World Bank Suspends 3 Cambodian Development Projects for Corruption
PHNOM PENH, Cambodia (AP) -- The World Bank announced Tuesday it will suspend funding to the Cambodian government for three development projects after finding evidence of fraud and corruption.
In a statement e-mailed to The Associated Press Tuesday night, the bank said its investigations found corruption and other irregularities in seven projects -- including three already completed and one that had already received most of its funding.
It did not give specify how much money was involved.
Cambodia, one of the world's poorest countries, relies heavily on foreign aid. Donors have roundly criticized the government for failing to tackle chronic corruption.
The World Bank said the three projects for which it is freezing aid cover land management and administration; provincial and rural infrastructure; and provincial and suburban water supply and sanitation.
"Suspension entails a temporary freeze on the World Bank's financing of implementation; it does not mean that the World Bank withdraws from the concerned project," the statement said, explaining that the bank would work with Cambodia's government to help it meet conditions for lifting the suspension.
The bank said the government had agreed last month to immediately stop distributing World Bank funds to the three projects after being told of the corruption findings.
However, Cambodia later said it was resuming disbursement of millions of dollars (euros) to the projects, the bank said.
Cambodia's Finance Ministry said it had decided to keep funding them because the World Bank had failed to prove its claims, and because halting the funds "would directly affect implementation of the projects and other reforms undertaken by the government."
The World Bank statement sent Tuesday acknowledged that the suspension would affect the projects.
"Suspending disbursements on these three projects has been an important but difficult decision," it said, explaining that the projects aimed to help some of Cambodia's poorest people.
"But the World Bank has also concluded that the important work of these projects cannot continue until the fraud and corruption problems that have been identified are addressed," it said.
In a statement e-mailed to The Associated Press Tuesday night, the bank said its investigations found corruption and other irregularities in seven projects -- including three already completed and one that had already received most of its funding.
It did not give specify how much money was involved.
Cambodia, one of the world's poorest countries, relies heavily on foreign aid. Donors have roundly criticized the government for failing to tackle chronic corruption.
The World Bank said the three projects for which it is freezing aid cover land management and administration; provincial and rural infrastructure; and provincial and suburban water supply and sanitation.
"Suspension entails a temporary freeze on the World Bank's financing of implementation; it does not mean that the World Bank withdraws from the concerned project," the statement said, explaining that the bank would work with Cambodia's government to help it meet conditions for lifting the suspension.
The bank said the government had agreed last month to immediately stop distributing World Bank funds to the three projects after being told of the corruption findings.
However, Cambodia later said it was resuming disbursement of millions of dollars (euros) to the projects, the bank said.
Cambodia's Finance Ministry said it had decided to keep funding them because the World Bank had failed to prove its claims, and because halting the funds "would directly affect implementation of the projects and other reforms undertaken by the government."
The World Bank statement sent Tuesday acknowledged that the suspension would affect the projects.
"Suspending disbursements on these three projects has been an important but difficult decision," it said, explaining that the projects aimed to help some of Cambodia's poorest people.
"But the World Bank has also concluded that the important work of these projects cannot continue until the fraud and corruption problems that have been identified are addressed," it said.
1 comment:
Cambodian people tears dropped!
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