Despite his determination to stay in the job, at a meeting on Sunday, representatives of donor countries voiced their concern that his continued leadership would affect the World Bank's reputation and effectiveness.
The controversy came about when it was revealed that Mr Wolfowitz had a say in the promotion and salary increase of 60,000 dollars a year for his girlfriend Shaha Riza.
Dutch Development Minister Bert Koenders is one of the critics of the World Bank president. He believes the scandal is a cause of great concern.
"The worst thing about the affair is that Mr Wolfowitz has used his public role to benefit his girlfriend at the bank's costs and one can't do this if one is the president of a bank which has made fighting corruption in developing countries its principal objective"
"I believe that one should be able to criticise developing countries on this issue, but one should then make sure that one's own organisation is not based on favouritism."
Developing countries
The World Bank manages around 25 billion dollars a year in aid to developing countries. When he became president, Mr Wolfowitz said that fighting corruption was one of the bank's main challenges.
Mr Wolfowitz has admitted that he made a mistake. He says he should not have become involved with his girlfriend's transfer and salary increase, but critics argue that the World Bank President also attempted to cover up the conflict of interest. However, White House spokesperson Dana Perino emphasises that Mr Wolfowitz can continue to count on President Bush's support.
"The [US] President has complete confidence in him and what he has done to help lift people around the world out of poverty. He has offered his excuses for the affair and an internal investigation is being held. We expect that he will continue to serve as bank president."
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Shaha Riza - promotion and a pay rise |
Pentagon
Mr Wolfowitz previously served in the Pentagon as deputy defence secretary and together with Defence Secretary Donald Rumsfeld was one of the main architects of the invasion of Iraq.
He was also a symbol of what many countries consider - even if they don't say so publicly - the arrogant way in which Washington dictated the course of the war. Some observers suggest that his critics are using the scandal as a means of getting even with him.
Many among the World Bank staff have been voicing discontent about their president for some time now. Mr Wolfowitz's leadership style has been described as high-handed and authoritarian. The beleaguered president couldn't even close a meeting with his staff as a result of the jeers and shouts calling for his resignation. His staff had previously issued a formal statement saying they had lost confidence in their chief.
Although Mr Wolfowitz received the full support of the US, doubts have been raised by ministers of affluent countries such as the United Kingdom, Germany, France and Japan. However, most African countries support him.
Accomplishments
At a press conference, the World Bank president said that much has been accomplished in the fight against poverty and that he intends to remain in office and complete the job.
"A lot of hard work still has to be done in helping developing countries. I believe in the mission of this organisation and I believe that I can carry it out."Whether Mr Wolfowitz will succeed in carrying out his mission depends on the members of the executive board, which is made up of donor countries. Although the World Bank president is a political appointee of the US government, the current scandal raises doubts about whether this time the White House can take it for granted that it will have the final say in the issue.
*Translated (fs) and edited (cc) by RNW Internet Desk
Tags: corruption, donor countries, pay rise, promotion, wolfowitz, world bank