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WB allegation without proof

Muhith says about Padma bridge project after meeting ADB deputy

Staff Correspondent
Finance Minister AMA Muhith yesterday claimed that the World Bank had raised corruption allegations over the Padma bridge project without any evidence.
"There was no evidence of corruption. So, it is a spurious complaint, and imaginary,” Muhith told reporters after a meeting with the visiting vice-president of the Asian Development Bank (ADB), Xiaoyu Zhao, at the finance ministry in the capital.
The finance minister's remark comes several days after Ellen Goldstein, the country director of the bank, said the WB stood by its investigations, and urged the government to pursue its own probe into the corruption allegations and hold the wrongdoers accountable.
Muhith was hopeful that the country's biggest-ever infrastructure project would begin by this November with a new planning.
He said under the fresh arrangements, Bangladesh government, not World Bank, would coordinate the project, even if the bank funds the project.The Awami League-led government has given top priority to the project that will cost $2.9 billion (nearly Tk24,000 crore).
In April last year, the WB agreed to provide the government a loan of $1.2-billion for the project, while the ADB pledged $610 million, Japan International Cooperation Agency $400 million and Islamic Development Bank $140 million. And the government would provide the remaining $600 million.
But in September last year, the Washington-based lender raised allegation of corruption in appointing a Canadian consulting firm for the project. The WB, the coordinator of donors for the project, later suspended its funding over the allegation.
Muhith said no work in the project other than land acquisition and rehabilitation had been done, and not even a single complaint was lodged over the acquisition.
“So, how could there be corruption in it?” questioned the finance minister.
He said the AntiCorruption Commission probed the allegations but found no evidence of graft. "The ACC interviewed 61 parties and found no corruption.”
On Malaysia's willingness to fund the project, Muhith said all the deals in this regard will be signed by October.
“We are waiting for a proposal from Malaysia. The final decision will be made by June once we find the proposal acceptable,” he said.
Quoting the visiting ADB official, the minister said the Manila-based lender is willing to fund the project even if the WB backs off.
Muhith also sought $300 million from the ADB as budget support by the year end or by June, 2013 to ease the pressure of rising budgetary expenditure.