The Star Online Monday May 21, 2007 Anwar denies involvement in scandal engulfing Wolfowitz
KUALA LUMPUR: Datuk Seri Anwar Ibrahim has denied having a hand in getting the high pay rise for Shaha Ali Riza, girlfriend of World Bank president Paul Wolfowitz. The former deputy prime minister, who is the chairman of Foundation for the Future, said he did not appoint Shaha Riza to the foundation. She was first assigned by the World Bank, through the US State Department, to the foundation in late 2005, before I became chairman. The executive committee decided in mid-December 2006 to regularise the appointment so that Shaha (Riza) advised directly from the World Bank and not the State Department, he said in a statement. News reports had said that Anwar had written to a letter to Robin Cleveland, Wolfowitzs counsellor at the World Bank, last October, asking for Riza to be transferred from the State Department to the foundation. The move raised her pay by 36% from US$133,000 (RM452,250) to US$193,590(RM658,255). In his press statement, Anwar said the setting up of the Foundation for the Future was announced in Bahrain in November 2005. The aim was for an independent body, comprising governments and civil societies to support non-government organisations (NGOs) in developing democracy and freedom in the Middle East and North Africa. He said US$56mil (RM190.5mil) was promised to the foundation but to date, it had only received funds from Turkey, the UK and Jordan, and none from the US. Anwar said he had been invited to join the board of the foundation in mid-2006 along with representatives from Morocco, Kuwait, Iraq, Spain, Syria, Turkey, Lebanon, Saudi Arabia, Egypt, Switzerland and Qatar. At the first board meeting, he said he was unanimously chosen as the chairman. Umno Youth deputy chief Khairy Jamaluddin had said on Sunday that Anwar must explain his role in the controversy involving Wolfowitz and Riza, clarify his relationship with Wolfowitz, and explain his motives for heading a foundation bankrolled by the US. --- Dr Omar Yaakob <[EMAIL PROTECTED]> wrote: > Asm, > > A cause for concern. > > > --- Wira Putih <[EMAIL PROTECTED]> wrote: > > > To: [EMAIL PROTECTED] > > From: Wira Putih <[EMAIL PROTECTED]> > > Date: Sat, 19 May 2007 22:08:20 -0700 (PDT) > > Subject: [anak_KEDAH] Betuika Anwar ni kawan Baik > > Wolfwittz dan Shaha Riza la ni kerja dgn dia..?? > > > > Lepas baca cerita kat bawah, pi tengok ni pulak > > untuk kenai lebih dekat Foundation of the Future > > yang diPengerusikan oleh Anwar. Rasanya Mahathir > tak > > dak kena mengena dengan website/blog ni. > > > > > http://www.foundationforfuture.org/bios/board_of_directors.html > > > http://www.state.gov/r/pa/prs/ps/2007/apr/83050.htm > > > http://www.moonofalabama.org/2007/04/wolfowitz_cia_l.html > > > > ________________________________ > > > > Wolfowitz and Riza: How Sweet It Is! > > > var EmailArticleWindow; function > > email_article_popup (pid) { var url = > > "/blogs/email.mhtml?bid=3&pid=" + pid; if > > ((EmailArticleWindow) & (EmailArticleWindow.closed > > != true)) { > > EmailArticleWindow.location.href = url; } > else > > { EmailArticleWindow = > > > window.open(url,'EmailArticleWindow','height=370,width=300'); > > } > > > }http://www.thenation.com/blogs/capitalgames?pid=192571 > > > http://news.yahoo.com/s/thenation/20070504/cm_thenation/3192571 > > > > At the start of the scandal triggered by the > > revelation that World Bank President Paul > Wolfowitz > > had helped arrange generous pay boosts for his > > girlfriend Shaha Riza, Wolfowitz declared, "I made > a > > mistake, for which I am sorry." > > Two and a half weeks later, Wolfowitz had > > readjusted his rhetoric. "The ethics charges are > > unwarranted" and "bogus," he said. > > On Friday, the Bank's board of directors was > > working to complete its report on the Wolfowitz > > affair and pondering whether to reprimand or even > > remove Wolfowitz. But regardless of the outcome of > > the official deliberations--which have been > affected > > by behind the scenes maneuvering and the > individual > > agendas of member nations--the Wolfowitz and Riza > > tale is one of Washington insiderism, a story in > > which a powerful player was able to guarantee that > > his companion would make hundreds of thousands of > > dollars a year and be entitled to a lucrative > > pension while working at a fledgling foundation > with > > a friend of his. This is not how most public > > servants in Washington live. > > After Wolfowitz, a former deputy defense > secretary > > who was a prime architect of the Iraq war, assumed > > the Bank's presidency, he was faced with what he > has > > called "a potential conflict of interest." He > would > > be the boss (albeit not the direct boss) of his > > girlfriend, who was a communications officer in > the > > Middle East section. He subsequently worked out a > > deal under which Riza would remain a Bank employee > > but be reassigned out of the Bank. What has caused > > the fuss is that this arrangement included a 36 > > percent pay hike--which raised her annual salary > > from $132,660 to $180,000--and guaranteed yearly > pay > > increases of 8 percent. (She is now pulling in > > $193,000 a year.) > > Wolfowitz has justified the initial compensation > > boost by arguing that when he arrived at the Bank > > Riza was short-listed for a promotion to > > communications adviser to the vice president of > the > > Middle East region. Such a promotion would entail > a > > jump in pay grade. The office of the vice > president > > of the region had placed Riza's name on a short > list > > of nine candidates, but, according to an official > > familiar with the deliberations of the human > > resources committee overseeing this job opening, > > Riza's position on the short list was not > initially > > approved by the committee--a necessary step for > her > > to receive the job. That did not end the matter. > "It > > became clear the board was under strong pressure > > from upstairs to keep her on the short list," this > > official says. > > Whether or not she made it to the final short > > list--Bank officials have different > > recollections--she was no shoe-in for the > promotion. > > Two years earlier, Jean-Louis Sarbib, then the > vice > > president for the Middle East region, had proposed > > Riza for a similar position, and the human > resources > > board had rejected her. The board noted, according > > to a report made available to The Nation, that > > Sarbib should have sought other applicants for the > > position, that Riza "needs to establish herself as > a > > communications professional," and that she should > > not receive a "promotion through the backdoor." > Riza > > did not meet the minimum job qualifications: an > > advanced degree in communications and 15 years of > > experience. She was a gender specialist at the > > Bank--a well-known Arab feminist-- who had done > > communications work for only a few years. > > In statements to the Bank's board, Wolfowitz has > > pointed to Riza's candidacy for the communications > > adviser post as a reason for awarding her a > $47,340 > > compensation increase. "This raise is about double > > what you'd be allowed to get if you got that > > promotion," the official familiar with these > > deliberations said. "For Wolfowitz to use the > > argument that she was short-listed goes against > what > > the committee said about her two years before. It > > does not justify the salary increase." > > The Riza deal included more than that first big > pay > > hike and annual increases. It also essentially > > guaranteed Riza subsequent promotions to higher > pay > > grades. And the deal would provide her the yearly > > pay increases for up to ten years, if Wolfowitz > > remained at the Bank for a second term. By the end > > of a second Wolfowitz term, Riza, were she to stay > a > > Bank employee, would make close to $400,000, > > possibly more. > > These pay increases would lead to an outsized > > pension. According to a Bank source familiar with > > the institution's pension rules and formulas, > > pensions for Bank retirees are based on the > average > > salary of an employee's last three years at the > > Bank. Under the Wolfowitz deal, Riza could expect > an > > annual pension of about $110,000, if she retired > in > > 2015 (assuming Wolfowitz served two terms). If > > Wolfowitz had not awarded her that initial salary > > hike of nearly $50,000 and she instead received > > steady annual raises of 4 percent over this > ten-year > > period, her pension would be about $56,000. With > the > > Wolfowitz deal, Riza could look forward to a > rather > > comfortable pension. > > And she could retire after working with a close > > friend of her boyfriend. > > In September 2005, the Riza deal was finalized, > and > > the World Bank and State Department agreed she > would > > be seconded to the department's Bureau of Near > > Eastern Affairs. She was given the task of > > developing a foundation that would focus on reform > > in the Middle East and North Africa. It would > > eventually be called the Foundation for the > Future. > > (At the time, Elizabeth Cheney, the daughter of > the > > vice president, was a principal deputy assistant > > secretary in the bureau, coordinating Middle East > > initiatives.) But there aparently was some > question > > about her status at the State Department. The next > > month, J. Scott Carpenter, a deputy assistant > > secretary in the Bureau of Near Eastern Affairs, > > faxed a note to the World Bank saying that "we do > > not view Ms. Riza as detailed or seconded to the > > U.S. Government." He offered to "further refine > this > > arrangement." Documents released by the World Bank > > do not indicate what subsequently transpired > between > > the State Department and the Bank > > regarding Riza's employment status. > > Over a year later, on October 1, 2006, Anwar > > Ibrahim, chairman of the Foundation for the > Future, > > wrote Robin Cleveland, a senior Wolfowitz aide at > > the Bank, and requested the transfer of Riza from > > the State Department to the Foundation for the > > Future. Two months later, after Cleveland > instructed > > the Bank's vice president of human resources to > > approve the transfer, the Bank okayed the switch. > > The Anwar letter and other Bank documents related > > to this transfer did not mention that Anwar is a > > longtime friend of Wolfowitz. One of Asia's most > > prominent Muslim politicians, Anwar was a former > > deputy prime minister of Malaysia. He and > Wolfowitz > > met and developed a friendship in the mid-1980s, > > when Wolfowitz was U.S. ambassador to Indonesia, > > according to Aasil Ahmad, an adviser to Anwar. In > > 1998, after addressing a rally protesting the > > government, Anwar was arrested and subsequently > > jailed on corruption and sodomy charges. During > his > > years in jail, Wolfowitz was an outspoken champion > > of Anwar. Shortly after the 9/11 attacks, Anwar, > > while still imprisoned, wrote an essay condemning > > the attacks and calling on the Muslim worked to > > address "the suffering inflicted on the Muslim > > masses in Iraq by its dictator." > > When Anwar was released from prison in 2004, > > Wolfowitz flew to Germany to meet him. The next > > year, Anwar, a former finance minister for > Malaysia, > > endorsed Wolfowitz's appointment to the Bank, > though > > he noted that he didn't share Wolfowitz's view of > > the Iraq war. ("The best the Americans can do is > to > > withdraw their forces from Iraq," Anwar said.) > These > > days, Anwar is back in Malaysia, advising the PKR > > opposition party, which is led by his wife, and > > preparing to run for president. > > While helping to establish the Foundation for the > > Future at the State Department, Riza had recruited > > Anwar to serve as its initial adviser, according > to > > Ahmad. The two then went about selecting a board > of > > directors and drawing up the mandate for the > group, > > which calls on the foundation to "advance and > > strengthen freedom and democratic trends and > > practices" in Middle Eastern and North African > > nations by supporting reform, media, human rights, > > and women's groups in those countries. The > > foundation, which is not a US government entity, > has > > received a $35 million funding commitment from the > > United States and about $20 million in pledges > from > > other governments. The board includes prominent > > citizens of Muslim nations. Former Supreme Court > > Justice Sandra Day O'Connor is the only American > on > > the board. > > The foundation has not gotten off to a big > start. > > It has yet to provide a single grant. Its first > > president, Bakhtiar Amin, an Iraqi who served as a > > minister in the first interim government set up > > following the invasion of Iraq, left the post > after > > a short time in the job. "He was not up to the > > task," says a source who has worked with the > > foundation. No replacement has yet been selected. > > The group also does not have a chief financial > > officer or a chief operations officer at this > time. > > Last year, it decided to open its main Middle East > > office in Beirut--right before the war in Lebanon. > > It has no permanent office in Washington. Email > > requests for information on its activities have > gone > > unanswered. Its website lists no phone number. But > > Ahmad, the adviser to Anwar, says the foundation > > will soon begin awarding grants, perhaps in the > > beginning of June. Riza, he says, has continued to > > handle the day-to-day operations of the > foundation. > > Riza, who is qualified for the job, has > > not been talking to the media. > > Bloggers have raised conspiratorial questions > > about the foundation. (See here.) The available > > evidence is that the outfit is legitimate, though > it > > has been beset with logistical problems. But until > > it gets around to handing out grants, its work and > > aims cannot be fully assessed. > > In the Paul and Shaha saga, the work (or > non-work) > > of the Foundation for the Future is not the main > > issue. Riza ended up there after a Wolfowitz > friend > > (Anwar) wrote the Bank and asked for Riza to be > > detailed to the foundation--and a Wolfowitz crony > > (Cleveland) said yes. Whether such actions violate > > any Bank rules, this is incestuous. Consider the > > overall scenario: thanks to her boyfriend, Shaha > > Riza, after receiving a hefty pay raise, could > serve > > as an adviser to a barely-functioning foundation > she > > helped create, working with a friend of her > romantic > > partner, and pull in $200,000 to $400,000 annually > > over the next ten years. And then she could retire > > with a $110,000 per year pension. This is quite a > > deal for the average foundation aide in > Washington. > > In all that, is there nothing wrong? (Wolfowitz > > attorney Robert Bennett told Newsweek that it was > > Riza who "worked up the numbers" and pressed > > Wolfowitz to craft such generous terms.) > > After first admitting he committed an error, > > Wolfowitz now fiercely argues he is the victim of > a > > smear campaign waged by Bank employees who opposed > > him from the get-go due to his role in the Iraq > war. > > His detractors at the Bank may be out to bring him > > down as payback for Iraq and for his heavy-handed > > management ways at the Bank. But Wolfowitz, who > > entered the Bank a self-styled scourge of > > corruption, has handed them potent ammunition. > Every > > recipient of World Bank money must now want deals > > with terms so sweet. > > With reporting from Stephanie Condon. > > > > > > > > --------------------------------- > > You snooze, you lose. Get messages ASAP with > > AutoCheck > > in the all-new Yahoo! 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