Wolfowitz’s friend says she’s victim in bank flap

WASHINGTON — The woman at the heart of the controversy that has embroiled World Bank President Paul Wolfowitz says she is a victim and was forced into a job transfer because of their relationship.

Shaha Riza’s comments are included in new documents released by the World Bank on Friday that also show Wolfowitz had a direct hand in arranging her promotion and generous pay package. Wolfowitz is fighting to retain his job.

Riza said that at no time did she report directly to Wolfowitz and that he had proposed to recuse himself from any decisions involving her to avoid a potential conflict of interest.

She said the ethics committee of the World Bank’s board had required her “to go on external assignment contrary to my wishes.”

Riza was moved to a high-paying job at the State Department in September 2005. “I have now been victimized for agreeing to an arrangement that I have objected to and that I did not believe from the outset was in my best interest,” she said.

Her comments were made in a memo to an ad hoc committee of the World Bank looking into the circumstances surrounding her transfer.

Wolfowitz has said he made a mistake and has apologized for his role in Riza’s promotion. The Bush administration expressed fresh support for Wolfowitz on Friday.

Treasury Secretary Harry Paulson said the World Bank has a process in place to review the Wolfowitz matter, which he said should be allowed to proceed. “This should not be called into question or be read as any lessening of support for Paul.”

“Paul Wolfowitz is a very dedicated public servant,” Paulson said after hosting the Group of Seven meeting of finance officials Friday evening. “He has had quite a distinguished career.” Paulson also noted that Wolfowitz has apologized.

Before her transfer to the State Department, Riza worked as a communications adviser in the bank’s Middle East Department. In her memo, Riza said she did not want to be assigned to duties away from the bank and did not expect “any special considerations.”

She lamented “vicious public attacks” she said she has received over the matter. The episode, she said, has affected her “professionally, physically and psychologically.”

The packet of documents released by the World Bank included new details about Wolfowitz’s involvement in Riza’s job transfer.

Two months after arriving at the bank on June 1, 2005, Wolfowitz sent a memo to the bank’s vice president of human resources, laying out details concerning Riza’s employment and compensation.

“I now direct you to agree to a proposal which includes the following terms and conditions,” Wolfowitz instructed. “You should accept immediately her offer to be detailed to an outside institution of her choosing, while retaining bank salary and benefits.”

The Wolfowitz memo went on say that Riza should receive a promotion, draw a salary of $180,000 and get annual pay increases of 8 percent.