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WB board to take action against Wolfowitz this week
POSTED: 8:40 a.m. EDT, May 10,2007

The World Bank's board is leaning toward taking stern disciplinary action against President Paul Wolfowitz, with some bank officials saying there could be majority support in favor of calling for Wolfowitz's removal as early as this week, The Wall Street Journal reported Wednesday.

The 24-member board is expected in the coming days to respond formally to a confidential, 50-page draft report by a special board committee set up to look into Wolfowitz's handling of a promotion package for his girlfriend and bank staffer, Shaha Riza.

The report concludes that Wolfowitz placed himself in a "conflict of interest" when he dictated the terms of Riza's package and says he should have removed himself from the situation, according to a source close to the board who is familiar with the document.

It raises concerns about his failure to consult with the board and bank ethics officials on details of Riza's transfer, noting that the pay increases and promotion given to her were excessive and went beyond what bank rules allow.

The panel has given Wolfowitz until the end of Wednesday to respond to the allegations.

Bank officials said they expected the panel to incorporate his response into its final report to the full board, along with its recommendations on what steps the board should take. The full board might then take up those recommendations Friday.

As Wolfowitz's attorney demanded more time to respond, some European finance ministers added Tuesday to the growing pressure for Wolfowitz to step down. But the White House said it was standing by the former deputy defense secretary.

Despite the Bush administration's apparent steadfastness, Wolfowitz's reign at the bank appeared increasingly tenuous as the full board began to weigh how to respond to the committee report.

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