Execs refuse to hear Wolfowitz's explanations

World Bank directors reject request by their president to give reasoning of giving perks to his staffer girlfriend.


WASHINGTON (CNN) -- The World Bank's executive directors have rejected a request by their embattled president, Paul Wolfowitz, to explain his role in a deal that sent his girlfriend to a new job at the State Department with a hefty pay raise, a source close to the probe told CNN Tuesday.

Asked about the report, Wolfowitz's attorney, Robert Bennett, told CNN's Zain Verjee, "I am very disappointed that there is a rush to judgment. This will be harmful to Mr. Wolfowitz and to the image of the bank."

Wolfowitz has been resisting calls for his resignation, and Bennett re-emphasized his stand Tuesday, saying, "We are not resigning."

Last week, the 24 directors asked a review panel "to consider immediately the arrangements" made to send Shaha Riza to the State Department, including whether there were any violations of staff rules, the bank's code of conduct or Wolfowitz's employment contract. Riza was a bank staffer.

Bennett, who has represented such notables as President Clinton in the Paula Jones case, said he is asking the bank to defer a decision this week on his client, saying it would be "unfair."

The attorney said Wolfowitz must be given a chance to provide documentary support for his case.

In a letter published Sunday in the Financial Times, 41 former World Bank senior staff members - most of them directors or vice presidents - urged Wolfowitz to resign.

"All of us are watching with great concern the ongoing events at the bank because of their impact on development and the interests of the poor," they wrote.

"At a time when fighting poverty remains crucial in building a more hopeful, more balanced, and more secure world, the World Bank must remain credible."

"Mr. Wolfowitz says he believes in the mission of the bank and wishes to continue. We believe that he can no longer be an effective leader."

"He has lost the trust and respect of bank staff at all levels, provoked a rift among senior managers, developed tense relations with the board, damaged his own credibility on good governance - his flagship issue - and alienated some key shareholders at a time when their support is essential for a successful replenishment of the resources needed to help the poorest countries, especially in Africa."

"There is only one way for Mr. Wolfowitz to further the mission of the bank: he should resign."  Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.