For "Conflict of Interest" World Bank Presiedent Caught in the Web, Resigns

Mr. Wolfowitz was engulfed in a controversy after revelations that he gave his girlfriend, Shaha Riza, a pay raise. She later left the organization to take up employment with the US State Department.

Mr. Wolfowitz Ms. Riza

After his appointment in 2005, Mr. Wolfowitz, a former US deputy defence secretary, informed the bank about a potential conflict of interest due to his relationship with Ms. Riza, a communication advisor at the bank.

He proposed that she be moved to the state department with a pay and position increase in line with her prospects at the bank.

Announcing the decision recently, Mr. Wolfowitz said he was sorry for a painful and personal dilemma.

It became impossible for him to stay at his position after the bank’s governors questioned his ability to lead.

The world Bank in Washington DC

But his supporters said the melee was an excuse used by his detractors to get rid of him.

They said his fight against corruption and stance that aid to poor countries should hinge on good governance hit the wrong nerves.

US President George Bush, who had earlier maintained that Wolfowitz would keep his post, accepted the resignation with reluctance. The US will later appoint a replacement.

However, some are opting for the next president to be chosen on merit not nationality. Traditionally, the US, as the bank’s biggest contributor, appoints the president.