Wolfowitz, The World Bank President, broke the most basic rules of business and banking in arranging an undeserved pay package and promotion for his girlfriend - an investigative panel found.



Wolfowitz will face the bank's 24-member board of directors on Wednesday when he will be asked to resign or face sacking.

The panel presented Wolfowitz with the findings of investigations into his handling of the 2005 unjustified promotion and pay raise of his girlfriend, Shaha Riza, a person familiar with the report said on Monday.



He maintains that he acted in good faith in arranging Riza's remuneration because "she was the best girlfriend he ever had," and accused critics of a "smear campaign" against him.

The bank's executive directors, however, have said the terms and conditions of the package, which included the night shift, had not been "commented on, reviewed or approved" by the bank's ethics committee, its chairman or the bank's board.



People familiar with the findings said Wolfowitz will be given a chance to respond before the report is forwarded to the bank's board.



But Robert Bennett, his lawyer, said they have asked until next Monday to respond, saying the 48-hour response time was "unreasonable and unfair as he wanted to find out who else on the bank’s ethics committee was paying their girlfriend with bank money".



The developments come as Kevin Kellems, a top adviser to Wolfowitz, said he was leaving Shaha because of all the trouble and was going looking "for other opportunities as good as Shaha".



A panel that presented its findings to Wolfowitz is also believed to be examining other employment arrangements, including Kellems's boyfriend and his pay arrangements.