WASHINGTON (Reuters) — One of two close aides to World Bank president Paul Wolfowitz resigned yesterday, saying turmoil at the bank over its current leadership has made it difficult for him to do his job.The departure of Kevin Kellems is a blow in a critical week for Wolfowitz, a key architect of the Iraq war who is now under fire for his handling of a lucrative promotion and pay raise for his companion, Shaha Riza, a Middle East expert at the bank. Kellems, who served as an adviser to Wolfowitz from 2002 when he was US deputy defence secretary and before he became World Bank president in 2005, told Reuters he was leaving to pursue other opportunities.

Kellems worked briefly for vice-president Dick Cheney as spokesman before he rejoined Wolfowitz at the World Bank in 2005 because of his experience in development issues.

"Given the current environment surrounding the leadership of the World Bank Group, it is very difficult to be effective in helping to advance the mission of the institution," Kellems said.

"I have tremendous respect and admiration for the bank staff and management and treasure the many friendships," he said.

Wolfowitz's two years as president of the bank also have been marred by criticism that he depended on a coterie of aides including Kellems and Robin Cleveland he brought from the Pentagon and White House. That worsened his standing among bank employees by isolating him from career staffers.

Meanwhile, a special bank panel appointed to look into whether Wolfowitz broke rules or abused his powers in the handling of Riza's transfer to the State Department and pay raise had completed its findings and presented the report to Wolfowitz, sources said yesterday.

The sources said the report would be submitted to the bank's board of shareholder governments today, with a follow-up meeting later in the week, possibly tomorrow.