World Bank panel report says Wolfowitz violated rules

15 May 2007

Mumbai: A World Bank committee report has found that President Paul Wolfowitz had violated ethics rules by awarding promotion and generous pay rise for his companion and that his involvement had gone against the bank''s interests.

Wolfowitz rejected the critical report while the United States showed no sign of yielding in its support for its former deputy defence secretary, saying the findings were no grounds to dismiss him.

"Mr. Wolfowitz''s contract requiring that he adhere to the Code of Conduct for board officials and that he avoid any conflict of interest, real or apparent, were violated," the panel said of Wolfowitz''s handling of a pay and promotion deal for World Bank Middle East expert Shaha Riza in 2005.

The salary increase Ms. Riza received at Mr. Wolfowitz''s direction was in excess of the range established by Rule 6.01," the report added.

Wolfowitz called the findings "unbalanced and flawed" and argued that the panel had omitted statements and documents that support his position.

The panel said Wolfowitz believes the blame lies with others and not with him.