NEW DELHI: The World Bank has yet again expressed concern over corruption affecting implementation of its health projects in the country. A recent probe by the organisation has revealed unacceptable indicators of fraud and corruption, World Bank group president Robert B Zoellick has said.
While the government has said it is committed to fighting corruption in the projects, finance minister P Chidambaram has been categorical in emphasising that the Bank must not link corruption and further disbursals for projects in the country.
The Bank had earlier taken a strong stance and withheld funds for some projects in the past on account of corruption in procurement. Critics had argued the country could do without World Bank’s annual funding in the range of Rs 10,000 crore when the government’s fiscal deficit is pegged at Rs 1,50,948 crore for the current fiscal as per Budget estimates.
The detailed review of Indian projects was prompted by World Bank investigation in 2005 into a reproductive & child health (RCH1) project. It found corrupt practices by two pharmaceutical companies that were subsequently debarred by World Bank and the government.
“A detailed implementation review (DIR) launched by the World Bank in 2006 and supported by the government of India found serious incidents of fraud and corruption in five health projects. The government has announced its intention to re-examine ongoing and future projects to ensure they incorporate the lessons from the DIR,” an official World Bank statement said.
“The government of India values its relationship with the World Bank and is fully committed to continuous systemic improvement in the implementation of all health sector projects. Necessary action under the relevant laws and rules & regulations would be taken against those suspected of wrongdoing and, if found guilty, they will be visited with exemplary punishment,” the finance ministry said in the statement.
Implementation of the projects began between 1997 and 2003, financed by the government and World Bank with other donors. Four projects have been completed while one remains, but funds for the project are not being disbursed as a review is on to incorporate the findings of the DIR, World Bank has said.
While World Bank is categorical is calling the review a detailed one, the ministry of finance has, instead, said the review was in the nature of a fact-finding report and does not extend to detailed investigation. The review was agreed upon and facilitated by the government.
World Bank will also make use of the Right to Information Act to keep a tab on implementation of health projects. Further, World Bank has said it will continue its probe.
The five projects covered by the DIR include the $114-million Malaria Control Project, the $82.1-million Orissa Health Systems Development Project, the ongoing $54-million Food & Drug Capacity Building Project, the $193.7-million Second National HIV/AIDS Control Project and the $124.8-million Tuberculosis Control Project. Of these, four were central-sector projects and one state-sector project.
While the government has said it is committed to fighting corruption in the projects, finance minister P Chidambaram has been categorical in emphasising that the Bank must not link corruption and further disbursals for projects in the country.
The Bank had earlier taken a strong stance and withheld funds for some projects in the past on account of corruption in procurement. Critics had argued the country could do without World Bank’s annual funding in the range of Rs 10,000 crore when the government’s fiscal deficit is pegged at Rs 1,50,948 crore for the current fiscal as per Budget estimates.
The detailed review of Indian projects was prompted by World Bank investigation in 2005 into a reproductive & child health (RCH1) project. It found corrupt practices by two pharmaceutical companies that were subsequently debarred by World Bank and the government.
“A detailed implementation review (DIR) launched by the World Bank in 2006 and supported by the government of India found serious incidents of fraud and corruption in five health projects. The government has announced its intention to re-examine ongoing and future projects to ensure they incorporate the lessons from the DIR,” an official World Bank statement said.
“The government of India values its relationship with the World Bank and is fully committed to continuous systemic improvement in the implementation of all health sector projects. Necessary action under the relevant laws and rules & regulations would be taken against those suspected of wrongdoing and, if found guilty, they will be visited with exemplary punishment,” the finance ministry said in the statement.
Implementation of the projects began between 1997 and 2003, financed by the government and World Bank with other donors. Four projects have been completed while one remains, but funds for the project are not being disbursed as a review is on to incorporate the findings of the DIR, World Bank has said.
While World Bank is categorical is calling the review a detailed one, the ministry of finance has, instead, said the review was in the nature of a fact-finding report and does not extend to detailed investigation. The review was agreed upon and facilitated by the government.
World Bank will also make use of the Right to Information Act to keep a tab on implementation of health projects. Further, World Bank has said it will continue its probe.
The five projects covered by the DIR include the $114-million Malaria Control Project, the $82.1-million Orissa Health Systems Development Project, the ongoing $54-million Food & Drug Capacity Building Project, the $193.7-million Second National HIV/AIDS Control Project and the $124.8-million Tuberculosis Control Project. Of these, four were central-sector projects and one state-sector project.
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