The World Bank (WB) reminded the government to return its US$85 million, that it provided for a number of development projects, due to alleged fund misappropriation and breach of procurement rules, officials said.
The Washington-based lender recently sent a letter to the Economic Relations Division (ERD) secretary asking for necessary action in connection with refunding the money on an urgent basis, they said.
The WB has found violation of procurement rules in the tender process involving 20 projects, for which it had earlier confirmed funding, they added.
However, a senior official at the Ministry of Finance (MoF) said: "The WB will not withdraw all the funds from its confirmed loans for the 20 projects. It has sought refund of only the amount of money which was utilised for partial procurement, now identified as mis-procurement".
He said the government's project implementing agencies allegedly resorted to corruption in the procurement process for some 20 projects.
Twenty refund request letters were issued by the International Development Association (IDA) on account of declaration of ineligible expenditures in case of projects under implementation, the letter said.
Refunds on account of ineligible expenditures should also be made in the case of projects, for which the disbursement deadlines have been over. In view of the pending refunds related to these particular cases, the association is unable to cancel and close these credits. As a result, the loans are in lapsed status, the letter mentioned.
Refunds in respect of ineligible expenditures are to be made to World Bank promptly as per Section 7.1 of the disbursement guidelines, 2006, according to the letter.
The major projects are: Water Management Improvement Project, BD: Social Investment Program Project II, Clean Air and Sustainable Environment, Avian Influenza Preparedness and Response, Higher Education Quality Improvement and Disability and Children-at-risk Project.
"Some funds of IDA are not being used by following the conditions of the lender. For this, the WB has sought refund of some funds," Deputy Secretary of the ERD Md Anwar Hossain told the FE.
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