LAWFUEL – The Law News Wire – Paul Wolfowitz, ending a furor over favoritism that blew up into a global fight over American leadership, announced his resignation as president of the World Bank Thursday evening after the bank’s board accepted his claim that his mistakes at the bank were made in good faith, the International Herald Tribune reports.
The decision came four days after a special investigative committee of the bank concluded that he had violated his contract by breaking ethical and governing rules in arranging the generous pay and promotion package for Shaha Ali Riza, his companion, in 2005.
The resignation, effective June 30, brought a dramatic conclusion to two days of negotiations between Wolfowitz and the bank board after weeks of turmoil.
“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,” said the board’s directors in a statement issued Thursday night. “We also accept that others involved acted ethically and in good faith.”
In the carefully negotiated statement, the bank board praised Wolfowitz for his two years of service, particularly for his work in arranging debt relief and pressing for more assistance to poor countries, especially in Africa. They also cited Wolfowitz’s work in combating corruption, his signature issue.