ASSOCIATED PRESS
World Bank President Paul Wolfowitz broke bank rules in arranging a hefty compensation package for his girlfriend, a situation that has caused a “crisis in the leadership” at the institution, according to a report released yesterday by a bank panel.
The panel recommended that the full 24-member board determine whether Mr. Wolfowitz “will be able to provide the leadership” to ensure that the bank achieves its mission of fighting poverty around the world.
The board will ultimately decide Mr. Wolfowitz’s fate.
Board members have discussed a range of disciplinary options. It could fire Mr. Wolfowitz, ask him to resign, signal that it lacks confidence in his leadership or reprimand him. Board members have been leaning toward an expression of no confidence or other tough language that would make it difficult — if not impossible — for Mr. Wolfowitz to stay on.
Mr. Wolfowitz is scheduled to make an appearance before the board today. The proceedings are not public. A decision could come as early as today or tomorrow.
The situation that has put Mr. Wolfowitz’s job in jeopardy involves his handling of the 2005 compensation package for his girlfriend, Shaha Riza, a bank employee.
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