Panel says Wolfowitz broke rules

WASHINGTON – A special panel has found that World Bank President Paul Wolfowitz broke bank rules in arranging a pay package and promotion for his girlfriend, a person familiar with the report said Monday.

Wolfowitz was presented with the findings by the special bank panel investigating his handling of the 2005 promotion and pay raise of bank employee Shaha Riza.

The report was not made public, but the person familiar with its findings confirmed that violations were cited but did not provide any details. The person spoke on the condition of anonymity because the report has not yet been released.

World Bank officials were bracing for a finding that Wolfowitz may have breached conflict of interest rules in arranging the pay package for Riza.

The controversy over Riza’s pay package has spurred calls for Wolfowitz’ resignation. He is fighting to hold onto his job.

The special panel, which has been meeting over the past several weeks, met again Monday and has sent a report of its findings to Wolfowitz, according to people familiar with the probe. Wolfowitz will be given a chance to weigh in before the report is forwarded to the bank’s board, those people said.

Wolfowitz’ attorney, Robert Bennett, said his client was being given 48 hours to respond, which he called “unreasonable and unfair,” and said they had requested to have until next Monday.

Wolfowitz has maintained that he acted in good faith in arranging Riza’s pay package.