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Vietnam DIR: Rural roads




A DIR was conducted in Vietnam between May and September 2006 covering two Bank-financed infrastructure projects which also received funds from the United Kingdom’s Department for International Development (DfID). The DIR team was led by INT with input from the Regional staff and staff from DfID’s Anti-Corruption Unit. The Bank Group collected data on 742 contracts, undertook an intensive procurement review of 100 contracts and a detailed financial management review of 77 contracts. Team members visited a total of 51 sites to review the implementation of contracts.

The DIR found a proliferation of indicators of collusion, fraud, misrepresentation and preferential treatment in the procurement and award of contracts. The DIR also found vulnerabilities to irregularities in the projects’ financial management activities and control environment. Lastly, a large number of the project sites visited by the DIR team showed design and construction irregularities in works.

The DIR findings were discussed with the Government of Vietnam in May 2007, the Bank Group’s Regional and Country office and two donors. To facilitate effective sharing of the findings within the Government of Vietnam, the DIR report was translated into Vietnamese. Furthermore, the Bank Group’s country office held a joint press conference on the DIR report with the Ministry of Transport of Vietnam. The Region and the Government of Vietnam have since developed an action plan to address the DIR findings with the intention of reducing the weaknesses and vulnerabilities of Bank-financed projects to fraud and corruption.

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Last updated: 2008-09-12

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