Rice backs embattled Wolfowitz

Secretary of state has told European counterparts that she supports Wolfowitz's work at the World Bank.


WASHINGTON (CNN) -- Secretary of State Condoleezza Rice has reached out to her European counterparts to voice her support for embattled World Bank President Paul Wolfowitz, the State Department said Thursday.

"Over the course of the past couple of weeks, in a couple of her conversations, in the course of her ongoing conversations with some of her counterparts, she mentioned her personal high regard for Paul Wolfowitz and the work he's doing at the World Bank," State Department spokesman Sean McCormack said Thursday.

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World Bank President Paul Wolfowitz

McCormack said that Rice also "fully understood" that the administrative process under way at the bank would follow according to the rules, regulations and procedures of the World Bank and has asked that Wolfowitz "receive every opportunity to present his side of the case."

A senior State Department official said Wolfowitz was not the main topic of Rice's conversations with European ministers, and her comments did not amount to a "campaign" to keep Wolfowitz at the bank.

Rice "is a gracious person," the official said. "This is a colleague she served with in the administration for four years and she felt it was the right and appropriate thing to do."

On Monday, an internal panel concluded Wolfowitz violated staff conflict-of-interest rules in arranging a promotion and pay raise for his girlfriend, Shaha Riza, according to a source close to the investigation who has seen the panel's report.

But the source told CNN that the special ad hoc committee did not find there was "bad faith" on his part.

Riza was transferred to a State Department foundation when Wolfowitz took over at the bank. She receives a government salary of almost $194,000 a year, tax-free.

Wolfowitz, fighting to hold on to his job, disputes statements from former World Bank officials who claim he ignored bank ethics committee directions on the Riza case and that he acted improperly. He blames what he calls "ambiguous bank rules and unclear governance mechanisms."

Wolfowitz was originally given 48 hours to respond to the charges. His private attorney argued he should be afforded the same time as World Bank employees, who are given are given five days to respond when they are part of an investigation. However, the board granted him only another 24 hours, until Friday evening.

The 24-member World Bank board that will have the final say on Wolfowitz's future could issue a reprimand, ask him to step down or fire him. There is no word on when a decision will be made.

Some of the criticism of Wolfowitz dates back to when he was the No. 2 official at the Pentagon and one of the chief architects of the Iraq war. He also drew fire for his anti-corruption policy at the bank, which some longtime bank employees thought unfairly victimized the poor in certain countries.

And there is some general resentment against the tradition at the bank that the president is always an American, named by the U.S. president.

The White House has voiced support for Wolfowitz but said the World Bank investigation should run its course.

--from CNN State Dept. Producer Elise Labott 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.