S Africa, Brazil urge open World Bank appointment

JOHANNESBURG, May 26 (Reuters) South Africa and Brazil urged the United States today to abide by an agreement of the Group of 20 economic powers for an open and transparent appointment of the new head of the World Bank.

The US government looks set to appoint an American as the new head of the bank after the resignation of Paul Wolfowitz over accusations he authorized a pay rise for his companion.

Washington traditionally picks the president of the World Bank and a European leads the International Monetary Fund.

The G20, in the final communique of its 2006 annual meeting, called for the managing director of the IMF and the president of the World Bank to be selected in a transparent and consultative process - and not restricted to nationality.

''These communiques are so carefully negotiated and every single word gets approved line-by-line and reflects the views of those who participated,'' Thoraya Pandy, spokeswoman for South Africa's Finance Minister Trevor Manuel, told Reuters.

''It would be fai to say that those who participated in the agreement should be bound by it.'' South Africa is the current chair of the G20, which includes the United States.

Brazil, due to become the G20 chair in 2008, urged in a statement that the G20 position be implemented.

''At a time when the legitimacy, representivity and efficiency of the World Bank need to be restored, it would be lamentable if the choice of the new president of the World Bank was not based on the merit of candidates presented by any of its member states,'' Finance Minister Guido Mantega said.

Brazil wants the modernization of the World Bank and IMF to be continued, including the selection of the leaders of the two institutions, he added.

The statement by Manuel, touted as a possible candidate to succeed Wolfowitz, followed his speech to South Africa's parliament on Thursday in which he appealed for fairer treatment of poorer nations within the two institutions.

This will be a key focus of the G20 during South Africa's year as chair.

''Interesting issues have just arisen again (such as) past decisions about the need for transparency on the appointment of individuals to key institutions like the president of the World Bank and managing director of the IMF,'' Manuel said on Thursday.

Pandy, his spokeswoman, said South Africa's stance was also in line with that of Australia, the past chair of the G20.

REUTERS RN PK KP2358