Wolfowitz Adviser Quits World Bank

A top adviser to World Bank President Paul Wolfowitz said Monday that he will leave the poverty-fighting institution, which has been gripped by a controversy involving Wolfowitz' handling of a pay package for his girlfriend.

"Given the current environment surrounding the leadership of the World Bank Group, it is very difficult to be effective in helping to advance the mission of the institution. Therefore, I have decided to leave for other opportunities," Kevin Kellems told The Associated Press.

Wolfowitz had tapped Kellems, who came from the White House and had worked at the Defense Department with Wolfowitz, to become his adviser at the World Bank. Kellems' arrival in June 2005 eventually touched off criticism among staff that Wolfowitz was sealing himself off with a small cadre of trusted advisers.

Kellems was also a former aide to Sen. Dick Lugar, R-Ind., and a spokesman for Vice President Dick Cheney.

A special bank panel looking into Wolfowitz handling of the 2005 promotion and pay raises for bank employee Shaha Riza is also believed to be examining other employment arrangements, including Kellems.

The controversy over Riza in particular has spurred calls for Wolfowitz' resignation. He is fighting to hold onto his job.

Kellems and another close Wolfowitz adviser, Robin Cleveland, each are paid more than $200,000 a year — compensation that also has irked some bank staff. Critics say they lacked extensive development experience.

Kellems' last day is expected to be next week. He did not say what he will do after leaving the bank.

Among the topics the special panel is looking at is whether Wolfowitz violated bank rules, including conflict-of-interest rules, in getting involved in Riza's promotion and compensation package. The panel, at various points in the process, has been leaning toward citing Wolfowitz for ethical breaches.

The bank's 24-member board will decide what action should be taken, if any. A decision is expected soon.

A range of disciplinary options has been discussed. The board could fire Wolfowitz, ask him to resign, signal that it lacks confidence in his leadership, reprimand him or take no action. Some believed that prospects were fading for a compromise under which Wolfowitz would avoid a harsh reprimand but would resign anyway.

Wolfowitz has maintained that he acted in good faith in arranging Riza's pay package and has accused his critics of launching a "smear campaign" against him.

Riza had worked for the World Bank before Wolfowitz took over. She was moved to the State Department to avoid a conflict of interest but stayed on the bank's payroll. Her salary went from close to $133,000 to $180,000. With subsequent raises, it eventually rose to $193,590.

Before he took over the bank in the summer of 2005, Wolfowitz was the No. 2 official at the Pentagon. He helped mapped the U.S.-led war in Iraq.

The United States is the bank's largest shareholder, and President George W. Bush has said Wolfowitz should remain on the job. European countries, however, are leading the charge for Wolfowitz to go.

The European Parliament, many of the bank's staff, former bank officials and others have called on Wolfowitz to resign. Critics say the flap has hurt the bank's reputation and may hobble its ability to raise billions of dollars to help poor countries.