The Whistle Blower Responds
Following on from the World Bank’s response to Bruce Tasker’s allegations of corruption in its Municipal Development Project, the British national has since reacted to mention of there being a “level playing ground” during the establishment and implementation of projects in Armenia. In particular, he now alleges various illegalities in the way the project was set up, and says that everything was kept firmly “in the family.”
It is pleasing to see that this action is already attracting comment from a variety of interested parties, including from Mr. Vigen Sargsyan at the World Bank Armenia Country Office.
Mr. Sargsyan writes that for World Bank-financed projects in Armenia it is possible to ‘Compete on an Open Level Playing Field with others in Procurement Processes’.
The ‘Level Playing Field’ for any World Bank project is managed by the ‘Project Management Unit’ (PMU), which, according to Bank rules, must be ‘Registered and Fully Staffed’ prior to the Bank approving the release of project funds.
The Project Management Unit Represents the Interests of the Bank in the recipient country and one of its prime functions is to ‘Manage the Procurement Processes’, in other words to manage the ‘Level Playing Field’
The ‘Sub-Credit Agreement’ was one of the final documents needed for the Bank to release funds for Armenia’s Municipal Development Project, and that agreement was signed by the Director of the Municipal Development Project Management Unit, and should have included the stamp of the ‘Registered and Fully Staffed’ Municipal Development Project Management Unit.
In fact the agreement included the stamp of a ‘Municipal Development Project Implementation Unit’, the registration for which was applied for by Mr. Michael Melkumyan, some years prior to the Municipal Development Project, but which was Rejected by the Armenia State Registry.
So management of the ‘Level Playing Field’ for procurement processes under World Bank-financed Municipal Development Project was arranged Illegally by Mr. Melkumyan, with a Counterfeit Stamp provided by Mr. Michael Melkumyan, who just happens to be the Husband of Mrs. Naira Melkumyan, Portfolio Director for the World Bank at the Country Office in Armenia.
That must be as level a playing field as one would expect to find – especially in Armenia!
Tasker’s latest revelations can be found on his blog.
Given the way that funding for civil society and the media is pretty much defined by the World Bank,USAID and other international organizations, it’s perhaps no wonder that Armenians never get to read or hear about bad practices in such organizations or even reports of corruption. Most articles and projects on themes important to, or part of the larger policy followed by such organizations, are usually effectively commissioned by them.
Sometimes, the source of funding is made clear, but usually it is not. The same is true for Diasporan organizations and companies working in the country raising serious questions about the independence of the media in Armenia and the role it can play in fighting corruption or promoting transparency and accountability. Anyway, while I personally believe many of the structural reforms implemented and demanded by the World Bank are necessary for Armenia, the problem is that unless such organizations are transparent and accountable as well, there’s significant potential for mismanagement.
As I said, most Armenians do not have access to near constant criticism made in the West of the World Bank and IMF because of this situation where pretty much those who should be keeping them in check here are effectively “on the payroll” so I’m posting a link to a special edition of New Internationalist which takes an in-depth look at the organization in the hope that some locals will be interested. The Special Edition published in March 2004 is at:
http://newint.org/issues/2004/03/01/
Anyway, whether the World Bank, IMF, USAID and other organizations are working in the interests of countries such as Armenia or against them is not the issue here. What is the issue, however, is whether or not they are operating transparently and are open to scrutiny by civil society and the media. Here in Armenia that is clearly not the case and without checks and balances, there are always going to be problems and cases of nepotism and corruption in their operations.
This really needs to change as a matter of the utmost urgency.
Comment by Onnik — August 10, 2007 @ 2:28 pm
I’m shocked by these allegations. Paul and I are taking the next plane to Armenia to investigate the matter further.
Comment by Paul Wolfowitz's Girlfriend — August 11, 2007 @ 1:21 am
Armen Filadelfiatsi, funny, if a little sarcastic
Comment by Onnik — August 11, 2007 @ 1:28 am
On a more serious note, I am watching and waiting to see whether Sksela and company are going to be holding any demonstrations regarding this issue. I seriously doubt they will, but we’ll see.
Onnik, good job on helping Bruce Tasker out this important issue, btw.
Comment by Armen Filadelfiatsi — August 11, 2007 @ 6:56 am
You’re probably right as not one Sksela blogger — of which there are at least three — has bothered to even link to Tasker’s posts. I’d also like to know where CRD/Transparency International is in this matter. For now, though, it looks as though speaking out against the government is ok, but only when others who might have funded you in the past or who might in the future aren’t involved.
Not that I’d expect a CRD/TI Armenia — Sksela joint rally as they’ve done in the past, but there should be some mention of it, I think. On the other hand, Sksela is pretty much dead and I don’t suppose it’s going to revitalize itself any time soon. However, it would be interesting to know if they would act and not least because progressive youth movements are usually anti-globalization as well.
However, CRD/Transparency International should be immediately involved in this matter if they are to be taken seriously as a non-partisan anti-corruption organization. That they’re not so far is very telling indeed and I really hope it isn’t because the World Bank have funded them in the past. The next few weeks will tell as the information is out there and it will be interesting to see who takes it up and who does not.
Incidentally, I don’t mean in terms of attacking the World Bank, but rather in demanding an IMMEDIATE and OPEN investigation of Tasker’s claims.
Comment by Onnik — August 12, 2007 @ 7:52 pm