The World Bank and the Government of India (GOI) has agreed to take appropriate steps to hold back out health project fraud and corruption with a joint action plan. This was announced by World Bank on March 13 in its response to the detailed implementation review (DIR) that found large scale corruption in Indian health sector.
Following the review the bank has already started nine investigations and Government of India has made criminal referrals. Taking such cases as very serious both GOI and the Bank are committed to take stern action against offenders whether they are individual, organisation or even bank employee if found responsible in any kind of fraud which means that are hindrance to health projects.
The bank will also impose sanction on those firms involved and in addition Indian Government too in its part would follow possible criminal action against the concerned person or institutional authority.
World Bank Group President Robert B. Zoellick in a press statement said, “Our focus is on ensuring that the people for whom these projects are designed receive the development benefits they deserve and the bank will also take disciplinary action against Bank staff if warranted.”
The Detailed Implementation Review (DIR) launched in 2006 by the World Bank Group aims to monitor the progress of various projects by timely accessing the risk of fraud, corruption and mismanagement primarily in the procurement, expenditure process, in contract management at different stages of world bank funded projects.
As per its January, 2008 report the Bank had notified irregularities in five bank-financed projects which are under scrutiny. Since then the government of India has also extended its full co-operation in re-examining some of the ongoing and future projects to reduce the risk of collusion.
The World Bank's Board of Executive Directors, which met on March 13, 2008 in Washington DC agreed to conduct project review in support with the government that includes performance reviews by independent third party, detailed analysis of the financial management of the Ministry of Health, increased use of community monitoring, supervision for civil works and equipment, and pharmaceutical procurement among options.
World Bank supports India’s health sector to strengthen health sector by meeting critical public healthcare needs. Hence, the Bank has also plans to build more stringent anti-corruption measures and better monitoring of systems in the projects.
Earlier this year in the wake of DIR report, the Bank had identified high level corruption in a 77 million dollar for a Health System Development Project in the district of Orissa. The bank later confirmed the involvement of a former state health minister for taking bribes from a firm.
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