Development ministers from around the globe yesterday voiced "great concern" over World Bank chief Paul Wolfowitz's handling of his girlfriend's promotion, but Mr Wolfowitz said he intends to stay in his job. "The current situation is of great concern to all of us," the top officials said in a communique issued after a meeting of the IMF-World Bank Development Committee.
"We have to ensure that the bank can effectively carry out its mandate and maintain its credibility and reputation as well as motivation of the staff," the ministers from World Bank member states said.
In a news conference after the Development Committee's tough words were released, Mr Wolfowitz said he believed he could still effectively lead the bank. "This is important work and I intend to continue it." Top European officials were among those who expressed worry in closed-door sessions yesterday that Mr Wolfowitz had tarnished the bank's reputation by helping to secure a high-paying promotion for his girlfriend, bank employee Shaha Riza.
At the start of speeches to the Development Committee, ministers from Britain and Germany said the bank's reputation had been dented.
Other sources monitoring the meeting said several other European countries also briefly addressed the issue, although they did not call outright for Mr Wolfowitz to step down. The Netherlands, a large donor country, was among the chorus of nations wondering how the bank's credibility could be restored. "We are critical but are awaiting development," William Lelieveldt, Dutch Treasury spokesman, said.
Staff and development activists have accused Mr Wolfowitz of breaking bank rules in helping to arrange Ms Riza's promotion before she was assigned to outside work at the state department. They argue the institution's moral authority has been left in tatters, especially its authority to make countries who receive aid accountable for the money, a priority for Mr Wolfowitz, who has ruffled feathers at the bank with a strong-arm anti-corruption push.
The former number two official at the Pentagon has apologised for his handling of Ms Riza's promotion and has said he was advised by a World Bank ethics panel to assign her to a job outside the bank to avoid a conflict of interest.
Large bank shareholders like Britain, Germany and France question whether he still has the credibility to lead the bank, which spends about $25 billion (€18 billion) a year on projects to fight poverty in developing countries.
In notes of a speech prepared for delivery to the Development Committee yesterday, Mr Wolfowitz appealed to rich nations to deliver on aid promises.