World Bank reviewed contracts during NDA: Ramadoss

“When the present Government took over in 2004, RCH I programme was almost in its last phase of operation and when the World Bank shared their interim finding with the Ministry detailed discussions were held thereafter. It is clarified that this entire report relates to the previous Government’s period,” he stressed.

Ramadoss has said that when the UPA took over, a number of corrective measures were immediately taken after the Bank submitted its report in 2005 and the Bank appreciated the measures. While some of the measures are already in place, others like linking ‘Fraud Detection’ and ‘anti-corruption’ systems with an MIS are still being worked on.

• An Empowered Procurement Wing (EPW) was set up so all future procurements for externally assisted projects will be made by the United Nations Office for Project Services (UNOPS).

• An intensive capacity building exercise for states for streamlining procurement processes was taken up.

• A comprehensive ‘Procurement Guide’ encompassing the international best practices has been compiled with the Department for International Development (UK government).

• Disciplinary proceedings were initiated against the erring firms and they have been blacklisted; matter was referred to the Central Bureau of Investigation. The officers involved were suspended and disciplinary proceedings initiated against them immediately.

• Efforts are on to set up Management Information System (MIS) and Logistic Management Information System (LMIS) along with Fraud detection and Anti-corruption system to ensure more transparency and better efficiency.

Vikas Dhoot replies: What the minister is referring to is the Bank’s ‘Implementation Completion Report’ submitted to the government in May 2005 by those steering the project at the Bank. Incidentally, even this report said that “procurement was a problem throughout this project,” which includes several months since the UPA took charge in May 2004 till the projects’ completion.

The Indian Express report is based on an investigation into the RCH-I project submitted by the Bank’s internal watchdog, Department of Institutional Integrity, in November 2005. The INT report states: “Between 2000 and 2005, INT received several allegations of fraud and corruption in the procurement of drugs.”

(The UPA took over in May 2004). The INT, after reviewing thousands of procurement documents, had conducted four investigative missions to India in November 2003, May 2004, May 2005 and July 2005 and interviewed more than 100 companies and individuals.