Wolfowitz to resign as World Bank chief

Embattled World Bank President Paul Wolfowitz agreed to resign Thursday after weeks of controversy over his handling of a pay package for his girlfriend, a bank employee, the institution's board of directors announced Thursday.
In a statement announcing the decision, the bank said "a number of mistakes were made by a number of individuals" in the matter.
Wolfowitz said the bank board accepted his contention that he acted "ethically and in good faith."
In a statement from Wolfowitz, he said it is "necessary to find a way to move forward. To do that, I have concluded that it is in the best interests of those whom this institution serves for that mission to be carried forward under new leadership."
Wolfowitz was appointed to the World Bank post in 2005 after serving as deputy U.S. defense secretary, where he was one of the leading architects of the 2003 invasion of Iraq. His resignation will take effect June 30.
A World Bank committee concluded Wolfowitz violated staff rules when he arranged a raise and transfer for his girlfriend, Shaha Ali Riza, a longtime bank employee. After Wolfowitz took over at the bank in 2005, Riza was transferred to a U.S. State Department job at a tax-free government salary of almost $194,000 a year.
Wolfowitz, the White House and bank officials held talks Wednesday afternoon to work out details of his resignation. Wolfowitz's lawyer, Bob Bennett, had left the door open for departure if Wolfowitz wasn't singled out for blame. "He will not resign under this cloud and that remains his position," Bennett said Wednesday.
Earlier Thursday, President Bush sounded as if he was resigned to the fact that Wolfowitz's tenure was coming to an end.
"I regret that it has come to this," he said. "I admire Paul Wolfowitz, I admire his heart, and I particularly admired his focus on helping the poor."