Wolfowitz resigns; Bush to nominate successor soon

By Lesley Wroughton

WASHINGTON (Reuters) - Paul Wolfowitz resigned as president of the World Bank on Thursday, ending a protracted battle over his stewardship prompted by his involvement in a high-paying promotion for his companion.

"The poorest people in the world ... deserve the very best we can deliver," Wolfowitz said in a statement. "Now it is necessary to find a way to move forward."

His resignation takes effect on June 30.

Wolfowitz, a former U.S. deputy defense secretary who was a controversial figure as a leading architect of the 2003 U.S.-led invasion of Iraq, came to the bank in 2005 despite misgivings by European countries, which are among the bank's biggest funders.

He fought hard up to the last hour to clear his name of any charges of misconduct, saying he should not shoulder all of the blame, after a bank panel found he broke several bank rules by involving himself in the promotion of Shaha Riza, a Middle East expert at the bank.

In a face-saving agreement, the board said it accepted Wolfowitz's word that "he acted ethically and in good faith in what he believed were the best interests of the institution."

Wolfowitz, 63, said he was pleased the board accepted his assurances.

U.S. President George W. Bush reluctantly accepted the resignation and would have preferred he stay at the bank, White House spokesman Tony Fratto said. He said Bush would soon name a candidate to succeed Wolfowitz.