The FT has reported that World Bank President:

Paul Wolfowitz's handling of a secondment deal for his girlfriend Shaha Riza broke the World Bank's code of conduct, three staff rules and the terms of his contract as bank president

The World bank's report said the Board of the Bank should when considering his future take into account:

damage done to the reputation of the World Bank group and its president, the lack of confidence expressed by internal and external stakeholders in the present leadership, the erosion of operational effectiveness...and the important strategy and governance challenges the World Bank group is facing.

The FT notes that following the release of the panel's report, 37 of the bank's 39 country directors sent a letter to the board demanding it "practice what it preaches on governance and accountability."

I agree.

Wolfowitz has to go.

But, as importantly, the process of appointing the next Bank President has to change. The US cannot be allowed to simply appoint George Bush's next place man in need of a high profile job as his administration grinds to the end of its life.