US State Department
Back when we were guest blogging at Rising Hegemon, we wrote this post about what was then Paul Wolfowitz's biggest headache: a feud with the Bank's Board over his budget and strategy. This dispute rumbles on, now drowned out by the ethics dispute.
One of the strangest aspects of it is the serial leaking of confidential Bank documents to Fox News, which has added to the original leak with this new report based on an e-mail speculating that China might cease borrowing from the Bank if its corruption guidelines became too stringent. As with the earlier leak, the story is carefully designed to obscure the motives of the leaker. But how much distance can there be between Fox News and some of the circle who came in with Wolfie?
The law firm of Williams and Connolly (lawyers to Dick Cheney, inter alia) have been assigned to find the leaker. Incidentally, the investigation is being handled on the Bank side by Ana Palacio. Seen above in a previous career. Iraq, Iraq, Iraq.
UPDATE: An apparently minor glitch in the investigation, as Williams and Connolly had represented Wolfie in his contract negotations with the Bank. But as their representation of Cheney indicates, in legal terms Washington is a small place. For example, one thing that links White House scandals across administrations is the legal teams e.g. Scooter Libby was once Marc Rich's lawyer, recalling a row that clouded the last days of Bill Clinton.
FINAL UPDATE 12 JULY: The Fox News leak investigation was "inconclusive" and will not be pursued any further by the Bank.
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