Tuesday, June 06, 2006

Some Say Gov't Should Soften World Bank Talk

Tuesday, June 6, 2006

By Pin Sisovann and Erik Wasson
THE CAMBODIA DAILY


Political commentators have called on the government to take a less confrontational stance toward the World Bank while awaiting details of a Bank investigation that reportedly found irregularities including misuse of funds in seven major infrastructure projects.

The Ministry of Finance announced on Saturday that it was unfreezing World Bank funds for three projects worth $64.2 million, and blasted the Bank for alleging irregularities in file projects without providing evidence.

The World Bank said Sunday that the results of its investigation would be presented to the government today.

"Defensive behavior is not good, the governments reaction was too premature," Committee for Free and Fair Elections Director Koul Panha said.

The government’s reaction to the World Banks warning of misuse in the multimillion-dollar projects was of a "political nature rather than that of a commitment to find irregularities," he added.

Koul Panha recalled that the World Bank previously reliably reported misprocurement in a demobilization program and forced the government to repay $2.8 million.

"[The World Bank] is a worldwide institution and it is reliable," he added.

NGO Forum Executive Director Chhith Sam Ath said the Bank was right to reveal the findings of its investigations but said it should have presented the government immediately with all of its evidence.

"I think other donors should follow what the World Bank is doing," Chhith Sam Ath said.

It is now difficult to say whether the government is committed to fighting corruption, he said.

"If they do not pass the anti-corruption law this year, then people will wonder."

Former director of the Center for Development Chea Vannath said she believes that Finance Minister Keat Chhon wants to combat corruption.

"I admire his courage, but he has admitted that alone he is too weak to reform even his own ministry... there needs to be a critical mass in the government for reform," she said.

"The Finance Ministry should use this World Bank report as the opportunity to shake the other ministries, to improve their financial accounting," she added.

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