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Centre to states: for Bank funds, clean up your act

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  • With the World Bank putting on hold as much as $1 billion in funding for health projects after corruption complaints—as first reported by The Indian Express today—the Finance Ministry has written to states and Central departments to ensure complete “transparency and integrity” in awarding contracts.

    “Any deviations from the established procedures contained in the guidelines issued by the Bank could be detrimental not only for the specific project under which they occur, but also for other projects or future World Bank lending to India,’’ Economic Affairs Secretary Ashok Jha wrote on March 23.

    All states and departments have been instructed to issue directions to project authorities to strictly adhere the norms for implementing the Bank-sponsored projects.

    Ever since former US Deputy Defence Secretary Paul Wolfowitz took over as the Bank president in June 2005, the Bank’s Department of Institutional Integrity has taken a strong stance against corruption, canceling or relooking at loans to countries like Chad, Congo, Kenya, Bangladesh, Argentina.

    ‘‘The important role of this support can be gauged from the fact that, as on date, the total commitments of the Bank are about $13 billion in 62 projects, being implemented in various states in different sectors,’’ said Jha’s letter.

    ‘‘There is a need to ensure greater fairness and transparency in project implementation, especially in procurement matters since these give rise to the majority of complaints,’’ he added.

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