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Conflict Report On World Bank Corruption Money

National Assembly banking and finance committee chairman denies government's allegation to reimburse the World Bank the sum of $7,6 million, saying it will pay the Bank back the mony which the Bank loaned to Cambodia, in the next 40 years.

This statement was made after local and international newspaper quoted Minister of Economy and Finance Kiet Chhon Thursday as saying to the National Assembly banking and finance committee officials that the government will reimburse $7,6 million to the World Bank after this Bank revealed evidences on corruption in 3 development projects for 4 important ministries.

These were Mr. Kiet Chhon's words which were interpreted to be his announcement for the reimbursement to the World Bank. Mr. Kiet Chhom says that the government will reimburse the loan to the Bank.

National Assembly's audit and banking committee's chairman Chiem Yiep who conducted the Thursday meeting, unilaterally denies Friday that the government will pay back the money thought to be tied to corruption. He says that the media misinterpreted Mr. Kiet Chhon's words.

The World Bank on Tuesday suspended the disbursement of its grants and loans for 3 projects total of more than $64 million now being spent on active World Bank's funded projects in Cambodia, and threatened to have Cambodia reimburse $7,6 million in irregularities in contracts and misuse of funds in 7 major projects.

The 3 projects are: the Ministry of Land Management's $24.3 million Land Management and Administration project; the Ministry of Rural Development and the Ministry of Public works and Transport's $20 million Provincial and Rural Infrastructure project; and the Ministry of Industry's $19,9 million Provincial and Peri-Urban Water and sanitation projects.