World Bank board steps up pressure on Wolfowitz to resign

THE World Bank executive board has concluded that president Paul Wolfowitz broke ethics rules in arranging a pay rise for his girlfriend, and will try to end his tenure next week, The Washington Post reported at the weekend.

Citing unnamed senior bank officials, the newspaper said board members do not want to vote to fire Wolfowitz, since that might provoke a rupture with the US. But they are inclined to adopt a resolution saying they have lost confidence in him, hoping that will persuade him to resign, the report said.

Wolfowitz readied his response to conflict-of-interest charges as opponents gathered support to oust him from the helm of the biggest aid agency.

The panel of seven directors investigating Wolfowitz will send its report to the full board, along with the bank chief’s rebuttal. Wolfowitz has been invited to appear before the board tomorrow to make his case in person.

Wolfowitz’s attorney Robert Bennett said he would submit a rebuttal to findings by a panel of directors that the bank chief had violated ethics rules when he arranged a pay-and-promotion package for his companion.

Meanwhile, two bank officials said a majority of the 24 directors were prepared to vote against him.

European nations including France, Germany and Holland have called for a quick resolution of the month-long impasse. They have said the controversy has undermined the credibility of the bank, which under Wolfowitz campaigned against corruption in developing countries that receive $23 billion in annual aid.

An increasing number of bank directors are convinced Wolfowitz violated bank rules and the breach was serious enough to justify his removal, according to the two officials.

The US, the only nation to publicly say Wolfowitz should stay in office, repeated its support for the former deputy defence secretary, who was appointed by President Bush in 2005.