By IRNA-PTI
New Delhi : The virus of corruption that has been eating into the vitals of the nation has further infested the World Bank health projects in the country, prompting the government to promise “exemplary punishment” to those found guilty.
This is for the second time the World Bank has found signs of fraud and corruption in five health projects in the country. Close to two years before, the multilateral lending agency has suspended an aid for a health project in India.
The cases of fraud and corruption were discovered in projects relating to eradication of tuberculosis, malaria and HIV/AIDS control schemes by the Detailed Implementation Review (DIR), which was launched by the bank in 2006 with support from the Indian government.
“The probe has revealed unacceptable indicators of fraud and corruption,” said World Bank Group President Robert.B. Zoellick said in a statement here.
These projects include USD 114 million Malaria Control Project, USD 54 million Food and Drug Capacity Building Project, USD 193.7 million Second National HIV/AIDS Control Project, USD 124.8 million Tuberculosis Control Project and USD 82.1 million Orissa Health Systems Development Project, the statement said.
The report found indications of fraudulent and corrupt practices related to procurement such as collusive behaviour, bid-rigging, bribery and manipulated bid prices.
It also found such irregularities related to deficient civil works certified as complete, broken or damaged equipment, certified as compliant with specifications and under delivery of services from contractual obligations.
Acting tough after the revelations, the government said it would set up four groups to probe the charges and warned that those guilty would be punished.
Health Secretary Naresh Dayal told PTI that the Ministry has been working on framing detailed guidelines and modalities to increase and strengthen procurement capacity of states to curb corruption in healthcare projects.
“Four groups, consisting of members from the Finance and Health Ministries, would be set up to probe the irregularities found by the World Bank in the projects,” he said.
An official statement said those found guilty would not be spared.
“Based on the inputs of the DIR and other information that may be furnished by the Bank, necessary action under 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,” the statement said.
The five projects were implemented between 1997 and 2003 with assistance from the Bank and other donors. Four of these projects have already been completed, while the fifth USD 54-million Food and Drug Capacity Building Project is ongoing, but the funds have not been disbursed for it yet.
This project will now be reviewed to incorporate the findings of the DIR, the World Bank statement said.
In an investigation in 2005, the World Bank had found cases of corruption in Reproductive and Child Health project, prompting the multi-lateral agency to withhold more than half a million USD in aid for the project in April 2006. Subsequent to the probe, two pharma companies were also debarred by the Bank.
The current DIR was prompted by that investigation, the World Bank said.
DIR is only an indication of fraud and corruption and is not an investigation.