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home > publications > newsletter > 2006 > July 2006 > in the news > cambodia
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By Christian Pfeifer

The World Bank froze funding at the beginning of June for three ongoing programmes in Cambodia due to allegations of bribery, writes the Inter Press Service News Agency. The programmes, focusing on infrastructure and administration, are worth nearly US $7.6 million.

The World Bank is also reviewing the contracts of four other projects under investigation. In total, the Bank currently funds projects in Cambodia to the tune of US $244 million, according to Agence France Presse. The Bank called the decision to cancel its funding “difficult” because the project supports the poorest Cambodians.

According to Business Week, there are cases of fraud and corruption connected to the projects. Agence France Presse also quoted a World Bank statement, writing that “the problems included misuse of funds and mis-procurement, meaning that guidelines for paying for goods and services were not adhered to”.

Inter Press Service reports that the Bank’s punitive measure will not be permanent but can be lifted following implementation of an action plan that introduces new anti-corruption measures for the projects. This is in keeping with Cambodia’s other major aid donors, who stressed in March that development assistance would be given only on the condition that the Cambodian government fights corruption.