The Hindu Business Line : ‘Serious fraud, corruption in health projects’

Action plan
Based on the inputs of the Detailed Implementation Review, action would be taken against those suspected of wrong-doing and, if found guilty, they will be visited with exemplary punishment.

Our Bureau

New Delhi, Jan. 11 A World Bank report has found ‘serious incidents of fraud and corruption in health projects’ in India. Indian companies, if found guilty of fraud, could face debarment from future Bank projects and other penalties from the Government.

The probe has revealed unacceptable indicators of fraud and corruption, said World Bank Group President, Mr Robert B. Zoellick. He added that the Bank’s governance and anti-corruption work from now on would be placed before the scrutiny of independent and external reviewers to ensure that the institution was making tangible progress in its fight against corruption.

The Government has also committed to follow the Detailed Implementation Review (DIR), which is in the nature of a fact-finding report, with an investigation. The action plan for health sector projects, finalised with the Bank in 2006, would be revised in the light of the lessons emanating from the DIR and in consultation with the Bank, said an official Government statement.

“In addition to the above, based on the inputs of the DIR and other information that may be furnished by the Bank, necessary action under the relevant laws, rules and regulations would be taken against those suspected of wrong-doing and, if found guilty, they will be visited with exemplary punishment,” it added

Four of five projects reviewed, worth $568.6 million in total, financed by the Indian Government, the WB and other donors have been completed. One is ongoing, but is not disbursing funds and will be reviewed to incorporate the findings of the DIR, said a WB release. “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,” said Dr Ngozi Okonjo-Iweala, Managing Director, WB, who was in Delhi recently.

Fraudulent companies

The investigation conducted by the WB’s Department of Institutional Integrity was launched by the World Bank in 2006.

It was prompted by a Bank investigation in 2005 which found corrupt practices by two pharmaceutical companies, Nestor Pharmaceuticals and Pure Pharma, during the bidding process for the Reproductive and Child Health (RCH1) project.

The two companies found colluding to fix prices were subsequently disbarred by the Bank and the Government.

Nine projects

The World Bank is currently committed to nine health projects. The projects 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.

More Stories on : Economic Offences | Health | RBI & Other Central Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page