Defense Eyes Wolfowitz Friend's Contract

World Bank President Paul Wolfowitz, attends a news conference at the conclusion of the 2007 Spring meetings at International Monetary Fund headquarters in Washington, Sunday, April 15, 2007. Wolfowitz said he will continue to lead bank efforts to reduce global poverty, resisting calls to step down over his involvement in securing a pay increase for a close female friend. "The bank has important work to do and I will continue to do it," he said. (AP Photo/Manuel Balce Ceneta) (Manuel Balce Ceneta - AP)

The World Bank's board is looking into the matter and will decide what, if any, action should be taken. The board has a regularly scheduled meeting Thursday, where the Wolfowitz issue could be discussed in a closed-door session.

"There is a process under way. We have confidence that that process will reach the appropriate decision," said John Lipsky, first deputy managing director at the International Monetary Fund.

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Associated Press writer Pauline Jelinek contributed to this report.

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