Unlike the Philippines' recent experiences with the Ombudsman, investigations by the World Bank on corruption in at least three instances helped four countries bring erring officials to justice.  

Research by abs-cbnNEWS.com/Newsbreak found at least four countries—U.S., Sweden, Republic of Guinea, and Lesotho--which acted against its nationals based on World Bank investigations and leads. Contractors, government officials, and even World Bank officials were convicted over involvement in corrupt practices.  

In 1999, the World Bank’s Fraud and Corruption Hotline received a report on the irregularities in a project in Ethiopia and Kenya. It involved American World Bank employees, Swedish consultants and contractors, and a Dutch firm.

Former World Bank manager Ramendra Basu, an Indian national and a permanent legal resident alien of the United States, was found to have received kickbacks amounting to US$127,000 or an estimated P6 million in current exchange rates. He conspired with a Swedish consultant to steer contracts for business firms in Ethiopia and Kenya.

Basu also assisted the same consultants bribe an official of the government of Kenya. He arranged for the wire transfer of $50,000 (around P2.3 million) to the Kenyan official.

Investigations by the World Bank resulted in the termination of three employees and debarment of seven Swedish firms, one Dutch firm, and two individuals from participating in future World Bank businesses. It later referred the cases to the Swedish and U.S. governments because of the involvement of their nationals.

In the US, Basu was sentenced in April 2008 by a US District Court to 15 months in prison. His co-conspirator, World Bank Task Manager Gautam Sengupta, was sentenced earlier in February 2006. Gupta is also a permanent legal resident alien of the United States.  

The US justice department acknowledged the “substantial investigatory assistance provided by the World Bank.” (See story.)
 
In Sweden, the two individuals involved in anomalies were also convicted. During the trial, the World Bank even allowed--upon the request of prosecutors--a staff member to testify against them.

Quick Action

In the Republic of Guinea, West Africa, one year was all the authorities needed to punish three individuals involved in corrupt activities in relation to the World Bank-financed US$19-million Capacity for Service Delivery project.

The World Bank’s Department of Institutional Integrity referred the case to the authorities in October 2003. The sentence was served in June 2004.  (Read World Bank news release. )

One was sentenced to five years in prison and fined 3 million Guinea Francs (GNF). The other two individuals were convicted of Criminal Abstention--or willfully taking no action--to prevent the commission of a crime. They were sentenced to three years in prison and fined 1 million GNF

The project was suspended by the World Bank.

Beneficial cooperation

The assistance offered by the World Bank in Lesotho and in South Africa is another case in point.

In 1999, the World Bank’s Department of Institutional Integrity offered an incomplete report to help the government pursue corruption cases against representatives of German company, Lahmeyer International, and Mr. Masupha Sole, of corrupt practices in connection with the Lesotho Highlands Water Project—a massive, multi-billion dollar water transfer and hydropower project implemented by governments of Lesotho and South Africa. Sole was the chief executive of the project.  (Read World Bank news release. )

Four years later, representatives of the Lahmeyer International and Sole were convicted by the High Court. The representatives of Lahameyer were found to have arranged bribery payments for Sole.

These convictions later helped the World Bank re-open its case against Lahmeyer International. In 2006, it debarred the company from participating in World Bank projects for seven years.

Weak Ombudsman

In contrast, anti-corruption groups and reform advocates in the Philippines have expressed fear that that nothing will come out of the recent case referred by the World Bank on the alleged collusion among contractors to win a multi-million dollar road projects. The controversy has dragged President Arroyo’s husband into the controversy.

“We are deeply disturbed by the efforts of some government officials and legislators to impugn and malign the efforts undertaken by the [World] Bank to weed out corrupt practices in government,” the Former Senior Government Officials (FSGO), a group of about a hundred former Cabinet officials since the administration of President Diosdado Macapagal advocating good governance, said Friday.

“It is our international embarrassment that some senators and congressmen have accused the World Bank of possible collusion with the contractors. This is the outrageous practice of the current leadership of this government to accuse those who dare tell the truth of deception,” the FSGO said. 

“The question crying out to be asked—and curiously, was never asked directly in the Senate hearing last week—is what the Ombudsman intends to do about the case, particularly a clear timeline for its own investigation and eventual dispositive action,” said former National Economic and Development Authority (NEDA) director-general Cielito Habito in a recent newspaper column.  

“What is apparent is that the Office of the Ombudsman had been aware of the matter for at least 14 months and yet, inexplicably, only now declares that it has begun acting on the case. What was it doing in the last 14 months, when it could have easily sought additional information from the World Bank with which to conduct its own deliberate investigation, which was incumbent on it to undertake?,” Habito added.