World Bank cancels Bangladesh bridge loan over corruption

[BanglaBhoot]

The World Bank has pulled out of a project to build Bangladesh's largest bridge, citing corruption concerns.

In a statement, the bank said it was cancelling its $1.2bn (£764m) credit for the 6km-long (four miles) the road-rail bridge across the Padma River.

It accused the government in Dhaka of failing to investigate claims of high-level fraud in connection with the project.

Bangladesh has so far not commented on the World Bank's decision.
'Unsatisfactory' response

"The World Bank cannot, should not, and will not turn a blind eye to evidence of corruption," the Washington-based institution said in the statement on Friday.

It said that the bank had provided evidence of corruption from two investigations to Bangladesh's government last September, asking to suspend officials suspected of corruption.

It also said it had sent a high-level team to Dhaka to fully explain its position on the issue

But Dhaka's response, the statement added, "has been unsatisfactory".

The corruption allegations also involve two former executives from Canada's engineering company SNC-Lavalin.

The company has been under investigation by Canada's prosecutors for more than a year, and the two executives now face charges of trying to bribe Bangladeshi officials.

The Padma bridge project aims to connect Bangladesh's principal sea ports and link to the Dhaka-Chittagong Highway.

Analysts say that some 30 million people in the region could directly benefit from the new road and rail connection.

At present all traffic across the Padma has to rely on ferries, which are infrequent and often unsafe.

BBC News - World Bank cancels Bangladesh bridge loan over corruption

 

[BanglaBhoot]

This is a very big embarrassment for the government.

 

[Roybot]

World Bank yanks funds for Bangladesh bridge | Reuters

Earlier this week, two former executives from Canadian engineering company SNC-Lavalin Group Inc, which bid to supervise the contractor on the project, appeared in a Toronto court on Monday accused of bribing officials in Bangladesh.

The executives Ramesh Shah and Mohammad Ismail were arrested by the Royal Canadian Mounted Police in February following a 2011 raid on SNC-Lavalin offices. SNC-Lavalin is one of the world's largest engineering companies.

 

[ramu]

World Bank cancels $1.2bn loan for Bangladesh bridge over corruption case
WASHINGTON: The World Bank on Friday cancelled a $1.2 billion loan for Bangladesh's Padma bridge project, saying the government had not cooperated in investigating "high level" corruption in the project.

"The World Bank provided evidence from two investigations to the prime minister, as well as the minister of finance and the chairman of the Anti-Corruption Commission of Bangladesh in September 2011 and April 2012," it said in a statement.

"We urged the authorities of Bangladesh to investigate this matter fully and, where justified, prosecute those responsible for corruption."

"In an effort to go the extra mile, we sent a high-level team to Dhaka to fully explain the bank's position and receive the government's response. The response has been unsatisfactory," it said.

"We only finance a project when we have adequate assurances that we can do so in a clean and transparent way," the bank said, adding that the loan cancellation was "effective immediately."

World Bank cancels $1.2bn loan for Bangladesh bridge over corruption case - The Times of India

 

[third eye]

This is a very big embarrassment for the government.

BD should have known its coming.

They could have worked to pre empt it.

It can still be got around.

 

[CaPtAiN_pLaNeT]

PRESS RELEASE
World Bank Statement on Padma Bridge

World Bank Statement on Padma Bridge

June 29, 2012

WASHINGTON, June 29, 2012—The World Bank has credible evidence corroborated by a variety of sources which points to a high-level corruption conspiracy among Bangladeshi government officials, SNC Lavalin executives and private individuals in connection with the Padma Multipurpose Bridge Project.

The World Bank provided evidence from two investigations to the Prime Minister, as well as the Minister of Finance and the Chairman of the Anti -Corruption Commission of Bangladesh (ACC) in September 2011 and April 2012. We urged the authorities of Bangladesh to investigate this matter fully and, where justified, prosecute those responsible for corruption. We did so because we hoped the Government would give the matter the serious attention it warrants.

In Canada, where SNC Lavalin ‘s headquarters are located, after executing numerous search warrants and a year-long investigation based on a referral from the World Bank, the Crown Prosecution Services brought corruption charges against two former SNC executives in connection with the Padma Bridge Project. Investigation and prosecution are ongoing but the court filings to date underscore the gravity of this case.

Because we recognize the importance of the bridge for the development of Bangladesh and the Region, we nonetheless proposed to proceed with an alternative, turnkey-style implementation approach to the project provided the Government took serious actions against the high level corruption we had unearthed. It would be irresponsible of the Bank not to press for action on these threats to good governance and development.

To be willing to go forward with the alternative turnkey-style approach, we sought the following actions: (i) place all public officials suspected of involvement in the corruption scheme on leave from Government employment until the investigation is completed; (ii) appoint a special inquiry team within the ACC to handle the investigation, and (iii) agree to provide full and adequate access to all investigative information to a panel appointed by the World Bank comprised of internationally recognized experts so that the panel can give guidance to the lenders on the progress, adequacy, and fairness of the investigation. We worked extensively with the Government and the ACC to ensure that all actions requested were fully aligned with Bangladeshi laws and procedures.

We proposed that when the first bids would be launched, the Bank and the co-financiers would decide to go ahead with project financing if they had determined, based on the Panel’s assessment, that a full and fair investigation was under way and progressing appropriately.

In an effort to go the extra mile, we sent a high-level team to Dhaka to fully explain the Bank’s position and receive the Government’s response. The response has been unsatisfactory.

The World Bank cannot, should not, and will not turn a blind eye to evidence of corruption. We have both an ethical obligation and a fiduciary responsibility to our shareholders and IDA donor countries. It is our responsibility to make sure IDA resources are used for their intended purposes and that we only finance a project when we have adequate assurances that we can do so in a clean and transparent way. In light of the inadequate response by the Government of Bangladesh, the World Bank has decided to cancel its $1.2 billion IDA credit in support of the Padma Multipurpose Bridge project, effective immediately.

 

[idune]

Just few days ago indians was demanding proof of Padma bridge corruption and trying to defend Awami regime. Now proof is on their face.

 

[Bhairava]

Not to be worried -- if Bangladesh can splurge on 50 5-star hotels in that run down city of cox-bazaar, surely a single bridge would not be that big an issue.

 

[idune]

Not to be worried -- if Bangladesh can splurge on 50 5-star hotels in that run down city of cox-bazaar, surely a single bridge would not be that big an issue.

No worries, just like indians, their Awami league stooge got busted. This heartburn will leave a mark on indians.

 

[Bhairava]

No worries, just like indians, their Awami league stooge got busted. This heartburn will leave a mark on indians.

Ohhh..okaaay....

 

[livingdead]

What a shame. But bangladeshi face saving( by blaming their own govt) is expected here.

 

[Fuego]

No worries, just like indians, their Awami league stooge got busted. This heartburn will leave a mark on indians.

The world bank denies the loan to Bangladesh for a bridge. How does that equate to heartburn for Indians?

 

[kobiraaz]

Glory Glory to Sheikh Hasina and her minister Abul Hossain for asking percentage lol! Din Bodol, Digitalization khekz ! Hasina ekhon koi mukh lukabe?? :p MF AWAMIS

 

[indian_jigar]

Should not be a worry for rich Bangladeshis who can afford to builf 50 5 star hotels in some random beach city. Just finance the bridge yourselves instead of IMF because you guys seem to be floating on money these days

 

[bdslph]

i agree with WB they did the right thing by cancel