WORLD
BANK: World Bank takes further step in anti-corruption fight; Bank initiates
annual report detailing investigations also available in: Arabic , Chinese
World Bank President James D.
Wolfensohn said, "We are determined to root out fraud and corruption
wherever they exist. I am encouraged by this report, which shows that the Bank
continues to be a leader in the fight against corruption, and that we're looking
into every allegation we receive related to our work and we are being fully
transparent about it. Anyone who looks at the report will see that this is real
action in confronting the cancer of corruption."
The report finds that in the five years since 1999, the Bank's Institutional Integrity
department has investigated and closed over 2,000 cases, both internal and
external. The report notes that allegations received--either through the
Bank's 24-hour hotline, Bank staff, or other sources-- ranged from instances of
fraud and corruption in Bank-financed projects or in relation to the Bank's own
administrative budget, to other forms of workplace misconduct such as sexual
harassment, violations of policies and procedures, and non-compliance with
personal financial obligations. Since 1999 to date, the Bank has sanctioned over 300 firms and individuals for fraud and
corruption in Bank-financed projects. The number of serious allegations
involving Bank staff represents less than 1% of the total staff. The report
makes clear that the Bank takes all allegations seriously.
The new Annual Report on Investigations and Sanctions of
Staff Misconduct and Fraud and Corruption in World Bank-Financed Projects also
describes the evolution of the Bank's capacity for carrying out its
anticorruption efforts, including the Institutional Integrity Department and
the Sanctions Committee. Both of these were established following the
World Bank's 1996 decision to confront "the cancer of corruption."
A conflict resolution system for staff and protection for whistleblowers have
also been established.
WASHINGTON - Taking another step in its anticorruption
efforts, the World Bank today released its first annual report on
investigations into allegations of fraud and corruption, both internally and in
Bank-financed projects. The report provides detailed data for the fiscal year
2004 as well as summary data for the period 1999-2004.
Since 1996, the
World Bank has taken a leading role in the fight against corruption,
supporting more than 600 anticorruption programs and governance initiatives
developed by its member countries.
World Bank President James D. Wolfensohn said, "We are
determined to root out fraud and corruption wherever they exist. I am
encouraged by this report, which shows that the Bank continues to be a leader
in the fight against corruption, and that we're looking into every allegation
we receive related to our work and we are being fully transparent about it.
Anyone who looks at the report will see that this is real action in confronting
the cancer of corruption."
The report finds that in the five years since 1999, the Bank's Institutional Integrity
department has investigated and closed over 2,000 cases, both internal and
external. The report notes that allegations received--either through the
Bank's 24-hour hotline, Bank staff, or other sources-- ranged from instances of
fraud and corruption in Bank-financed projects or in relation to the Bank's own
administrative budget, to other forms of workplace misconduct such as sexual
harassment, violations of policies and procedures, and non-compliance with
personal financial obligations. Since 1999 to date, the Bank has sanctioned
over 300 firms and individuals for fraud and corruption in Bank-financed
projects. The number of serious
allegations involving Bank staff represents less than 1% of the total staff.
The report makes clear that the Bank takes all allegations seriously.
The new Annual Report on Investigations and Sanctions of
Staff Misconduct and Fraud and Corruption in World Bank-Financed Projects also
describes the evolution of the Bank's capacity for carrying out its
anticorruption efforts, including the Institutional Integrity Department and
the Sanctions Committee. Both of these were established following the
World Bank's 1996 decision to confront "the cancer of corruption."
A conflict resolution system for staff and protection for whistleblowers have
also been established.
Wolfensohn stresses in the foreword of the report that
continual vigilance is required in the anti-corruption effort: "While much
has been accomplished, much more remains to be done," he said, "the
diversion of funds from development projects through fraud and corruption, when
it occurs, directly injures the ability of the Bank, its partners and its borrowers
to achieve the goals that have been set for poverty reduction."
The Institutional Integrity department is a special
independent unit created in 1999 to uncover fraud and corruption. In an
indication of the Bank's commitment, the report notes that the unit's budget has
been steadily increasing (to $10 million in fiscal 2004) and it has a staff of
nearly 50 people-- stronger force than all other multilateral development banks
combined in this area.
The report cites progress in mainstreaming the
investigations and sanctioning functions within the Bank, including:
* Endorsement by former U.N. Undersecretary and former U.S.
Attorney General Dick Thornburgh of the Bank's new directions in the fight
against fraud and corruption;
* Approval by the Bank's Board of Executive Directors of
recommendations for reforming the Bank's sanctioning process to improve its
efficiency and effectiveness, now in the process of implementation;
* Increases in budget and staffing for the Integrity
Department;
* Improvements in case management and development of a new
case management database to facilitate more effective analysis of case- related
data; and
* Approval of a communications policy and changes to the
Bank's disclosure policy designed to enhance the visibility and deterrent effects
of the anti-corruption work.
In other developments, the Bank noted significant progress
overall in clarifying policy and procedural issues for its investigative work,
and in moving forward with a more proactive approach--a key element of its new
strategic direction for fighting fraud and corruption in Bank-financed
projects.
In addition to further use of proactive project
implementation reviews, the Bank indicated its intention to institute, in the
near future, a formal program to encourage firms participating in Bank-
financed projects to voluntarily disclose fraud and corruption and undertake
corporate reform in return for more lenient sanctions--a program similar to
those in use in the United States, the European Union, and Australia.
In the Bank's fiscal year ending June 30, 2004, the
Sanctions Committee received 23 new cases from the Integrity Department, met 8
times and heard 16 cases, debarred 55 firms and 71 individuals, and issued 7
letters of reprimand--four to firms and three to individuals. The World Bank is
the only multilateral development bank to make public its sanctions.
Nine staff members were found to
have engaged in fraudulent or corrupt practices, and were terminated and barred
from rehire.
Three
staff members found to have engaged in other forms of misconduct received other
disciplinary action consistent with Bank rules and procedures.
These actions are a part of the World Bank's wide-ranging
anticorruption efforts initiated in 1996. More information on the World Bank's
overall anticorruption policies and activities can be found at:
http://www.worldbank.org/brief/corruption
Reference :
