World Bank scandal - Wolfowitz must jump or be pushed

The United States has been vocal about the corruption at the United Nations Organisation, the World Bank, and other international institutions.

This has come back to haunt one of prime architects of US President George W Bush’s foreign policy.

Following his appointment as president of the World Bank in 2005 Paul Wolfowitz, a former US Deputy Secretary of Defence, set about cracking down on corruption by suspending aid to several countries without even consulting the board.

At the time of his appointment, his partner Shaha Riza had already been working at the World Bank for eight years. In order to avoid a conflict of interest, she was transferred to work for the US State Department, but she remained on the bank’s payroll.

Wolfowitz had her salary increased by over 45% to $193,590, which is more than Secretary of State Condoleezza Rice is paid.

Mr Wolfowitz initially denied involvement in the matter. But he changed his story after the release of a memorandum in which he instructed one of the bank’s vice-presidents to agree to the terms of Ms Riza’s raise and transfer.

Mr Wolfowitz apologised to the assembled staff at the bank. “I wish I had trusted my original instincts and kept myself out of the negotiations,” he said. His remarks were greeted by jeering and cries for his resignation.

People make mistakes, but it is absurd just to ignore those mistakes.

Mr Wolfowitz abused his position, which is now utterly untenable. He must go without delay one way or another, either by resignation or dismissal.