Respite for Wolfowitz now as World Bank widens probe

23 April 2007

Mumbai: World Bank president Paul Wolfowitz will remain in office for now but the bank''s board has widened a probe into favours that Wolfowitz gave his companion Riza Shah, his subordinate at the World Bank, to include the employment contracts of his top advisers.

The board did not give a timeframe for resolving the matter which it said was of ``great concern. The investigations will, however, be widened to include ``issues around employment contracts'''' in Wolfowitz''s office.

Wolfowitz, who is under fire by European nations, including the Netherlands, Luxembourg and France, is now dependent on the support of the US, the agency''s largest donor.

The US administration, which appointed Wolfowitz in 2005, has repeated its support for the former deputy defence secretary.

European governments, including Germany and the UK, have been critical of Wolfowitz, while officials from Canada, Japan and South Africa have been more supportive.

``There is a process to be followed,'''' Canadian finance minister Jim Flaherty told reporters. ``I''m not going to prejudge the issue.''''