World Bank Blacklists 65 Indonesian Companies

The World Bank has blacklisted 65 Indonesian companies for alleged corruption misusing its aid funds for Indonesia, a bank official said.

Mohammad Al Arief, deputy external affairs director of he World Bank for Asia Pacific region, said altogether the bank blacklisted 306 companies in the world including 65 Indonesian companies.

Arief said in the 2000-2006 period, there were 100 cases of alleged corruption involving World Bank's aid funds and 55 of the cases have been legally processed.

Arief said the World Bank could only impose administrative sanction by banning the companies from being involved in projects financed by the bank for 15 to 20 years.

Last year,the World Bank extended US$2.3 billion in loan to Indonesia with 75 per cent of the funds used to finance projects and the rest to support state budget.

The World Bank also extended Rp800 million in grant last year for the country used mainly to help rebuilt natural disaster hit regions.

January 23, 2007