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    WB detects fraud in five health projects aided by it

    New Delhi (PTI): Nearly two years after it suspended aid for a health project in India, the World Bank has again detected fraud and corruption in five health projects aided by it here, prompting the government to promise "exemplary punishment" to those found guilty.

    The corruption has been detected in five health projects worth a total of 568 Million USD.

    The cases of fraud and corruption were discovered in projects relating to eradication of tuberculosis, malaria and HIV/AIDS control schemes by the Detailed Implementation Review (DIR), which was launched by the bank in 2006, with support from the Indian government.

    "The probe has revealed unacceptable indicators of fraud and corruption," World Bank Group President Robert B Zoellick said in a statement here.

    The projects are the Malaria Control Project, Food and Drug Capacity Building Project, Second National HIV/AIDS Control Project and Tuberculosis Control Project and Orissa Health Systems Development Project, the statement said.

    The report found indications of fraudulent and corrupt practices related to procurement such as collusive behaviour, bid-rigging, bribery and manipulated bid prices.

    It also found such irregularities related to deficient civil works certified as complete, broken or damaged equipment, certified as compliant with specifications and under delivery of services from contractual obligations.

    Acting tough after the revelations, the government said it would set up four groups to probe the charges and warned that those guilty would be punished.


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