Wolfowitz Says He Is Target of 'Smear' Tactics

In yesterday's lengthy presentation, Wolfowitz repeated that the board had ordered him to arrange Riza's departure and that it had every opportunity to review the deal. The agreement, he said, "was in line with other World Bank settlement agreements and was consistent with the goals that the ethics committee set out for treating her fairly in difficult and unprecedented circumstances. . . . I find it inconceivable that the Ethics Committee did not know the details of the arrangements, which were available to them."

Wolfowitz said that Ad Melkert, at the time the committee's chairman and a Dutch board member, notified him in writing that he had reviewed the arrangement after anonymous complaints and had ruled that no further review was warranted.

Melkert, now the No. 2 official at the United Nations Development Program, issued a statement yesterday saying allegations that he "was aware of or had somehow approved the specifics of Ms. Riza's external assignment are false." The ethics committee "was not consulted, nor did it approve, the specific terms and conditions of the external placement including: the large pay increase; the stipulation for subsequent annual increases; the stipulations for subsequent promotions."

Bennett indicated that he is prepared to launch a major counteroffensive if the "rush to judgment" against Wolfowitz is not slowed down. "Let's open up all the deals for people at the bank, deals that members of the board have for their staff . . . if that's where they want to go," he said in an interview.

The board barred Bennett and Riza's attorney Victoria Toensing from speaking during yesterday's sessions. "One of the points I would make, if they let me talk, which they won't," Bennett said before the session, "is they've simply got to de-escalate this thing."

But in his statement, Wolfowitz appeared willing to consider the larger question of his leadership if the Riza matter is settled to his satisfaction. "Only when the cloud of these unfair and untrue charges is removed, will it truly be possible to determine objectively whether I can be an effective leader of the World Bank," he said.

Even then, however, he intends to prevail. "Only when everyone involved in this matter steps up and admits his role and responsibility for it, and acknowledges that we all tried to act in good faith, will the Bank be able to return to normal and move forward," he said.

Staff writer Peter S. Goodman in New York contributed to this report.