WB expresses concerns about CIAA charges

The World Bank (WB) has expressed serious concerns about the controversy surrounding alleged fraud in a WB financed contract administered by the Nepal Rastra Bank (NRB) and expressed hope for professional investigations based on credible evidence on allegations of corruption charged by the Commission for Investigation of Abuse of Authority (CIAA).

“We take these allegations very seriously and hope that the investigations are carried out in a professional manner and on the basis of credible evidence,” said Susan Goldmark, World Bank Country Director for Nepal, in a statement released on Sunday.

“We are also carrying out our own internal review of the allegations and the circumstances around them,” she said. “At this point we can confirm that the World Bank provided it’s no objection to both the award and termination of Nepal Rastra Bank’s contract with IEF Inc. under routine World Bank procedures.  Furthermore, we have received a copy of the consultant’s Inception Report, which was the basis for Nepal Rastra Bank’s release of payment to IEF Inc.,” she added.

“More importantly, we hope that the uncertainty will clear soon so that Nepal’s attention can be refocused on the important task of reforming the financial sector,” said Goldmark. 

In the statement, she has also expressed hope that recent developments do not undermine the morale of staff at NRB, who are leading reform efforts in a very challenging environment.

Meanwhile, central bank employees on Sunday staged a protest against CIAA for filing charges against the governor and a senior NRB official, terming the allegations baseless and ill-intentioned.

They organized a protest rally from NRB central Office at Baluwatar to the CIAA's premises.

Smililarly, Issuing a press release Nepal Bankers' Association (NBA) said, "The action can adversely affect financial sector reform, the banking sector and the economy as a whole."

The Commission for Investigation of Abuse of Authority (CIAA) last friday had registered a case against the NRB governor Bijaya Nath Bhattarai and executive director at the special court for committing irregularities of Rs 24.5 million in carrying out a programme under the financial sector reforms initiatives.