PHNOM PENH, Cambodia (AP) - Cambodia's government is challenging the World Bank to provide proof of alleged corruption that led it to suspend three development projects in the cash-strapped Southeast Asian country.
"Until now, beside pointing out problems, the World Bank has yet to provide any reason and evidence of what deemed as irregularities" in the projects' execution, said a Finance Ministry statement received Tuesday.
Last week, the bank froze funding for the projects, saying it found evidence of fraud and corruption in several contracts.
The government's statement, dated Monday, demanded that the bank give "detailed reason and evidence" to support its action.
Cambodia, one of the world's poorest countries, relies heavily on foreign aid. Donors have criticized the government for failing to tackle chronic corruption.
The three suspended projects cover land management and administration; provincial and rural infrastructure; and provincial and suburban water supply and sanitation. They are worth some US$71.8 million (euro57.11 million) in World Bank financing, according to the bank's June 6 statement.
The World Bank said it has "uncovered sufficient evidence to substantiate allegations of fraud and corruption under certain contracts" of the projects that cannot be resumed unless the government "deals head-on with corruption."
"This is all the more important because corruption hurts the poor disproportionately," it said.
It has also demanded that the government pay it back any amount of money already disbursed under contracts "misprocured because of corruption."
On Tuesday, Finance Minister Keat Chhon refused to answer reporters' questions about the bank's demand for a refund.
But the statement from his ministry said the bank was requesting a refund of about US$1.7 million (euro1.35 million).
The ministry, responding to the World Bank's charges, said that implementation of the suspended projects had been "thoroughly monitored by the World Bank itself, (foreign) consultants and government officials."
It added, however, that the government would launch its own probe to establish the "truth" about whether or not corrupt acts had occurred, and if so, who was responsible for them and at what level.
"Until now, beside pointing out problems, the World Bank has yet to provide any reason and evidence of what deemed as irregularities" in the projects' execution, said a Finance Ministry statement received Tuesday.
Last week, the bank froze funding for the projects, saying it found evidence of fraud and corruption in several contracts.
The government's statement, dated Monday, demanded that the bank give "detailed reason and evidence" to support its action.
Cambodia, one of the world's poorest countries, relies heavily on foreign aid. Donors have criticized the government for failing to tackle chronic corruption.
The three suspended projects cover land management and administration; provincial and rural infrastructure; and provincial and suburban water supply and sanitation. They are worth some US$71.8 million (euro57.11 million) in World Bank financing, according to the bank's June 6 statement.
The World Bank said it has "uncovered sufficient evidence to substantiate allegations of fraud and corruption under certain contracts" of the projects that cannot be resumed unless the government "deals head-on with corruption."
"This is all the more important because corruption hurts the poor disproportionately," it said.
It has also demanded that the government pay it back any amount of money already disbursed under contracts "misprocured because of corruption."
On Tuesday, Finance Minister Keat Chhon refused to answer reporters' questions about the bank's demand for a refund.
But the statement from his ministry said the bank was requesting a refund of about US$1.7 million (euro1.35 million).
The ministry, responding to the World Bank's charges, said that implementation of the suspended projects had been "thoroughly monitored by the World Bank itself, (foreign) consultants and government officials."
It added, however, that the government would launch its own probe to establish the "truth" about whether or not corrupt acts had occurred, and if so, who was responsible for them and at what level.
2 comments:
On the sake of our nation, the government have to launch its own investigation properly in order to find the truth and punish who committed this corruption. Don't try to ask the World Bank for proofs because it just the way to tap off the corrupted officials. The World Bank came to help the poor, let the poor receive the full benefit of this assistane. the government should fully coorperate with the World Bank to uncover this scanal.
you know why the khmer gov. wanted to challenge the world bank..b/c they have the evidences,and teh world bank don't have any, but the money..eeyore!!
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