Letter from Paul Wolfowitz to Herman Wijffels, Netherlands Executive Director and chairman of Ad Hoc Committee

April 25 2007

Dear Herman

I have had a chance to reflect overnight on your request of yesterday evening that I appear before the ad hoc committee this morning. I am deeply troubled and feel that I am being treated shabbily and unfairly without regard to appropriate process...

It is important not only for me but for the institution, that this matter not be resolved by a rush to judgment. That would only compound the damage to all concerned...

Whatever the outcome of the present matter, the manner in which it is resolved will be part of the reputation of the World Bank Group far into the future...

See comments for full letter from Paul Wolfowitz

Consequences if he stays

What the Board of Governors said about Wolfowitz:

"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 current situation is of great concern to all of us. We endorse the Board's actions in looking into this matter and we asked it to complete its work. We expect the Bank to adhere to a high standard of internal governance."

The following points summarize some of the most costly consequences if Wolfowitz is not forced to resign:

· Deterioration in Reputation... The tarnished reputation of the institution will not be restored without the closure that Wolfowitz's departure would bring. The brand of the World Bank has already been damaged under Wolfowitz's management style and his repeated difficulties with the Board and his managers. The Bank will find itself in a position where it has greater difficulty in attracting the high-quality staff needed to carry out the Bank's operations. It is highly likely that if Wolfowitz were to be retained, many long-serving Bank staff would leave the organization given the high levels of distrust and moral outrage at his behavior and leadership style.
· Loss of Credibility on Governance and Anti-Corruption...
· Breach of Staff's Trust...
· Diminished Ethical Standards of Top Management...
· Lost Confidence of Board of Directors...
· Department of Integrity...
· Double Standard of Ethics...
· Relationship with Development Partners...
· IDA 15 Replenishment...