19 April 2007
After long deliberations yesterday the World Bank's Board of Directors issued a statement saying that they have asked the Board's Committee on Governance and Administrative Matters (COGAM) to make the final recommendations "on issues of internal governance".
Communication from the Executive Directors of the World Bank Group
April 19, 2007
Washington DC, April 19, 2007 - The Executive Directors met on April 19 to address the current situation in the Bank, which is of great concern. Based on the clear guidance of the Development Committee, the Executive Directors agreed on a process to deal with the situation urgently, effectively and in an orderly manner.
Having reviewed the April 11 report of the Executive Directors’ ad hoc group and the associated documents, the Executive Directors discussed questions related to conflicts of interest and possible violations of Staff Rules. They identified a number of issues requiring further consideration. They requested the ad hoc group to consider immediately the arrangements made for the secondment of the staff member closely associated with the President. In that context, the ad hoc group will consider such other information as it deems appropriate, with reference to, inter alia, the Staff Rules, the Code of Conduct applicable to Board officials and the President, and the contract of the President, and to conflict of interest, ethical, reputational, and other relevant standards. On this basis, the ad hoc group will make early recommendations for decision by the Executive Directors.
In addition, the Executive Directors identified other issues that will need to be addressed, including the various public communications made by the Bank on the matter and issues around employment contracts made in the Office of the President.
The Executive Directors asked the Board’s Committee on Governance and Administrative Matters (COGAM) to make recommendations to the Board on issues of internal governance.
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Statement by Paul Wolfowitz, President of the World Bank
Washington DC, April 20, 2007 – The Office of the President issued the following statement in response to the April 19 Communication from the Executive Directors of the World Bank Group.
"President Paul Wolfowitz welcomes the decision of the Board to move forward and resolve this very important issue. He looks forward to implementing the recommendations of the Board."
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Note: The following attempts to describe meetings that we did not attend and therefore is based on input we received from others. Therefore, we will continue to update and revise this information as is appropriate.
On Wednesday President Wolfowitz held a meeting with high level management at the Bank, including Managing Directors, various Vice Presidents, and Country Directors via video conference.
According to reports, those in attendance, including Managing Director Graeme Wheeler, put forth a clear message that Wolfowitz should consider resigning for the greater good of the organization. Rumor has it that in an attempt to keep his post, Wolfowitz offered the resignation of his inner staff, but that this was deemed unacceptable. In addition, Wolfowitz asked for suggestions on ways to improve his management style, but his questions were supposedly met with further calls to step down.
The call for Wolfowitz to resign is rumored to be pushed more forcefully at the Board meeting planned for 4pm this afternoon. The Board of Directors usually holds two weekly meetings to discuss Bank projects and policies but occasionally schedules additional meetings when necessary.
In another new development, an emergency townhall meeting was held today that clarified the position of the Africa Vice-Presidency. Sources say that people at the event sought to correct the mischaracterization that Wolfowitz had the support of World Bank Africa region staff.
According to reports, officials who favor Wolfowitz's resignation have been hoping that the beleaguered President would step down on his own accord in an attempt to salvage what's left of the credibility of the institution, but that their patience is now wearing thin. The Board meeting this afternoon might hear much more direct calls for Wolfowitz's expeditious exit.
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