A Sad Tale of Corruption in Kenya's World Bank Project

LOSEJMASAI

JF-Expert Member
Feb 18, 2013
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A Sad Tale of Corruption in a World Bank Project

"Caltech Professor Jean Ensminger will today tell a Congressional panel a depressing story of corruption in a World Bank project in Kenya. At a hearing on Bank accountability for its projects' performance, she will document how money destined for the poorest of Kenya's poor was siphoned off wholesale into the pockets of influential Kenyans and their cohorts. At the same time, she will describe how, thanks to vigorous, extensive prevention measures, a similar Bank program in Indonesia brought significant benefits to those in poor communities with minimal “leakage.”

As she explained in a 2014 interview, the research underlying her testimony is the result of fortuitous circumstances. A long-time student of the Orma, a semi-nomadic community found today in eastern Kenya, Dr. Ensminger was visiting the region shortly after several Orma villages had begun receiving funds from the World Bank’s Arid Lands Project. Arid Lands is a “community driven development” project, meaning one where monies are distributed directly to local communities for projects they consider priorities.

Her Orma friends recounted hair-raising tales of corruption in the project, prompting her to shift focus to the impact of corruption at the village level. She presented her initial findings to the Bank’s research staff, where to protect her sources she did not reveal sufficient details to identify the project. With the encouragement of Bank staff, who convinced her Bank management would take her findings seriously, she relented – disclosing the project and identifying those involved.

In a brief interview before testifying Professor Ensimnger stressed that the point of her testimony is not that the Bank should refuse to fund community driven development projects. Rather it should, as was the case in the Indonesian project, provide sufficient oversight to ensure monies aren’t stolen. And that doesn't come cheap. While Congressional budget cutters may try to use her testimony to justify sharply reducing U.S. funding for the Bank, the real message of her testimony is that the oversight necessary to curb corruption can't be had at bargain basement prices.

Her original paper is here. Her testimony and those of the other witnesses will be broadcast live starting 10:00 AM, US East Coast time, here. Their written statements will likely be posted here at some point during or shortly after the hearing. (Full disclosure: while drafting an internal "lessons learned" paper on the Arid Lands project for the World Bank, I came to know and admire Professor Ensminger and her work.)"
 
It is well known that the world bank does not offer funding to what can help a country. They are bent on recurrent expenditure programs. The Uhuru highway expansion comes to mind. After taking gok round in circles for 8 years having confirmed willingness to fund it, they turn around to say the project is not viable.
During that time we have seen all 3 bypasses being built plus thika road.
I strongly believe any funding from these guys should be taken with a lot of caution
 
In 2011 the World Bank refused to give guarantees that the Turkana wind project was viable and AfDb had to rescue the project. Upgrading of Jkia was supposed to happen some months before Thika road commenced. Around the same time they adviced that Kenya should refurbish the meter gauge railway instead of building Sgr, they can continue yapping but Kenya is moving on
 
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