The World Bank has suspended part of its funding for three projects in Cambodia, reports the World Bank press review Wednesday.
The decision, announced late Tuesday, follows allegations of misuse of funds and misprocurement in seven World Bank supported poverty reduction and infrastructure projects.
The World Bank said that “the investigations over the past year have uncovered sufficient evidence to substantiate allegations of fraud and corruption. The World Bank has now decided to suspend disbursements given the problems found in contracts under these projects and has issued letters officially informing the government of this decision”.
The Bank also said the government would have to repay 7,6 million US dollar of credit/grant amounts already disbursed. The World Bank is still investigating three other projects worth more than 67 million dollar that were completed in 2005, but has already found indications of fraud and corruption, it said.
Foreign donors provide half of Cambodias budget and complain frequently about graft (svindel-korruption). The government in the poor South Asian country has promised frequently to pass anti-corruption legislation, most recently in March at its annual donor conference, but has yet to do so.
Complaints about graft from donors who provide 600 million dollar (henved 3,6 milliarder DKR) a year have become increasingly loud in a country which ranks 131st out of 158 countries on Transparency Internationals 2005 corruption index.
Kilde: www.worldbank.org
