The survival of Paul Wolfowitz as President of the World Bank was left hanging in the balance last night after he faced an unprecedented and sharp rebuke from the world’s development ministers, who were meeting in Washington.

But despite the censure from ministers on the bank’s policy-setting Development Committee — and a continuing inquiry into his conduct by the bank’s executive board — a defiant Mr Wolfowitz vowed to continue in his post.

The ministers’ effective reprimand came after four days of international haggling over his fate, after his admission that he had orchestrated a large pay rise and guaranteed promotion for his girlfriend, Shaha Riza, a World Bank official, after he became the chief of the institution in 2005.

In a terse statement the ministers said that they “expect the bank to adhere to a high standard of corporate governance”. They continued: “We have to ensure that the Bank can carry out its mandate and maintain its credibility and reputation as well as the motivation of its staff. The current situation is of great concern to all of us. We endorse the board’s actions in looking into this matter and we asked it to complete its work.”

Sources said that the statement, agreed at the urging of European ministers, had the tacit assent of the US. At a lunch among the ministers, other sources said that Mr Wolfowitz had “cut a lonely figure”. However, Mr Wolfowitz said: “This is important work and I intend to continue it. I believe in the mission of this organisation and I believe I can carry it out.”

He noted that he had “had many expressions of support” as well as criticism. He refused to speculate on the board’s findings. “The board is looking at it,” he told reporters. “I am not going to pre-empt it by getting into a discussion here.”

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