The World Bank has unveiled the curtain over the fraud and corruption in health sector in India while reviewing five health projects on Friday.
The World Bank chief Rober Zoellick said that he and Indian government would do every possible effort to reach to the root of the case.
Recognising the captious issue the government said it would constitute four groups to probe the charges and the guilty, whoever it may be, must be punished.
“Four groups, consisting of members from the Finance and Health Ministries, would be set up to probe the irregularities found by the World Bank in projects dealing with eradication of tuberculosis and malaria and HIV/AIDS control schemes," said Union Health Secretary Naresh Dayal to reporters.
“Although it would be unfair to say anything before the investigation, but I assure you exemplary action will be taken against those found guilty”, he said, “detailed investigation will be done after we study the report.”
In order to curb corruption in health care projects the Central Government said that the Union Health Ministry has been constantly working to set the guidelines and modalities to enhance and strengthen procurement capacity of states.
Meanwhile the Finance Minister P Chidambaram said that the government is committed to fight against corruption but the World Bank must not link corruption with the further disbursal of health projects in the country.
Sometimes earlier the World Bank had suspended funds for some projects owing to corruption in procurement.
The critics says that country can do well without the funding support of Rs 10,000 annually by Bank as funding has only enhances the government’s fiscal deficit. As per record this year’s Budget estimates country’s fiscal deficit of Rs 1,50,948 crore.
The World Bank found two Indian pharmaceutical companies dipped in corruption, when it started investigation into reproductive and child health (RCH) project in 2005 resulted into the blacklisting of those companies.
“A Detailed Implementation Review (DIR) launched by the World Bank in 2006 and supported by the government of India found serious incidents of fraud and corruption in five health projects. The government has announced its intention to re-examine ongoing and future projects to ensure they incorporate the lessons from the DIR,” an official World Bank statement said.
Implementation of the projects began between 1997 and 2003, financed by the government and World Bank with other donors. Four projects have been completed while one remains, but funds for the project are not being disbursed as a review is on to incorporate the findings of the DIR, World Bank has said.
The investigation led into the five projects are $114-million ‘Malaria Control Project’, the $82.1-million ‘Orissa Health Systems Development Project’, the ongoing $54-million ‘Food & Drug Capacity Building Project’, the $193.7-million ‘Second National HIV/AIDS Control Project’, and the $124.8-million ‘Tuberculosis Control Project’. Out of these, four were central-sector projects and one state-sector project.
"The probe has revealed unacceptable indicators of fraud and corruption”, said Robert Zoellick.
The World Bank as well as the Indian Government has however said that detailed investigation would be carried out and stringent action would be taken against those, who found guilty.
The World Bank would tighten supervision over the nine health projects in India and the project would be given after thorough comprehensive audits and reviews by independent agents, said the chief Zoellick.
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