Investigation into possible fraud and corruption in the procurement of pharmaceuticals

[Guest guest]

Statement on World Bank-assisted Health Projects in India

New Delhi, April 3, 2006: The World Bank strongly believes that

corruption and leakages are a major development issue for they

undermine the intended outcomes for which public money is spent. The

Government of India shares this concern.

The World Bank's Department of Institutional Integrity has been

conducting an investigation into allegations of possible fraud and

corruption in the procurement of pharmaceuticals as part of the Bank-

supported Reproductive and Child Health Program I (RCH I). While we

cannot comment on the investigation because it is still ongoing, we

have shared our findings so far with the Government of India.

To allow more time for discussion between the Bank and the

Government of India on the most effective ways to address these

issues moving forward, we have postponed consideration of a second

RCH program and two other health sector loans by the Board of the

Bank. These are the Second National Tuberculosis Control Project and

the Karnataka Health Systems Project.

Three other health sector loans – HIV/AIDS III, Vector Borne Disease

Control Project and West Bengal Health Systems – are still under

preparation and have yet to reach a decision-making stage.

http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/IN

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