The incident that prompted the most comment internally involved Shaha Ali Riza. When Wolfowitz was nominated to the bank presidency, he disclosed his relationship with Riza, who was working in the bank’s Middle East and North Africa (MENA) department. Under the bank’s regulations, spouses or partners are prohibited from supervising one another or from working in the same cone of authority. As president, Wolfowitz oversees a cone of authority encompassing nearly all the bank’s employees, including those in MENA. The board of directors’ ethics committee took the view that Riza should be transferred to a position outside his supervision. Wolfowitz asked that she be allowed to maintain her job at MENA and to work with him as necessary, offering to recuse himself from any decisions concerning her pay and work conditions. “It really gave a bad impression, especially for somebody who was making a big issue of good governance,” a former senior official at the bank said. “The president is supposed to set an example to everybody, and yet here he wanted to have his girlfriend working with him, which is flatly prohibited under bank rules.”
Ultimately, Riza was seconded to the State Department. To compensate her for the disruption of her career at the bank, she was promoted to the managerial level, and she has received two pay raises, bringing her salary to a hundred and ninety-three thousand dollars—more than Secretary of State Condoleezza Rice makes. “The staff are very upset,” Alison Cave, the chairman of the World Bank Staff Group Association, said, explaining that the raises amounted to special treatment that violated established bank guidelines. Kevin Kellems told me that Wolfowitz had no involvement in Riza’s promotion or pay raises. “All arrangements concerning Shaha Ali Riza were made at the direction of the board of directors,” he said.