Development banks ramp up anti-corruption fight

[cory777]

Source: Reuters

By Lesley Wroughton

WASHINGTON, April 9 (Reuters) - The World Bank and other development banks on Friday stepped up efforts to root out the corrupt use of aid funds, saying companies and individuals blacklisted at one institution would be unwelcome at all.

Measures agreed in Luxembourg on Friday would prevent a company found to be using corrupt means by one development bank from obtaining contracts from another, which is possible under current practices.

"It means an injury to one is an injury to all," said Leonard McCarthy, who heads the World Bank's anti-corruption unit. "For those companies that do wrong, the world is going to become a smaller place and it will cause a significant rise in the cost of fraudulent and corrupt business practices."

McCarthy, who is vice president of the Department of Institutional Integrity at the World Bank, said the new measures amounted to "an internationalization of punishment" for companies and individuals involved in wrongdoing.


Read more: http://www.alertnet.org/thenews/newsdesk/N09251878.htm

[BeFree]

1. Zero-Tolerance policy?

About time. The little guy has had zero-tolerance for years.

[old mark]

2. Rec. Good post....Glad to see this happening. nt