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Wolfowitz Denies He Went Beyond Ethics Committee Guidance

World Bank President Paul Wolfowitz denied he went beyond the bank's ethics committee guidance in arranging a transfer and pay rise for his companion, rebutting comments by some former bank officials that he broke staff rules.

In a 12-page letter sent to a bank committee examining his role in arranging the high-paying transfer for bank employee Shaha Riza, a Middle East expert, Wolfowitz said he had acted in good faith in the matter and was "deeply troubled and dismayed" by remarks made by former officials Ad Melkert and Roberto Danino in recent days.

"The real import of this letter is there had been some belief that perhaps what we would see is the beginning of an exit strategy for both sides as far as Mr. Wolfowitz's future (is concerned)," said CNBC's Hampton Pearson. "Now it looks like this whole process is probably going to drag on into ... next week."

In his letter, Wolfowitz wrote, "While I am prepared to acknowledge that we all acted in good faith at the time and there was perhaps some confusion and miscommunication among us, it is grossly unfair and wrong to suggest that I intended to mislead anyone, and I urge the Committee to reject the allegation that I lack credibility."