World Bank panel finds Wolfowitz broke rules

May 7, 2007
World Bank panel finds Wolfowitz broke rules

WASHINGTON (Reuters) - A World Bank panel has found that bank President Paul Wolfowitz's handling of a promotion and pay increase for his companion represented a conflict of interest and broke rules, but made no recommendation on how he should be reprimanded, board sources said on Monday.

The former U.S. deputy defense secretary, a key architect of the Iraq war, has been given several days to respond to the findings of the panel involving a lucrative deal for his companion, Shaha Riza, a World Bank Middle East expert.

One source close to the World Bank board said the panel found Wolfowitz's actions amounted to conflict of interest, while another source said the panel found he broke internal rules by personally directing Riza's transfer to the State Department with a promotion and salary increase.