Wolfowitz's Story Disputed By Ex-Official

Wolfowitz's appearance did not impress the investigators, according to two senior bank officials briefed by committee members. His testimony did not appear to change the disposition of the bank's governing board to pursue an end to his tenure, ideally via his resignation, these sources said, speaking on condition of anonymity because they were not authorized to speak for the board.

Some members of the committee were irritated by the presence of Bennett, the high-profile defense attorney Wolfowitz has retained. The bank's board is not accustomed to having outsiders present during its proceedings and views itself as a consensus-driven arbiter, as opposed to a judicial panel.

But in one key regard, Bennett's involvement has had a significant effect on the proceedings: It has forced the investigating committee to slow down and absorb references to documents cited by Wolfowitz before it releases its report in coming days, bank officials said.

Wolfowitz has acknowledged that he mishandled the pay raise, asking for forgiveness from bank staff who have been campaigning for his resignation. But his hiring of Bennett, a combative attorney best known for defending President Bill Clinton in the Paula Jones sexual harassment case, has signaled a more aggressive approach.

"Wolfowitz and Bennett have successfully changed the focus," said Beatrice Edwards, international program director of the Government Accountability Project, a watchdog group that has advocated new leadership at the bank. "Bennett's strategy is to drag this out for as long as possible."

Sources previously told The Washington Post that the investigating committee had already concluded that Wolfowitz was guilty of three breaches of ethics rules, as laid out in a draft report completed last week. Those sources said yesterday that the report would need to be revised to reflect the testimony of Wolfowitz and Riza, lest the committee lend credence to Bennett's protests that it has not given his client fair hearing.

"We have to do this thing in a way that cannot put this in doubt for the future," said a staff member for one person on the committee. The source spoke on condition of anonymity because he was not authorized to speak to the public.

The board did dispense with another controversy connected to Wolfowitz's leadership, approving a new health strategy promoting family-planning services for women in poor countries. A Wolfowitz appointee, managing director Juan Jose Daboub, and the U.S. representative had both tried to amend the strategy to avoid endorsing access for safe and legal abortions.

In the end, the strategy was adopted without change, though the American representative added comments to the board's official minutes asserting that nothing in the document should be construed as support for promoting abortion.