May 16 (Bloomberg) -- World Bank President Paul Wolfowitz, fighting to save his job, promised directors weighing his fate that he'll address complaints about his leadership of the world's largest development institution.

Wolfowitz, accused of violating conflict-of-interest rules with a pay raise for his companion, sought to move beyond the controversy by focusing on his performance as a manager. He conceded he had relied ``much too long'' on advisers recruited from the Bush administration and promised to put more trust in bank vice presidents and give them more access.

``It is quite apparent that this matter has ceased to have much to do with the case itself -- and everything to do with issues about my management style and my policy choices,'' Wolfowitz, the former U.S. deputy defense secretary, told the bank's 24-member board yesterday.

Wolfowitz's plea came as the White House signaled for the first time that it's open to his eventual departure, while maintaining he shouldn't be fired simply because of the pay raise. The administration is under pressure from allies in Europe, where Germany is leading a drive to oust Wolfowitz.

``We support him,'' White House spokesman Tony Snow told reporters today. ``This has certainly been a bruising episode for the bank, and what you have to do is figure out a way forward to maintain the integrity of the institution.'' In the course of such deliberations, ``You discuss everything.''

Group of Seven

The U.S., seeking to separate a decision on Wolfowitz's future from the pay controversy, failed to forge a consensus during a conference call of Group of Seven deputy finance ministers. Snow said the pay raise isn't a firing offense, echoing remarks by Treasury Secretary Henry Paulson.

German Development Minister Heidemarie Wieczorek-Zeul today renewed her call for Wolfowitz to resign, and said he was not welcome at a forum on Africa to be held in Berlin on May 21-22.

Asked whether Wolfowitz would attend the two-day meeting, taking place as part of Germany's presidency of the Group of Eight nations, Wieczorek-Zeul said, ``I would not advise him to do so.''

South African Finance Minister Trevor Manuel said today ``there should be a parting of the ways.''

``I think we must live with the decision by the executive board,'' Manuel said in an interview in Shanghai, where he is attending the annual general meeting of the African Development Bank. ``It's unfortunate, but c'est la vie.''

World Bank country directors urged a swift decision on Wolfowitz's future, saying the controversy had jeopardized the work of the agency, which employs 13,000 people around the world and distributes $23 billion in annual aid.

`Highest Standards'

They called on Wolfowitz and the bank's board ``to resolve the crisis quickly in a way that demonstrates the bank's commitment to the highest standards of integrity and accountability,'' according to their e-mail, signed by 35 of 38 country heads and two other officials.

A panel of seven directors found that Wolfowitz violated staff rules and his employment contract when he dictated the terms of a 36 percent pay increase for Shaha Riza, with guarantees of further 8 percent annual increases.

The package was negotiated under the terms of Riza's transfer to the State Department to comply with bank rules that forbid one partner from reporting to another. Riza, 52, remained on the bank payroll. The panel said Wolfowitz's actions showed a ``disregard for the interests of the institution'' and suggested directors should consider firing him.

Talks Continue

The World Bank's directors, in a statement, said they would continue their deliberations on Wolfowitz's future today.

``What he did created an enormous problem,'' said Michael Mussa, former chief economist at the International Monetary Fund and now a senior fellow at the Peterson Institute for International Economics. ``It has impaired his ability to lead the bank in the near future.''

Wolfowitz repeated that he acted on the instructions of the bank's ethics committee, and he portrayed the fracas as a misunderstanding.

``Rather than fix the blame for something that wasn't wrong, we should all acknowledge our responsibility as I have acknowledged mine,'' he said in the text of his 15-page testimony to the board.

``We presented overpowering evidence that he acted at all times in the best interest of the bank and in good faith,'' his attorney, Robert Bennett, said as he walked out of the World Bank's glass-clad Washington headquarters.

Administration Lobbies

That line was echoed by administration officials as they sought to rally support for Wolfowitz, 63, who was picked for the job by President George W. Bush in 2005.

``It seems to me that what happened there is he says he made some mistakes, but it doesn't seem to be the kind of thing you want to see the dismissal of a World Bank president over,'' Secretary of State Condoleezza Rice told reporters in Moscow after meeting with Russian President Vladimir Putin.

Wolfowitz angered staffers and directors by recruiting senior advisers from the Bush administration who had little development experience while presiding over an exodus of veteran bank executives. One of his recruits, Kevin Kellems, a former spokesman for Vice President Dick Cheney, resigned May 7.

European officials such as U.K. International Development Secretary Hilary Benn have been among Wolfowitz's most vocal critics, saying he had damaged the reputation of the bank. Bush has been the only world leader to say he should keep his job.

To contact the reporter on this story: William McQuillen in Washington at bmcquillen@bloomberg.net

Last Updated: May 16, 2007 11:58 EDT