What’s the real scandal at Wolfowitz’s World Bank?

The latest shoe in the Wolfie-gets-his-girlfriend-a-tax-free-$193,000-PR-job scandal appears to have dropped in today’s FT:

Paul Wolfowitz personally directed the World Bank’s head of human resources to offer Shaha Riza, a bank official with whom he was romantically involved, a large pay rise and a promotion as part of an external secondment package, according to two sources who saw a memorandum written by the bank president.

I can’t quite decide, though, whether the scandal is that Wolfowitz pulled strings for his girlfriend or that the World Bank–an institution ostensibly devoted to helping the world’s poor–is able to find room in its budget to pay $193,000 a year to a PR person.

Update: This Wolfowitz apology just in from The Washington Post:

“In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations,” Wolfowitz declared. “I made a mistake, for which I am sorry.”

His acknowledgment, though cryptic, was a major new development in an unfolding scandal at the global lending institution, which seeks to help the world’s poorest countries. With annual meetings of the the bank and the International Monetary Fund convening in Washington this week, the World Bank’s executive board is discussing Wolfowitz’s future.

Anyway, he appears to be apologizing for pulling strings, not for paying clearly nonessential personnel such obscene amounts of money.

Update 2: Much more Wolfaliciousness here.

Spain’s Prime Minister Warns Country Is in Danger of Being Shut Out of Markets

MADRID — Spain‘s prime minister warned Wednesday that the country faced the danger of being locked out of international markets as investors continued to fret about the future of the euro and Greece’s place in the 17-country eurozone.

“Right now there is a serious risk that (investors) will not lend us money or they will do so at an astronomical rate,” Mariano Rajoy told Spanish lawmakers.

Kim

Uh, who says you have to choose? Isn’t one really the compounding of the other?
JC

Am I the only person totally fed up with Bush and his cronies. They value loyality over competence and the rest of us get stuck with the bill.

If Imus goes so does Wolfowitz, he shouldn’t be there in the first place.
Nevylle

Funny how America see’s how unethical the White House has been yet FEEBLE minded American’s go on about thier daily lives as if it’s OK. You don’t live in a democracy when you don’t question your politicians! My guess is that it’s an excuse for the rest of the “elite wannabe’s” (code for white males) to behave the same way in Corporate America. Steel, Run, Hide in your new gated community (see Mark Maguire and others). Hire a Lawyer and Settle without having to admit GUILT. COWARDS.
Humayun Mirza

The World bank has suffered enough abuse at the hands of politicians. It is time for Wolfowitz to go. How can an institution dedicated to eradicating corruption in the third world function unless it cleans its own house first?
Time reader

Thanks for the post Justin. It turned up No. 3 on Google’s search today under “Wolfowitz scandal at the World Bank.” Thanks for being on top of this with another perspective….
sigmund

That the architect of the most mis-guided foreign policy initiative of the past 50 years got this sinecure is already a scandal. He should please go.
Al DeFilippo

President Bush can really pick people. Wolfowitz,Vietnam coward,attacks General Shinseki,gets taxpayers to support his love life and Bush still supports him.
Blue Ridge

“How can an institution dedicated to eradicating corruption in the third world function unless it cleans its own house first?”

Agreed. Under the circumstances, Wolfowitz should probably step down. But my question is how many who are loudly yelling for just that did the same about Kofi Annan and, for that matter, practically the entire U.N. during his tenure?
Stupidmechanic

My view is the World Bank is not about helping poor countries but helping themselves enslave poor countries . Maybe Im mixed up .
David

An apology. Great. But the damage to the World Bank’s image is done, and may take years to repair. Unless it steps VERY hard on this issue and sends Wolfowitz packing, the Bank will be laughed at in future if it tried to pressure governments to take anti-corruption initiatives.
A cynic might suggest that this was all part of a continuing White House initiative to distract and discredit international institutions, like sending Bolton to the UN, but this time it’s rebounded. The Bush administration’s influence is rapidly waning. Even if it wanted to, it may no longer be able to protect Wolfowitz.
Still, it leaves me wondering how supremely arrogant and unperceptive one would have to be to think you could get away with a stunt like this. Maybe it’s time to resign and retreat to a nice, safe right-wing think tank that will tolerate such behaviour.
Basava Gottilla

It is really heartening to see the way the World Bank staff have reacted to the entire episode. This is in sharp contrast to what one finds in institutions like the UNDP, where one of its Directors manoeuvred to remove a senior staff member just to accommodate his girlfriend. Even after repeated appeals, neither the UNDP administration nor the ombudsperson went to rescue the victim.