World Bank chief Wolfowitz 'on brink of quitting'
World Bank president Paul Wolfowitz is reportedly negotiating a deal to resign.
His departure would include an acknowledgement from the bank that he does not bear sole responsibility for the controversy surrounding a generous pay package for his girlfriend, an official familiar with the talks said.
The negotiations were taking place as the bank’s board resumed deliberations over Wolfowitz’s fate.
The official said Wolfowitz wanted the bank to accept some responsibility for conflicts of interest cited against him by a special bank panel.
It was not clear whether the bank’s 24-member board would accept Wolfowitz’s terms.
Pressure on Wolfowitz to resign has grown since a special bank panel report, released on Monday, found that he broke conflict-of-interest rules in his handling of the 2005 pay package of bank employee Shaha Riza.
Wolfowitz has maintained that he acted in good faith.
The White House, which picked Wolfowitz for the post, indicated for the first time on Tuesday that it was willing to consider new leadership for the bank.
By tradition, the World Bank has been run by an American, with the approval of the bank’s board. The bank’s sister agency, the International Monetary Fund, is headed by a European. Critics say this 63-year-old arrangement is outmoded.
