WB refutes media reports
The World Bank (WB) has refuted media reports which claimed that prior
approval was not sought from it for the release of payment to KPMG, the
consulting firm in a WB-funded financial sector restructuring programme
implemented by the Nepal Rastra Bank (NRB).
"World Bank procedures do not require prior clearance by us for payments
made against contract conditions agreed between the implementing agency
in this case Nepal Rastra Bank - and the firm it hired for consulting
services," the World Bank said in a press statement released Thursday,
adding that execution of contracts is the responsibility of the
contracting party and payments are governed by the terms and conditions of
the contract.
The Bank further said it reimbursed this contract payment of US$52,538.32
on November 8, 2006 to NRB.
"The World Bank made this payment from a grant window. Our technical
experts found that the work done by the consulting firm was satisfactorily
carried out against the terms of their contract," the release added.
KPMG, Sri Lanka, was the consulting firm in the World Bank-funded project.
But when it failed to sent seven consultants as stated in the agreement,
NRB had unilaterally terminated the agreement with it.
The Supreme Court on Tuesday convicted suspended NRB Governor Bijaya Nath
Bhattarai and Executive Director Surendra Pradhan of corruption while
handing the project and slapped Rs 34,49970 fine on them.
The Commission for Investigation of Abuse of Authority (CIAA) had filed a
case accusing the two of embezzling US$ 51,538 as they had not taken
immediate action against KPMG for failing to turn up as per the agreement
and because of which NRB was deprived of the benefits of financial sector
restructuring project. They were also accused of not claiming compensation
from KPMG after terminating the agreement.
The World Bank said it is conducting its own inquiries into the matter and
will share a draft report with the Government of Nepal by May 2008.
nepalnews.com ag Mar 20 08
Related News
- Apex court finds governor Bhattarai guilty of irregularities
