America

Wolfowitz resigning from World Bank

(AP)
Updated: 2007-05-18 06:18

World Bank President Paul Wolfowitz (R) leaves his house in the Washington suburb of Chevy Chase, Maryland, May 17, 2007.[Reuters]

WASHINGTON - Embattled World Bank President Paul Wolfowitz will resign at the end of June, he and the bank said late Thursday, ending his long fight to survive pressure for his ouster over the generous compensation he arranged for his girlfriend.

His departure ends a two-year run at the development bank that was marked by controversy from the start, given his previous role as a major architect of the Iraq war when he served as the No. 2 official at the Pentagon.

"He assured us that he acted ethically and in good faith in what he believed were the best interests of the institution and we accept that," the board said in its announcement of his resignation.

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His departure was all but forced, however, by the finding of a special bank panel that he violated conflict-of-interest rules in his handling of the 2005 pay package of bank employee Shaha Riza.

The board said it was clear that a number of people had erred in reviewing the pay package.

Wolfowitz, who had fought the pressure to resign for weeks, said in his own statement Thursday that he was pleased that the board "accepted my assurance that I acted ethically and in good faith in what I believed were the best interests of the institution, including protecting the rights of a valued staff member."

Now, he said, it was in the best interest of the board that its mission "be carried forward under new leadership."