Re: Paul Wolfowitz said World Bank "will work actively with other donors to support" Cambodian reform

The World Bank Decides More Reforms in Cambodia even though Corruptions
Found
Reaksmey Heng
Phnom Penh
28/06/2006

A statement by the World Bank President Paul Wolfowitz after a meeting
on Cambodia held on Tuesday, June 27, 2006 says that the World Bank is
determined to continue reform projects in Cambodia for the benefits of
Cambodian poor people although corruptions worth millions of dollars
have been found.

In the bank's press release issued this Wednesday, Pual Wolfowitz
acknowledges that there is clearly an ongoing development in Cambodia,
but governance is still a big problem. He emphasizes that the banks
always work with other donors to support any country where reforms are
implemented with important measures.

The bank asserts that it is offering USD14 million for a project to
improve governance and combat against corruption.

Om Yientieng, senior advisor to Primer Minister Hun Sen, welcomes the
bank's new project. He says the government has been doing what the
bank comments.

The conflict between the bank and the Cambodian government over the
corruption is still going on.

Ian Porter, country director for Cambodia says it is important for the
bank to work with the government to fix the weaknesses impacting those
projects.

By so doing, we can get back to work to ensure that Cambodian people
have secure property rights, and that roads are built, poor people are
effectively helped, and our goal can be successfully accomplished.

Paul Wolfowitz added that Cambodian government and the bank are working
together the fix the previous problems. If corruptions are found, the
bank has to actively work with the government to seek for affective
action so that the aids for development can be used for the benefits of
poor people.









Chim wrote:
Updated:2006-06-28 07:22:56
World Bank offers program, encouragement, to fight Cambodian corruption
By KER MUNTHIT
AP
PHNOM PENH, Cambodia (AP) - The World Bank, which has charged that
millions of dollars (euros) were illicitly siphoned off from seven of
its development projects in Cambodia, has approved a new program to
help improve governance and fight corruption there, it announced
Wednesday.

The new US$14 million (11.14 million) program is designed "to support
improvements in the management of and accounting for public finances,"
said a statement from the World Bank, adding that its board of
executive directors has reaffirmed its support for Cambodian reform.

The announcement of the new program came as bank president Paul
Wolfowitz said it is essential to fight corruption in Cambodia so that
aid can truly benefit the country's poor majority.

His observation, cited in the bank's statement, came as the bank and
the Cambodian government have been embroiled in a bitter dispute over
alleged corruption in bank-funded development projects.

The bank has frozen funding for three projects and is seeking
reimbursement for money given to four others. It says substantial
corruption was involved in 43 contracts worth US$11.9 million (9.4
million), representing part of the overall funding for the seven
projects.

The government of Prime Minister Hun Sen has angrily denied the
allegations, saying there is no proof of misdeeds.

"While there has clearly been progress in Cambodia, the governance
environment remains extremely challenging," Wolfowitz said Tuesday in
Washington after a meeting of the bank's board of executive directors.

He said the bank "will work actively with other donors to support"
Cambodian reform.

"But when corruption is found, the bank needs to work vigorously with
the government to take appropriate actions, so that development
assistance ultimately benefits the poor who are its intended
beneficiaries," he added.

The statement quoted Nisha Agrawal, the bank's country manager for
Cambodia, saying that the new program to strengthen financial
accounting is aimed at supporting a long-term program of critical
reforms for improving public financial management and helping
strengthen fiduciary systems and the World Bank's portfolio.

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