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.
The memorandum, which according to two sources was dated August 11 2005, specifies in detail the terms that Xavier Coll, the World Bank’s vice-president for human resources, should offer to Ms Riza, who was subsequently seconded to the US State Department.
The memorandum sets out the salary that Ms Riza is to be paid, the arrangements for her promotion, and the basis on which her subsequent annual pay increases are to be calculated.
In addition to the two sources who saw the memorandum, and who recounted its contents in detail, the Financial Times has spoken to three other sources, who also attested to its existence. However, the FT has not seen the memorandum itself.
A copy of the memorandum has been seen by a subcommittee of the bank’s board of executive directors who were charged with investigating the Riza assignment, two sources said.
The bank staff association claims the terms of the assignment broke bank rules.
The subcommittee of board directors completed their investigations on Wednesday and the full board is expected to meet to discuss their findings Thursday.
Ms Riza’s secondment was arranged in order to comply with bank conflict of interest rules that prohibit staff from working under the authority of a colleague with whom they are romantically involved.
News reports unchallenged by the bank put Ms Riza’s current salary, which is paid by the World Bank, at $193,000 free of tax.
The FT contacted the bank late Wednesday night to ask for comment.
A senior bank official responded with the following statement: ”The president said on April 9 that he accepts full responsibility for the actions taken in this case. He has withheld further comment out of respect for the board review process that is currently under way.”
