World Bank unearths massive financial fraud in Pakistan
The World Bank has unearthed a racket of 23 Pakistani companies that have been corrupt, fraudulent, colluding and forcibly adopted to secure contracts for projects initiated by Distribution Companies (DISCOS) and National Transmission and Despatch Company (NTDC).
Islamabad. Financial fraud has been exposed on a large scale in Pakistan, which is going through an economic crisis. This disclosure has been made by the World Bank. According to the information, the World Bank unearthed a racket of 23 Pakistani companies which were corrupt, fraudulent, colluding and forcibly adopted to secure contracts for projects initiated by Distribution Companies (DISCOS) and National Transmission and Despatch Company (NTDC). is.
According to a report prepared by the Integrity Vice Presidency (INT) of the World Bank Group (WBG), these companies had organized themselves into “cartels” for mutual benefit. The WB International Bank for Reconstruction and Development (IBRD) entered into a loan agreement with the Government of Pakistan (GOP) in July 2008 as part of the Electricity Distribution and Transmission Improvement Project.
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The project aims to strengthen the capacity of distribution and transmission networks in Pakistan to meet the growing demand for electricity in selected areas while strengthening the institutional capacity of some distribution companies and supporting other priority areas of power sector reform. was. Project funding was met by two International Development Association (IDA) credits. After this the project was closed in February 2014.
Signed contracts with preferred companies
INT’s administrative investigation focused on six project-financed contracts for the supply of power transmission equipment. It turned out that over the years the public procurement market for some types of power transmission, equipment in Pakistan was controlled by a group of companies referred to in the report as members of the cartel.
These companies already manipulated the market to ensure this. Only a few preferred companies were signed, including those financed by the World Bank. Financial scams are a common thing in Pakistan. A weak regulatory framework, a distorted judicial system and the collusion of law enforcement officials encourage unscrupulous people/institutions to loot the exchequer to satisfy their greed.
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These disclosures clearly warrant the immediate investigation of Pakistani entities/businesses that have signed financial agreements with international funding organisations. Such financial frauds not only inflict huge losses to the exchequer of the country, but also defeat the whole purpose of international funding for holistic and equitable development.
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