Wolfowitz Breaches World Banking Code

Officials from the World Bank officials have concluded that their boss Paul Wolfowitz breached the bank’s code of ethics when he arranged a 2005 pay package, and promotion, for girlfriend Shaha Riza. Wolfowitz has maintained, somewhat laughingly, that he "acted in good faith in arranging Miss Riza's pay package."

However, the bank’s full 24-member board, which has the authority to dismiss or reprimand him, has so far failed to reach a decision on what to do. How come?

Yesterday, Kevin Kellems quit his position as a top advisor, reportedly saying that the controversy surrounding Mr Wolfowitz made it “very difficult” for him to do his £100,000-a-year job. Kellem's appointment led to criticism, at the time, as he was hand-picked by Wolfowitz from amongst his cronies at the White House.

Of course, Wolfowitz himself was a somewhat 'surprising' choice as World Bank Chief Executive; considering that he had no relevant experience. The fact that he was the stated choice of President Bush was obviously the deciding factor. Of course, the cynical might think that this is why he has yet to be censured by the World Bank's board. It would be particularly embarrassing for President Bush to have another of his acolytes dismissed for less than honest behaviour in public service.

There are many places where political patronage should prove unwelcome. World finance is one such area. One wonders how long the World Bank will tolerate Wolfowitz; with Bush's Presidency coming to an end, and his resultant decline in personal influence over the next 12 months.