WASHINGTON DC - - April 15, 2007 - IMF/World Bank Development Committee press briefing. World Bank President Paul Wolfowitz speaks with journalists. Photo: © Simone D. McCourtie/ World Bank

World Bank President Paul Wolfowitz said on Sunday that he intends to continue in his job despite the controversy over his role in arranging pay raises and promotions for his girlfriend, a bank employee forced by conflict-of-interest rules to take an outside job during his tenure.

"Look, I believe in the mission of this organization, and I believe I can carry it out," Wolfowitz said at a news briefing on the agenda of the bank's development committee. "I have had many expressions of support. . . . We need to work our way through this. The board is looking into the matter, and we'll let them complete their work."

The bank, he said, "has important work to do, and I will continue to do it."

However, Wolfowitz 's efforts to keep his job were dealt a severe setback on Sunday when the World Bank's most powerful oversight committee delivered an unusually public rebuke of his leadership, expressing “great concern” about the institution’s future and the need to preserve its credibility and the morale of its 7,000 employees.

The oversight committee, which consists of 47 of the world’s finance ministers and leaders of other international organizations, deepened the uncertainty over Wolfowitz's.

The rebuke of Wolfowitz, was in the form of bureaucratic language in a series of sentences in the board’s communiqué that asserted “the current situation is of great concern to all of us.”

“We have to ensure that the bank can effectively carry out its mandate and maintain its credibility and reputation as well as the motivation of its staff,” the committee said. “We expect the bank to adhere to a high standard of internal governance.”

Though the language was indirect, it is clear that the intention is to force Wolfowitz 's resignation.

It's reported that a number of ministers from developing countries, particularly in Africa, have praised Wolfowitz's presidency. His defenders have charged that he is being vilified because he, as Deputy Defense Secretary in President Bush's first term, was an architect of the unpopular Iraq war.

However, representatives from major donor countries, particularly in Europe, have been unhappy with the leadership of the bank and have clashed with him over a range of issues. The bank's staff association has criticized his management and last week called for his resignation.

The US president traditionally names the World Bank head. President Bush said last week that he strongly supports Wolfowitz and expects him to continue in the job.

One issue the oversight board faces in considering Wolfowitz's case is its own role. While negotiating his contract, Wolfowitz declared the conflict of interest and offered to recuse himself from all personnel dealings with the woman the bank has since called his "domestic partner," Shaha Riza. The board's ethics committee determined that bank rules required her to leave, while remaining on the bank payroll, and instructed Wolfowitz to arrange a compensation package through the human resources department.

The package Wolfowitz dictated resulted in an increased pay grade, substantial raises -- from $132,660 when Riza left the bank to a current $193,590 -- and promotions upon her eventual return, but the board showed no further interest in learning the terms of the deal.

Meanwhile, the Bush administration, which is also facing calls for the resignation of Attorney General Alberto R. Gonzales and fury among conservatives for not saving the job of John R. Bolton as United Nations ambassador, is reported by many in Washington as having little appetite to shove Wolfowitz overboard.

Transcript of Press Briefing