The World Bank yielded to pressure from the Bush administration and granted Paul Wolfowitz, president of the bank, more time to respond to findings that he broke the bank's ethics rules.
The board said on Wednesday night that Mr Wolfowitz would have until "close of business" tonight to make "final comments" on the report of a special panel that investigated his role in awarding a generous pay and promotion package to his girlfriend, Shaha Riza.
The Bush administration is expected to use the extra three days to test the level of support for the beleaguered bank president ahead of a decisive board meeting on Tuesday.
The US Treasury has emphasised the need for a "fair hearing" for Mr Wolfowitz amid private deliberations among senior administration officials about how far to go in defending the White House appointee. White House spokesman Tony Snow said yesterday: "We still support him fully."
US secretary of state Condoleezza Rice has been in contact in recent days with World Bank member states to rally support.
Trevor Manuel, South African finance minister, said yesterday the bank board should "let the process run", adding: "You can't have a kangaroo court."
The 24-member board of the bank is anxious not to force a divisive vote on Mr Wolfowitz's future, which could pit a European-led bloc against the US and its supporters.
It issued a three-page chronology of the work of a special panel in a bid to defend the process under way and show transparency following attacks by Mr Wolfowitz's lawyer, Robert Bennett.
Mr Bennett had demanded an extension until today to respond after receiving a highly damaging draft report from a special panel on Sunday night.
Leading US senators urged President George W Bush in a letter not to force a vote that could damage the bank.
"We do not believe the bank's mission or US interests would be advanced by such a vote," said the letter, which was signed by Senate majority leader Harry Reid, as well as Charles Schumer, Richard Durbin and Patty Murray. The letter urged Mr Bush to "take decisive action quickly to bring this crisis to a close".
The senators defended the board's handling of the matter and accused Mr Wolfowitz of adding to the crisis.
"The current situation is complex," they said. "It is likely that, at least by adding to confusion about the facts, Mr Wolfowitz played a role in aggravating the crisis."
- (Financial Times service)
