I am the victim, says woman in Wolfowitz scandal

The woman at the heart of the controversy that has embroiled World Bank President Paul Wolfowitz said she is a victim and was forced into a job transfer because of their relationship.

Shaha Riza’s comments are included in new documents released by the World Bank that also show Wolfowitz had a direct hand in arranging her promotion and generous pay package.

Wolfowitz, a friend of President George Bush, is fighting to retain his job.

Riza said that at no time did she report directly to Wolfowitz and that he had proposed to remove himself from any decisions involving her to avoid a potential conflict of interest.

She said the ethics committee of the World Bank’s board had required her “to go on external assignment contrary to my wishes”.

Riza was moved to a high-paying job at the State Department in September 2005.

“I have now been victimised for agreeing to an arrangement that I have objected to and that I did not believe from the outset was in my best interest,” she said.

Her comments were made in a memo to an ad hoc committee of the World Bank looking into the circumstances surrounding her transfer.

Wolfowitz has said he made a mistake and has apologised for his role in Riza’s promotion. The Bush administration expressed fresh support for Wolfowitz yesterday.

President George Bush appointed Wolfowitz – a main architect of the Iraq war when he served as deputy defence secretary – to the top job at the World Bank in 2005. The appointment was greeted with protests by international aid and other groups.

Treasury Secretary Harry Paulson said the World Bank has a process in place to review the Wolfowitz matter, which he said should be allowed to proceed. “This should not be called into question or be read as any lessening of support for Paul.”

“Paul Wolfowitz is a very dedicated public servant,” Paulson said after hosting the Group of Seven meeting of finance officials last night. “He has had quite a distinguished career.” Paulson also noted that Wolfowitz has apologised.

However, some of the bank’s staff have called for him to resign.

German Development Minister Heidemarie Wieczorek-Zeul said Wolfowitz needs to do some soul-searching about whether he can continue to lead the bank.

“At this point, it is my conclusion that he has to decide for himself whether in regard to this mistake, he can credibly fulfil his duties,” she said.

The World Bank’s board has been looking into the matter, which has overshadowed this weekend's meetings of the 185-nation World Bank and International Monetary Fund.

A bank official said the board was not discussing the Wolfowitz matter last night, but was focusing on the meetings.

The bank’s mission is to fight poverty and improve living standards for the poor. It lends about €15bn a year for various projects.

Before her transfer to the State Department, Riza worked as a communications adviser in the bank's Middle East Department. In her memo, Riza said she did not want to be assigned to duties away from the bank and did not expect “any special considerations”.

She lamented “vicious public attacks” she said she has received over the matter. The episode, she said, has affected her “professionally, physically and psychologically”.

The packet of documents released by the World Bank included new details about Wolfowitz’s involvement in Riza’s job transfer.

Two months after arriving at the bank on June 1, 2005, Wolfowitz sent a memo to the bank’s vice president of human resources, laying out details concerning Riza’s employment and compensation.

“I now direct you to agree to a proposal which includes the following terms and conditions,” Wolfowitz instructed. “You should accept immediately her offer to be detailed to an outside institution of her choosing, while retaining bank salary and benefits.”

The Wolfowitz memo went on say that Riza should receive a promotion, draw a salary of $180,000 (€133,000) and get annual pay increases of 8%.

Before the job change, Riza was believed to be getting paid close to $133,000 (€98,000). After the transfer, she received $193,590 (€143,000), according to the Government Accountability Project, a watchdog group.

Riza remains on the World Bank’s payroll though she left the State Department job last year and now works for Foundation for the Future, an international organisation that gets some money from the department.