Panel: Wolfowitz Broke World Bank Rules by Arranging Girlfriend Pay Raise, Promotion

World Bank President Paul Wolfowitz broke bank rules in arranging a hefty compensation package for his girlfriend, which has caused a "crisis in the leadership" at the institution, according to a report released Monday by a special bank panel.

The special panel recommended that the full 24-member board determine whether Wolfowitz "will be able to provide the leadership" to ensure that the bank achieve its mission of fighting poverty around the world.

The board ultimately will decide Wolfowitz's fate.

Board members have discussed a range of disciplinary options. It could fire Wolfowitz, ask him to resign, report a lack of confidence in his leadership or reprimand him. Board members have been leaning toward an expression of no confidence or other tough language that would make it difficult, if not impossible, for Wolfowitz to stay on.

Wolfowitz is scheduled to make an appearance before the board Tuesday. The proceedings are not public. A decision could come as early as Tuesday or Wednesday.

The controversy that has thrown Wolfowitz's job in jeopardy involves his handling of the 2005 compensation pay package for his girlfriend, Shaha Riza, a bank employee.

The special bank panel concluded that Wolfowitz's involvement in the details of the package "went beyond the informal advice" given by the bank's ethics committee, and he "engaged in a de facto conflict of interest," the report said.