World Bank President in trouble over promoting girl friend

Washington, Apr 14 (UNI) World Bank President Paul Wolfowitz is in the eye of a storm - and the bank's staff association is up in arms against him demanding an explanation of how one of their colleagues, a female staffer Shaha Riza, linked romantically with him, was able to get a promotion and two hefty pay raises, while remaining on the Bank payroll and working for the US State Department.

In a letter circulated on Tuesday, the bank's staff association demanded an explanation from Mr Wolfowitz and the board of member countries for what it called ''violations of staff rules in favour of a staff member closely associated with the president.'' At issue are the lavish compensation and pay raises of bank employee, Shaha Riza, who has dated Wolfowitz.

On Thursday Mr Wolfowitz responded to the bank staff association acknowledging that he erred in helping his female friend get transferred to a high-paying job, and said he apologised. His apology didn't have much effect among the bank's staff association, which wants him to step down. He also said he would abide by the board of directors' decision and that he acted in consultation with the Board's Ethics Committee. He said he will cooperate with investigation into Ms Riza's sudden rise up the professional ladder.

Riza has since reportedly left her position with the State Department to work for the Foundation for the Future, an international group largely funded by the US, whose prime mission is to advance freedom and democracy in West Asia and North Africa.

The World Bank Group Staff Association said, ''The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group and has destroyed the staff's trust in his leadership. ... He must act honorably and resign,'' the association said.

Mr Wolfowitz's relationship with Shaha Riza, a former senior gender specialist and senior communications adviser in the bank's West Asia and North Africa region, became public when the Bush administration named Mr Wolfowitz the World Bank President in mid-2005. Shaha Riza, who had worked at the bank for eight years, is a British citizen born in Tunisia and raised in Saudi Arabia.

Soon after he took over as the Bank chief, Riza, left to work for the State Department ''to avoid a conflict of interest'' situation in the Bank. She was then promoted to a higher-paying position on September 19, 2005, without any of the required open competition for the job, the bank staff association said.

Riza was detailed to work in Karen Hughes's public diplomacy wing at the State Department in September 2005 -- while remaining on the bank's payroll--which is common practice for those on bank external assignment.

She also got a pay raise more than double the amount allowed by the rules. Before these hefty pay raises, Riza had been earning 132,660 dollars. She's now paid 193,590 dollars, according to official and media sources.

The news about Riza and her unusual posting to the State Department and her pay packet which clearly smacked of nepotism, was first broken by major US newspapers.

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