The World Bank said Monday it is concerned about corruption in Kenya and it will not clear (frigive/udbetale) delayed loans of 265 million US dollar (1,64 milliarder DKR) until it is convinced the government was serious in tackling the problem, reports the World Bank press review.
The World Bank came under criticism after its board approved 145 million dollar to Kenya at a time when President Mwai Kibakis government faced fresh corruption charges involving senior ministers.
Critics said the Bank had sent a wrong signal by approving the funding. But World Bank Country Director Colin Bruce defended the loan, and added that since last year concerns over corruption in Kenya resulted in credits worth 265 million dollar being delayed.
The money, approved in October 2004 and earmarked for education, banking reform, budget support and HIV/AIDS programs, will not be disbursed until the institution is convinced that President Mwai Kibakis government is meeting commitments to fight corruption.
Colin Bruce said that “the money will be released once the Bank is satisfied that the government is making successful efforts in fighting corruption.” A team from the Bank was already in the country investigating the situation and was preparing an “Integrity Report” on Kenya that “will be the basis for releasing the money.”
The East African Standard (Kenya) meanwhile notes that Colin Bruce supported former Kenyas Ethics Permanent Secretary, John Githongo, for shedding light on the unresolved Anglo Leasing scam and asked government officials not to vilify Githongo.
– We believe the government has an investigative process in place and we should allow the government to respond, Bruce said Monday. Bruce said Githongos revelations were bold and encouraging and had generated healthy debate that only Kenyans can conclude.
The government, he said, had a duty to respond to the claims and act decisively for the interest of the people who had high expectations of the Narc government.
The charges in the Githongo report have split the cabinet, with several ministers refusing calls to present a united face. Opposition leaders have demanded the resignation of implicated ministers. Kibaki elected on an anti-corruption ticket in 2002, has also faced calls to step down.
Meanwhile, Kenyas government faced another blow to its credibility Monday after a report accused it of spending state funds on expensive cars for its ministers.
The report, compiled by Transparency International and the Kenya National Commission on Human Rights,said the Kibaki government spent 12,2 million dollar on new vehicles – enough to see 25.000 children through eight years of school – since sweeping to power in 2002 on promises to tackle poverty and fight graft.
Half of the 12 million dollar was spent on 57 Mercedes Benz cars, the rest of it on four-wheel drive vehicles, said the report “Living Large: Counting the Cost of Official Extravagance in Kenya”.
The High Court spent more money on luxury cars than any other government department, the report said.
The authors said Kenya should copy the example of neighbouring Rwanda, which has severely restricted the use of luxury cars by public officials.
As well as buying cheaper cars, the authors recommended that Kenya use pool vehicles, rather than allocating cars individually.
Writing in an editorial, The Financial Times (UK) argues that the dilemma for donors is how to cut back on assistance without harming the poor people whom the aid was meant to help.
Donors have realized too late that removing policy conditions from aid programs was based on wishful thinking. Britain and other European governments have moved towards direct budget support, with the aim of providing more reliable and effective funding for recipient governments.
But this depends on a high level of trust, in countries where national institutions are usually weak and corrupt practices are often embedded, the British daily noted.
Kilde: www.worldbank.org
