By Erik Wasson and Phann Ana
THE CAMBODIA DAILY
The World Bank on Tuesday presented the government with the results of its corruption investigation of seven multimillion-dollar Bank-funded infrastructure projects and announced that it has decided on its own to suspend funding on three projects.
The World Bank also announced that it is seeking repayment from the government of $7.6 million due to misprocurement in 30 contracts in the three projects, and may demand that even more be repaid as its probe continues.
Though the Minister of Finance Keat Chhon froze funding for the three projects on May 22, the ministry reversed its decision Saturday, saying the World Bank had not provided evidence to support its allegations and had damaged the image of the government.
The Bank announced Tuesday that its funding suspension involves the Ministry of Land Management's $28.8 million Land Management and Administration Project, the Transportation and Rural Development Ministry's $21.2 million Provincial and Rural Infrastructure Project and the Industry Ministry's $18.4 million Provincial and Peri-Urban Water Supply and Sanitation Project.
The Environment Ministry's $2.1 million Biodiversity and Protected Areas Management project will remain operational, as little procurement remains, the Bank said.
Still under investigation, but already exhibiting instances of fraud and corruption, are three Bank-funded projects completed in 2005: the Agriculture Ministry's $22.8 million Agriculture Productivity Improvement project and $5.4 million Forest Concession Management and Control project and the Ministry of Planning's $39.2 million Flood Emergency and Rehabilitation project, the Bank said.
Government spokesman and Information Minister Khieu Kanharith said he was in Singapore and unaware of the situation.
Finance Minister Keat Chhon could not be reached for comment. Ministry of Finance First Secretary Kong Vibol said he was overseas and did not know about the World Bank issue. Vong Sey Vissoth, the secretary-general of the Finance Ministry in charge of donor aid, referred questions to Chan Sothea, another ministry economist. Chan Sothea said he was in Bangkok and could not comment.
Industry Minister Suy Sem, Land Management Minister Im Chhun Lim, Rural Development Minister Lu Laysreng and Minister of Public Works and Transport Sun Chan Thol could not be reached for comment.
Sar Sovann, the director of the Land Management and Administration project hung up his telephone repeatedly.
Mour Kimsan, director of the Provincial and Rural Infrastructure project at the Ministry of Rural Development called the Bank's report simply "stupid."
"The amount of embezzlement is exaggerated," he said.
"We are not clear which contract has irregularities...we don't know how to pay [the World Bank] back," he added.
Lim Sidenine, director of the Provincial and Rural Infrastructure project at the Ministry of Public Works and Transport declined to comment.
In its statement the Bank said that the decision to suspend the projects was difficult because 400,000 people had received land titles from the first project 66 km of roads hade been repaired under the second and 30 towns had already obtained access to safe water through the third project.
"The World Bank recognizes, as indicated in the Government's press release of June 3, that suspension of disbursements under these three projects will directly affect implementation of these projects," the Bank wrote.
"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 is vital that the Government addresses the problems that have been identified with these projects and deals head-on with corruption," the World Bank added in its statement.
Specific information about the questionable procurement contracts has been given to the government but the Bank will only release information on the companies involved if they are officially barred from working with Bank projects in the future.
The Bank also said that information about which officials are involved can only come from the government or from judicial proceedings.
Keo Rottanak, project director of the Provincial and Peri-Urban Water Supply and Sanitation Project said that he hoped the World Bank would be willing to compromise for the sake of the Cambodian people.
"I only hope we can work out a compromise to help the communities that will be affected by this decision," Keo Rottanak said.
He declined to comment further.
The World Bank also announced that it is seeking repayment from the government of $7.6 million due to misprocurement in 30 contracts in the three projects, and may demand that even more be repaid as its probe continues.
Though the Minister of Finance Keat Chhon froze funding for the three projects on May 22, the ministry reversed its decision Saturday, saying the World Bank had not provided evidence to support its allegations and had damaged the image of the government.
The Bank announced Tuesday that its funding suspension involves the Ministry of Land Management's $28.8 million Land Management and Administration Project, the Transportation and Rural Development Ministry's $21.2 million Provincial and Rural Infrastructure Project and the Industry Ministry's $18.4 million Provincial and Peri-Urban Water Supply and Sanitation Project.
The Environment Ministry's $2.1 million Biodiversity and Protected Areas Management project will remain operational, as little procurement remains, the Bank said.
Still under investigation, but already exhibiting instances of fraud and corruption, are three Bank-funded projects completed in 2005: the Agriculture Ministry's $22.8 million Agriculture Productivity Improvement project and $5.4 million Forest Concession Management and Control project and the Ministry of Planning's $39.2 million Flood Emergency and Rehabilitation project, the Bank said.
Government spokesman and Information Minister Khieu Kanharith said he was in Singapore and unaware of the situation.
Finance Minister Keat Chhon could not be reached for comment. Ministry of Finance First Secretary Kong Vibol said he was overseas and did not know about the World Bank issue. Vong Sey Vissoth, the secretary-general of the Finance Ministry in charge of donor aid, referred questions to Chan Sothea, another ministry economist. Chan Sothea said he was in Bangkok and could not comment.
Industry Minister Suy Sem, Land Management Minister Im Chhun Lim, Rural Development Minister Lu Laysreng and Minister of Public Works and Transport Sun Chan Thol could not be reached for comment.
Sar Sovann, the director of the Land Management and Administration project hung up his telephone repeatedly.
Mour Kimsan, director of the Provincial and Rural Infrastructure project at the Ministry of Rural Development called the Bank's report simply "stupid."
"The amount of embezzlement is exaggerated," he said.
"We are not clear which contract has irregularities...we don't know how to pay [the World Bank] back," he added.
Lim Sidenine, director of the Provincial and Rural Infrastructure project at the Ministry of Public Works and Transport declined to comment.
In its statement the Bank said that the decision to suspend the projects was difficult because 400,000 people had received land titles from the first project 66 km of roads hade been repaired under the second and 30 towns had already obtained access to safe water through the third project.
"The World Bank recognizes, as indicated in the Government's press release of June 3, that suspension of disbursements under these three projects will directly affect implementation of these projects," the Bank wrote.
"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 is vital that the Government addresses the problems that have been identified with these projects and deals head-on with corruption," the World Bank added in its statement.
Specific information about the questionable procurement contracts has been given to the government but the Bank will only release information on the companies involved if they are officially barred from working with Bank projects in the future.
The Bank also said that information about which officials are involved can only come from the government or from judicial proceedings.
Keo Rottanak, project director of the Provincial and Peri-Urban Water Supply and Sanitation Project said that he hoped the World Bank would be willing to compromise for the sake of the Cambodian people.
"I only hope we can work out a compromise to help the communities that will be affected by this decision," Keo Rottanak said.
He declined to comment further.
3 comments:
Compromise in sake of Cambodian??????? when you steal money from donation, is it bcoz of Cambodian people????
This is the result of Hun Sen's lip service!!!!!!
Not only lip,I am using my hand my feet, my body my litle left of brain to stile the money! I and my family and friends earnd it we work hard for our bank account!
H S
9:47PM, you are a copycat! Maybe ID crisis, HS is a tat smarter -- he won't come online.
Post a Comment