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Wolfowitz to resign from World Bank on June 30th
Josh Catone
Published: Thursday May 17, 2007
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The Executive Directors of the World Bank today released a statement announcing that embattled World Bank president Paul Wolfowitz would resign at the end of the fiscal year, June 30th. According to the statement, the decision to resign was made by Wolfowitz.

The World Bank's Executive Directors said they accepted Wolfowitz's claim that he acted ethically in awarding a pay raise and promotion to his girlfriend Shaha Ali Riza in 2005, despite findings by a review panel earlier this week that he had broken the organization's ethics rules.

The World Bank said that the scandal highlighted the "need to review the governance framework of the World Bank Group, including the role as well as procedural and other aspects of the Ethics Committee."

Yesterday, Wolfowitz's lawyer told Reuters that he would not resign and would instead push for a full vote. According to CNN, the World Bank's executive panel specifically tried to avoid a full vote that would have isolated the United States in its support of Wolfowitz.

"We are grateful to Mr. Wolfowitz for his service at the Bank," wrote the organization, listing Wolfowitz's achievements as president. "It is regrettable that these achievements have been overshadowed by recent events."

The World Bank will begin the nomination process for a new president immediately.

The full statement from the World Bank is available here.