Second, he specifically attempted to deal with this issue before accepting the position.
Third, after he took the position, the ethics board changed position and demanded that she be separated from the World Bank because of the relationship that pre-existed his employment, so she was to be fired because they hired him.
Forth, subordinates negotiated a raise and transfer deal so that she would not be damaged by being forced to leave.
Fifth, as the Chief Executive, the salary committee demanded that he approve the settlement.
Then his enemies immediately started pumping this charge of misconduct, because they don't want him there.
The whole deal is a framed up crock of crap. At some point there is no way to do something right.
In the mean time, the rest of the Board of the World Bank are happily lining their own pockets.
Nothing you posted changes the simply fact that nothing good comes from banging an employee. It doesn’t matter how the relationship came about.
If nothing else, your post demonstrates they both should have known better to begin with, given their established relationship.
This is ‘bloodsport’ and they left themselves wide open to this unfair attack by their own actions. Given the hysterical rants about anyone associated with the Bush Administration, not to mention the corruption of the World Bank and its politics, this was the end result of poor choices by both of them.
Just my opinion. I have no axe to grind with Wolfowitz or his girlfried. But the results are predictable, under the unique circumstances found at the WB.