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Delay in $ 260 M grant by World Bank to Kenya due to corruption allegations

The previously granted loan of $ 260 M to Kenya by the World Bank for HIV/AIDS education and banking reform programs seems to be in rough weather as it has been delayed due to some allegations pertaining to corruption prevalent there. //

The corruption charges are against the Kenyan government, the SAPA/Mail & Guardian reports (SAPA/Mail & Guardian, 1/31).

According to the Kenyan Ministry of Health in February 2005 it had failed to distribute $54 million in funding to fight HIV/AIDS.

The reason cited for the delay were stated by Richard Abura, a Kenyan health ministry spokesperson, included contracting with an agency to ensure that the funds are "well spent" and hiring 78 accountants to manage the funds -- set by the World Bank and the International Monetary Fund.

U.S. Ambassador to Kenya William Bellamy said that corruption is the reason why only a fraction of $70 million in U.S. funding for HIV/AIDS programs had been disbursed, and other donors -- including the World Bank and the Global Fund To Fight AIDS, Tuberculosis and Malaria -- have not disbursed millions more in funding because they also are reluctant to contribute until the problem is resolved (Kaiser Daily HIV/AIDS Report, 2/3/05).

The grant which was approved in October 2004, will not be disbursed until bank officials are certain that President Mwai Kibaki's administration is adhering to its pledges to fight corruption.

So another social reform lies in doldrums due to degradation of social and work ethics.


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