One of two close aides to World Bank President Paul Wolfowitz resigned today, saying turmoil at the bank over its current leadership has made it difficult for him to do his job.
The departure of Kevin Kellems is a blow in a critical week for Mr Wolfowitz, a key architect of the Iraq war who is now under fire for his handling of a lucrative promotion and pay raise for his companion, Shaha Riza, a Middle East expert at the bank.
Mr Kellems, who served as an adviser to Mr Wolfowitz from 2002 when he was US deputy defense secretary and before he became World Bank president in 2005, told Reuters he was leaving to pursue other opportunities.
Mr Kellems worked briefly for US Vice President Dick Cheney as spokesman before he rejoined Wolfowitz at the World Bank in 2005 because of his experience in development issues.
"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," Mr Kellems said. "I have tremendous respect and admiration for the bank staff and management and treasure the many friendships," he said.
Mr Wolfowitz's two years as president of the bank also have been marred by criticism that he depended on a coterie of aides including Mr Kellems and Robin Cleveland he brought from the Pentagon and White House.
That worsened his standing among bank employees by isolating him from career staffers.
Meanwhile, a special bank panel appointed to look into whether Mr Wolfowitz broke rules or abused his powers in the handling of Riza's transfer to the State Department and pay raise had completed its findings and presented the report to Mr Wolfowitz, sources said today.
The sources said the report would be submitted to the bank's board of shareholder governments on Tuesday, with a follow-up meeting later in the week, possibly on Wednesday, where Mr Wolfowitz's future at the bank will be decided.
According to the sources, there is "widespread feeling" on among board directors that it is virtually impossible for Mr Wolfowitz to stay on as president for the rest of his term because of the damage to the bank's credibility and its ability to be effective.