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Letter to the Editor

from World Bank Country Director Bert Hofman - August 25, 2008

To the Editor of the Philippine Star Newspaper:

On behalf of the World Bank, I would like to correct the news article by Jaime Laude on page 9 of your newspaper, dated August 23, 2008.  The article quotes the suspicion of an unnamed source that funds destined for Mindanao from development partners including the World Bank were diverted. 

Considering that what is at stake are development funds for the poor communities in Mindanao amid the intense fighting in some areas of the island, we would have welcomed the Star’s verification of the allegations by the anonymous source.   With this letter, I would like to correct any wrong impression the article may have created.

The World Bank manages a multi-donor trust fund for the reconstruction and development of conflict-affected communities in Mindanao and oversees the implementation of the project through the Bangsamoro Development Agency (BDA). A total of about PHP 38 million have been granted for community infrastructure so far and all these funds are fully accounted for.

The funds are channeled through an international non-government organization (INGO).  The funds flow directly from the INGO to the community bank accounts, and the community decides on the use of the funds, usually for community infrastructure and economic activity.  The BDA does not handle the funds for communities at any stage.

The Trust fund has strong monitoring mechanisms for fund disbursement and use.  The community members are trained in proper book keeping and have to follow financial management guidelines; they are monitored for compliance.   Funds received and spent are posted on bulletin boards for everyone to scrutinize.  The funds are audited on a regular basis, and external audit is performed by the reputable Filipino audit firm of Sycip Gorres and Velayo.  The physical infrastructure built with the funds is also easily verified, and is further evidence of the proper use of the funds.  Detailed information on all sub-projects, like location and amounts, are posted in www.emindanao.org.ph.

The funds have resulted in improved services for poor conflict-affected communities in Mindanao, often with counterpart contributions from LGUs.  Examples of these projects include communal faucets in strategic locations, providing water for hundreds of households; a community and learning center that rebuilds broken relations and builds trust and respect among community members; and concrete access paths to the market, reducing transport costs for and easier market access for poor communities.

We feel, therefore, that there is no basis for the suspicion of the unnamed source in the article.  World Bank funds in Mindanao improve the lives of the very poor in marginalized communities in Mindanao, which we believe contributes to peaceful development on the island. 

I want to assure all that the development community remains steadfast in its commitment to peace and development programs in Mindanao, while standing firm against violence and lawless elements.

Sincerely yours,

Bert Hofman
World Bank Country Director for the Philippines
Manila




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