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World Bank hears Wolfowitz case World Bank hears Wolfowitz case
(about 3 hours later)
The president of the World Bank, Paul Wolfowitz, is meeting the bank's 24-member executive board to respond to allegations against him. World Bank President Paul Wolfowitz has met the bank's 24-member board to respond to allegations of favouritism.
The meeting comes after the panel said he broke bank rules by helping secure a pay rise for his girlfriend. Mr Wolfowitz is under pressure to go after a panel said he had broken the bank's code of conduct by helping secure a pay rise for his girlfriend.
The board has the power to dismiss him or could choose to report a lack of confidence in his leadership. The board has the power to dismiss the embattled president.
Earlier in the day, the White House said it still supported Mr Wolfowitz, but added all options were still open. A lawyer for Mr Wolfowitz said he had presented a strong case and got a fair hearing. The board is due to meet again on Wednesday to consider its decision.
"We've made clear that we support Paul Wolfowitz", said spokesman Tony Snow, but added that the bank's "best interests" also had to be served. Earlier in the day, the White House said it still supported Mr Wolfowitz, but added that all options were still open.
The United States failed to win the support of key allies in the Group of Seven, according to a source quoted by Reuters. "We've made clear that we support Paul Wolfowitz", said spokesman Tony Snow, adding that the bank's "best interests" also had to be served.
The US failed to win the support of key allies in the group of seven leading industrialised nations (G7), according to a source quoted by the Reuter news agency.
"Japan was aligned with the United States, but others, including Canada, were against Wolfowitz continuing," the European source said following a conference call of G7 officials."Japan was aligned with the United States, but others, including Canada, were against Wolfowitz continuing," the European source said following a conference call of G7 officials.
The G7 also includes Italy, France, Germany and Britain.The G7 also includes Italy, France, Germany and Britain.
'Not a firing offence''Not a firing offence'
On Monday, a panel of World Bank executives said Mr Wolfowitz provoked a "conflict of interest" at the bank, by breaking its code of conduct and violating the terms of his contract. class="" href="/1/hi/business/6655019.stm">Q&A: Wolfowitz and the World Bank On Monday, a panel of World Bank executives said Mr Wolfowitz provoked a "conflict of interest" at the bank by breaking its code of conduct and violating the terms of his contract.
Q&A: Wolfowitz and the World Bank
Mr Wolfowitz has faced calls for him to step down since details emerged about his role in securing a pay rise for his partner, Shaha Riza, who used to work at the bank.Mr Wolfowitz has faced calls for him to step down since details emerged about his role in securing a pay rise for his partner, Shaha Riza, who used to work at the bank.
Mr Snow told journalists at the White House that Mr Wolfowitz agreed "a lot of mistakes were made" in the process, but they were not a "firing offence".Mr Snow told journalists at the White House that Mr Wolfowitz agreed "a lot of mistakes were made" in the process, but they were not a "firing offence".
When Mr Wolfowitz was appointed president of the World Bank in 2005, Ms Riza was transferred to work for the US state department, to avoid any conflict of interest.When Mr Wolfowitz was appointed president of the World Bank in 2005, Ms Riza was transferred to work for the US state department, to avoid any conflict of interest.
But her salary rose quickly to about $193,000 (£98,000) - more than the $186,000 that Secretary of State Condoleezza Rice receives before tax.But her salary rose quickly to about $193,000 (£98,000) - more than the $186,000 that Secretary of State Condoleezza Rice receives before tax.
The World Bank has since been investigating the extent of Mr Wolfowitz's role in securing the pay increase.The World Bank has since been investigating the extent of Mr Wolfowitz's role in securing the pay increase.