The World Bank has delayed the release of about $260-million in loans to Kenya over corruption concerns amid new graft allegations that have rocked the East African nation, officials said on Tuesday.
The money, approved in October 2004 and earmarked for education, banking reform, budget support and HIV/Aids programmes, will not be disbursed until the institution is convinced that President Mwai Kibaki’s government is meeting commitments to fight corruption, they said.
”We have delayed about $260-million because of concerns about corruption,” World Bank country director for Kenya Colin Bruce said through a spokesperson. ”The money will be released once the bank is satisfied that the government is making successful efforts in fighting corruption.”
She said a team from the Washington-based bank is already in the country investigating the situation and is preparing an ”integrity report” on Kenya that ”will be the basis for releasing the money”.
Last week, the World Bank drew criticism when it approved $25-million credit for Kenya to help fight corruption just days after new allegations implicating sitting Cabinet ministers in a lingering graft scandal exploded in the local and international media.
Through the spokesperson, Bruce said the timing of the credit approval was ”purely coincidental”, but that the bank’s board of directors had been aware of the fresh charges.
”The board members are aware of the corruption issues and felt that corruption issues should be dealt with strategically,” he said. ”The signals we have been sending to the government are very strong. We cannot stop funding just because we are emotive.”
In approving the credit, he noted the bank had said the latest allegations were an ”excellent opportunity” for Kibaki to fulfil anti-graft pledges he made before sweeping to power three years ago on a reform platform.
The new corruption charges have caused a furore in Kenya, where government sleaze has been rife for years despite pledges by the Kibaki administration to crack down on it.
Anger intensified on Monday when corruption watchdog Transparency International released a report showing the government had spent $12,2-million on high-end luxury vehicles largely for the use of senior officials while much of the country languishes in poverty. — Sapa-AFP