By Phann Ana and Erik Wasson
THE CAMBODIA DAILY
The government on Wednesday did not react to or comment publicly on Tuesday's announcement by the World Bank that it has suspended funding on three infrastructure projects worth $68.4 million and is seeking repayment of $7.6 million lost through corruption in 30 procurement contracts.
On May 22, the Finance Ministry froze bank accounts holding funds for three World Bank-funded projects following reports by the Bank that it had found corruption in a total of seven government projects.
But the government changed its stance on Saturday, announcing that the World Bank had failed to provide evidence and that its unsubstantiated accusations were damaging Cambodia's reputation.
The government also said it was unfreezing the bank accounts of the three projects: a land-titling and land mapping project in the Ministry of Land Management, a roads project between the Ministry of Public Works and the Ministry of Rural Development, and a clean water project in the Industry Ministry.
A World Bank spokesman said Wednesday that he was not aware of an official government response to the Bank's report and its request for repayment of Bank funds lost to incorrectly bid contracts.
The Bank is demanding $5.1 million due to six misprocured contracts in the Rural Development and Public Works ministries; $1.8 million from the water and sanitation project due to seven problematic contracts at the Industry Ministry; and $700,000 from the Ministry of Land Management's project due to 17 questionable contracts.
Though corruption has been detected, the Environment Ministry's $2.1 million Biodiversity and Protected Areas Management project will remain open because very little procurement remains to be done, the Bank said.
Still under investigation, but already exhibiting fraud and corruption, the Bank said, are three projects completed in 2005: two in the Agriculture Ministry and one in the Ministry of Planning.
The Sam Rainsy Party issued a statement Wednesday calling for "severe sanctions against corrupt officials involved in fraud related to World Bank loans."
The statement called for concerned ministers to answer questions in the National Assembly regarding the scandal, and for the Bank, the Assembly's anti-corruption commission, which is headed by SRP lawmaker Yim Sovann, and the government to devise measures to stem corruption.
"The government must conduct an urgent and serious investigation into the multimillion-dollar irregularities and push for the legal punishment of all those involved in corruption and bribery, regardless of positions," the statement reads.
National Assembly Banking and Finance Commission Chairman Cheam Yeap said he had invited Finance Minster Keat Chhon to the Assembly to answer questions today. But he said he would not ask him about the World Bank report at the meeting. "The talk will focus on the macroeconomic situation, not about this issue," he said.
Council of Ministers Secretary of State Prak Sokhon said the Ministry of Finance alone would know what the government's response would be.
The manager of the suspended project at the Ministry of Public Works, Touch Narin, said he did not know the contents of the World Banks findings yet.
"We do not know how to defend ourselves because we do not have a document about a specific point," he said. "We do not know on what point they accuse us."
On May 22, the Finance Ministry froze bank accounts holding funds for three World Bank-funded projects following reports by the Bank that it had found corruption in a total of seven government projects.
But the government changed its stance on Saturday, announcing that the World Bank had failed to provide evidence and that its unsubstantiated accusations were damaging Cambodia's reputation.
The government also said it was unfreezing the bank accounts of the three projects: a land-titling and land mapping project in the Ministry of Land Management, a roads project between the Ministry of Public Works and the Ministry of Rural Development, and a clean water project in the Industry Ministry.
A World Bank spokesman said Wednesday that he was not aware of an official government response to the Bank's report and its request for repayment of Bank funds lost to incorrectly bid contracts.
The Bank is demanding $5.1 million due to six misprocured contracts in the Rural Development and Public Works ministries; $1.8 million from the water and sanitation project due to seven problematic contracts at the Industry Ministry; and $700,000 from the Ministry of Land Management's project due to 17 questionable contracts.
Though corruption has been detected, the Environment Ministry's $2.1 million Biodiversity and Protected Areas Management project will remain open because very little procurement remains to be done, the Bank said.
Still under investigation, but already exhibiting fraud and corruption, the Bank said, are three projects completed in 2005: two in the Agriculture Ministry and one in the Ministry of Planning.
The Sam Rainsy Party issued a statement Wednesday calling for "severe sanctions against corrupt officials involved in fraud related to World Bank loans."
The statement called for concerned ministers to answer questions in the National Assembly regarding the scandal, and for the Bank, the Assembly's anti-corruption commission, which is headed by SRP lawmaker Yim Sovann, and the government to devise measures to stem corruption.
"The government must conduct an urgent and serious investigation into the multimillion-dollar irregularities and push for the legal punishment of all those involved in corruption and bribery, regardless of positions," the statement reads.
National Assembly Banking and Finance Commission Chairman Cheam Yeap said he had invited Finance Minster Keat Chhon to the Assembly to answer questions today. But he said he would not ask him about the World Bank report at the meeting. "The talk will focus on the macroeconomic situation, not about this issue," he said.
Council of Ministers Secretary of State Prak Sokhon said the Ministry of Finance alone would know what the government's response would be.
The manager of the suspended project at the Ministry of Public Works, Touch Narin, said he did not know the contents of the World Banks findings yet.
"We do not know how to defend ourselves because we do not have a document about a specific point," he said. "We do not know on what point they accuse us."
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