A street vendor in front of the royal palace, Phnom Penh. Cambodia's government has frozen tens of millions of dollars in World Bank funds after irregularities were uncovered in several key projects supported by the global financial institution(AFP/File/Suy Se)PHNOM PENH (AFP) - Cambodia's government has frozen tens of millions of dollars in World Bank funds after irregularities were uncovered in several key projects supported by the global financial institution.
The alleged fiscal wrongdoing threatens to cancel at least three Bank-funded infrastructure and water sanitation projects worth more than 64 million dollars, according to letters from the finance ministry.
In the letters, dated May 19, Finance Minister Keat Chhon told officials at the ministries of land management, industry and public works that the disbursement of World Bank funds for the projects had been temporarily suspended.
"The World Bank has informed us that there is an irregularity," he wrote in the identical letters.
"The Bank also said the problem is serious, and can lead to the total cancellation (of these agreements). The Royal Government of Cambodia will pay back to the World Bank all of the funds that were provided by the improper contracts," the letters said.
The Bank, which currently funds projects worth about 244 million dollars in Cambodia, said Monday that problems were discovered in a total of seven areas.
"The problems included misuse of funds and misprocurement, meaning that guidelines for paying for goods and services were not adhered to," it said in a statement emailed to AFP.
"There are a number of options available to the government and to the Bank to respond to the findings of the investigations. Some of these options include, for example, seeking repayment of funds that were misused and suspending or closing the projects involved," it said.
Cambodia fell afoul of the World Bank in 2003 when graft was uncovered in a project to demobilise some 30,000 soldiers.
The government was forced to pay back 2.8 million dollars after the World Bank threatened to cut funding to other projects.
The impoverished country is plagued by corruption at almost every level of government, and the misuse of international funds has been the major focus of Cambodia's donors during their annual review of the country's reform efforts.
The alleged fiscal wrongdoing threatens to cancel at least three Bank-funded infrastructure and water sanitation projects worth more than 64 million dollars, according to letters from the finance ministry.
In the letters, dated May 19, Finance Minister Keat Chhon told officials at the ministries of land management, industry and public works that the disbursement of World Bank funds for the projects had been temporarily suspended.
"The World Bank has informed us that there is an irregularity," he wrote in the identical letters.
"The Bank also said the problem is serious, and can lead to the total cancellation (of these agreements). The Royal Government of Cambodia will pay back to the World Bank all of the funds that were provided by the improper contracts," the letters said.
The Bank, which currently funds projects worth about 244 million dollars in Cambodia, said Monday that problems were discovered in a total of seven areas.
"The problems included misuse of funds and misprocurement, meaning that guidelines for paying for goods and services were not adhered to," it said in a statement emailed to AFP.
"There are a number of options available to the government and to the Bank to respond to the findings of the investigations. Some of these options include, for example, seeking repayment of funds that were misused and suspending or closing the projects involved," it said.
Cambodia fell afoul of the World Bank in 2003 when graft was uncovered in a project to demobilise some 30,000 soldiers.
The government was forced to pay back 2.8 million dollars after the World Bank threatened to cut funding to other projects.
The impoverished country is plagued by corruption at almost every level of government, and the misuse of international funds has been the major focus of Cambodia's donors during their annual review of the country's reform efforts.
4 comments:
This will teach the government not be corrupted. This is proof to the world of current government is a bunch of idiots.
This shit is never gonna stop!. Extortion of international funding such as this will continue to happen because those fuckers don't care about people's suffering. They're selfish and corrupted bunch of mother fuckers running the country. World Bank need to stop this funding period. NO MORE untill they get their fucking acts together.
good idea! suspending awhile also better because at the moment corruptioners don't have place to keep their moneys, they have too much! wait few years when the amounts reduced smaller than continue fund... how this idea?
Take away it suppression powers we people of Cambodia can stand up in peaceful democracy way!
Post a Comment