terms
- Testimony by: the former Chair of the Ethics Committee; the former General Counsel, Roberto Danino; the Vice President of HR, Xavier Coll.
Members of the audience were then given an opportunity to ask questions to Ms. Cave and to express any comments they had about the situation. Of the approximately 100-150 people in attendance, one staff member said that "the situation has bothered me to the depths of my core” while another described what was happening as "PR warfare." Yet another staff member said that “for the last year and a half we have been tolerating a betrayal of trust."
In a dramatic turn of events, Mr. Wolfowitz appeared at the bottom of the stairs below which Ms. Cave was answering questions. Ms. Cave recognized the President and invited him to say a few words on his behalf. Mr. Wolfowitz said that he was "constrained to talk about the details” of the situation and that his "biggest mistake was that I didnt try hard enough to stay out of it" in reference to Ms. Riza's external assignment. Finally, Mr. Wolfowitz stated that “I will abide by any remedies the Board proposes.” As Ms. Cave rebutted his comments members of the crowd began chanting "resign". Visibly uncomfortable, Wolfowitz left with his advisors while Ms. Cave continued taking comments and questions.
Staff Association Remarks
Message from World Bank President Paul Wolfowitz
April 12, 2007
The World Bank
Washington, D.C. 20433
U.S.A
PAUL WOLFOWITZ
President
11:20:49 AM
To: All Bank Group Staff
Subject: From the President
I visited with the Board this morning and began our Spring Meetings marathon with the opening press conference. I also dropped by Alison Cave’s morning coffee session to express my willingness to answer any questions staff may have, as soon as the Board has completed its deliberations. In the meantime, because I know you are deeply interested in this issue, I am attaching my opening statement at the Spring Meetings press conference. The full transcript of the press conference will be available shortly on the intranet. If you have further questions, send an e-mail or contact the Director of my office, Letitia Obeng, at 34551.
Paul Wolfowitz
Statement by Paul Wolfowitz, President of the World Bank Group
WB/IMF Spring Meetings 2007
April 12, 2007
Paul Wolfowitz: Let me just say a few words about the issue on everyone’s mind. Two years ago, when I came to the Bank, I raised the issue of a potential conflict of interest and asked to be recused from the matter. I took the issue to the Ethics Committee and after extensive discussions with the Chairman, the Committee’s advice was to promote and relocate Ms. Shaha Riza.
I made a good faith effort to implement my understanding of that advice, and it was done in order to take responsibility for settling an issue that I believed had potential to harm the institution. In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations. I made a mistake, for which I am sorry.
Let me also ask for some understanding. Not only was this a painful personal dilemma, but I also had to deal with it when I was new to this institution and I was trying to navigate in uncharted waters. The situation was unprecedented and exceptional. This was an involuntary reassignment and I believed there was a legal risk if this was not resolved by mutual agreement. I take full responsibility for the details. I did not attempt to hide my actions nor make anyone else responsible.
I proposed to the Board that they establish some mechanism to judge whether the agreement reached was a reasonable outcome. I will accept any remedies they propose.
In the larger scheme of things, we have much more important work to focus on. For those people who disagree with the things that they associate me with in my previous job, I’m not in my previous job. I’m not working for the U.S. government, I’m working for this institution and its 185 shareholders. I believe deeply in the mission of the institution and have a passion for it. I think the challenge of reducing poverty is of enormous importance. I think the opportunities in Africa are potentially historic. We have really been able to call attention to the progress that’s possible in Africa, and not just the despair and misery in the poorest countries. I think together we’ve made some progress in enabling this institution to respond more effectively and rapidly both in poor countries and in middle income countries to carry on the fight against poverty. I also believe—even more strongly now than when I came to this job—that the world needs an effective multilateral institution like this one that can responsibly and credibly manage common funds for common purposes, whether it is fighting poverty or dealing with climate change or responding to avian flu. I ask that I be judged for what I’m doing now and what we can do together moving forward.