World Bank President to Resign

World Bank President Paul Wolfowitz departs his home in Chevy Chase, Md., Wednesday, May 16, 2007. Wolfowitz, who is accused by a special bank panel of breaking conflict-of-interest rules, maintains that he acted in good faith in arranging a generous pay package for his girlfriend. He waged a vigorous fight to keep running the institution, defending himself before the board in an appearance late Tuesday. (AP Photo/J. Scott Applewhite)

Washington (AP) -- Embattled World Bank President Paul Wolfowitz will resign at the end of June, his leadership undermined by the generous compensation he arranged for his girlfriend.

His departure was announced late Thursday by the World Bank board.

Wolfowitz's departure ends a two-year run at the development bank that was marked by controversy from the start, given his previous role as a major architect of the Iraq war when he served as the No. 2 official at the Pentagon.

"He assured us that he acted ethically and in good faith in what he believed were the best interests of the institution and we accept that," the board said in its announcement of his resignation.

His departure was all but forced, however, by the finding of a special bank panel that he violated conflict-of-interest rules in his handling of the 2005 pay package of bank employee Shaha Riza.

The board said it was clear that a number of people had erred in reviewing the pay package.

This is a breaking news update. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) - Embattled World Bank President Paul Wolfowitz will resign at the end of June, his leadership undermined by the generous compensation he arranged for his girlfriend. His departure was announced by the World Bank board.

Copyright 2007 The Associated Press. All rights reserved.



 
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