Corruption, fraud plagues World Bank aided health projects

January 13, 2008

Sunday January 13 2008 00:16 IST

PTI NEW DELHI: World Bank has discovered serious cases of fraud and

corruption in the five health sector projects dealing with

eradication of tuberculosis and malaria and HIV/AIDS control schemes.

The probe into the five health projects has revealed unacceptable

indicators of fraud and corruption, World Bank President B

Zoellick said in the statement.

These projects include USD 114 million Malaria Control Project, USD

82.1 million Orissa Health Systems Development Project, USD 54

million Food and Drug Capacity Building Project, USD 193.7 million

Second National HIV/AIDS Control Project USD and 124.8 million

Tuberculosis Control Project, it added.

The Indian government has promised to take " exemplary " action against

those found guilty, it added.

The cases of frauds and corruption were discovered during the

Detailed Implementation Review (DIR), which was launched by the bank

in 2006, with support from Indian government.

The five projects were implemented between 1997 and 2003 with

assistance from the Bank and other donors. Four of these projects

have already been completed, while the fifth USD 54-million Food and

Drug Capacity Building Project is ongoing, but the funds have not

been disbursed for it yet.

This project will now be reviewed to incorporate the findings of the

DIR, the World Bank statement said.

In an investigation in 2005, the World Bank had found cases of

corruption in Reproductive and Child Health project, prompting the

multi-lateral agency to withhold aid for the project for sometime.

Subsequent to the probe, two pharma companies were also debarred by

the Bank.

The current DIR was prompted by that investigation, the World Bank

said.

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