Democrats Urge Bush to End World Bank Crisis
Senior U.S. Democrats urged President George W. Bush to step in to end the "historic crisis" over Paul Wolfowitz's World Bank leadership as pressure mounted for him to resign to avoid a possible divisive vote.
The World Bank's 24-nation board of member countries is set to meet on Friday to decide Wolfowitz's fate over a controversial pay and promotion deal that he approved in 2005 for his companion, bank Middle East expert Shaha Riza.
The board is divided. European countries are pushing for Wolfowitz to step down and the United States is shoring up support for him among a clutch of allies like Canada and a few Asian and African countries.
In a letter to Bush, Senate Majority Leader Harry Reid and Democratic Sens. Patty Murray, Richard Durbin and Charles Schumer warned that the crisis was damaging the institution and undermining U.S. interests, especially its traditional role in choosing the bank's president.
"We urge you to take decisive action quickly to bring this crisis to a close," they told Bush, echoing concerns expressed by other prominent Democrats, including presidential candidates Bill Richardson and John Edwards.
The Democratic senators said the bank's board may be compelled to take an unprecedented step and vote on Wolfowitz's fate.
There are no rules for the dismissal of a World Bank chief because it has never happened in the bank's 62-year history and could either be put to a vote or decided by consensus.
"We do not believe the bank's mission or U.S. interests would be advanced by such a vote," the senators wrote.
They questioned the manner in which the crisis had been handled and in part blamed Wolfowitz, who has always been controversial because of his leading role in the Iraq war.
"The current situation is complex and unfortunately may be fueled in part by views toward Mr Wolfowitz unrelated to his tenure at the bank," the senators said.
"At the same time, it is likely that, at least by adding to confusion about the facts, Mr Wolfowitz played a role in aggravating the crisis."
The furore has paralysed the World Bank for more than a month since leaked documents emerged over Wolfowitz's handling of Riza's high-paying promotion. That unleashed widespread anger among bank staff and prompted an inquiry.
The bank's employee association said the institution's credibility depended on how the crisis was resolved.
The White House, which had previously deferred questions over the Wolfowitz matter to the U.S. Treasury, insisted on Wednesday it was not "hanging Paul Wolfowitz out to dry" and that he had the Bush administration's strong support.
"We still support him fully," White House spokesman Tony Snow told reporters on board Air Force One as he flew with Bush to visit parts of Kansas devastated by tornadoes last week.
The Treasury is officially responsible for U.S. World Bank policy, but Wolfowitz is strongly identified with the White House as an architect of the American-led invasion of Iraq.
Both the White House and the Treasury have urged that Wolfowitz be given time to properly explain his actions.
Wolfowitz had until the close of business Wednesday to respond to findings in a 600-page report by a bank panel that concluded his conduct over the promotion broke rules and represented a conflict of interest.
Meanwhile, Germany, which heads the World Bank board, said it had called for Wolfowitz to step down.
Karin Kortmann, a state secretary for German development ministry, said Minister Heidemarie Wiezorek-Zeul told Wolfowitz during meetings of the World Bank in April she was worried about the bank and urged him to quit.
"She made it clear to (Wolfowitz) that his voluntary resignation was the best solution for the bank and its goals," Kortmann told lawmakers in the German parliament.
Kortmann said Germany was not looking for a confrontation with the United States and that pushing through any solution against Washington's wishes would be difficult.
"The United States should rather be given room to react to the current leadership crisis in the bank," Kortmann added.
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