Project freeze request letter worries TIB

Transparency International Bangladesh (TIB) yesterday expressed concern about the World Bank's (WB) position regarding the recent changes made by the government in the Public Procurement Act (PPA) and said it would amount to punishing the people of Bangladesh for which they are not responsible.
The World Bank stance smacks of "chopping off the head because of a headache" said TIB Executive Director Dr Iftekharuzzaman.
The WB in a clarification to the media report said, in a letter to the government it had requested to temporarily put on hold the local procurements in the projects it finances.
It said, "The World Bank has not asked the government to suspend procurement under the WB financed projects. It remains a strong development partner to Bangladesh".
The government on November 4 amended the PPA providing scope for awarding work order up to Tk 2 crore without prior experience.
The WB on November 9 in a letter to the finance minister communicated its objection to the amendments, which was published in The Daily Star Wednesday.
TIB REACTION
The TIB said, "The World Bank measure, if enforced, will be counter-productive and will only punish the people of Bangladesh though no faults of their own."
TIB also said, it is strongly opposed to the amendments introduced by the government, and has been on record expressing the same very firmly.
At the same time the corruption watchdog sees no justification for omnibus suspension of flow of funds or project implementation, which will not help development efforts, nor will it prevent corruption, TIB said.
The TIB said, instead of using such unreasonable and unwarranted threats the World Bank should engage more closely as a partner with the government and other stakeholders to review the amendments. It should also take greater responsibility in ensuring transparency, integrity and accountability in various stages of project implementation funded by it.
Iftekhar questioned "if the bank can spend millions for consultancies that are often not only debatable, but also considered to be among factors behind misuse of funds and corruption, why as an inter-governmental funding organisation the WB does not contribute to building capacities to prevent corruption in various stages and processes of project implementation?"
"Instead of developing a habit of threatening to withdraw or freeze funds, the World Bank would do better to its credibility by a shift in its approach and acknowledge the fact that in the ultimate analysis the funds it handles come from contributions of the people around the world, whom it has no right to intimidate" he added.
WORLD BANK EXPLANATION
In an explanation yesterday the World Bank said, in response to the amendments made to PPA 2006, the four specific provisions in the amendments (lottery system, no qualification or experience requirements, rejection of bids with price above or below 5 percent of estimate, and single stage two-envelope system for procurement of goods and works) are not consistent with some fundamental provisions of the WB's Procurement Guidelines (PG) regarding economy, efficiency, transparency, and fairness.
The explanation said, WB had sent letters to all concerned in the government and is working with the government to revise existing project financing agreements between the government and the World Bank.
These revisions concern local procurements only. The revisions in the project financing agreements will only pertain to not using the above PPA amended provisions for Bank financed projects.
It also said, large infrastructure projects requiring International Competitive Bidding will not be affected. The government may continue its local procurement under the World Bank financed projects so long as the above mentioned provisions of PPA amendments are not used.