Wolfowitz blames World Bank rules

The bank's panel has said it wants to issue a decision soon

World Bank president Paul Wolfowitz has blamed unclear rules for triggering questions about how he handled his girlfriend's hefty pay increases.

His claims come as a special Bank panel is putting together a report on whether Mr Wolfowitz acted properly over Shaha Riza's 2005 promotion and pay rise.

Two key figures from the bank's ethics committee have already told the panel Mr Wolfowitz acted incorrectly.

But while Mr Wolfowitz has apologised, he maintains he acted in good faith.

"Rather than attempt to adjudicate between our conflicting interpretations of the events that occurred here, the board should recognise that this situation is the product of ambiguous bank rules and unclear governance mechanisms," Mr Wolfowitz said in a letter to the panel's head Herman Wijffels.

"While I am prepared to acknowledge that we all acted in good faith at the time and there was perhaps some confusion and miscommunication among us, it is grossly unfair and wrong to suggest that I intended to mislead anyone, and I urge the committee to reject the allegation that I lack credibility."

Controversy

Earlier this week, the bank's former top ethics official Ad Melkert told investigators that the committee was not consulted and did not approve Ms Riza's salary.

Meanwhile, Roberto Danino - the bank's former general counsel - said Mr Wolfowitz had acted "incorrectly".

The controversy over Ms Riza's promotion and pay award has triggered calls for Mr Wolfowitz to quit his post - with critics arguing that the scandal is damaging the credibility of the global lender.

According to a report in the New York Times, the bank's special panel will have its report ready on Friday.

The newspaper added that the report would then be handed to Mr Wolfowitz to allow him to draft his response before the panel's findings are made public.

The bank's directors will decide what action, if any, will be taken.