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Fresh reminder from WB

Padma graft allegations must be thoroughly investigated, it insists

Staff Correspondent
The World Bank funding of the Padma bridge project will depend on the satisfactory implementation of all the measures it has asked the government to take, the bank said in a statement yesterday.
Last week, the global lender announced that it was re-engaging in the project after the government had fulfilled some of its conditions, but for the project's implementation the bank also wanted a fair probe into the graft allegations.
In addition, the financing will depend on the "positive report" by a five-member WB panel on the manner and progress of the investigation by the Anti-Corruption Commission.
“The Bank remains concerned about corruption in Bangladesh in general and in the Padma bridge project in particular. It is for this
reason that we have also made it clear that to engage anew in the project will require new implementation arrangements that give much greater oversight of project procurement processes to the Bank and cofinanciers.
“It is only after satisfactory implementation of all these measures as well as a positive report from the external panel of internationally recognised experts that the World Bank will go ahead with the financing of the project,” said the statement, which came five days after its announcement of reengagement in project.
The bank felt "obliged" to make this clarification as "media reports have quoted senior Bangladeshi
SEE PAGE 19 COL 5 FROM PAGE 1 government officials misrepresenting the World Bank's position concerning the Padma Multipurpose Bridge Project".
The bank's reminder also comes just a day after Prime Minister Sheikh Hasina said in New York that she was determined to find out the "real story and the culprits" behind the cancellation of the $ 1.2 billion credit deal.
Asked to comment on the WB statement. Economic Relations Division Secretary Iqbal Mahmood said the WB spoke about a number of officials, and the government would ask the bank to name those officials.
Officials of the finance ministry and co-financing agencies say a team of the WB, the ADB and the Jica is likely to arrive in Dhaka on October 1 for talks about a fresh implementation
arrangement and the ACC inquiry.
As part of the preparation for the talks, the finance minister yesterday held a top level meeting where the prime minister's international affairs adviser Gowher Rizvi, the ERD secretary, chief of the project's technical evaluation committee Prof Jamilur Reza Choudhury and committee member Ainun Nishat were present.
A finance ministry official said a credible investigation into the alleged graft was one of the major conditions for the loan revival. If the government shows any negligence in this regard, the donors may back away from their new commitment.
“The Bank has shared repeatedly with the Government of Bangladesh credible evidence of corruption involving senior public
officials related to the financing of the Padma bridge. This led the World Bank to cancel the US$1.2 billion credit in the absence of a credible response by the government," said the WB statement yesterday.
It added that on September 20 the government agreed: (1) to place all public officials suspected of involvement in the corruption scheme on leave from government employment until an investigation is complete; (2) to appoint a special inquiry and prosecution team within the ACC to handle the investigation; and (3) to grant access to all investigative information to an external panel of internationally recognised experts who will advise the Bank and co-financiers on the credibility of the government's investigations.
Having agreed to comply with the conditions the
government requested the WB to reconsider funding the Padma bridge project, the statement said.
"The people of Bangladesh deserve a clean bridge. If we are to move ahead, we are insisting that a credible investigation is undertaken and any project implementation be done in a manner that ensures trans-parency and enhanced oversight”.
After the meeting with the finance minister at his Minto Road residence, the ERD secretary told reporters that the ACC would conduct a free and fair investigation as per WB requirements and the WB panel would have access to necessary information from the ACC findings.
“We are very open. The Anti-Corruption Commission will investigate the allegation," he added.