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Wolfowitz crunch talks to resume Wolfowitz crunch talks to resume
(20 minutes later)
The World Bank's board is set to resume discussions over the fate of its embattled president, Paul Wolfowitz.The World Bank's board is set to resume discussions over the fate of its embattled president, Paul Wolfowitz.
He has been mired in a row over alleged favouritism involving his partner, prompting calls for him to quit.He has been mired in a row over alleged favouritism involving his partner, prompting calls for him to quit.
Unconfirmed reports have suggested that Mr Wolfowitz is trying to negotiate terms for his departure.Unconfirmed reports have suggested that Mr Wolfowitz is trying to negotiate terms for his departure.
But his lawyer has stated that the 24-member board of the global lending institution will have to vote to sack him if it wants him to leave. President George W. Bush said he "regretted" the situation had arisen, while saying he believed all those involved had "acted in good faith".
Mr Wolfowitz is a key ally of the White House, having been deputy defense secretary in the Bush administration before taking up his current role in 2005.
"I know that Paul Wolfowitz has an interest in what is best for the bank," President Bush said during a press conference at the White House.
"I regret that it has come to this right now."
Mr Wolfowitz's lawyer has stated that the 24-member board of the global lending institution will have to vote to sack him if it wants him to leave.
'Credibility''Credibility'
It has been widely reported that the former US deputy defense secretary wants the board to agree to accept some of the blame for the scandal relating to his girlfriend's pay rise.It has been widely reported that the former US deputy defense secretary wants the board to agree to accept some of the blame for the scandal relating to his girlfriend's pay rise.
This scandal has been dragging on for too long, which is undermining the credibility of the institution Andrej Bajuk, Slovenian finance ministerThis scandal has been dragging on for too long, which is undermining the credibility of the institution Andrej Bajuk, Slovenian finance minister
The World Bank's board adjourned discussions on the issue until Thursday but it could not confirm when the crunch meeting would resume or when its outcome was likely to be delivered.The World Bank's board adjourned discussions on the issue until Thursday but it could not confirm when the crunch meeting would resume or when its outcome was likely to be delivered.
However, there were fresh calls for Mr Wolfowitz to step down on Thursday.However, there were fresh calls for Mr Wolfowitz to step down on Thursday.
"The World Bank is too important to be preoccupied with itself," said Slovenian finance minister Andrej Bajuk, adding that Mr Wolfowitz "should withdraw"."The World Bank is too important to be preoccupied with itself," said Slovenian finance minister Andrej Bajuk, adding that Mr Wolfowitz "should withdraw".
"Now this scandal has been dragging on for too long, which is undermining the credibility of the institution.""Now this scandal has been dragging on for too long, which is undermining the credibility of the institution."
The White House said on Wednesday that bank directors had to "figure out a way forward to maintain the integrity of the institution" after the current scandal.
The comments were interpreted as a signal that the Bush administration's support for Mr Wolfowitz was waning - although a spokesman insisted that it had "confidence in him".
'Equitable resolution''Equitable resolution'
Mr Wolfowitz is under pressure to resign after a World Bank ethnics panel said he had broken its code of conduct by helping to secure a pay rise for his partner, Shaha Riza.Mr Wolfowitz is under pressure to resign after a World Bank ethnics panel said he had broken its code of conduct by helping to secure a pay rise for his partner, Shaha Riza.
On Tuesday, he told the board that their decision would affect how the US and the world viewed the World Bank.On Tuesday, he told the board that their decision would affect how the US and the world viewed the World Bank.
"You still have the opportunity to avoid long-term damage by resolving this matter in a fair and equitable way that recognises that we all tried to do the right thing," he said."You still have the opportunity to avoid long-term damage by resolving this matter in a fair and equitable way that recognises that we all tried to do the right thing," he said.
Q&A: Wolfowitz rowQ&A: Wolfowitz row
A day earlier, 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.A day earlier, 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.
Mr Wolfowitz has faced calls for his resignation since details emerged about his role in securing a pay rise for Ms Riza, who used to work at the bank.Mr Wolfowitz has faced calls for his resignation since details emerged about his role in securing a pay rise for Ms Riza, who used to work at the bank.
White House spokesman Tony Snow said Mr Wolfowitz had acknowledged "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.