The Jakarta Post, Jakarta

The World Bank has canceled two loan contracts for the Eastern Indonesia Region Transport Project (EIRTP) and another for the Strategic Roads Infrastructure Project (SRIP) due to alleged corruption involving the projects' consultants and government officials.

In a letter addressed to Finance Minister Sri Mulyani, the WB said that the decision had been made following an extensive investigation into suspected bribery in the hiring of a firm of consultants for the implementation of the two projects.

"The bank has found evidence supporting allegations of bribes and the making of other illicit payments in respect of three consulting contracts entered into by the Indonesian government, through its Ministry of Public Works, with WSP International Ltd, two of which were financed under the EIRTP Loan Agreement and one under the PHRD grant agreement and PPA facilities," the letter said.

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Posted by pichu at August 14, 2006 8:10 AM