Judgment day for Wolfowitz

The World Bank's executive board will meet on Tuesday to decide the future of the organization's president, Paul Wolfowitz, after an internal panel concluded he had violated staff rules by arranging a promotion and pay rise for his girlfriend and and suggested the bank was suffering "a crisis in leadership."

The special ad hoc committee looked into allegations Wolfowitz broke conflict of interest rules in dealing with his girlfriend, Shaha Riza, who left the World Bank when Wolfowitz took over the top spot in 2005.

While findings show Wolfowitz broke bank rules in arranging a handsome pay package for his girlfriend, the White House came to the defense of the embattled World Bank president Tuesday, saying his behavior did not amount to "a firing offense," an Associated Press report said.

According to the committee report, released Monday evening on its Web site, the executive board of the organization must consider whether Wolfowitz "will be able to provide the leadership needed" to effectively carry out the mission of the World Bank.

Tony Snow, a White House spokesman, said he did not think Wolfowitz's actions warranted his resignation, according to an AP report. Snow also said Wolfowitz continued to enjoy the support of U.S. President George W. Bush.

After Wolfowitz took over at the World Bank, Riza was transferred to a State Department foundation and received a government salary of almost $194,000 a year, tax free.

Wolfowitz has rebutted statements from former World Bank officials who claimed he ignored Bank ethics committee directions on the Riza case and acted improperly. He blames what he calls "ambiguous bank rules and unclear governance mechanisms."

The panel concluded that Wolfowitz's role in the matter "went beyond the informal advice" given by the bank's ethics committee, and that he "engaged in a de facto conflict of interest," according to the report.

"I am very disappointed that the ad hoc committee that insisted on confidentiality put its report on its Web site before the full board had a chance to consider the report," Wolfowitz's attorney, Robert Bennett, told CNN.

The meeting of the 24-member World Bank board on Tuesday will have the final say on Wolfowitz's future. A decision could come this week and could include reprimanding him, asking him to step down, or firing him.