Wolfowitz Apologizes For Nepotism
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

WASHINGTON — The World Bank president, Paul Wolfowitz, acknowledged yesterday that he erred in helping a close female friend get transferred to a high-paying job, and he said he was sorry. His apology didn’t ease concerns among the bank’s staff association, which wants him to resign.
The growing scandal has overshadowed major development meetings this weekend and is raising fresh questions about whether Mr. Wolfowitz will stay on the job. The White House, however, expressed confidence in the embattled bank president.
At issue are the generous compensation and pay raises of a bank employee, Shaha Riza, who has dated Mr. Wolfowitz. She was given an assignment at the State Department in September 2005, shortly after he became bank president.
“In hindsight, I wish I had trusted my original instincts and kept myself out of the negotiations,” Mr. Wolfowitz said. “I made a mistake, for which I am sorry.”
The World Bank Group Staff Association is demanding that Mr. Wolfowitz step down.
“The president must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group and has destroyed the staff’s trust in his leadership,” the association said yesterday. “He must act honorably and resign.”
Mr. Wolfowitz said he met yesterday morning with the World Bank’s board and that members were looking into the matter. He declined to discuss what actions, if any, the board could take.
“I proposed to the board that they establish some mechanism to judge whether the agreement reached was a reasonable outcome,” he said, referring to Ms. Riza’s transfer. “I will accept any remedies they propose.”
Mr. Wolfowitz dodged a question about whether he would resign over the flap. “I cannot speculate on what the board is going to decide,” he said.
A World Bank spokeswoman would not comment on what range of options the board could consider.