September 6, 2007



World Bank Integrity in Armenia Questioned

Following on from reports by British national Bruce Tasker that the World Bank is guilty of turning a blind eye to allegations of fraud and corruption in its Municipal Development Project in Armenia, the Government Accountability Project (GAP) has made specific mention of these concerns and the failure of the organization’s own internal watchdog to investigate the matter.

The Government Accountability Project is a leading nonprofit public interest group that promotes government and corporate accountability, and might be best known to some for the role it played in the removal of Paul Wolfowitz as President of the World Bank.

In early 2007, GAP was responsible for exposing fraud and abuse at the highest levels of the World Bank. In May 2007, World Bank President Paul Wolfowitz left the international organization in the wake of wide-ranging scandals based on multiple releases of documents over the previous two months by GAP.

GAP released evidence or exposed information showing that: Wolfowitz’s companion, Shaha Riza, received salary raises far in excess of those allowable under Bank rules; Riza received a questionable consulting position with a U.S. defense contractor in 2003 at Wolfowitz’ direction that has resulted in State and Defense Department inquiries; Juan José Daboub, Bank Managing Director and Wolfowitz-hire, attempted to remove references and funding for “family planning” in Bank projects; Wolfowitz’ office was responsible for weakening a “climate change” strategy document; Bank Senior Management delayed reporting to Bank staff that a fellow staffer had been seriously wounded in a shooting in Iraq; World Bank lending to Africa during Fiscal Year of 2007 has plummeted; and Wolfowitz was trying to broaden the Bank’s portfolio in Iraq over Board opposition.

Anyway, GAP today released its annual report into the World Bank’s Department of Institutional Integrity (INT) and specifically raises concerns with the international organization’s operations in Armenia and in particular its failure to investigate well documented cases of alleged corruption, fraud and embezzlement.

On February 27th 2004 a consultant to the Parliament of Armenia reported to the World Bank country manager in Armenia that the Municipal Development Project, which would privatize the water system in Yerevan, had been corrupted. […]

[…]

The fraud appeared to be ongoing at the end of 2006, and the consultant contends that he has been the subject of damaging reprisals because of his involvement in the study. Consequently, the case was resubmitted to INT by GAP in March 2007. The British Government has had details of the problems since the time of the study in 2004, and INT is aware that the UK’s Serious Fraud Squad is monitoring the proceedings. Despite repeated phone calls and a letter requesting information, neither GAP nor the consultant have been able to ascertain the current status of prospective calendar of the investigation in the five months that have elapsed.

Indeed, this last point appears to be at the crux of the matter. Despite the World Bank in Yerevan informing Oneworld Multimedia that the allegations by the consultant, Bruce Tasker, had no basis, other bodies appear to back him up in his claim. Today, for example, the British Embassy rang me and informed me that the Ambassador is willing to meet tomorrow morning to discuss this case, but that he has nothing to add in addition to what is already documented on Tasker’s blog.

Earlier this week the British Ambassador in Armenia invited this whistleblowing individual to his office for another discussion.

The Ambassador explained that, since his letter to the Director of the INT on the 29th May, a senior British Embassy representative in Washington has been monitoring the situation and has been in communication with the INT. But he is still awaiting an official response.

So the Ambassador recently wrote again to the UK representative office at the World Bank in Washington, requesting the latest information on the pending INT investigation. Washington replied to the Ambassadors message and confirmed that a meeting is scheduled with INT next week. Hopefully there will be good news. The Ambassador also wrote to the Foreign and Commonwealth (FCO) in the UK, and has received a reply confirming that the FCO has again contacted the Serious Fraud Office about the case and passed on my expression of concern.

Tasker set up the blog, Blowing the World Bank Whistle, in frustration at the INT’s reluctance to investigate his claims and its apparent refusal to let anyone know if and when it would. Meanwhile, as I have a short piece to write on this case for New Internationalist, I also contacted GAP for their opinion on the case and Tasker’s claims of corruption and blacklisting. GAP’s International Program Director, Beatrice Edwards, sent me the following reply earlier in the week.

[…] GAP is legal counsel for Bruce Tasker, and we have verified that his allegations of corruption in the Municipal Development Project in Yerevan are compelling. On his behalf,
we submitted his allegations of corruption and a complaint of retaliation against him to INT at the World Bank, and we have been told verbally that INT will investigate. We do not know when they will take action, however.

It should be pointed out that Tasker’s claims of corruption and fraud were revealed to him during his investigation into the Municipal Development Project for a parliamentary commission which did report some of those same findings in an interim report prepared in March 2004. However, during my meeting with Tasker on Tuesday, he claims that parliamentary speaker Vahan Hovannisian privately dismissed its findings soon after for unknown and unspecified reasons. The final report never apparently saw the light of day.

A $30 million project to improve supplies of drinking water in Yerevan has failed to achieve its main objectives to due a serious misuse of the funds provided by the World Bank, a parliamentary inquiry claimed on Tuesday.

The negative conclusion is contained in an interim report issued by an ad hoc commission of the Armenian parliament that was set up last September to investigate the use of nearly $3 billion in external loans, grants and other assistance received by Armenia since independence. Presenting its findings to the National Assembly, commission chairman Vahan Hovannisian challenged government claims that the situation with water supplies in the capital has markedly improved since the launch of the scheme in 1999.

[…]

The introduction of the meters has been a key element of the government’s sweeping reform and restructure the country’s obsolete water and sewerage network. Most Armenians have already bought and installed them at their expense. A typical urban household needed two such devices in their apartments and paid an equivalent of $15 apiece. Hovannisian said a water meter was in fact worth between $5 and $6, accusing the government’s water agency and Yerevan’s utility operator of making $6.5 million in “unjustified” profits from their sale.

The commission report also criticizes the fact that 27 percent of the World Bank funds have been spent on project management, overheads and logistics. That includes $5 million paid to the Italian firm A-Utility that has run Yerevan’s water and sewerage network since the launch of the project.

[…]

There was no immediate reaction to the report from the government. Officials at the World Bank’s Yerevan office declined a comment, saying that they have not yet received the document. They had earlier praised the implementation of the infrastructure project.

Interestingly, despite contacting various media outlets and organizations supposedly interested in combating corruption in Armenia, only Hetq Online recently published an article in Armenian on Tasker’s allegations after they were first published on this blog. Nobody else in the media or civil society has shown an interest in pursuing the matter, perhaps because the World Bank controls much of the money in circulation in Armenia. This also includes grants for local media outlets as well as non-governmental organizations so perhaps it’s no wonder that few are willing to speak out about possible malpractice and corruption by a major international donor in Armenia.

Instead, Tasker decided to reveal everything on his own blog instead. And after reading posts on this blog, other bloggers such as Christian Garbis at Notes from Hairenik, Ara Manoogian at Martuni or Bust and Nazarian also covered the allegations.

In my opinion, this is a remarkable precedent for blogs in Armenia and the Diaspora, and one that I hope will be instrumental in fighting or revealing allegations of corruption in the future. Certainly, in this case, blogs performed the role that the traditional and online media or civil society should, but didn’t. The GAP report can be downloaded in PDF format here, and Tasker’s allegations against the World Bank can be read on his blog here. I hope to transcribe an interview with Tasker in the next few days, and will update readers on my conversation with the British Ambassador tomorrow.

In the meantime, with interest in these allegations increasing by the day, obvious questions need to be asked. Basically, just why is the World Bank’s Department of Institutional Integrity (INT) so reluctant to not only start an investigation into alleged wrongdoings in Armenia, but why has it also failed to respond to letters asking for clarification on this matter not only from GAP, but also from the British Ambassador to Armenia?

Posted by Onnik @ 9:59 pm. Filed under: Armenia, Blogging, Corruption, Caucasus, World Bank






26 Comments »

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  1. Meanwhile the Dutch-owned HayPost Trust which now runs the Armenian postal service Haypost has alleged that Haypost was defrauded of serious amounts of money over misuse of its delivery fleet, communications equipment and release of stamps. The fraud allegations reach as high as the Minister of Transport.

    Comment by R — September 6, 2007 @ 11:25 pm

  2. Whistle-blower group takes aim at World Bank unit

    WASHINGTON, Sept 6 (Reuters) - A whistle-blower protection group said on Thursday the World Bank’s anti-corruption unit had lost focus and its investigations lacked transparency.

    The Washington-based Government Accountability Project said the Department of Institutional Integrity, which probes corruption and fraud in World Bank-financed projects, had become isolated from bank employees and its own staff felt intimidated.

    The Government Accountability Project, known as GAP, was prominent in leaking documents from World Bank insiders related to a high-paying promotion for the companion of former bank Paul Wolfowitz, who resigned on June 30 as a result of the ensuing scandal.

    The group said in a report it had launched a review of the World Bank’s anti-corruption unit after it was approached by a number of confidential whistle-blowers who were “reluctant to trust the capabilities of INT.”

    The report comes a week before the release of findings by former Federal Reserve Chairman Paul Volcker and a panel of experts commissioned by the bank to review the activities of the bank’s anti-corruption department.

    GAP said it had interviewed current and former World Bank staff and people associated with the development lender during its investigation. It did not release their identities.

    The anti-corruption unit is headed by Suzanne Folsom, an ethics lawyer who is also counselor to the bank’s president. She was given the position of counselor by former World Bank President James Wolfensohn in 2003 and then appointed to head INT by Wolfowitz in 2005.

    Folsom’s second appointment raised questions because of her ties to the Republican party. It came at a time Wolfowitz, the former U.S. deputy defense secretary and an architect of the Iraq war, was under fire for relying on an inner circle of advisors from the Pentagon and White House.

    Folsom’s dual status represented a conflict of interest and “compromised her credibility and actions,” GAP said, adding that there were also concerns among bank staff about the anti-corruption unit’s investigative practices.

    “They contend that breaches of confidentiality, lack of consultation with staff or affected government counterparts, a presumption of guilt in some cases and suppression of evidence in others … all combined to undermine the confidence staff might have had in the department’s capabilities,” the report said.

    World Bank spokesman David Theis said the allegations were based “solely on unfounded rumors and baseless insinuations.”

    “While the GAP has done important work in the past, it is deeply unfortunate that they are coloring their report with unwarranted personal attacks,” he said.

    Comment by Onnik — September 7, 2007 @ 1:05 pm

  3. Two hours ago I returned from my meeting with the British Ambassador, Anthony Cantor, at my Embassy and have this to report. Basically, Cantor acted as an Ambassador and within diplomatic rules by remaining impartial in the matter. However, he did confirm that the Embassy has passed on Tasker’s allegations to the Foreign & Commonwealth Office (FCO) who in turn passed them on the Serious Fraud Office as all of them are obliged to do under British Law. So, according to the Ambassador, the Embassy is simply doing what it is obliged to do when someone makes complaints about possible corruption in any country involving a British firm or nationals.

    As to the failure of INT to respond to the his letter, Cantor appeared to downplay the significance of that, although in this case I think he was really being diplomatic. As I said to him, it doesn’t seem customary to me for international organizations not to respond to letters from representatives of governments that actually inject money into the World Bank. Indeed, even if citizens approach certain bodies, they are obliged to respond if only to confirm their receipt. During the meeting, however, the Ambassador did make reference to a letter sent from INT to GAP a week ago. Tasker also drew my intention to it earlier as both had only seen it today.

    In that letter — of which I have a copy — from Jonathon Shapiro, Senior Institutional Integrity Officer at INT, to Karen Gray at GAP, the reason given for the delay in acting upon allegations first raised by an Armenian parliamentary commission in March 2004 were because it prioritizes such cases for investigation. According to Shapiro, “the Cases are either rated high, medium or low. Those cases ranked “high” are given first priority for allocation of investigative resources; cases ranked “medium” come next, and those ranked “low” follow. The MDP matter brought to INT’s attention by Mr. Tasker was rank ordered “medium” priority, and as such remains in a queue pending the availability of investigative resources.

    Well, that’s as it may be more than three years after the claims and allegations were first revealed by Deputy Speaker of Parliament Vahan Hovannisian and a parliamentary commission, but one wonders if specific mention of this case in yesterday’s annual GAP report doesn’t warrant it being re-evaluated and prioritized. This is especially true given that GAP and Tasker say they will bring this case to even more prominence in the coming months through the U.S. Congress and a meeting in London where DFID will reportedly determine the advisability of channeling funds for development through the World Bank.

    For the sake of putting the record straight or to act on allegations of possible corruption, I would imagine that it should be in the interest of the World Bank to settle this matter right away. Certainly, I would imagine that after the GAP report, allegations might be considered more of a priority now.

    Comment by Onnik — September 7, 2007 @ 1:26 pm

  4. Incidentally, Tasker has posted the letter from the British Ambassador to INT on his blog.

    Dear Ms Folsom

    I am writing to draw your attention to a case being investigated by INT, in response to a claim by a British national, Mr Bruce Tasker, whose legal counsel is the Government Accountability Project (GAP) of the USA.

    Mr Tasker has been involved in development projects in Armenia for a number of years and also worked for a Parliamentary Commission which reported allegations of corruption in World Bank projects in Armenia. As INT has been aware of his case since June 2004, and the details are comprehensively documented, I hope that your enquiries can be concluded expeditiously in order to bring this matter to a timely and appropriate conclusion.

    Yours sincerely

    Anthony Cantor
    Ambassador

    Comment by Onnik — September 7, 2007 @ 3:56 pm

  5. Why is the World Banks integrity questioned? Because they called Armenia
    the Caucasian Tiger and made some anti Armenian scoundrels angry?
    I support the World Bank 100%

    http://www.diesel-ebooks.com/cgi-bin/item/0821368125/The-Caucasian-Tiger-Sustaining-Economic-Growth-in-Armenia-eBook.html

    Comment by Hovik — September 7, 2007 @ 5:28 pm

  6. Unfortunately, the book you link to costs $45 and is also produced by the World Bank. I’m sure it’s an interesting read, but just linking to the book because of its title doesn’t help any of us understand what it’s all about or wherever it can be considered an independently produced analysis of the Armenian economy.

    All I can find is the following:

    The Caucasian tiger; sustaining economic growth in Armenia.
    Ed. by Saumya Mitra et al.
    The World Bank, ©2007 610 p. $45.00 HC415
    978-0-8213-6811-4

    Put together by the World Bank’s economic team charged with providing analysis and policy advice to the Armenian government in the years 2005-6, this report argues that Armenia can continue with its high rates of economic growth if it continues following World Bank advice aimed at establishing a market economy integrated with the world. The first part of the report describes recent patterns of growth and offers advice on “strengthening the framework for competition, lowering the costs of financial intermediation, developing policies that will deepen the integration of the economy into global markets, and creating the conditions for building on knowledge assets and promoting innovation. The second part of the report presents more detailed analytical papers on such topics as growth analysis from the perspective of employment generation and poverty reduction, social accounting for Armenia, taxation and economic efficiency, strengthening competition, external performance, and civil aviation policy. (Annotation ©2007 Book News Inc. Portland, OR)

    Anyway, I wonder how highly combating corruption will feature in the book? If anyone has actually read it, please give us a short summary of its content and conclusions. Thanks in advance.

    Comment by Onnik — September 7, 2007 @ 5:45 pm

  7. but just linking to the book because of its title doesn’t help any of us understand what it’s all about

    ARN
    It tells me what it`s about. Armenia is The Caucasian Tiger.
    Ooo and another thing. Armenia is fighting corruption, and the corruption in Armenia in nothing compared to the scale of corruption in England.

    For those interested you can buy the book here for $30.oo

    http://www.amazon.com/Caucasian-Tiger-Sustaining-Economic-Armenia/dp/0821368117

    Comment by Hovik — September 7, 2007 @ 6:07 pm

  8. Armenia is fighting corruption, and the corruption in Armenia in nothing compared to the scale of corruption in England.

    Well, I’ll say this for you, Hovik, you always manage to make people laugh and certainly put a smile on their faces. Despite corruption being a plague that afflicts every country, let me just put it like this. In England, I have NEVER come across one case of corruption that affected myself or my friends and family in over 25 years of living there. In Armenia, after only 10 years, I have experienced it on a daily basis. It is everywhere from the schools to the highest levels of government.

    No wonder then that the United Kingdom ranks 11th in the Transparency International index for corruption with a score of 8.6 and Armenia ranks 93rd with a score of 2.9. Just so you know, the higher the score out of 10 the less corrupt a country is. So you can compare, the United States is at 20th position with a score of 7.3. Anyway, that there is economic growth is undeniable — just as is the case in other former Soviet republics. How that growth is distributed and whether it is sustainable in the long term is another matter.

    However, that is not the point. The fact is that a parliamentary commission revealed widespread corruption in a World Bank project in an interim report that was openly reported on. No other report was published that challenged those findings. Instead, government ministers who are allegedly part of the reported misuse of WB funds rejected the findings with only words and no evidence or documents to back them up. Moreover, the WB has yet to act upon the allegations made by Tasker and others such as GAP have studied his documented evidence and believe that it is “compelling.”

    Personally, I think the answer to all of this is very simple. Given that the allegations were mentioned yesterday in a report by a Washington-based body that scrutinizes the activities of the WB’s INT, an investigation should be launched in the near future. If there is nothing wrong in their projects in Armenia the matter could be quite easily cleared up. Indeed, as I’ve said on the blog many times, this is the crux of the matter. A parliamentary commission reported illegalities and abuse of funds in 2004, and nothing has been done since. That doesn’t seem quite right to me.

    Comment by Onnik — September 7, 2007 @ 6:25 pm

  9. Wolfowitz Ally at World Bank Draws Flak
    By Bob Davis

    Wall Street Journal, September 4, 2007, Page A2

    WASHINGTON — In a sign of the deep divisions that still hobble the World Bank, a watchdog group that works closely with staffers said the bank’s antigraft unit is undermined by a conflict of interest at the top and by arbitrary rules.

    The report by the Government Accountability Project criticized the director of the bank’s Department of Institutional Integrity, Suzanne Folsom, for also holding the job of counselor to the World Bank president. According to GAP, investigation corruption charges should be separate from the political advice a presidential counselor is expected to offer.

    If the bank finds corruption in a project in India, for instance, it must decide whether to act because it could affect relations between the bank and the country, and also hamper the World Bank president’s ability to fund-raise globally for poor nations.

    The head of the institutional-integrity department should concern herself only with the validity of the allegations, not with the political ramifications, GAP said.

    The GAP report didn’t cite any examples of Ms. Folsom putting politics first, but said her joint appointment weakened the department’s reputation abroad and with staffers who doubted the department’s impartiality. “The director shouldn’t be in the position where she has to take into account institutional fund-raising or political issues,” said Beatrice Edwards, a GAP official who focuses on international institutions.

    A spokesman for Ms. Folsom rejected the allegations and said the dual slots give Ms. Folsom more clout at the bank on anticorruption issues. “The director [of the department] reports to the president in order to ensure the independence of [the department’s] activities,” the spokesman said.

    The GAP report comes at a time when the bank is trying to recover from the tumult caused by the resignation of the bank’s president, Paul Wolfowitz, who allegedly flouted World Bank rules while favoring his girlfriend, a long term bank employee. GAP released one of the documents that made the controversy public and is seen by some bank employees to protect whistleblowers.

    Ms. Folsom, who has strong Republican Party ties, was an important ally of Mr. Wolfowitz who focused on anticorruption issues. Her allies view GAP as a part of a campaign to knock off a Wolfowitz partisan.

    The new World Bank president, Robert Zoellick, is trying to rework the bank’s anticorruption strategy, which has been criticized as being plagued by politics and favoritism. Next week, a panel headed by former Federal Reserve Chairman Paul Volcker is scheduled to deliver its review of the institutional-integrity department.

    The bad blood between GAP and the department reflects divisions generally within the bank as to whether the department is legitimately pursuing corruption cases or is playing favorites — and even leaking sensitive material, to the detriment of employees. The GAP report said the department, which has a budget of $13 million, has used different standards in investigating India, Cambodia, the Democratic Republic of Congo and Armenia. In some cases, investigators froze employees out of investigations; in other cases it ignored their complaints, the report alleges.

    It also points to a high level of negative employee ratings at the department and high turnover rate as signs of harassment.

    To its critics, the World Bank is a cushy place to work where employees don’t have much accountability. An integrity department spokesman said the department is trying to use proper standards on employee reviews, and that a higher attrition rate reflects outside demand for corruption investigator. He also said the department followed proper procedures in its corruption reviews.

    The GAP has its own conflicts, the spokesman alleged, as it represents an employee in a proceeding against the department over Armenia.

    However, Tasker is not an employee at GAP although they are his legal counsel. Tasker’s response to the Wall Street Journal article follows:

    Dear Mr Davis,

    I read with interest your article in the WSJ - ‘Wolfowitz Ally at World Bank draws flak’.

    I would like to comment on your last statement, that GAP represents an employee in a proceeding against the department over Armenia.

    GAP does not represent an employee, it represents a member of the international community, who in 2004 was Senior Specialist for an Armenian Parliamentary Commission, who managed a study into a World Bank funded Municipal Development Project, and who exposed major fraud and corruption and the embezzlement of Armenian state funds.

    And the proceeding is not ‘against’ the department, it is in ’support’ of the departments efforts to reduce the level of corruption in World Bank projects.

    That member of the international community, referred to by Mr. Wolfowitz as an ‘Individual’, prepared to help the World Bank protect its funds by reporting fraud and corruption in World Bank funded projects, has been the subject of World Bank reprisals because of reporting the findings of his Parliamentary Commission study to the Bank, and he is very grateful to the Government Accountability Project (GAP) for its support to his claim - submitted to the INT with a request for the INT to carry out an investigation.

    The full details can be seen on: ‘Blowing the World Bank Whistle’

    Maybe, if the INT ever looks upon Mr. Wolfowitz’s ‘Individuals’ as supporters, rather than opponents of its work, then the effectiveness of the INT operations could start to improve - to the betterment of the real beneficiaries of World Bank funded projects.

    Yours Sincerely,

    Bruce Tasker
    Senior Specialist
    CGHA Commission
    National Assembly of Armenia (2004)

    Comment by Onnik — September 7, 2007 @ 6:56 pm

  10. Government Accountability Project (GAP)
    Talk live with Rick Piltz about Censorship of Climate Science

    Free Conference Call and Q&A

    Wednesday, September 12th, 6:00 - 7:00 PM eastern

    Featuring Rick Piltz, Director of Climate Science Watch and federal climate science whistleblower,
    & Tarek Maasarani, GAP staff Attorney and co-author of Atmosphere of Pressure and Redacting the Science of Climate Change.

    To register for this call, email Richard Kim-Solloway at richards@whistleblower.org
    To listen to our previous calls, visit http://www.whistleblower.org/template/page.cfm?page_id=188

    In 2005, GAP helped Rick Piltz – formerly a senior staffer in the U.S Climate Change Science Program - blow the whistle on the White House’s improper editing and censorship of scientific reports on global warming intended for the public and Congress.

    GAP helped Rick release two major reports to The New York Times that documented the actual hand-editing by Chief of Staff Philip Cooney – a lawyer and former climate team leader with the American Petroleum Institute – thereby launching a media frenzy that resulted in the resignation of the “former” lobbyist, who left to work for ExxonMobil.

    With Piltz’ leadership GAP has launched Climate Science Watch, a GAP program that reaches out to scientists, helps them fight off censorship, and brings to light the continued politicization of environmental science. He is also featured in the award-winning documentary, Everything’s Cool.

    GAP also represented Dr. James Hansen, one of the world’s top climate scientists, who blew the whistle on NASA’s attempts to silence him. Hansen’s disclosures led GAP Staff Attorney, Tarek Massarani, to conduct a year-long investigation that found objectionable and possibly illegal restrictions on the communication of scientific information to the media.

    His findings, summarized in the report Redacting the Science of Climate Change, included examples of the delaying, monitoring, screening, and denying of interviews, as well as the delay, denial, and inappropriate editing of press releases.

    GAP also released a joint Atmosphere of Pressure report with the Union of Concerned Scientists (UCS) that combined GAP’s investigative reporting and legal analysis with the results of a UCS survey of federal climate scientists. The reports received broad national attention and have already been presented in testimony at two congressional oversight hearings.

    Comment by Government Accountability Project — September 7, 2007 @ 9:17 pm

  11. Yes Onnik your England is soooooo perfect [sarcasm]

    Well I don`t have a smile on my face, I got a smirk.

    Comment by Hovik — September 7, 2007 @ 9:42 pm

  12. What ashame Armenian local press seem to have their hands tied on this one.
    Horray for blogs, the great equalizer in the world of journalism!!
    Many thanks to Bruce Tasker, yourself, and all the other individuals involved in following this story and getting to the bottom of it.

    Comment by Paul — September 8, 2007 @ 12:05 am

  13. Cheap shot, Hovik. Make a real point [deleted by administrator]

    Comment by Armen Filadelfiatsi — September 8, 2007 @ 1:12 pm

  14. Onnik,

    By the Way, it might be interesting for you to know that with respect to INT priorities, I should consider myself fortunate, the ‘LOW’ priority cases are simply filed with no further action.

    Maybe I do have some kind of hope that an investigation will be carried out, if I continue to keep the pressure on. But when that might be is any body’s guess

    Comment by Bruce Tasker — September 8, 2007 @ 2:37 pm

  15. Cheap shot, Hovik. Make a real point [deleted by administrator]

    ARN
    You! [deleted by administrator]. I made my point [deleted by administrator].

    Comment by Hovik — September 8, 2007 @ 6:45 pm

  16. Yerevan would love to host the annual meetings of the World Bank and the International Monetary Fund. Let these punk anarchists [deleted by administrator]
    come to Armenia to “protest” and they will leave black and blue.

    Comment by Hovik — September 8, 2007 @ 7:04 pm

  17. BTW: Just to remind readers that comments should not contain personal insults against anyone and especially other people who comment. All insults will be edited out.

    Comment by Onnik — September 8, 2007 @ 9:19 pm

  18. Again, I was insulted first and I end up being deleted, well its ok
    I got ARN. Good bye and I will no longer comment on your site.
    Just by me commenting here raises your daily views/hits 50%.
    Its not arrogance if its the truth. Your lucky I don`t slap your
    Oneworld multimedia blog with a boycott Onnik. I`m such a
    nice guy, I truly am, but when it comes to Armenia I pull no
    punches.

    Comment by Hovik — September 8, 2007 @ 10:41 pm

  19. Hovik, all offensive comments have been edited out, but the rest of the comments remain intact. As for hits, don’t worry, this blog can survive without yours. However, you say that you will no longer comment on the site and bid me farewell, but then say you won’t boycott this blog. Anyway, I wouldn’t want to see any of my readers — however, critical — kept away so hope that your second statement is the one you choose. However, it’s of course up to you.

    Comment by Onnik — September 8, 2007 @ 11:43 pm

  20. Just like Marco Grigor left Yerevan black and blue… in a coffin, right Hovik? Why, you [deleted by administrator] are developing a real reputation for you hospitality and tolerance. Congratulations.

    As for the World Bank and the IMF, they’re there to turn Armenia into one big sweatshop. That’s what “integrating the Armenian economy into the world economy” means. I’m sorry you don’t understand that, but then again provincials have never been know for their insight. [deleted by administrator]

    Comment by Armen Filadelfiatsi — September 9, 2007 @ 5:21 am

  21. Just like Marco Grigor left Yerevan black and blue… in a coffin, right Hovik?

    ARN
    Marco Grigor died of a heart attack at his home he was 82.
    Take you lies somewhere else.
    http://www.presstv.ir/detail.aspx?id=20996&sectionid=351020105

    Why, you [deleted by administrator] are developing a real reputation for you and tolerance. Congratulations.

    ARN
    I am Armenian born in the US right outside DC and currently living in the US - Myrtle Beach, SC. Parents both born in Aleppo and mother raised in Bourg
    Hammoud.

    As for the World Bank and the IMF, they’re there to turn Armenia into one big sweatshop.

    ARN
    Whatever [deleted by administrator].

    That’s what “integrating the Armenian economy into the world economy” means.

    ARN
    Integrating the Armenian economy into the world economy means making Armenia prosperous.

    I’m sorry you don’t understand that, but then again provincials have never been know for their insight. Now why don’t you go spend some quality time with your favorite sheep.

    ARN
    Provincials? [deleted by administrator]

    I said I wan`t gonna post here no more but this [deleted by administrator] started spreading preposterous lies that Marco Grigor “left Yerevan black and blue” and started to attack the Armenian Qughgahsi.

    Comment by Hovik — September 9, 2007 @ 8:21 am

  22. Hovik and Armen, all of which does not help discussion on this post, or indeed the image of Armenians bu others who read it, so both are you on moderation. Actually, Hovik already was, Armen was in the past but I took him off it a few weeks back, but will now have to go back.

    It’s not just a matter of insulting each other. It’s also the matter of allowing a verbal fight to take place which will likely prevent the involvement of others with something constructive to say. So, that’s gong to be how it’s played out from now until both of you can agree to comment within the rules of standard blogging etiquette.

    Comment by Onnik — September 9, 2007 @ 2:17 pm

  23. Sunday, September 09, 2007
    2:20 PM

    Onnik,
    With respect to your posting about the interim report, which refers to the profits made through the sale of water meters:
    At the time of that presentation, 30th March 2004, the Commission did not know that the water meters should have actually been purchased and installed free of charge, paid for by the World Bank Municipal Development Project credit, which of course was extended to the people of Armenia.
    The World Bank implementation completion report gives 277,000 as the number of subscribers provided with water meters, and assumes one meter per consumer.
    The international operator, A. Utilities, provided slightly different figures of 289,000 subscribers to the commission, and added that on average each subscriber had 1.5 meters , which extrapolates to 433,500 meters sold.
    Each householder bought their meters for about $15 each, and paid about the same amount for the installation, a total of $30 for each water meter installed.
    433,500 water meters at $30 each is a total of $13,005,000 that Yerevan’s subscribers paid, which should have been paid by the World Bank credit.

    That point is covered in detail on my blog, where I use the World Bank figure of 277,000 households, at

    Yerevan’s Twelve Million Dollar gift to A. Utilities

    http://better-not-wb-the-wb.blogspot.com/2007/08/yerevans-twelve-million-dollar-gift-for.html

    Bruce

    Comment by Bruce Tasker — September 9, 2007 @ 2:36 pm

  24. Why did you delete what Armen Filadelfiatsi said in his second sentence?

    [rest of comment deleted by administrator]

    Adminstrator Response: Hovik, because in my opinion it was meant as an insult and would have resulted in more personal attacks, something which you seem keen on provoking. However, as such responses basically disrupt discussion on important issues, this comment is also edited out because you once again attempt to insult me as well as display what seems like bigotry and racism as well as profound lack of insight into anything relating to Armenia.

    You remain on permanent moderation and I ask that you restrict yourself to reasoned arguments rather than knee-jerk discriminatory statements which display your profound lack of knowledge about Armenia and I suspect, anywhere else for that matter. By all means argue against points made on this blog and also by others who comment. However, as it stands you seem to delight in just picking fights with others.

    As this is now getting to the point where it is seems designed to prevent any meaningful discussion on Armenia, I don’t think it will ever be possible to remove you from the moderation list. You have been on moderation for some time now because you are both confrontational and disruptive. Meanwhile, I also request that Armen keeps within the standard etiquette for internet discussion.

    Armen, you’re not always like this, but I have had no choice but to put you on moderation because of the comments left on this post. If you can avoid such responses in the future, you’ll be taken off moderation, but I need to see that displayed in future comments. However, if it happens again I will have to also stick you on permanent moderation as well.

    Comment by Hovik — September 9, 2007 @ 7:39 pm

  25. World Bank puts Armenian fraud case on hold
    Britain wants action on reports that a water project is mired in corruption. Heather Stewart reports

    Sunday September 30, 2007
    The Observer
    Britain is urging the World Bank to investigate allegations of corruption and embezzlement in a $35m (£17m) water project in Armenia, which the Washington-based body says are only of ‘medium priority’. Bruce Tasker, a British whistleblower, says he has presented the bank with evidence of large-scale fraud in a project to improve the water supply in the Armenian capital Yerevan, but it has so far refused to carry out a full-blown investigation.
    With its conciliatory new boss Robert Zoellick at the helm, the World Bank is keen to make a fresh start after the humiliating departure of Paul Wolfowitz earlier this year. Wolfowitz stormed into the bank promising to crack down on corruption, but ended up being embroiled in an ethics scandal of his own concerning lavish pay rises for his girlfriend, Shaha Riza.
    Persuading the world’s richest countries that their taxpayers’ money is being well spent is a critical part of Zoellick’s job, but the Armenian case is just one of a backlog of allegations waiting to be examined by the Bank’s Institutional Integrity Department - or INT, as it is known.
    INT wrote to Washington-based pressure group the Government Accountability Project (Gap), which is backing Tasker’s claims, saying the case was ‘rank ordered “medium” priority, and as such remains in a queue pending the availability of investigative resources’.
    The British Ambassador in Armenia has written to the World Bank, urging it to carry out a full investigation.
    ‘We’ve run into a wall,’ said Gap’s director, Bea Edwards. ‘We have extensive documentation. It involves high-level government officers, a lot of money and basic services. What else do they want? They’ve been completely unhelpful.’
    She says the Armenian case is important, because it could point to potential problems in the way other World Bank projects are run, particularly in the former Soviet Union.
    Tasker is a British engineer appointed by an Armenian parliamentary commission investigating the Yerevan scheme. He claims that as soon as he began to examine the details of the project, it became clear that it was riddled with corruption, ‘from start to finish, from top to bottom. The fact is it was not an isolated case of a few thousand dollars here or there, it was tens of millions of dollars.’
    The original purpose of the project was to repair Yerevan’s pipelines, and improve the water supply to households, but he says that by the time the work got under way it had shifted to installing water meters instead.
    Tasker claims contractors were able to pocket up to $10 profit on the sale of each meter by charging customers for installation. His commission was told that the average number of water meters per customer was 1.5.
    The bank’s failure to pursue the allegations underlines the critical findings of a panel chaired by former Federal Reserve chairman Paul Volcker, which revealed serious weaknesses in the way the way INT investigates allegations of wrongdoing. INT is run by a Wolfowitz appointee, Suzanne Folsom. Volcker’s team found that the unit had achieved ’some notable successes’, but warned of ’serious operational issues and severe strains in relations’ with other parts of the bank, and said its work had sometimes contributed to ‘counterproductive relations’ with both donor and recipient countries.
    Wolfowitz’s critics had accused him of cracking down hard on alleged corruption in countries where the US has a political axe to grind, but turning a blind eye to problems in more friendly regions of the world.
    Jeff Powell, of pressure group the Bretton Woods project, said it was still too often left to politicians to decide which allegations to pursue. ‘This case is indicative of the fact that senior management and the board of the World Bank have not taken seriously the issue of corruption,’ he said.
    A World Bank spokesman said he would not comment on a specific case.

    Comment by Bruce Tasker — September 30, 2007 @ 12:53 pm

  26. World Bank Puts Armenian Case on Hold

    After first being covered in the blogosphere, Bruce Tasker’s allegations of corruption in a World Bank project in Armenia have now hit international headlines with the U.K.’s The Observer carrying a story today. Interestingly, Tasker appro…

    Trackback by Oneworld Multimedia — September 30, 2007 @ 10:50 pm

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