WASHINGTON, March 13 (Xinhua) -- The World Bank and the Indian government Thursday announced joint actions in response to clear indicators of fraud and corruption in the health sector.
"We take these indicators of fraud and corruption extremely seriously," said World Bank Group President Robert B. Zoellick.
"Working with the Indian authorities, we will take action against those found responsible, including debarment of firms and individuals from doing business with the bank, and disciplinary action against bank staff if warranted."
The World Bank will also apply the lessons learned to its projects around the world, said Zoellick, noting: "Our focus is on ensuring that the people for whom these projects are designed receive the development benefits they deserve."
The World Bank and the government of India made public a Detailed Implementation Review in January, revealing serious indicators of fraud and corruption in five Bank-financed health projects in India.
Agreed joint actions include comprehensive procurement audits and performance reviews by independent third-party agents, strengthened procurement and financial management in the Ministry of Health, increased use of community-monitoring and oversight, and intensified supervision for civil works and equipment and pharmaceutical procurement.
Qualification requirements in World Bank financed bids will also be adapted to reduce the risks of collusion.
Following the review, the bank has started nine investigations and started an internal review within the bank.
The Indian government has vowed it will punish anyone found guilty of fraud or corruption with "exemplary punishment." It has referred three new cases to the country's Criminal Bureau for Investigation and the Vigilance Department in Orissa has launched a number of follow-up investigations in that state.