Wolfowitz lays low as board meets

By Lesley Wroughton

WASHINGTON (Reuters) - World Bank President Paul Wolfowitz cancelled a speech to a health conference on Thursday as the bank's board met late into the night to discuss a controversy over the promotion of his girlfriend, which has paralyzed the poverty-fighting institution .

A board statement is expected at the end of the meeting.

Board sources said there appeared to be divisions among the board members, with the United States leading a bloc of countries, including some from Asia, who supported Wolfowitz despite questions about his leadership and calls for him to quit.

Some European countries have expressed concern that the scandal has damaged the bank's credibility.

The bank's staff association, which has led the calls for Wolfowitz to step down, called on the board, which usually operates in secret, to make its decision public.

"Staff look forward to hearing from them on how this matter will be resolved expeditiously," the staff association said.

It also encouraged World Bank staff to wear blue ribbons "as a symbol of our continuing struggle for improved governance at the World Bank."

Meanwhile, Wolfowitz kept a low profile, staying away from the health conference, sponsored by the bank's private-sector lending arm, and cancelling a weekly meeting on Friday with his most senior management.