The government of India has announced its intention to reexamine ongoing and future projects to ensure that they incorporate the lessons from a Detailed Implementation Review (DIR), a press statement said.
"The probe has revealed unacceptable indicators of fraud and corruption," said World Bank Group President Robert B. Zoellick. "The government of India and the World Bank (WB) are committed to getting to the bottom of how these problems occurred. I appreciate the resolute commitment of the government which will be in the lead in pursuing criminal wrongdoing."
Ngozi Okonjo-Iweala, Managing Director, World Bank, who was in Delhi On Thursday, said: "I have had productive discussions with the Finance Minister and his officers. We have a strong partnership and will work closely together to ensure swift action. I am encouraged by the government of India's serious resolve to address these issues based on the lessons of the DIR and have confidence in their capacity to do so."
The WB and the government of India have already sought to address a number of the risks identified now in the DIR through new project design over the past two years, taking guidance from the Reproductive and Child Health (RCH1) investigation. These remedial measures will be checked for effectiveness and strengthened further if needed.
The WB will also be continuing its probe, which may lead to further sanctions such as debarment of companies, and appropriate action under the rules against any Bank staff if found negligent.
Zoellick directed the WB's Department of Institutional Integrity to make it a priority to investigate the findings of the implementation review to pursue the evidence for legal action.
A DIR is an instrument used by the World Bank to help assess the risk of fraud and or corruption. Previous DIRs have helped Indonesia, Kenya and the Philippines get to grips with some of these issues, according to statement.
The five projects covered by the DIR include the $114 million Malaria Control Project, the $82.1 million Orissa Health Systems Development Project, the ongoing $54 million Food and Drug Capacity Building Project, the $193.7 million Second National HIV/AIDS Control Project, and the $124.8 million Tuberculosis Control Project.
