Posts Tagged ‘Nestor’

World Bank debars 2 firms in Indian child health project

December 21, 2007

WASHINGTON: In its global fight against corruption, the World Bank has debarred two firms for alleged collusive practices in connection with the Bank-financed Reproductive and Child Health Project in India.

The two firms, Nestor Pharmaceuticals Ltd and Pure Pharma Ltd were debarred for a period of three years and one year respectively after a sanctions hearing in fiscal year 2007, according to a new Bank report.

The hearing followed approval by the World Bank Group Board of a broad new set of reforms to the Bank’s sanctions regime in fiscal year 2007 that will help ensure uniform compliance with the highest ethical standards in all aspects of Bank-financed projects around the world, the Annual Integrity Report said.

The World Bank’s Department of Institutional Integrity (INT) also undertook a Detailed Implementation Review or DIR of five projects across the Bank Group’s health portfolio in India, which is to be completed and provided to the region in financial year 2008.

INT, the report said, has greatly increased its use of DIR, which is a proactive diagnostic tool that uses forensic accounting and investigative techniques to examine Bank projects in a given country for indicators of fraud and corruption. INT completed two DIRs in fiscal year 2007 in Kenya and Vietnam.

INT made significant contributions to the global fight against corruption in fiscal year 2007, with a 25 per cent increase in closed investigations from the previous fiscal year.

It also launched a voluntary disclosure programme to deter private-sector corruption, and reached agreement on a coordinated approach to rooting out corruption among the international financial institutions.

“Corruption is a cancer that steals from the poor, eats away at governance and moral fibre, and destroys trust,” said World Bank President Robert B. Zoellick. “The challenge for the World Bank is how best to diagnose, determine, and clean out corruption in concert with developing and developed countries.”

According to the report, “Improving Development Outcomes: Fiscal Year 2007 Annual Integrity Report”, INT closed a total of 301 cases in fiscal Year 2007 ended June 30.

These included both cases of fraud and corruption in Bank-financed projects and cases of alleged staff misconduct, an increase of 60 cases from fiscal year 2006. In addition, the total carryover of open cases into fiscal year 2008 was 232, a decrease of 62 cases (21 per cent) from the fiscal year 2006 backlog and the lowest year-end total since fiscal year 2002.

Economic Times, 20 Dec 2007 

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