(Adds details, byline) By Glenn Somerville WASHINGTON, April 15 (Reuters) - A senior Dutch official on Sunday expressed worry that controversy surrounding World Bank President Paul Wolfowitz has put the bank into a crisis situation that needs to be resolved quickly. "It has become clear to us ... that there is also a lack of trust at the moment in the leadership and in the management, so that is something that has to be resolved," Dutch Development Minister Bert Koenders said in an interview with Reuters, adding that he felt "grave concern" about the situation. "A bank without a motivated staff cannot work on poverty eradication," he said. Koenders spoke shortly after the IMF-World Bank Development Committee issued a communique similarly expressing worry that Wolfowitz's handling of a girlfriend's promotion and pay raises put the bank's credibility and reputation at risk. The Dutch minister took some credit for ensuring the communique dealt with the Wolfowitz situation and described it as "a pretty strong statement" that development ministers want the bank's board to decide quickly how to resolve the matter. The Dutch government is among the top donors for global development projects and was instrumental in promoting an agreement to cancel the debt of poorer countries last year, so its voice carries weight in decisions on how and where to direct aid money. "These larger issues that we just mentioned -- the credibility, reputation and motivation of the staff -- have to be looked into very seriously in coming days from the perspective that the bank has to adhere to the highest standards," Koenders said. He declined to say specifically that Wolfowitz should quit, but added: "I don't want to hide the fact that I have doubts about his functioning." Koenders said that it was essential that all the facts of the case are gathered quickly so that the board can move toward a speedy resolution. "I see this as a substantial crisis for the institution," he said. Koenders said the Dutch government considers the World Bank "one of the most crucial development institutions," with a key role to play on a wide range of substantial issues -- from coping with climate change to promoting poverty reduction and finding a way to help Africa achieve greater prosperity. "If the situation at the bank is as it is right now, it's very difficult to carry out these functions satisfactorily. So, we need urgently for the board to take stock. They have to, in the end, see whether Mr Wolfowitz can continue or not," Koenders said. "I think it's very important that this bank has a clear sense of direction and it's lacking at the moment ... I find it very serious that Mr. Wolfowitz has not been able to create sufficient support within his own staff." Koenders said Dutch uneasiness about Wolfowitz's leadership had nothing to do with his past as a former Bush administration official associated with the Iraq war. "This has nothing to do with anything even related to the United States," he said. "It has to do with standards at the bank, it has to do with credibility and reputation and it has nothing to do with nationality or country." "It's a concern we have about the future of the institution," he added.
