World Bank Divided on Wolfowitz's Future

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Wolfowitz, who has been working behind the scenes at weekend meetings of finance ministers and central bankers to drum up support to stay in his post, presents reports to the bank's Development Committee and participates in its closing news conference.

The United States, Britain and France, whose governments have a major role in bank operations, said it was important to await the outcome of the World Bank's board of directors' investigation into Wolfowitz's actions.

But Britain said Saturday the controversy had damaged the World Bank. Development minister Hilary Benn failed to give wholehearted backing to Wolfowitz, who has been under fire since it emerged that he secured a $193,590 job for his companion, Shaha Reza, at the State Department soon after he joined the World Bank in 2005.

"Having (made public) the facts the World Bank board has yet to complete its work," Benn said in a statement. "While this whole business has damaged the bank and should not have happened, we should respect the board's process. I'm sure these views will be shared by other governors who will also be giving their response."

He said the Wolfowitz controversy was distracting attention from the bank's agenda.

"This weekend ought to be about the bank's contribution to fighting poverty and I'm looking forward to discussing how we can increase aid, tackle climate change and get clean water to 1 billion human beings," said Benn.

Treasury Secretary Henry Paulson called Wolfowitz "a very dedicated public servant" and said he also believed the review process by the board should be allowed to proceed.

However, Paulson said waiting for this process to be completed should not be read "as any lessening of support for Paul" by the United States. The White House said President Bush has confidence in Wolfowitz, a former deputy defense secretary and one of the architects of Bush's Iraq war strategy.

A planned demonstration by bank employees calling for Wolfowitz to resign failed to materialize, but several dozen members of advocacy groups marched outside the bank headquarters calling for his ouster.

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