PMFORUM Breaking News
Breaking News in the Project Management World
Tuesday, April 29, 2008
Project fraud and corruption reported in DR Congo
According to a World Bank press release on 21 April 2008, the World Bank Group has provided the Government of the Democratic Republic of Congo (DR Congo) with a report from the Bank’s Institutional Integrity Department (INT) relaying findings of fraud and corruption. An investigation began in 2006 after World Bank staff brought the attention of INT to allegations of fraud and corruption involving the Emergency Demobilization and Reintegration Project (EDRP) in DR Congo.
The investigation by INT uncovered sufficient evidence to substantiate allegations of fraud, corruption and disallowed expenses under certain contracts in the Project. The Project was financed by the World Bank and a multi-donor trust fund.
The World Bank shared with Government of DR Congo the types of corrupt and fraudulent practices as well as disallowed expenses found during the investigation process. The information provided to the Government on the Project, including on specific contracts, companies involved, and nature of the problems that occurred, is enabling the Government to take appropriate follow-up measures.
According to the news release, the Government has already taken corrective action, including the disbanding of the Project’s executing agency CONADER, sacking its Director and replacing senior management. Implementation of the Project going forward was also moved to a unit within the Ministry of Defense, under tightened fiduciary control arrangements backed up by a major international accounting firm. The Government has also repaid the World Bank and the multi-donor trust fund all disallowed expenses.
Additional actions by the World Bank include notifying law enforcement agencies in the relevant countries of its findings, and initiating a review of possible sanctions against specific companies and individuals suspected of involvement in the corrupt and fraudulent practices. The Bank is also making a version of the INT report public and sharing it with the donors concerned.
The INT investigation found no evidence to establish wrongdoing on the part of World Bank staff. In this case, it was World Bank staff that requested the INT investigation. The World Bank Group has charged INT with the responsibility for the investigation of allegations of fraud and corruption in Bank Group operations, as well as possible misconduct involving Bank staff.
For more information on the World Bank in the Democratic Republic of Congo visit: www.worldbank.org/drc.
The World Bank shared with Government of DR Congo the types of corrupt and fraudulent practices as well as disallowed expenses found during the investigation process. The information provided to the Government on the Project, including on specific contracts, companies involved, and nature of the problems that occurred, is enabling the Government to take appropriate follow-up measures.
According to the news release, the Government has already taken corrective action, including the disbanding of the Project’s executing agency CONADER, sacking its Director and replacing senior management. Implementation of the Project going forward was also moved to a unit within the Ministry of Defense, under tightened fiduciary control arrangements backed up by a major international accounting firm. The Government has also repaid the World Bank and the multi-donor trust fund all disallowed expenses.
Additional actions by the World Bank include notifying law enforcement agencies in the relevant countries of its findings, and initiating a review of possible sanctions against specific companies and individuals suspected of involvement in the corrupt and fraudulent practices. The Bank is also making a version of the INT report public and sharing it with the donors concerned.
The INT investigation found no evidence to establish wrongdoing on the part of World Bank staff. In this case, it was World Bank staff that requested the INT investigation. The World Bank Group has charged INT with the responsibility for the investigation of allegations of fraud and corruption in Bank Group operations, as well as possible misconduct involving Bank staff.
For more information on the World Bank in the Democratic Republic of Congo visit: www.worldbank.org/drc.
