World Bank Confers on Fate of President

WASHINGTON -- The World Bank's board met privately Thursday to discuss President Paul Wolfowitz, whose leadership has been thrown into turmoil by revelations that he helped his girlfriend get a high-paying job.

It was unclear what action, if any, the 24-member board would take in the matter. Many of the bank's employees, aid groups and some Democratic politicians want Wolfowitz to resign.

His nearly two-year tenure at the institution, which fights global poverty, has been pockmarked by trouble. The current controversy _ that he arranged a promotion and generous compensation for Shaha Riza, a bank employee whom he has dated _ is calling into question his leadership and has put his job in jeopardy.

The United States _ the bank's largest shareholder _ is standing by Wolfowitz.

"As we've said before, the president has confidence in Paul Wolfowitz," White House spokeswoman Dana Perino said Thursday in a fresh statement of support. She also said it is appropriate to let the board's review process take place.

Although they have not said so publicly, some European governments would like to see Wolfowitz go but do not want to provoke a fight with the United States.

Under an informal agreement, the United States names the head of the 185-nation World Bank and the Europeans choose the leader of its sister institution, the International Monetary Fund. The controversy over Wolfowitz could bring this informal arrangement into question.

Hoping to defuse tensions, Wolfowitz _ during a meeting of bank vice presidents on Wednesday _ offered to make management changes at the institution, officials close to the situation said Thursday.

At Wednesday's meeting, Wolfowitz stated anew that he did not intend to step down, according to the officials, who spoke on condition of anonymity because they are not permitted to speak on behalf of the bank. They said Wolfowitz spoke in general terms for the need to improve the bank's management, including that of his inner office, and to soften his management style. He also invited recommendations.

Documents released last week showed that Wolfowitz had a direct hand in securing a State Department job for Riza in September 2005 that pays her $193,590. Before the transfer, Riza was earning close to $133,000 as a communications adviser in the bank's Middle East department.

Riza remains on the World Bank's payroll even though she left the State Department job in 2006 and now works for Foundation for the Future, an international organization that gets some money from the department. "I have now been victimized" for agreeing to the arrangement, Riza said in a memo to the bank last week.

The bank's staff association, which accounts for around 7,000 of the bank's 10,000 employees worldwide, wants Wolfowitz to resign, saying his actions have tarnished the reputation of the bank. "His conduct to date does not reflect respect for good governance," said Alison Cave, head of the staff association.

Bea Edwards, international director of the Government Accountability Project, a watchdog group, said, "Wolfowitz has shown himself to be a poor leader, guilty of misjudgment if nothing else."

Critics fear the controversy will hobble efforts _ now under way _ to come up with close to $30 billion in funding for a World Bank program that provides financial help to poor countries.

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