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Doors closed, board meets

Board members of the World Bank discuss what to do about their president.

By ASSOCIATED PRESS
Published April 20, 2007

WASHINGTON - The World Bank's board met privately Thursday to discuss president Paul Wolfowitz, whose leadership has been thrown into turmoil by revelations that he helped his girlfriend get a high-paying job.

It was unclear what action, if any, the 24-member board would take in the matter. Many of the bank's employees, aid groups and some Democratic politicians want Wolfowitz to resign.

His nearly two-year tenure at the institution, which fights global poverty, has been pockmarked by trouble. The current controversy - that he arranged a promotion and generous compensation for Shaha Riza, a bank employee whom he has dated - has put his job in jeopardy.

The United States - the bank's largest shareholder - is standing by Wolfowitz.

"As we've said before, the president has confidence in Paul Wolfowitz," White House spokeswoman Dana Perino said Thursday in a fresh statement of support. She also said it is appropriate to let the board's review process take place.

Although they have not said so publicly, some European governments would like to see Wolfowitz go but do not want to provoke a fight with the United States.

Under an informal agreement, the United States names the head of the 185-nation World Bank and the Europeans choose the leader of its sister institution, the International Monetary Fund. The controversy over Wolfowitz could bring this informal arrangement into question.

Hoping to defuse tensions, Wolfowitz - during a meeting of bank vice presidents on Wednesday - offered to make management changes at the institution, officials close to the situation said Thursday.

At Wednesday's meeting, Wolfowitz stated anew that he did not intend to step down, according to the officials.

[Last modified April 20, 2007, 01:30:27]