29 April 2007
Quotes from World Bank's shareholding country representatives, US Government, and civil society on the Wolfowitz affair.
World Bank's shareholding country representatives:
UK: Development secretary Hilary Benn: Wolfowitz has "damaged the bank." (1) Benn has also recently said: "Let's be blunt...what's happened has been enormously damaging for the Bank, an institution that many people care about. It simply can't continue." (5)
Germany: German Development Minister Heidemarie Wieczorek-Zeul: Wolfowitz must "decide for himself whether he can continue to fulfill his duties credibly.'' (1)
France: Finance Minister Thierry Breton commented
"I have confidence in the Bank," when asked if he had confidence in Wolfowitz. (1)
Liberia: Finance Minister Antoinette Sayeh: "He [Wolfowitz] certainly championed our cause over the last two years of his leadership, and we look forward to it continuing." (1)
Mauritius: Rama Sithanen, a deputy prime minister of Mauritius, said Wolfowitz had been “supportive of the reforms in our country.” He said Mr. Wolfowitz “has apologized for what has happened” regarding the favoritism shown to his companion, Shaha Ali Riza, who is employed at the bank, and should be dealt with in a way that was “commensurate” with his mistakes (6)
Canada: Finance Minister Jim Flaherty: "I believe in a fair process here...I don't believe in running up and ganging up on anybody.'' (1)
Brazil: Finance Minister Guide Mantega:"We'll have to see if Wolfowitz will be able to retain the moral authority necessary to fulfil his duties." (2)
Norway: Development Minister Erik Solheim: international organizations must behave in a manner that inspires trust.
EU Parliament called on the U.S. and Germany "to signal to the president of the World Bank, Paul Wolfowitz, that his withdrawal from the post would be a welcome step toward preventing the bank's anti-corruption policy from being undermined.''
World Bank Senior Management:
Graeme Wheeler, Managing Director apparently "urged the World Bank president to resign as the civil war inside the institution reached top management. [Wheeler] made his call in front of all the bank’s top officials at an extraordinary session of their regular weekly meeting" reports the Financial Times. (10)
U.S. Government:
White House spokesperson Dana Perino: "The [US] President has complete confidence in him and what he has done to help lift people around the world out of poverty. He has offered his excuses for the affair and an internal investigation is being held. We expect that he will continue to serve as bank president." (4)
Vice-President Dick Cheney, "Paul is one of the most able public servants I've ever known .... I think he's a very good president of the World Bank, and I hope he will be able to continue." (19)
Treasury Secretary Henry Paulson has commented that he has: "a very high regard for Paul Wolfowitz,'' describing him as a ``very dedicated public servant.'' (1)
U.S. Congressman and Chair of House Financial Services, Barney Frank: "This has further damaged an already weakened American credibility...What this has led to are questions about the American role in the bank, in general. And it's part of a pattern of this administration diminishing America's ability to influence events in a range of international forums." (11)
U.S. Democratic Presidential candidate John Edwards: “Wolfowitz’s tenure at the World Bank has been marked by some of the [same] failures as his term managing the war in Iraq — cronyism and rhetoric that does not match reality — and now serious questions of financial integrity that have alarmed our allies". (3)
U.S. Senator John Kerry said that “As a champion of anti-corruption measures, Mr. Wolfowitz must hold himself to the highest standards of personal conduct. He failed to do so. He has lost the confidence of his colleagues at the World Bank, and with it his ability to govern effectively. It is time for new leadership.” To be even clearer, Kerry said, "Paul Wolfowitz should resign". (9)
U.S. Senator Max Baucus, Chairman of Senate Finance Committee: "It would be my hope, frankly, that Mr. Wolfowitz realizes that discretion is the better part of valor and finds a graceful way to no longer be president of the bank".
U.S. Senate Majority Leader Harry Reid and Democratic Sens. Patty Murray, Richard Durbin and Charles Schumer, in a letter addressed to President George W. Bush said that "The current situation is complex and unfortunately may be fueled in part by views toward Mr Wolfowitz unrelated to his tenure at the bank...At the same time, it is likely that, at least by adding to confusion about the facts, Mr Wolfowitz played a role in aggravating the crisis."
Former World Bank Staff:
Jean-Louis Sarbib, Former World Bank Senior Vice President: "I think it's extremely sad that the World Bank is in the news as a scandal institution at a time when poverty is a very big issue for the rest of the world and where the credibility of the institution and the credibility of its head is absolutely essential. So, I think he should go." (7)
42 Former Senior Executives call Wolfowitz's resignation a "regrettable but essential step". In a letter to the Financial Times, the former managers and executive directors stated that "There is only one way for Wolfowitz to further the mission of the bank: he should resign." (13)
Robert Holland, former U.S. Executive Director: "I believe that he consistently acted in good faith attempting to carry out the board's wishes". (15)
Robert Danino, former General Counsel said Wolfowitz "acted incorrectly" in securing a compensation package for Shaha Riza, and that the situation has "badly hurt the morale of the staff, damaged the reputation of the bank and eroded his (Wolfowitz) moral authority to lead the bank." (16)
Civil Society:
Jeremy Hobbs, Executive Director, Oxfam International: "Mr Wolfowitz's continued presidency of the World Bank is untenable. The next president must be elected in a transparent, merit-based process. There must be an end to the archaic practice of leaving the leader of the world's most important development institution in the gift of one country, the US." (14)
Njoki Njoroge Njehu, Executive Director, Daughters of Mumbi Global Resource Centre: "African politicians do African peoples no favours by making excuses for corruption and for the corrupt; Wolfowitz must resign." (8)
Congress of South Africa Trade Unions: "Mr. Wolfowitz embodies all the worst features of the international financial institutions -- the World Bank and International Monetary Fund." (8)
Transparency International: "Clearly in this case, serious errors of judgment and a breakdown in the system for handling conflicts of interest have occurred." (8)
Nuria Molina, European Network on Debt and Development: "The World Bank's reputation will nose-dive further if Wolfowitz is allowed to stay." (8)
Andrew Young, former mayor of Atlanta, Georgia and US Ambassador to the United Nations: "It is my sincere hope that our European friends and allies can make the distinction between the U.S. Defense Department and the World Bank...Wolfowitz was operating in what he felt was the best interest of the institution and with the guidance of its ethics committee". (17)
Press:
Los Angeles Times: "Wolfowitz should walk...A World Bank president who grants favours to his girlfriend can't convincingly chide other leaders for corruption." (8)
The New Republic: "He should quit." (8)
New York Times: "What might Mr Wolfowitz himself say if he discovered that a government receiving World Bank loans was making similar sweet arrangements for the personal friends of its president?" (8)
Brisbane Times: "[Wolfowitz is] a liability at World Bank...Wolfowitz should be shown the door...There is no way Mr Wolfowitz can recover his credibility and continue to be effective at the bank." (8)
The Daily Times (Pakistan): "Mr Wolfowitz will have to roll too or you can say goodbye to the World Bank." (8)
Khaleej Times (United Arab Emirates): "Considering the sensitivity of the high office Paul Wolfowitz has occupied, it would perhaps be more prudent for him to willingly step aside, as opposed to some inquiry's finding compelling him to pack his bags." (8)
The Manila Times (Philippines): "Wolfowitz must go...At the rate he is going at the World Bank, he is going to fail...He has lost credibility as an anticorruption crusader. He has lost the respect and support of the World Bank staff. And he has lost the backing of the World Bank's major owners, except the United States." (8)
Sources:
(1) Wolfowitz Is Weakened as U.K., Germany Decline to Offer Support, by Simon Kennedy and William McQuillen, April 14, 2007 (Bloomberg)
(2) The Banker, his lover and her pay rise of $80,000, by Jitendra Joshi, Sydney Morning Herald, April 15, 2007 (smh.com.au)
(3) Edwards calls for Wolfowitz’s resignation, by Jeremy Jacobs, The Hill, April 13, 2007 (thehill.com)
(4) Wolfowitz refuses to resign, by Reinout van Wagtendonk, Radio Netherlands, April 16, 2007
(5) www.worldbankpresident.org
(6) Wolfowitz Seeks African Leaders’ Backing, by Steve Weisman, New York Times, April 15, 2007 (NY Times website)
(7) Wolfowitz refuses to resign over scandal, by Du Xiaodan, CCTV International, April 17, 2007 (CCTV website)
(8) Call to End Wolfowitz's Reign Goes Global, by Emad Mekay, Inter Press Service News Agency, April 17, 2007 (IPS website)
(9) Kerry Calls for Wolfowitz’s Resignation, by Greg Hitt, Wall Street Journal, April 17, 2007 (WSJ website)
(10) Wolfowitz deputy urges him to quit, by Krishna Guha and Eoin Callan, April 19, 2007 (Financial Times website)
(11) Politics & Economics: Deeper Discontents Buffet World Bank --- Wolfowitz Dispute Unleashes Long-Simmering Complaints About How Institution Is Run, April 20, 2007 (WSJ)
(12) U.S.'s Frank, EU Lawmakers Urge Wolfowitz to Resign, by William McQuillen and Roberts
(13) Pressure increases on Wolfowitz to go: report, April 22, 2007 (Reuters website)
(14) Wolfowitz's position is untenable, by Jeremy Hobbs, April 30, 2007 (Guardian website)
(15) The Real World Bank scandal, by Robert Holland III, April 20, 2007 (WSJ website)
(16) Former Bank Official: Wolfowitz Erred, by Jeannine Aversa, May 1, 2007 (Washington Post website)
(17) The Right Man for the World Bank, by Andrew Young, April 30, 2007 (Washington Post website)
(18) Senior Democrat says Wolfowitz should step down, May 1, 2007 (Reuters website)
(19) Angry Wolfowitz in four-letter tirade, May 15, 2007 (Guardian website)