Kong Vibol (L) and Keat Chhon (R) aswering the National Assembly hearing on the corruption in Cambodia. (Photo RFA)Friday, June 9, 2006
By Phann Ana THE CAMBODIA DAILY
Finance Minister Keat Chhon told the National Assembly's Finance and Banking Commission Thursday that the government will repay $7.6 million to the World Bank following its discovery of fraud and corruption in three multimillion-dollar Bank-funded infrastructure projects.
"The repayment cannot be avoided," Keat Chhon told the commission. "The repayment must be made and they want us to repay promptly, no need to wait a great period."
The World Bank on Tuesday suspended funding on three projects valued at $68.4 million. It is seeking repayment of $7.6 million lost through corruption in 30 procurement contracts.
Keat Chhon said the World Bank had now supplied sufficient evidence to back its allegations of problems in the projects.
"Relating to the misuse of World Bank loan money, the information supplied on June 6 is clearer than that given on May 10," he told the commission.
"They had pointed it out already. [The investigation] sounds correct but we need to continue our own investigation," he said.
Keat Chhon said the government would seek to punish those involved in the multimillion-dollar frauds, which he referred to as "mistakes."
"The investigation must be completed to find out those who committed the mistakes, to punish them by the law," he said.
"It is like catching a mouse in the cupboard to keep the plates from breaking," he added.
Sam Rainsy Party lawmaker Son Chhay pressed Keat Chhon on whether the government would actually punish corrupt officials.
"Previously, the government was forced to repay the World Food Program and the World Bank," Son Chhay said of the country's two most high-profile corruption scandals involving donor aid, which did not lead to any legal sanction against perpetrators.
"If we accept the request for refunds, we acknowledge that money was embezzled; why have we never heard and seen punishment against the officials who conspired?" Son Chhay said. "What will prove that the government is going to punish the corrupt officials this time?"
Interrupting the exchange, Cheam Yeap, Banking and Finance Commission Chairman and CPP lawmaker, told Keat Chhon that he did not have to answer the question. The questions could be answered later during a meeting of the entire National Assembly, Cheam Yeap said.
"This question is quite good … it goes to the heart of the problem. The minister should answer it at the forthcoming meeting," Cheam Yeap added.
Funcinpec commission member So Victor asked Keat Chhon whether the suspended World Bank-funded projects would be resumed at some point in the future.
"I am waiting to hear from the World Bank," Keat Chhon said. He added that some parts of each project would not be continued due to irregularities in their implementation.
Keat Chhon declined to answer reporters' questions outside the National Assembly regarding the timing of the repayment or the punishments for the officials involved.
In January 2005, the government repaid $2.8 million to the World Bank, which had declared misprocurement in a demobilization project it funded.
No one was apparently punished for the fraud in the demobilization project.
Corruption in a WFP Food-for-Work project also forced the government to refund $900,000 to the UN agency last year.
While the rice scandal led to several WFP staff being fired, only two low-level Ministry of Water Resources and Meteorology officials from Svay Rieng province were made ineligible for promotion as a result of their involvement.
"The repayment cannot be avoided," Keat Chhon told the commission. "The repayment must be made and they want us to repay promptly, no need to wait a great period."
The World Bank on Tuesday suspended funding on three projects valued at $68.4 million. It is seeking repayment of $7.6 million lost through corruption in 30 procurement contracts.
Keat Chhon said the World Bank had now supplied sufficient evidence to back its allegations of problems in the projects.
"Relating to the misuse of World Bank loan money, the information supplied on June 6 is clearer than that given on May 10," he told the commission.
"They had pointed it out already. [The investigation] sounds correct but we need to continue our own investigation," he said.
Keat Chhon said the government would seek to punish those involved in the multimillion-dollar frauds, which he referred to as "mistakes."
"The investigation must be completed to find out those who committed the mistakes, to punish them by the law," he said.
"It is like catching a mouse in the cupboard to keep the plates from breaking," he added.
Sam Rainsy Party lawmaker Son Chhay pressed Keat Chhon on whether the government would actually punish corrupt officials.
"Previously, the government was forced to repay the World Food Program and the World Bank," Son Chhay said of the country's two most high-profile corruption scandals involving donor aid, which did not lead to any legal sanction against perpetrators.
"If we accept the request for refunds, we acknowledge that money was embezzled; why have we never heard and seen punishment against the officials who conspired?" Son Chhay said. "What will prove that the government is going to punish the corrupt officials this time?"
Interrupting the exchange, Cheam Yeap, Banking and Finance Commission Chairman and CPP lawmaker, told Keat Chhon that he did not have to answer the question. The questions could be answered later during a meeting of the entire National Assembly, Cheam Yeap said.
"This question is quite good … it goes to the heart of the problem. The minister should answer it at the forthcoming meeting," Cheam Yeap added.
Funcinpec commission member So Victor asked Keat Chhon whether the suspended World Bank-funded projects would be resumed at some point in the future.
"I am waiting to hear from the World Bank," Keat Chhon said. He added that some parts of each project would not be continued due to irregularities in their implementation.
Keat Chhon declined to answer reporters' questions outside the National Assembly regarding the timing of the repayment or the punishments for the officials involved.
In January 2005, the government repaid $2.8 million to the World Bank, which had declared misprocurement in a demobilization project it funded.
No one was apparently punished for the fraud in the demobilization project.
Corruption in a WFP Food-for-Work project also forced the government to refund $900,000 to the UN agency last year.
While the rice scandal led to several WFP staff being fired, only two low-level Ministry of Water Resources and Meteorology officials from Svay Rieng province were made ineligible for promotion as a result of their involvement.
4 comments:
I think the government has done the same way as the prevous time, self-decision...
he has never learned, Hun Sen
I think the big question is who was the source of corruption? We need to take that person out to preven future incompetence. Who stole the money!
It is clear to show who are the source of corruption with multimillion dollars lost and no one is punished. These are the only problems with international institution.
They stole the money to keep their function. So all money must go to into Hun Sen's pocket.
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