Senate Foreign Relations Committee Chairman Richard Lugar, who is engaged in a probe of corruption in the banks' projects, said the legislation would include proposals to ensure more disclosure and less waste at the five multilateral banks.

"We must ensure that our contributions are managed well and that the mission of the multilateral development banks (MDB's) is not undercut by corruption," Lugar said as he opened a hearing of his committee on fighting corruption at the banks.

For several months Lugar and his aids have been visiting overseas projects and interviewed bank employees, non-profit groups and academics to examine the operations of the World Bank, Asian Development Bank, African Development Bank, the Inter-American Development Bank and the European Bank for reconstruction and development.

Under the legislation, the World Bank is slated to receive $2.85 billion in US funds over the next three years, the African Development Bank $407 million in the same period and the Asian bank $461 million over four years.