Benn: Wolfowitz was ‘damaging’ for Bank
The international development secretary Hilary Benn has expressed relief at Paul Wolfowitz’s decision to quit as president of the World Bank.
Mr Wolfowitz announced his resignation last night after encountering increasing scrutiny for the manner in which he arranged a pay rise for his girlfriend.
The board has, however, appeared to exonerate Mr Wolfowitz of some of the blame, accepting his claims he “acted ethically and in good faith.”
But it was accepted Mr Wolfowitz’s position at the Bank had become untenable, especially as many nations had been sceptical of his suitability for the role in the first place.
He will now step down as president on June 30. The White House, which traditionally selects the president, is yet to nominate a successor.
Following news of his departure, Mr Benn said he was “relieved that this damaging time for the Bank is finally over.”
Nevertheless, Mr Been insisted the UK remains a supporter of the Bank and its role in the world.
He said: “I acknowledge the achievements of the Bank over the past two years.
“It has helped to deliver debt relief to the poorest countries, agreed a new African Action plan and is investing more in education, health and clean water. The Bank’s task now is to renew its efforts to lift people out of poverty.”
Mr Wolfowitz said he had decided to resign “in the best interest of the World Bank.”
The long-term political ally of George W Bush joined the World Bank in 2005.
At the time, he informed the board he was in a relationship with an employee at the Bank, Shaha Riza.
After the Bank’s ethics committee refused his request to recuse himself from any decisions regarding her future, Mr Wolfowitz proposed Ms Riza was transferred to the US state department.
Here her salary rose to $193,000 (£98,000), exceeding the salary of Condoleezza Rice. A panel at the World Bank later found this had broken its code of conduct and said the salary Mr Wolfowitz had arranged for his girlfriend at the state department was higher than her due.
Mr Wolfowitz had attempted to shirk full responsibility for the lavish pay rise, and insisted he was the victim of a smear campaign.
Although making no moves to reject his resignation, the Bank said it accepted Mr Wolfowitz’s claims he had “acted ethically and in good faith” and said the advice given to Mr Wolfowitz had lacked “clarity”.
In a statement the board said: “He assured us that he acted ethically and in good faith in what he believed were the best interests of the institution and we accept that,”
It continued: “A number of mistakes were made by a number of individuals in handling the matter under consideration”, adding “the bank’s systems did not prove robust to the strain under which they were placed.”
