Anti-corruption measures at work in World Bank projects

Forensic audits and technical training designed to thwart corruption in World Bank-financed projects, including some in the Philippines, “are achieving results," according to the bank’s ranking anti-corruption official in a statement issued Monday (Tuesday in Manila). “We presently focus on high-risk projects and sectors based on information arising from complaints, our own due diligence, and other law enforcement agencies," WB vice president Leonard McCarthy said. The WB has a special office, Preventive Service Unit (PSU) working under the vice president for Integrity and tasked to “develop protections against corruption" such as forensic audits to detect fraud, and training on these types of audits. “The training took place in diverse contexts including Bangladesh, Georgia, India, Indonesia, Lebanon, Kenya, Kosovo, Lao PDR, Pakistan, the Philippines, and Thailand," the WB said in the statement. McCarthy’s office said government auditors in an unspecified country were able “to uncover more than $40 million in ineligible expenditures." Red flags of corruption “In another case, serious issues identified by (Integrity officials) led government officials to reject the award of a $5 million contract, while in other instances bidders lost their prequalification status," McCarthy’s WB unit also said. Forensic audits help avoid substandard quality and screen projects for the most common red flags of fraud and corruption. The World Bank also set-up a Company Risk Profile Database containing the names of companies under investigation. Last year, users searched the database 7,275 times as part of due diligence. “We do this to protect World Bank funds, deter wrongdoers, and make development work better," McCarthy said. The World Bank has also teamed up with the Manila-based Asian Development Bank and other regional multilateral lenders to fight corruption through the adoption of common policies. — ELR/VS, GMA News