An investigative World Bank panel has found that Paul Wolfowitz broke bank rules when he organized a pay package and promotion for his girlfriend in 2005. Wolfowitz will face a board of directors tomorrow before any decision is made on how to discipline him. Such actions may include him being reprimanded, fired, or asked to resign.

Though Wolfowitz claims he acted in good faith in arranging his girlfriend’s remuneration, the World Bank’s executive directors say the terms and conditions of her pay package were never “commented on, reviewed or approved” by the bank’s ethics committee, its chairman, or its board. Still, Wolfowitz maintains that he’s the victim of a “smear campaign”.

The report was not made public, but its contents were leaked by a source familiar with its findings. Wolfowitz will be given the chance to respond to the findings before the report is forwarded to the bank’s board. His lawyer said the 48-hour response time is “unfair,” and is asking until next Monday to counter with a good excuse.

Given the fact that an endorsement by George W. Bush is tantamount to the kiss of death, Wolfowitz’s future doesn’t look too bright. White House spokesperson Tony Fratto said, “The president continues to strongly support Paul Wolfowitz and believes he should continue to lead the World Bank.” I should probably note that Bush had not seen the committee’s report before that statement was given. Heaven forbid any facts should get in the way of the president’s hasty yet infallible judgment.

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