Original article:
http://ki-media.blogspot.com/2007/10/world-bank-confronts-cambodia.html
I'm Jim Adams from the World Bank. I'm the Vice President who has responsibility for the East Asia and Pacific region so I keep a close eye on what's been happening in Cambodia. The Wall Street Journal's second editorial --published today-- about corruption in Bank projects in Cambodia yet again needs some clarifying since their writers have never bothered to contact me.
If they had asked, this is how I would have answered the questions they raise:
When the Bank presented to the Cambodian Government the evidence of corruption, some evidence had to be withheld because it was given on a confidential basis. Reflecting this limitation, Paul Wolfowitz --who was the Bank's President at the time-- agreed that if the Government refunded 1/3 of the total amount immediately and took measures to address corruption, the rest could be paid back according to the normal schedule.
The Government has both paid the US$2.9 million we agreed on and has put in place the broader anti-corruption strategy that was agreed. The rest of the payments will follow, as I indicated, the regular schedule.
I very much appreciate that your site is so open to quickly publish all information and voices on this matter.
Thank you.
Jim Adams
Vice-President, East Asia and Pacific Region
The World Bank
http://ki-media.blogspot.com/2007/10/world-bank-confronts-cambodia.html
I'm Jim Adams from the World Bank. I'm the Vice President who has responsibility for the East Asia and Pacific region so I keep a close eye on what's been happening in Cambodia. The Wall Street Journal's second editorial --published today-- about corruption in Bank projects in Cambodia yet again needs some clarifying since their writers have never bothered to contact me.
If they had asked, this is how I would have answered the questions they raise:
The WSJ says seven projects were identified by the Institutional Integrity Department (INT, the Bank's anti-corruption unit) as corrupt, but that we suspended only three. True. Why? Because three other projects were already closed and one was about to close at the time we received the reports from the investigation.Answer: the Bank doesn't finance the full value of contracts. In this case, the Bank's share was to fund US$10.8 million, and the Government to fund the rest. The Bank cancelled the US$2.55 million that it had not disbursed yet.
The WSJ also asks why is it that, if US$8.2 million were disbursed from US$12.2 million worth of contracts, only US$2.5 million were cancelled out of the remaining US$4 million.
Based on that last point, the WSJ wants to know why didn't Cambodia reimburse US$8.2 million, instead of US$2.89 million, and asks what happened to the remaining US$5.3 million.Answer: the remaining US$5.3 million are being paid following the regular schedule for the repayment of loans. Let me explain how this works:
When the Bank presented to the Cambodian Government the evidence of corruption, some evidence had to be withheld because it was given on a confidential basis. Reflecting this limitation, Paul Wolfowitz --who was the Bank's President at the time-- agreed that if the Government refunded 1/3 of the total amount immediately and took measures to address corruption, the rest could be paid back according to the normal schedule.
The Government has both paid the US$2.9 million we agreed on and has put in place the broader anti-corruption strategy that was agreed. The rest of the payments will follow, as I indicated, the regular schedule.
I very much appreciate that your site is so open to quickly publish all information and voices on this matter.
Thank you.
Jim Adams
Vice-President, East Asia and Pacific Region
The World Bank
11 comments:
Dear Mr. Jim Adams, Sir, the corruption should have not happen in the first place if your eyes were watching the crooks. There should be further effort to get the money from the 3 closed projects and the one is nearly complete to pay back to World Bank. You should have not let them get away with their crime. Right now, they are smiling with their pocket full of your money because you were easily fooled by them. You sent a wrong messege to the world. As for the refund, it should be paid by the crooks and not the by government. You know very well the current government is very deceptive.They will siphon the money from the poors to pay for the refund. They will suck blood from the poors until the last drop, that's why they are so rich and the poors are dying. Furthermore, I am suprised that you took the government promise seriously. I can't believe that you use such statement from the government for your defense. You know very well that the whole world don't take the statement seriously, except you. How can you let the un-educated ministers fooled you? I don't think you do your job very well. Otherwise, this kind of things would not happen. It took a major newspaper to write about the World Bank not doing its job in order for you to react to corruption. All those business men, the ministers, and the current government in Cambodia think you are stupid. You let them get away with your money! If you were to dealt with the crooks differently, the newspaper would have praised you instead of criticzed you.
It seems that the World Bank refuses to accept the mistake! As far as I am concerned nobody is suffering here only dirt poor Cambodia who is suffering!
Oh well! Champagne as usual for a corruption well done!
Mr. 8:46 AM
You've got a point there, the World Bank could have and should have filed a complaint to the prosecutor of the Phnom Penh court to get its money back. The police and/or the prosecutor should have taken legal action against the culprits and get the court to punish them and recuperate what they have illegally taken to repay the Bank with or without that complaint so long as they knew of that suspected crime. This is a lengthy process and the outcome is not certain, though, because the Bank knows or must know that the Cambodian judiciary is under political control and also corrupt. It would have to deal with corruption in the judiciary as well, which it would bother to do.
The Bank preferred the short cut, and this was more certain and effective.
For its part, the government should have taken legal action, not just administative or disciplinary action, against those culprits. They have both criminal and civil liability.
Not only they should have been in jail but their properties should been seized and auctioned off to get the money to repay the treasury.
This is yet again another case of impunity and of the government's lack of accountibility to its people.
In Cambodia, some people are extra-ordinary people. They can get away with their crimes.
The rest are ordinary people. If, individually, they steal a chicken, they could be arrested and put in prison for theft (misdemeanor or light crime). If, together with one or more persons, they commit the same act, any one or all of them could be arrested and put in prison for longer for robbery (serious crime).
We should not just observe such injustices, we must correct them, along the line Karl Marx recoomended long time ago:
" THE PHILOSOPHERS HAVE ONLY
INTERPRETED THE WORLD IN
VARIOUS WAYS - THE POINT
HOWEVER IS TO CHANGE IT."
I'm not his follower, though.
LAO Mong Hay, Hong Kong
Mr Adam, how well do you know cambodia? you only sit in DC office. why you never made what your claim in the press release in the local newspaper and in Khmer language in Cambodia? Cambodians will defintley be abhorred to hear your irresponsible answer! Or would you afraid that if you take the RCG to task, they would stop coorperating with your WB cronies in Phnom Penh? come on....what era are we living in now...treat our poor farmers and people with dignity and accountability. [khmer peasant]
Dear friends,
World Bank is a fund provider to the government. Simply World Bank is the lender (provider) and Cambodia is a borrower (recipient). Corruption was found, they demanded their money back. So what else they can do? closed PP office????
I think they opted for the right choice dealing with these projects.
Putting "iron fist" might direct the country to wrong development path --- another Burma?????
that make sense.
What is a bunch of fucking westerners hypocrites? When Khmer people is corrupted, they should be legally prosecute, but when Paul Wolfowitz (WB President) was corrupted in a similar way, all he have to do is to step down. GET THE FUCK OUT OUT OF KHMER SOIL, YOU INFIDEL MOTHERFUCKERS!!!
Hi, I work in Jim Adams' office. He came to this site a second time --not to the Wall Street Journal anymore-- to explain to the Cambodians here how those reports were incorrect and what actually happened. He's also interested in the feedback you have provided and read all the comments.
So could we keep the profanities out, use this mode of communication in a more civil way and have a constructive exchange? I'm sure 99% of us prefer that.
Best regards.
No problemo, so long we can just keep the hypocrites out also.
We know corruption is difficult to control. It is everywhere. In Wall Street Journal, World Bank, ..., and Government, no one is exempt from this, but the least we can do is to take a uniform disciplinary action against those who are corrupted and set good standard for all, but I don't see that is happening here. When Paul Wolfowitz (WB President) was found corrupted, did anyone ask him to pay back the money that went to his girl friend purses or did anyone as the district attorney to prosecuted him? So what is with the double standard here that is used against the Khmer government?
I dont think it's tit for tat. Even if the world bank is dysfunctional, wofowitz still had to resign, under pressure. would nit be nice if cambodian asked who was corrupt and pressured the governement in sanctioning him? the world bank seems to be doing whatever they can to limit corruption and maintain some activity in the country.
Bullshit, if world bank is dysfunctional, the organization will be infested with idiots with fat checkbook.
As for the corrupted individual in Cambodia, they're no longer in charge of World Bank project, alright? What more do you want?
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