Fraud, corruption in health projects: World Bank again

• Food and Drug Capacity Building Project, $54 million (2003-2008): Project was meant to upgrade food testing labs and technicians. The report alleges questionable procurement practices in contracts representing 88% of value of equipment procured; shifting of bidding deadlines and favouritism; widespread deficiencies in delivery and installation of equipment in all 15 labs; more than half of 282 equipment uninstalled or undelivered.

• Orissa Heath Systems Development project, $82.1 million (1998-2006): This is the only state-level project that seeks to improve health in Orissa which has the highest infant mortality rate in the country. Project, meant to renovate healthcare facilities, supplying additional medical equipment, was marred by fraud. As high as 93% of the 55 project hospitals had problems like uninitiated or incomplete work, leaking roofs, crumbling ceilings and moulding walls and non-functional sewage system. And yet all were given completion certificates. The report cites 17 types of equipment that violated project technical specifications, including autoclaves that could explode and neonatal equipment that lacked adequate electrical grounding, exposing babies and medical staff to electrical shocks.

• Malaria Control Project, $114 million (1997-2005): Project sought to assist National Malaria Eradication programme by introducing effective mechanisms to control malaria. Review found bid-rigging, bribery, and collusion in procurement of medicine, bed nets, and pharmaceuticals. Same firms debarred by the Bank for collusive behaviour in the earlier review were found indulging in similar practices here.

• Tuberculosis Control Project, $124.8 million (1997-2006): At the launch of this programme, it was estimated that up to half of India’s population was infected with TB and it meant to support India’s newly-launched DOTS programme. The review found collusion, fraud or corruption in 100 of 143 contracts. There were indicators like competing bids with the same language and presentation, bidders sharing same telephone numbers and addresses. There was even document-tampering and record-keeping deficiencies.