Wednesday, June 28, 2006

World Bank to Fight Cambodian Corruption

June 28, 2006

PHNOM PENH, Cambodia (AP) - The World Bank, which has charged that millions of dollars (euros) were illicitly siphoned off from seven of its development projects in Cambodia, has approved a new program to help improve governance and fight corruption there, it announced Wednesday.

The new US$14 million (euro11.14 million) program is designed "to support improvements in the management of and accounting for public finances," said a statement from the World Bank, adding that its board of executive directors has reaffirmed its support for Cambodian reform.

The announcement of the new program came as bank president Paul Wolfowitz said it is essential to fight corruption in Cambodia so that aid can truly benefit the country's poor majority.

His observation, cited in the bank's statement, came as the bank and the Cambodian government have been embroiled in a bitter dispute over alleged corruption in bank-funded development projects.

The bank has frozen funding for three projects and is seeking reimbursement for money given to four others. It says substantial corruption was involved in 43 contracts worth US$11.9 million (euro9.4 million), representing part of the overall funding for the seven projects.

The government of Prime Minister Hun Sen has angrily denied the allegations, saying there is no proof of misdeeds.

"While there has clearly been progress in Cambodia, the governance environment remains extremely challenging," Wolfowitz said Tuesday in Washington after a meeting of the bank's board of executive directors.

He said the bank "will work actively with other donors to support" Cambodian reform.

"But when corruption is found, the bank needs to work vigorously with the government to take appropriate actions, so that development assistance ultimately benefits the poor who are its intended beneficiaries," he added.

The statement quoted Nisha Agrawal, the bank's country manager for Cambodia, saying that the new program to strengthen financial accounting is aimed at supporting a long-term program of critical reforms for improving public financial management and helping strengthen fiduciary systems and the World Bank's portfolio.

1 comment:

Anonymous said...

Dr. WB..i got an idea..in order to fight this cPP government from corruption, the WB should do is .. to stop $$$ in millions flow to Cambodia...b/c it never go to the poor khmers anyway..then the corruption will stop for one part..the rest the CPP gonna sway to the lands,,then you will see who is the corruptors?..eeoyre