No financing until 'certain conditions' are met: Kim (WB Pres)
Reply to queries of independent panel already given: ACC chief
Published : Friday, 01 February 2013
FE Report
World Bank President Jim Yong Kim has ruled out the possibility of the Bank's financing the Padma Bridge project until 'certain conditions' are met.
The Bank also needs to be assured of credible investigation into alleged corruption by the Bangladesh authorities, he observed on Wednesday while speaking on anti-corruption at the Center for Strategic and International Studies (CSIS) in Washington DC.
His predecessor Robert Zoellick suspended the Bank's committed $1.20 billion loan for the Padma Bridge on the ground of alleged corruption in the bidding process.
The WB, however, agreed to reconsider the loan, putting some conditions including a credible probe into alleged corruption in the bidding process of the multi-billion dollar project.
The WB-constituted three-member panel of independent experts is now overseeing investigation by the ACC.
But when the ACC filed a case against seven persons excluding former Communications Minister Syed Abul Hossain from the list of accused, the WB's funding appeared to be uncertain. The external panel was unhappy over the investigation process during its last visit to Dhaka.
The latest observation by the WB president in Washington gives now a clear message about the Bank's unwillingness to re-engage itself with the project in view of the developments until now concerning the follow-up actions by the Anti-Corruption Commission (ACC), the watchdog body in Bangladesh.
The WB chief’s speech came a few days after Prime Minister Sheikh Hasina’s comment that the government would go for alternative financing for the Padma bridge project in the case of no WB decision by January this year.
Last week, Finance Minister AMA Muhith said he had sought an appointment with the WB Group President in February to get the latest position of the WB on the financing of the Padma Bridge project.
However, the Communication Minister later the same week stated that the chapter about the possible WB's re-engagement with the Padma Bridge project would be closed after the January 31, 2013 deadline, set by the government.
Prime Minister Sheikh Hasina told the parliament on Wednesday that the construction work of the Padma Bridge would begin during the current tenure of the government.
Meanwhile, Finance Minister Mr. Muhith is still awaiting an appointment with the WB president.
Kim in his speech last Wednesday in Washington said: "Should we shy away from high-risk interventions and forgo the potentially massive benefits to the poor or should we rather take a calculated risk, design appropriate safeguards and move forward with them? My answer is that we need to take risks for development results but we have to do so with our eyes open and try to mitigate those risks as much as we can."
The World Bank ramped up its enforcement measures under the tenure of Zoellick. The bank's enforcement unit, the Integrity Vice Presidency, sanctioned 83 entities in 2012 for fraud or corruption on bank projects, a 247 per cent increase from 2011. Kim lauded the work of the unit and its chief, Leonard McCarthy, on Wednesday.
Kim also highlighted the International Corruption Hunters Alliance, a global network of anti-corruption enforcers launched by the World Bank in 2010.
Meanwhile, Chairman of the Anti Corruption Commission (ACC) Ghulam Rahman told the FE Thursday the ACC had have already sent its reply to several queries of the WB panel.
In its reply, the commission has clarified its position over the issue, he added.
The WB-panel appointed independent panel of external experts is officially engaged to oversee ACC's probe into the alleged corruption plot to ensure a transparent, complete and comprehensive investigation into the bribe conspiracy.
"So, I don't want to make any comment on the speech of the WB head," he said.
Financial Express :: Financial Newspaper of Bangladesh
Reply to queries of independent panel already given: ACC chief
Published : Friday, 01 February 2013
FE Report
World Bank President Jim Yong Kim has ruled out the possibility of the Bank's financing the Padma Bridge project until 'certain conditions' are met.
The Bank also needs to be assured of credible investigation into alleged corruption by the Bangladesh authorities, he observed on Wednesday while speaking on anti-corruption at the Center for Strategic and International Studies (CSIS) in Washington DC.
His predecessor Robert Zoellick suspended the Bank's committed $1.20 billion loan for the Padma Bridge on the ground of alleged corruption in the bidding process.
The WB, however, agreed to reconsider the loan, putting some conditions including a credible probe into alleged corruption in the bidding process of the multi-billion dollar project.
The WB-constituted three-member panel of independent experts is now overseeing investigation by the ACC.
But when the ACC filed a case against seven persons excluding former Communications Minister Syed Abul Hossain from the list of accused, the WB's funding appeared to be uncertain. The external panel was unhappy over the investigation process during its last visit to Dhaka.
The latest observation by the WB president in Washington gives now a clear message about the Bank's unwillingness to re-engage itself with the project in view of the developments until now concerning the follow-up actions by the Anti-Corruption Commission (ACC), the watchdog body in Bangladesh.
The WB chief’s speech came a few days after Prime Minister Sheikh Hasina’s comment that the government would go for alternative financing for the Padma bridge project in the case of no WB decision by January this year.
Last week, Finance Minister AMA Muhith said he had sought an appointment with the WB Group President in February to get the latest position of the WB on the financing of the Padma Bridge project.
However, the Communication Minister later the same week stated that the chapter about the possible WB's re-engagement with the Padma Bridge project would be closed after the January 31, 2013 deadline, set by the government.
Prime Minister Sheikh Hasina told the parliament on Wednesday that the construction work of the Padma Bridge would begin during the current tenure of the government.
Meanwhile, Finance Minister Mr. Muhith is still awaiting an appointment with the WB president.
Kim in his speech last Wednesday in Washington said: "Should we shy away from high-risk interventions and forgo the potentially massive benefits to the poor or should we rather take a calculated risk, design appropriate safeguards and move forward with them? My answer is that we need to take risks for development results but we have to do so with our eyes open and try to mitigate those risks as much as we can."
The World Bank ramped up its enforcement measures under the tenure of Zoellick. The bank's enforcement unit, the Integrity Vice Presidency, sanctioned 83 entities in 2012 for fraud or corruption on bank projects, a 247 per cent increase from 2011. Kim lauded the work of the unit and its chief, Leonard McCarthy, on Wednesday.
Kim also highlighted the International Corruption Hunters Alliance, a global network of anti-corruption enforcers launched by the World Bank in 2010.
Meanwhile, Chairman of the Anti Corruption Commission (ACC) Ghulam Rahman told the FE Thursday the ACC had have already sent its reply to several queries of the WB panel.
In its reply, the commission has clarified its position over the issue, he added.
The WB-panel appointed independent panel of external experts is officially engaged to oversee ACC's probe into the alleged corruption plot to ensure a transparent, complete and comprehensive investigation into the bribe conspiracy.
"So, I don't want to make any comment on the speech of the WB head," he said.
Financial Express :: Financial Newspaper of Bangladesh
