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LISA NAPOLI: Later today, World Bank President Paul Wolfowitz will get to tell his side of the story. He’ll appear before a special committee that’s been investigating the scandal that’s consumed him. Wolfowitz says other bank ethics poobahs knew he’d given a generous pay raise to his girlfriend. Marketplace’s John Dimsdale says Wolfowitz’s future is at stake.
JOHN DIMSDALE: To his critics, Wolfowitz no longer has the moral authority to lead the World Bank’s crusade to clean up corruption in developing countries.
But Kevin Hassett at the American Enterprise Institute says while Wolfowitz made a “misstep” intervening on his partner’s behalf, it wasn’t a big one.
KEVIN HASSETT: The deal with his girlfriend was investigated at length in the past and found to be OK. These charges have been trumped up right now because many people in the bank have been concerned about the aggressive steps against bank corruption that Wolfowitz and his staffers have been taking.
Hassett says Wolfowitz has ruffled feathers by disciplining or firing 22 World Bank employees who thought they had a sinecure for life.
After meeting with Wolfowitz, the special investigative committee will make its recommendation on his fate to the full board of bank governors.
In Washington, I’m John Dimsdale for Marketplace.
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