World Bank will resume funding for Cambodia

PHNOM PENH, Cambodia: The World Bank said Wednesday it will resume disbursing money for three development projects in Cambodia after suspending aid last year due to alleged corrupt practices.

In a news release Wednesday, the World Bank said it decided to lift the suspensions after it had reached agreement with the government on frameworks for improving implementation of the projects, which dealt with land management and administration, provincial and rural infrastructure, and provincial and suburban water supply and sanitation.

In June last year, the bank froze US$7.6 million (€5.8 million) in funding for the projects, saying it had discovered evidence of fraud and corruption in the procurement process.

The government of Prime Minister Hun Sen angrily denied the allegations, saying there was no proof of wrongdoing.

"Implementation of these frameworks should reduce the fiduciary risks associated with World Bank financed projects and ensure that the funds are being used for their intended purposes," Ian Porter, the bank's country director for Cambodia, was quoted saying in the bank's statement.

It added that the government is also establishing anti-corruption action plans for all World Bank financed projects.

They include measures to strengthen procurement procedures, financial management processes, staff conduct, complaint mechanisms and disclosure and internal controls. One of the key measures is the delegation of procurement for World Bank-financed projects to an independent international firm, the statement said.

Khieu Kanharith, the chief government spokesman, could not be immediately reached for comment.