16 May 2007
World Bank President Paul Wolfowitz responded to the Board of Directors' Ad Hoc Committee's recent report on the President's alleged improprieties. At a Board meeting on Monday evening, Wolfowitz stated: "It is quite apparent that this matter has ceased to have much to do with the case itself--and everything to do with issues about my management style and my policy choices."
Read Paul Wolfowitz's statement:
In the opening statement of his speech to Executive Directors on May 15, Wolfowitz expressed dismay that the current situation has paralyzed the World Bank and deplored what he considers the woeful public treatment of his character and that of Shaha Riza's. Wolfowitz said, “Some people have disagreed with my policies and positions. But never before have they questioned my honesty or integrity.”
Implying that the conflict of interest is not at the heart of the current crisis, but is rather being used as an opportunity to challenge and call into question his strategies as President of the World Bank, Wolfowitz said, "If you want to have a discussion about my leadership, my management style and the policies I support, let's do it. That's fair. That's legitimate. But let's get past this conflict of interest matter that was resolved over a year ago".
The statement then reiterated five "critical points" laid out in Wolfowitz's submission to the Ad Hoc Group on May 11th about the handling of Shaha Riza's external placement:
- "If it had not been for the explicit advice I received from the Ethics Committee to "instruct" Mr. Coll - "instruct" was the word they used--I would not have played any role whatsoever in the matters surrounding Ms. Riza's external placement"
- "It is undisputed that the Ethics Committee blessed moving Ms. Riza out of the Bank and also said that she should receive an in-situ promotion prior to her relocation"
- "As Ms. Riza told the Ad Hoc Group--Ms. Riza did not view me as her ally in this matter...She did her own negotiating and the terms she demanded were those she came up with, with the help of a lawyer"
- "As everyone recognized-including HRVP Xavier Coll and General Counsel Roberto Danino-legal action was a possibility. Ms. Riza did not volunteer to go-her relocation was against her will. She knew others at the Bank were not treated the same way. Ms. Riza, Mr. Coll and Mr. Danino all told the Ad Hoc Group that legal action was a real threat. Mr. Danino said he thought it was a good idea to avert that"
- "All parties-including Mr. Coll and Mr. Danino--recognized at the time that this was a unique and unprecendented situation. Mr. Coll signed an agreement that explicitly say that. It says: "There is no precedent of this kind and personnel policy that clearly applies to resolve it""
The President acknowledged existing problems with his leadership and management style that have created tension with World Bank staff and said he would work to regain their trust. He listed a number of areas where there was room for improvement and noted a few decisions that, in hindsight, could have been handled better:
- "I relied much too long on advisers who came in with me from outside for managerial functions"
- "I have plans underway to restructure my front office to make it more efficient and to facilitate unimpeded access an communication between me and the Vice Presidents"
- "Making a clear separation between managerial and advisory roles and ensuring that my advisors not cross over into managerial functions"
- "I am aware of the concern that I need to place more trust in staff...I truly believe that I can do much better in that regard going forward, provided I make a number of other changes"
- "One of those changes needs to be more direct and frequent engagement with the staff on substance"
Wolfowitz concluded his statement by saying that "I know some people may get some short-term satisfaction out of finding that I engaged in wrongdoing. I hope that none of you feels that way. But if you do, I ask you to stop and think about the long-term interests of the Bank."
With the Board of Directors pushing for a conclusion to this crisis that has been drawn out for over a month, Wolfowitz appears to be on borrowed time. The report presented on Monday clearly concluded that Wolfowitz had broken the Bank's code of conduct, three staff rules, and the terms of his contract. This final emotional appeal could be Wolfowitz's last attempt at saving his job.