Paul Wolfowitz, 15 Apr 2007

A report distributed Monday to World Bank Board members says the institution's president, Paul Wolfowitz, broke bank rules when he arranged a promotion and pay increase for his girlfriend.

The report was prepared by a special panel formed to investigate the bank president's actions. The panel recommended that the full 24-member board determine whether Wolfowitz will be able to effectively lead the bank

News reports say Wolfowitz will address the board Tuesday to offer his explanation of events.

White House officials, speaking anonymously, have said Wolfowitz's mistakes do not warrant his removal from the bank.

Wolfowitz has refused to leave his post, saying he acted in good faith. He has called the allegations against him a smear campaign.

Wolfowitz was a U.S. deputy defense secretary before joining the Washington-based bank, which lends money to developing countries to fight poverty.

Some information for this report provided by AP, AFP and Reuters.