Monday, April 16, 2007

Wolfowitz Travesty

Haven't paid that much attention to the Wolfowitz kerfuffle - accusations sounded a bit dodgy but as this Opinion Journal piece shows - the scandal is a fantasy:

Mr. Wolfowitz asked the World Bank board to release the documents, after it became possible the 24 executive directors would adjourn early Friday morning without taking any action in the case. This would have allowed Mr. Wolfowitz's anonymous bank enemies to further spin their narrative that he had taken it upon himself to work out a sweetheart deal for his girlfriend and hide it from everyone.

The documents tell a very different story--one that makes us wonder if some bank officials weren't trying to ambush Mr. Wolfowitz from the start...

The paper trail shows that Mr. Wolfowitz had asked to recuse himself from matters related to his girlfriend, a longtime World Bank employee, before he signed his own employment contract. The bank's general counsel at the time, Roberto Danino, wrote in a May 27, 2005 letter to Mr. Wolfowitz's lawyers:

"First, I would like to acknowledge that Mr. Wolfowitz has disclosed to the Board, through you, that he has a pre-existing relationship with a Bank staff member, and that he proposes to resolve the conflict of interest in relation to Staff Rule 3.01, Paragraph 4.02 by recusing himself from all personnel matters and professional contact related to the staff member."


That would have settled the matter at any rational institution, given that his girlfriend, Shaha Riza, worked four reporting layers below the president in the bank hierarchy. But the bank board--composed of representatives from donor nations--decided to set up an ethics committee to investigate. And it was the ethics committee that concluded that Ms. Riza's job entailed a "de facto conflict of interest" that could only be resolved by her leaving the bank.

Ms. Riza was on a promotion list at the time, and so the bank's ethicists also proposed that she be compensated for this blow to her career. In a July 22, 2005, ethics committee discussion memo, Mr. Danino noted that "there would be two avenues here for promotion--an 'in situ' promotion to Grade GH for the staff member" and promotion through competitive selection to another position." Or, as an alternative, "The Bank can also decide, as part of settlement of claims, to offer an ad hoc salary increase."

Five days later, on July 27, ethics committee chairman Ad Melkert formally advised Mr. Wolfowitz in a memo that "the potential disruption of the staff member's career prospect will be recognized by an in situ promotion on the basis of her qualifying record . . ." In the same memo, Mr. Melkert recommends "that the President, with the General Counsel, communicates this advice" to the vice president for human resources "so as to implement" it immediately.

And in an August 8 letter, Mr. Melkert advised that the president get this done pronto: "The EC [ethics committee] cannot interact directly with staff member situations, hence Xavier [Coll, the human resources vice president] should act upon your instruction." Only then did Mr. Wolfowitz instruct Mr. Coll on the details of Ms. Riza's new job and pay raise.

Needless to say, none of this context has appeared in the media smears suggesting that Mr. Wolfowitz pulled a fast one to pad the pay of Ms. Riza. Yet the record clearly shows he acted only after he had tried to recuse himself but then wasn't allowed to do so by the ethics committee. And he acted only after that same committee advised him to compensate Ms. Riza for the damage to her career from a "conflict of interest" that was no fault of her own.

Based on this paper trail, Mr. Wolfowitz's only real mistake was in assuming that everyone else was acting in good faith. Yet when some of these details leaked to the media, nearly everyone else at the bank dodged responsibility and let Mr. Wolfowitz twist in the wind. Mr. Melkert, a Dutch politician now at the U.N., seems to have played an especially cowardly role.

In an October 24, 2005 letter to Mr. Wolfowitz, he averred that "because the outcome is consistent with the Committee's findings and advice above, the Committee concurs with your view that this matter can be treated as closed." A month later, on November 25, Mr. Melkert even sent Mr. Wolfowitz a personal, hand-written note saying, "I would like to thank you for the very open and constructive spirit of our discussions, knowing in particular the sensitivity to Shaha, who I hope will be happy in her new assignment."

Why is Wolfowitz being targeted?

1. He is an AMERICAN.

2. He is a NEO-CONSERVATIVE.

3. His name sounds JEWISH. (Whether or not he is Jewish, I do not know and, frankly, shouldn't be relevant)

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