Contacts: In Bangkok: Kimberly Versak kversak@worldbank.org In Washington: Melissa Fossberg mfossberg@worldbank.org This update is part of a series of regular updates on the World Bank’s program in Cambodia, following earlier statements on May 28, 2006, June 4, 2006 and June 6, 2006. JUNE 18, 2006 – A World Bank team has spent the past week in Phnom Penh meeting with the Government of Cambodia and sharing the results of its investigations into seven World-Bank financed projects, undertaken by the World Bank’s Department of Institutional Integrity (INT). The team, which included members of INT, provided the Government in writing with specific information and evidence on the results of the investigations, including information on the specific contracts, the companies involved, and the nature of the problem that occurred. The World Bank believes that the specific information it has now provided will be of great help to the Government as it moves ahead with its own investigation. The World Bank cannot provide any further details because this would jeopardize those who have provided confidential information to the World Bank to carry out these investigations. The World Bank will provide a more detailed update note next week; however, we do want to clarify some numbers which have been mistakenly reported in the media: US$7.6 million has been cancelled from the three projects, listed below. Contrary to many press reports, this US$7.6 million is notthe figure to be repaid. The World Bank has not yet announced that figure, as it is still in the process of determining the total amount of funds that have been disbursed against the 30 contracts in question under these three projects. Nor does this figure represent “missing money,” since these contracts have been executed, or are under execution. As noted earlier, these projects have been delivering results; however, in cases where corruption has been found, these results have come at higher cost or lower quality of work. This US$7.6 million figure comes from: · Provincial and Peri-Urban Water and Sanitation Project (US$21.80 million total World Bank financing): seven contracts misprocured; $1.8 million equivalent will be cancelled; · Provincial and Rural Infrastructure Project ($21.18 million totalWorld Bank financing): six contracts misprocured; $5.1 million equivalent will be cancelled; · Land Management and Administration Project ($28.83 million total World Bank financing):seventeen contracts misprocured; $0.7 million equivalent will be cancelled. TheWorld Bank is finalizing its review of contracts that have been investigated under the other four projects (APIP, FCMCPP, BPAMP, FERP), and will be informing the Government shortly of the actions that need to be taken with respect to these contracts. |
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