Wolfowitz on Trial Today
World Bank President Paul Wolfowitz, staffed by legal counsel Robert Bennett at his side, will have an opportunity to respond to allegations of nepotism and inappropriate conduct at a meeting today.
The stakes are high for Wolfowitz and the Bank. If one wins, the other loses. Sources tell me that there probably will not be action on Wolfowitz's petition today -- but his fate will be determined within the week.
The real issue at hand is corporate governance inside the bank -- and this of course, is one of the Bank's central themes in its interactions with client governments and collaborating partners and institutions. Reports are bubbling out from Bank staff and World Bank clients that there is no way that Wolfowitz can go back to his position and keep the place from revolting against him, boycotting his presence and work, and the like.
Some governments have already issued private communications to Wolfowitz not to visit them -- at least not until this imbroglio is settled. The Bank staff is in open revolt, and many fear that they will be purged by Wolfowitz if they lose this high-risk battle.
All sorts of players are lining up on this. Former Atlanta Mayor and Ambassador to the UN Andrew Young fell a few notches in my eyes for his obsequious piece calling on us to give Paul Wolfowitz "another chance."
Young fails to mention that part of Wolfowitz' "portfolio problem" is that he elevated two monstrous personalities who had virtually no development experience to two of the most important jobs in the Bank. Kevin Kellems -- former spokeman for Vice President Cheney -- came into a key role at the Bank that should have been reserved for those elevated through meritocratic selection. Kellems has been hounding and harassing Bank staffers who were blowing the whistle on the Bank President's "absence of a plan" as well as for those he felt were at ideological odds with Wolfowitz -- particularly on the Iraq War.
According to numerous sources, Kellems has had issues not too different from those related to Randall Tobias of late. Even Wolfowitz has been infuriated with a few judgment lapses by Kellems -- with reports of Wolfowitz screaming at him on the phone in Brazil for private misbehavior that also seriously delayed the World Bank delegation and plane flight.
For those dead-set against Wolfowitz continuing in his position, Sarah Whalen takes Wolfowitz supporter Ruth Wedgwood down a notch. In another new development, I have learned that Robin Cleveland will accompany Wolfowitz to his hearing today and be asked to explain her role in a faked email draft that is pivotal in the case -- and may be evidence of an effort to cover-up some of the massaging of girlfriend Shaha Riza's employment trajectory. More soon.
-- Steve Clemons publishes the popular political blog, The Washington Note


"Even Wolfowitz has been infuriated with a few judgment lapses by Kellems"
Pot...kettle...black.
These are indeed rare and wondrous times. No matter where one turns, the Bush house of cards is collapsing, the cards are fluttering down.
April 30, 2007 5:45 AM | Reply | Permalink
The real issue is that Wolfowitz is a war criminal and a Bush proxy at the World Bank. This scandal just gives those who don't like the Bank being an arm of US foreign policy a way to try and rectify the situation without overtly offending the Bush administration.
We will be able to judge how successful they will have been when we see Wolfowitz's replacement (or lack thereof).
One of the reasons states are declining World Bank and IMF assistance is because of the strings attached. It is also the reason the Doha round is stalled and why the US is making bilateral deals as a workaround.
--- Policies not Politics
Daily Landscape
April 30, 2007 6:36 AM | Reply | Permalink
Wolfie is looking to blame others for his own unsound judgments and unethical activities. He's also looking for big bucks to line his pockets, as he did with his neo-concubine Riza, with gold.
"Do As I Say, Not As I Do" has become Wolfie's mantra-- for he hypocritically lectures others about "corruption" [sic], when he is one of the most corrupt, corrosive & despicable crooks to rise-out of the neo-fascist neo-con Bush/Cheney junta.
Wolfie, Bush, Cheney, Rice, Rove, Gonzales, et. al.-- their pattern of behaviour is to bilk the U.S. taxpayers; the world community; and the poor of the world, and all the while telling anyone who challenges their lies, hypocricy and blood-thirsty destructiveness: "screw you"!
April 30, 2007 6:39 AM | Reply | Permalink
"Do As I Say, Not As I Do" has become Wolfie's mantra-- for he hypocritically lectures others about "corruption" [sic], when he is one of the most corrupt, corrosive & despicable crooks to rise-out of the neo-fascist neo-con Bush/Cheney junta.
I'm not wildly opposed to hypocrisy: when the options are to have someone hypocritically pressure another into doing the right thing, and having no one pressure them into doing the right thing, I'll take the latter. And I have to give PW some credit for taking corruption more seriously than his predecessors.
A few years ago, the World Bank financed an oil pipeline project in Chad, with the stipulation that 80% of the profits be spent on social welfare projects. Chad is one of the very poorest nations in the world, and also one of the most corrupt. Predictably, Pres. Idriss Deby reneged on the deal, saying that the money was needed for other government expenditures, including military build up. Under Wolfowitz, the World Bank froze Chadian assets, and renegotiated (the deal wasn't as good - the gov't has to spend 70% on social welfare, thus getting a 10% reward for bad behavior). I'm not sure the World Bank a decade ago would have taken a hard line on that.
But, with all that said, I agree with you much more than I disagree. Wolfowitz has no moral authority.
April 30, 2007 8:09 AM | Reply | Permalink
I suspect from the context that you meant "the former", not "the latter".
But respectfully I have to disagree. How about this: when taking a position against corruption, don't do corrupt things yourself, or even things that have the smell of corruption. There are millions of purchasing agents, auditors, loading dock workers, church collection plate counters, etc around the world who are faced with temptation every single day and do NOT yield to it. Why is it too much to ask of those to whom great power has been entrusted that they too not abuse that power for their own gain? Do people get a special pass on ethics after they reach a certain "station" in life? More evidence of our attempt to return to feudalism IMHO.
I will say that the question of Riza is difficult. In the corporate world the solution is usually to transfer the executives involved to positions where they have no cross-connection but which do not involve a decrease in status. Since Wolfowitz was taking the senior executive position that was going to be tricky, and there is the issue of fairness to Riza who was after all there first. But at the same time I doubt many BoD hiring committees today would ever hire a new CEO who came with a built-in romantic conflict-of-interest.
sPh
April 30, 2007 8:19 AM | Reply | Permalink
The Andrew Young article included this line:
It's hard to understate how much is wrong with this statement. Schultz did open dialogue with the ANC, but America was about the last developed country to do so - a number of European governments at the time had the virtual equivalent of diplomatic relations with the ANC. Oliver Tambo lived a lot of his life exiled in Sweden, and the ANC maintained a large staff in London to co-ordinate their activities.
Those Americans who had written off the ANC as communist ne'er-do-wells were a minority group that famously included the current vice-president. Congress voted in favor of releasing Mandela in 1986; Dick Cheney has never apologized for his nay vote, although he has shifted his initial rationalization (that the ANC had ties to communism) to an argument that at the time the apartheid government had the ANC designated as a (banned) terrorist organization.
In fact, by 1987 when Schultz opened the dialogue, the ANC was already speaking to the South African business community who were making trips to meet them in defiance of the Apartheid government.
And just so people are clear on who was where at the time... Mandela was still in prison, Tambo's health was fading, and Thabo Mbeki was a mid-level ANC member (with a famous father), who would subsequently be groomed as a future leader. No-one had written anyone off, it just wasn't clear who would emerge as the leader.
Oh yeah, Wolfowitz. Just fire him already. The Europeans don't want the post for themselves, they just want someone credible in the job (Jeff Sachs, anyone?).
April 30, 2007 8:24 AM | Reply | Permalink
Unindicted war criminal.
April 30, 2007 8:44 AM | Reply | Permalink
From the article linked above:
"Yet Republican vice presidential candidate Cheney still defends his vote, saying on ABC's ``This Week'' that ``the ANC was then viewed as a terrorist organization. . . "
... and, of course, Dick Cheney had to go along with what the apartheid government said. Such a bright guy. Aren't we lucky to have him for VP - NOT!
Tom
April 30, 2007 8:58 AM | Reply | Permalink
Wolfowitz is the point man for parallel propaganda campigns. Dish out money in the UK to spike some stories about the war on terror, ditto anywhere in the EU, even more so developing lands and regional efforts near war theatres...
Follow the Money.
April 30, 2007 9:07 AM | Reply | Permalink
Hey, if Wolfie wants to stay at the World Bank, that's fine with me. He can move to the cafeteria and serve freedom fries all day long!
April 30, 2007 9:17 AM | Reply | Permalink
Right: "former" was intended. Thanks for catching that.
How about this: when taking a position against corruption, don't do corrupt things yourself, or even things that have the smell of corruption. There are millions of purchasing agents, auditors, loading dock workers, church collection plate counters, etc around the world who are faced with temptation every single day and do NOT yield to it. Why is it too much to ask of those to whom great power has been entrusted that they too not abuse that power for their own gain?
I don't disagree with this in the slightest, but I think it doesn't quite address the situation. What I am saying is that, stipulating that you are dealing with an individual or nation whose actions don't measure up to the standards they put forth, it is preferable that these hypocritical agents go ahead and act hypocritically, if the result will be, say, a net drop in corruption.
Clearly preferable to that is agents who hold themselves to a consistent standard, and are able to exert genuine moral authority.
To put the point another way, if you really believe in human rights, you should be critical of pretty much every government that holds state power, to varying degrees. The non-governing citizenry aside, there just isn't anyone who isn't something of a hypocrite when it comes to calling out other states on their human rights record. But silence isn't preferable to hypocritical (if effective) speech.
But I'm just diverting the conversation. Initially, I agree, the Riza situation seemed tough - she appears to have good qualifications, the job at State was sort of a diversion from her interests, and it seemed somewhat reasonable to me that she would be compensated for the derailment of her career. It also seemed (seems) like this issue is being used, to a degree, as a proxy for more direct fights about PW's actions at the Bank and before. But the more I hear about his apparent self-dealing, the more I think he deserves the ax. (Maybe they could reinstate Riza to her old job...).
April 30, 2007 9:36 AM | Reply | Permalink
In my experience, the immediate result is a net increase in corruption, since even the honest seldom hold themselves to higher standards than their auditors.
sPh
April 30, 2007 9:37 AM | Reply | Permalink
You may be right, and corruption may not be the best place for me to argue this. If corruption is cheating, I think we are probably wired to respond differently to widespread abuses of this kind than widespread human rights abuses - if everyone cheats, there is little point in holding yourself to standards. If everyone tortures, the story is different.
I get on this high horse sometimes because I have frequently been confronted in the last couple of years with the opinion that if a country (the U.S.) has a spotty record on, say, human rights, they have no business criticizing the record of some other country. Of course, they don't; but that doesn't mean that U.S. criticism (well, in a different era, anyway) can't have a positive effect. And that outcome seems preferable to guilty silence.
April 30, 2007 9:47 AM | Reply | Permalink
The anti-corruption drive at the World Bank is more likely due to the pressure of people like Joseph Stiglitz and William Easterly who were both employees and have now been vocal critics.
Their series of books pointing the defects and their ability to get into the popular press has changed world opinion. Donor countries have become more discriminating because of the bad publicity.
The IMF is another thing, however..
--- Policies not Politics
Daily Landscape
April 30, 2007 9:50 AM | Reply | Permalink
Whoa. The only thing that could make this mess any worse would be if it resulted in landing Jeff Sachs the World Bank job.
Accumulating Peripherals
April 30, 2007 9:53 AM | Reply | Permalink
Well I understand you are exaggerating, but care to elaborate on how Sachs is not qualified for the job?
April 30, 2007 10:40 AM | Reply | Permalink
"I'm not wildly opposed to hypocrisy: when the options are to have someone hypocritically pressure another into doing the right thing, and having no one pressure them into doing the right thing, I'll take the latter. And I have to give PW some credit for taking corruption more seriously than his predecessors."
Where I would disagree with your assessment is your belief that Wolfie takes "corruption more seriously than his predecessors".
Wolfie's so-called "anti-corruption" platform was a ruse; a scam; i.e. just another neo-con ponzy scheme to dupe us into believing that he was fighting corruption. Instead, Wolfie used coercive methods to pressure nations into serving the neo-con Bushies' corporate backers-- and those corrupt regimes who already "play ball" with the corporations that devise this U.S. regime's foreign policy are let "off-the-hook".
In other words, Wolfie's "anti-corruption" scam is just smoke-and-mirrors fraud-- just like his traitorous lies, deceptions & falsehoods perpetrated upon the American people in the lead-up to the neo-con Bush/Cheney junta's disastrous blood-bath in Iraq.
Wolfie is corrupt & hypocritical in the most cynical manner -- lacking any integrity whatsoever.
This is why donor nations & contributors should boycott any and all funds to the World Bank until this despicable little man Wolfie is gone. Wolfie deserves to be put on trial for War Crimes & Crime Against Humanity, along-side Bush, Cheney, Rice, Rove, Gonzales, Rumsfeld, Feith, Perle, et. al.-- and, certainly should never serve in any office that requires the public trust.
April 30, 2007 10:59 AM | Reply | Permalink
.> You may be right, and corruption
> may not be the best place for me
> to argue this. If corruption is
> cheating, I think we are probably
> wired to respond differently to
> widespread abuses of this kind
From Duncan Black:
So now we have a prostitution scandal engulfing Washington DC in which the key players are primarily hard right Republicans. The same Republicans who are patting themselves on the back over Alito and the recent anti-choice decision. I don't think you can say it is just monetary corruption; dishonesty is like a cancer that spreads throughout the body from a single source.
sPh
April 30, 2007 11:26 AM | Reply | Permalink
To disagree would be to quibble. But let me quibble.
I don't want to argue that you are wrong - frankly, I have no idea whether PW is misguided but principled (guided by misguided principles?) or whether he is more venal than that. But I will ask you this. You say:
In what sense does freezing Chadian loans accomplish this? The freeze got Chad's government back to the table, and (in theory) will put the bulk of the profits back in the hands of the people.
I'm not impressed generally with this example: the World Bank trusted an untrustworthy government, and the end result is that they were forced to capitulate to an unacceptable degree to its demands. But I don't see how the intention was to force Chad to serve any corporate backers.
April 30, 2007 1:05 PM | Reply | Permalink
Volfie needs to try out for a job at Pepperdine University. I am sure they have a whole division in international corruption. He can teach a technical course in "how to."
April 30, 2007 1:05 PM | Reply | Permalink
Bush defends Wolfowitz in the worst way possible:
But that is just the purported mission of the World Bank institutions. Wolfowitz helped the World Bank read it's own mission statement? If part of what is happening here is that Bank employees are revolting against Wolfowitz's high-handedness, I don't see how this helps his case....
April 30, 2007 1:08 PM | Reply | Permalink
Jeez, Devon, The Bushies have never been high-handed before. I am sure it is all just a mistake.
April 30, 2007 1:21 PM | Reply | Permalink
It is really not clear what sort of "capitulation" took place in Chad when Wolfowitz and Deby concluded their agreement.
But, I am simply not persuaded that the people of Chad benefitted irrespective of the hype. For example, consider this excerpt:--
Source:-- World Bank OK With Blood For OIL, http://www.tompaine.com/articles/2007/01/05/world_bank_ok_with_blood_for_oil.php
Who wins from this arrangement?
* Arms manufacturers-- and, don't forget that the U.S. sells more munitions, guns, tanks, bombs, etc. than any other nation on earth.
* Oil corporations-- and, don't forget that U.S. companies such as Exxon-Mobil, Shell, etc. are making historical record-level profits.
* Corrupt politicos "on-the-take"-- and, don't forget to study the stock portfolios for the Bush Crime Family, Cheney, Rumsfeld, Rove, Rice, their neo-con toadies like Wolfowitz, Feith, Perle, et. al.
Clearly Wolfie talks-up his phony "anti-corruption" game to the hilt in public, and then quietly agrees the oh so corrupt-cum-blood-thirsty-take "quietly" -- and, how much do you really think got to the poor in Chad?
My reckoning is that Big Oil & Carlyle Group made out just fine...
April 30, 2007 1:57 PM | Reply | Permalink
You ought to see the oil portrait of himself he keeps hidden away in his attic.
April 30, 2007 1:59 PM | Reply | Permalink
I think this article is somewhat out of date. My only source, though, is personal communcations with an attorney in Chad who has worked on the issue - and I really can't say whether that makes it a better or worse source than the one you cite.
As I understand it, the original agreement called for 70% of the profits to be spent on education, health and other defined social welfare projects. 10% was to go into future social welfare investments, and the gov't could spend the rest as it wished. After the pipeline was completed, predictably, the legislature repealed or else amended the law that implemented the agreement to allow the money to be spent all at the discretion of the government. At this stage, much of it was earmarked for military buildup. In the subsequent negotiations, the Deby government agreed to reinstate the original agreement as regards present-day expenditures, but not money saved for the future. The government thus gained 10%. But as things stand at this moment, the remaining 70% must be spent as origninally agreed. There is no reason to think that this is how things will play out.
It's not a great program any way you cut it - enforcement is dubious, and activists in Chad are very suspicious of how it will be implemented. One could well question why the World Bank thought this program, which it touted as a new way to approach poverty, would hold, and by allowing the Deby admin. to pocket the additional 10%, they certainly made it that more likely that future deals along the same lines will fall through. And one should never, ever trust anybody where oil is concerned. But I am fairly certain that this article distorts what actually happened in N'Djamena.
April 30, 2007 2:16 PM | Reply | Permalink
The profiteers in the Wolfowitz-Deby Chad deal still remain Big Oil & Carlyle Group... And, I still can find no evidence (refer to my post above) that the people of Chad have benefitted or will benefit from Wolfie's scam pretense of an "anti-corruption" campaign (i.e. a fraudulent scheme devised to sneak-back-in oil interests)...
However, here is an excerpt from a more recent article dated the 12th April 2007:--
Source:-- Battling over the world's oil reserves, http://www.socialistparty.org.uk/2007/482/index.html?id=mp1081.htm
So Big Oil, arms dealers & the Carlyle Group makes out like bandits, due to their neo-con con-man Wolfie's deals. Is it any wonder that there is a constituency of neo-con Bush/Cheney the "Haves-and-Have-Mores" desperate to keep this crook Wolfie in-charge in order to divert the funds of the World Bank into their greed-ridden corporate-owned-n'-bulging pockets?
Frankly, Wolfie's deals never benefit those in need... Never... Wolfie's touch means death, poverty and destruction for whomsoever is so unfortunate as to be at the mercy of his blood-thirsty & ruthless opportunism.
April 30, 2007 2:54 PM | Reply | Permalink
Apologies... I thought that my reply would be posted directly under yours.
My reply is below at:--
On April 30, 2007 - 5:54pm Ego Peto Verum
Frankly, the more one finds out about Wolfie's sordid & squalid deal with Deby, the more one realizes just how unfit he is-- for the hypocrisy & cynicism inherent in his staged-productions feining "anti-corruption" when instead Big Oil, et. al. are profitting big-time at the expense of the people of Chad, are truly nauseating to behold.
[See below at 5:54pm]
April 30, 2007 2:58 PM | Reply | Permalink
What is it with the sex scandals and these Republicans! What they think is unmoral, is just want normal people do, but the personal issues that plague them are they pronounce this as a sin in public, and then practice what they denounce!
This is what makes it a scandal. There are things that politicans need not talk about:
1. sex
2. a women's right to choose
3. religion.
If they just stop talking about it as if its a public forum debate, everything else on the public form would be debatable!
April 30, 2007 3:05 PM | Reply | Permalink
OK, I'm not eager to keep the position of defending PW, or to stretch the limits of my knowledge beyond the breaking point, so I'll just say that I'll look into it more based on what you've provided. What I would say by way of making my case, however, is that an honest anti-corruption effort at the WB, which would include policing deals like that made with Deby, would be a good thing; I would hope that the next Bank President would extend what Wolfowitz has done to the point of making it legit.
April 30, 2007 3:12 PM | Reply | Permalink
With this crew, I assume "oil portrait" means one painted in unprocessed crude oil.
April 30, 2007 3:55 PM | Reply | Permalink
Of course. Later on in the article, Paul W. is quoted saying: "If only my colleagues weren't so threatened by my superior intellect, and so dim witted, they'd see that these charges of arrogance have no merit. I'm really one of them."
Or something like that.
April 30, 2007 4:15 PM | Reply | Permalink
Now I know you are making it up. He would never say, "I'm really one of them." He would say, "I make nice with the little people as much as I can tolerate."
April 30, 2007 4:31 PM | Reply | Permalink
Come on, don't fault sex scandals! There are 2 at the moment bringing down the king, when 6 years of battle over policy including clear evidence of treasonously fraudulent reasons for going to war could not.
I say: Go, Deborah Jeane Palfrey, go! I am fairly certain that the smartest thing she did was make sure several other people also had copies of her phone bill records. I just hope that White House official has the initials KR, but, of course, that would be too much to ask for. But I sure hope it is a name we recognize.
April 30, 2007 4:32 PM | Reply | Permalink
Yes, I understand that his "real" name is Dorian Grey, and that the picture has him combing his hair after licking the comb. It's kinda gross, actually.
Jan
April 30, 2007 5:21 PM | Reply | Permalink
The big thing that "Wolfie" got going was a change against family planning. I heard one of his apologists stating that family planning shouldn't have anything to do with the World Bank, and that abstinance was a legitimate goal.
Poverty and high birth rate are tied together, and anyone who doesn't get that doesn't deserve to be listened to, never mind be the head of an international ANYTHING!
The Wolf is just one more loser from Geoerge's criminal cabal. He has gotten more money and fame than he ever should have gotten. He deserves to be in jail rather than giving himself, his incompetent friends, and his girlfriend tax-free six-figure salaries. Can anyone here imagine getting a tax-free salary? Oh, and don't forget: she was guaranteed glowing performance reports. This is the hypocrite who was supposed to get rid of nepotism and corruption in Africa!
I am so sick of what these people have done to our country!
Jan
April 30, 2007 5:31 PM | Reply | Permalink
Jan, what do you expect? DC is not in Africa! One continent at a time! Poor pitiful little Volfie. Show him a glass of water and see if he snarls and foams at the mouth. I think he's got rabies.
April 30, 2007 5:45 PM | Reply | Permalink
Did she have any male "contractors" working for her?
Accumulating Peripherals
April 30, 2007 7:33 PM | Reply | Permalink
I think Gannon worked for another outfit.
April 30, 2007 8:35 PM | Reply | Permalink