(Kyodo) - The World Bank and Cambodia's National Auditing Authority will jointly probe suspected misuse of funds and other corrupt practices in seven bank-funded projects worth tens of millions of dollars, Cambodia's top auditor said Tuesday.
NAA Chairman Uth Chhorn said his agency and the World Bank will soon begin investigating the alleged misuse of the funds.
The move comes after Finance Minister Keat Chhon on May 22 moved to limit the damage by freezing disbursements on three of the projects in question.
Targeted were a $24.4 million project undertaken by the Ministry of Land Management, Urban Planning and Construction, a $19.9 million one by the Ministry of Industry, Mines and Energy and a $20 million one by the Ministry of Rural Development and the Ministry of Public Works and Transport.
The World Bank, in a statement Monday, said four current projects and three completed ones were investigated by its Integrity Department and "problems were found in certain contracts in each of the projects."
It said the problems included misuse of funds and "misprocurement," meaning that guidelines for paying for goods and services were not adhered to.
The bank has not yet released the names of the individuals or companies involved in the scandal.
Early last year, Cambodian government was pressured to repay $2.8 million to the World Bank after misprocurement was discovered in a bank-funded project on military demobilization.
To handle the latest problems, the World Bank said it and the Cambodian government have a number of options, depending on the results of the investigations.
"Some of these options include, for example, seeking repayment of funds that were misused and suspending or closing the projects involved," it said.
The statement called for strengthened financial management systems and improved auditing and transparency to reduce the likelihood of further corrupt acts -- both on World Bank projects and, more importantly, in other areas of Cambodia's economy and society."
"This is critical to ensuring that the goal of reducing poverty in Cambodia and ensuring Cambodians have access to a better future, can be achieved," it said.
NAA Chairman Uth Chhorn said his agency and the World Bank will soon begin investigating the alleged misuse of the funds.
The move comes after Finance Minister Keat Chhon on May 22 moved to limit the damage by freezing disbursements on three of the projects in question.
Targeted were a $24.4 million project undertaken by the Ministry of Land Management, Urban Planning and Construction, a $19.9 million one by the Ministry of Industry, Mines and Energy and a $20 million one by the Ministry of Rural Development and the Ministry of Public Works and Transport.
The World Bank, in a statement Monday, said four current projects and three completed ones were investigated by its Integrity Department and "problems were found in certain contracts in each of the projects."
It said the problems included misuse of funds and "misprocurement," meaning that guidelines for paying for goods and services were not adhered to.
The bank has not yet released the names of the individuals or companies involved in the scandal.
Early last year, Cambodian government was pressured to repay $2.8 million to the World Bank after misprocurement was discovered in a bank-funded project on military demobilization.
To handle the latest problems, the World Bank said it and the Cambodian government have a number of options, depending on the results of the investigations.
"Some of these options include, for example, seeking repayment of funds that were misused and suspending or closing the projects involved," it said.
The statement called for strengthened financial management systems and improved auditing and transparency to reduce the likelihood of further corrupt acts -- both on World Bank projects and, more importantly, in other areas of Cambodia's economy and society."
"This is critical to ensuring that the goal of reducing poverty in Cambodia and ensuring Cambodians have access to a better future, can be achieved," it said.
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