Questions Raised About Wolfowitz Style

Financial Times

By Andrew Balls and Edward Alden in Washington

Published: January 23 2006 00:43

Paul Wolfowitz, who was President George W. Bush’s controversial choice last year to head the World Bank, told the bank’s board of directors last week that he intended to tackle serious corruption problems in an institution that in its last fiscal year committed more than $20bn in loans and grants to alleviate poverty in developing countries.

“By problems, I mean very precisely clear-cut cases of bribes, kickbacks, manipulation of the contracting process, fraudulent procurement,” he said in an interview.He said he told the board, which is composed of representatives of the bank’s 184 country shareholders: “This is not just an annoyance on our main work or a side issue. The whole subject of governance and accountability are really central to development and therefore having our own house in order is a central foundation of our work.”

But after a brief honeymoon period, the anti-corruption drive has triggered a dispute with some of the bank’s career staff. They charge that Mr Wolfowitz is relying on a handful of close political advisers, and complain about a lack of confidence in staff who work in difficult conditions in countries with inadequate governance. “They have brought with them the feeling that the whole aid business, and the bank in particular, is soft on corruption,” said one bank insider.

More: http://news.ft.com/cms/s/bfcaa76a-8b8d-11da-91a1-0000779e2340.html