Global Fund to review India projects for fraud

[Guest guest]

INTERVIEW-Global Fund to review India projects for fraud

01 Feb 2008 13:29:13 GMT

Source: Reuters, By

NEW DELHI, Feb 1 (Reuters) - The Global Fund to Fight AIDS,

Tuberculosis and Malaria is reviewing its India operations after the

World Bank said it found signs of widespread corruption in its own

India projects, the Fund's regional head said on Friday.

The Fund says it has no evidence right now that any of the more than

$170 million it has handed to India since 2003 has been lost to

fraud.

But Taufiqur Rahman, the Fund's head of grants in South and West

Asia, says an urgent, in-depth inquiry was vital in the light of the

World Bank's report last month.

That report found that, in some projects, close to 90 percent of

contracts involving Bank funds in India showed signs of fraud.

" It's important for us to take the findings of the World Bank

seriously, " Rahman told Reuters by telephone from the Fund's Geneva

headquarters.

" It's a review just to make sure, given the World Bank report, that

our investments are protected. " I was surprised (by the report)

because we didn't know the scale of it. "

But some development workers have told Reuters the report only

confirmed their own experiences -- that blatant corruption continues

to hinder India's efforts to prevent people dying from tuberculosis,

malaria and other diseases.

Rahman says the Fund has never seen evidence of fraud in its Indian

operations, where it funds testing and treatment programmes. The

worst he has heard is complaints that getting hold of promised funds

can be slow.

The World Bank earlier acted as an agent for Global Fund money, but

the two institutions now work independently in India. Rahman hopes

the review, which will be conducted by PriceWaterhouses, will

begin next week.

" It's a priority for us, " he said. " We'll move rapidly on this

one ... If there's any hint of corruption the Global Fund comes down

very hard. "

The Global Fund says it provides two-thirds of international funding

to fight malaria and tuberculosis.

India's government is examining the World Bank's report and says it

will punish people who broke the law. It is the fourth report done by

or for the Bank since 2005 to have found signs of corruption in

India.

Rahman was asked if he expected the Fund's review would uncover

similar signs of fraud.

" We don't want to get into a situation where we're making

assumptions, that's not fair to the country, " he said. (Editing by

)

http://www.alertnet.org/thenews/newsdesk/DEL264044.htm