Wolfowitz row 'harming World Bank'

World Bank officials last night expressed concern over the impact on their anti-corruption work caused by the crisis surrounding…

World Bank officials last night expressed concern over the impact on their anti-corruption work caused by the crisis surrounding bank chief Paul Wolfowitz.

In a letter to Mr Wolfowitz and the bank's executive board, the officials said they could no longer credibly implement the bank's anti-corruption strategy, which the former US deputy defence secretary zealously campaigned for since he joined the bank in 2005.

The letter was signed by 32 officials, but an official who helped draft it said it was supported by more than 50.

It was the clearest sign yet that the controversy sparked by Mr Wolfowitz's approval of a promotion and pay increase for his girlfriend was affecting the bank's operations around the globe.

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The credibility of our front line staff is eroding in the face of legitimate questions from our clients about the bank's ability to 'practice what it preaches' on governance.
Letter signed by 32 World Bank officals

"As is known, there are reports from the field offices of concrete cases where the bank's policy dialogue and operational work on governance and anti-corruption are being undermined," the group wrote in the letter.

"The credibility of our front line staff is eroding in the face of legitimate questions from our clients about the bank's ability to 'practice what it preaches' on governance."

The letter follows calls by the bank's staff association for Mr Wolfowitz to step down over his handling of the promotion for his girlfriend Shaha Riza before she was posted by the bank to the State Department because of their relationship.

Some World Bank member countries, including Germany, the Netherlands, France, Norway and Switzerland, have questioned whether Mr Wolfowitz has the ability to still lead the bank.