Wolfowitz awaits World Bank fate

The New York Times said the World Bank boss would be found to have breached the lending body's rules, increasing pressure on him to step down.

There have been fresh calls for his resignation from European ministers but the US has reiterated its support.

One of Mr Wolfowitz's key aides revealed he would quit on Monday.

Kevin Kellems said the dispute surrounding his boss made it difficult for him to remain effective in his role at the Washington-based institution.

Credibility issue

Mr Wolfowitz has been mired in a controversy involving his handling of a pay package for his girlfriend, prompting calls of a conflict of interest.

"We still support President Wolfowitz"
Tony Snow, White House spokesman

A special World Bank panel of directors has been looking into whether Mr Wolfowitz abused his powers over the authorisation of Shaha Riza's promotion and pay increase in 2005.

It is also believed to have examined other controversial employment arrangements amid claims that Mr Wolfowitz gave senior posts to trusted former colleagues, who did not have much relevant experience.

The panel is expected to report its findings imminently to the World Bank board which will decide what action should be taken.

Although the report will not be made public, it is thought the World Bank will comment on its conclusions before the Bank's shareholder governments decide on Mr Wolfowitz's fate.

'Doubts'

Critics have argued that the scandal is damaging the credibility of the global lender, amid a recently launched anti-corruption campaign.

Dutch finance minister Wouter Bos said on Tuesday that he had "serious doubts" whether Mr Wolfowitz could remain in his post.

Belgian counterpart, Didier Reynders, said it was "impossible to go around the world speaking about good governance without good governance at the World Bank".

But the Bush administration, in which Mr Wolfowitz was a key member until he joined the Bank in 2005, reiterated its backing for him.

"We still support President Wolfowitz," said spokesman Tony Snow.

"I think it is proper to let the process work itself out rather than trying to insinuate ourselves into it," he added.

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