World Bank Publishes List Of Corrupt Companies & Individuals
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Any corrupt official or company who siphons money from the World Bank’s development assistance fund will now be publicly exposed, wrote a statement by the international financial institution on May 30th, following the inaugural publication of a set of decisions issued by the World Bank Group’s Sanctions Board in cases of alleged fraud and corruption.
Any corrupt official or company who siphons money from the World Bank’s development assistance fund will now be publicly exposed, wrote a statement by the international financial institution on May 30th, following the inaugural publication of a set of decisions issued by the World Bank Group’s Sanctions Board in cases of alleged fraud and corruption.
“The World Bank Group takes a hard line against corruption, and we believe that greater transparency must be part of that effort,” claimed World Bank Managing Director Sri Mulyani Indrawati.
[quote]“By publishing Sanctions Board decisions, we are making all parties involved in the sanctions process more accountable. This move should deepen the deterrent effect of debarments and enhance the educational value of the Sanctions Board’s findings.”[/quote]Related: Why We Need A Rethink of Development Aid: Sri Mulyani Indrawati
Related: World Corruption Special Report
Since 1999, the World Bank’s Sanctions Board has punished, and at times banished, more than 530 firms and individuals for alleged corruption. According to the bank’s estimates, nearly $20-40 billion is squandered annually out of the $72 billion issued to assist development in poorer countries.
The challenge of tackling such rampant corruption has as such prompted the bank to publicly shame individuals and companies who are effectively stealing money from their own nation.
[quote]”Publication of our decisions furthers the Sanctions Board’s goal to fight fraud and corruption through the rule of law. Parties that come before the Sanctions Board, as well as our partners in the international community, will now have a more robust understanding of our process, case law, and careful examination of each case,” noted Fathi Kemicha, the first external Chair of the Sanctions Board.[/quote]Speaking to Bloomberg BusinessWeek, Arvind Ganesan, director of Human Rights Watch’s business and human rights division, lauded the World Bank’s decision; though he noticed a significant gap in the financial institution’s enforcement measures.
Related: The World Bank Needs To Reform And Adapt To A Changing World Order: José Antonio Ocampo
Related: Can The World Bank Rediscover Itself? : Jeffrey Sachs
Money stolen by governments that receive huge loans from the World Bank had not been reported, said Ganesan, who urged the bank to be more aggressive in pursuing corrupt governments and military regimes who misuse their funds.
In the last month alone, seven companies have been debarred by the bank for alleged fraud and corruption cases. The World Bank says that it will be regularly updating its list to demonstrate the “challenges for the Bank Group’s sanctions system.”
The bank also urges any individual who suspects fraud and corruption in Bank-financed projects to contact the Integrity Vice Presidency at this site.
