World Bank and India combine to fight corruption

14 March 2008

The World Bank has welcomed the Indian government's resolve to weed out corruption in healthcare projects that the bank was funding in the country.

Last year The World Bank had launched investigations in the healthcare projects it was funding that revealed corrupt and fraudulent transactions in the country's health projects. According to a report yesterday, the World Bank has agreed to collaborate with the Indian government to help root out corruption.

The World Bank said it would work in conjunction with the Indian government and conduct independent procurement audits and performance reviews. The institution believes that there is also a need for a stronger bidding process and a robust financial management in the health sector as also for better supervision of equipment and pharmaceutical procurement practices.

World Bank president, Robert Zoellick said, the bank would work with the Indian government and debar firms and individuals from doing business with the bank. He also vowed to initiate disciplinary action against bank staff, if warranted.

He also said the bank would apply the lessons learned to projects around the world as its focus was on ensuring that the project beneficiaries receive the development benefits.

The bank's 'institutional integrity' unit ignited this controversy with a report in 2005, which detailed the pharmaceutical drug procurement as part of the RCH I (Reproductive and Child Health I) Project.