International organizations are becoming more interested in the violations in the first program of water supply development of Yerevan and the $32 mln credit of the World Bank. To note, Bruce Tasker, who has worked for the National Assembly commission on supervising the effectiveness of foreign grants, credits and human aids as an expert alleges that there have been violations and financial machinations worth of dozens of millions in the project supported by WB. We have also informed that GAP and the Serious Fraud Office of London are interested in the investigation. The British government and the British Embassy in Armenia are concerned since the allegations have been brought against the WB Yerevan office, which was headed by British citizen Roger Robinson in that period. Ambassador of Great Britain Anthony Cantor has said in his interview given to “168 Hours” that there is a law on corruption and fraud in his country, which obligates the British Embassies of the world to inform their government about “any announcements concerning corruption, bribery or fraud”, which may concern British citizens or any British institution. Yesterday we were informed that as well as British organization “Bretton woods” is interested in the investigation, which has almost the same powers as GAP. This British organization has submitted facts to British newspaper “Observer”, where Tasker petitioned WB to investigate and discover the violations in a due manner. There is an international development agency in Great Britain named as DFID. “Bretton woods” has submitted the information supplied by GAP to this organization too. The representatives of DFID will visit Washington on November 25-29 to discuss issues concerning further financial support to the WB with the International Monetary Fund (IMF) and World Bank. England is one of the donor countries for this organization. The donor countries are supplying financial resources to WB every year to implement credit programs in countries with weak economies. WB has suggested to increase the financial support capacity and the donor countries, including England, have to discuss the issue whether to do so and whether the WB programs are implemented effectively and without violations. According to our information, in November DFID will discuss the issue of the violations in the water supply development program of Yerevan supported by a WB credit worth of $32 mln with the WB and IMF. Last week GAP disseminated information supporting the mentioned allegations to the participants of the WB and IMF annual summit.
Tasker has told us that after the publication of “168 Hours” entitled “Financial machinations worth of $100 million” the head of the WB Yerevan office, Aristomene Varudakis has invited him for a meeting. According to the British engineer, he has been trying to arrange a meeting since May, but has received no answer. Now, after returning from the US, Varudakis is appointing a meeting. It may be assumed that the WB is already careful to the future publications of the British engineer. In addition, after the mentioned publication of “Observer” as well as the Armenian prime minister has discussed that issue and said that “we will discuss that issue one more time since the opinion of the British engineer is important for us”. Mr. Tasker has asked for a meeting with PM Serzh Sargsyan in order to, as he says, “supply more correct information concerning the violations to the prime minister”.
Last week “168 Hours” applied to Beatrice Edwards to ask whether Tasker’s facts are sufficient to support the allegations that there have been violations in the WB program. Dr. Edwards wrote that “much of what the Bank claims for the project is a “half-truth”. The WB insists that 70% of the water economy of Yerevan has continuous water supply now. Indeed, GAP has founded out that the Bank is classifying 18 hours of water service a day as “continuous”.
Dr. Edwards’ answers to our questions are the following:
– Mrs. Edwards, is GAP sure that those supporting documents are sufficient to prove Tasker’s assertions?
– The documentation is compelling. We have not heard any explanation from the Bank about the reasons for so many irregularities in the project. Nor has the Bank explained why the “Implementation Completion Report” (essentially a final evaluation) grossly inflated the project’s achievements. This is why we have asked so insistently for an investigation. Until there is an investigation, of course, and the pertinent questions are asked of the people responsible for the project, we cannot say that Mr. Tasker’s allegations are ‘proven.’ We know that project goals were changed, bonuses were paid for achieving standards much lower than those originally specified, assets used for security were over-valued, revenue went unreported, a fundamental conflict of interest existed at YWSC, among other things (we have written about this in our past editions). So I would say that Mr. Tasker’s allegations are incriminating.
– What expectations do you have from INT? What answers have you received so far?
– Originally, we believed that INT would investigate the MDP and the officials responsible for it. INT, however, responded to our request for an investigation by classifying the allegations as ‘medium priority.’ Originally we thought that this meant the project would be investigated, but we now understand that ‘medium priority’ allegations are not investigated unless new evidence is provided. We have asked INT to explain the criteria used to identify these allegations as medium priority, and we are waiting for the department’s response.
– Mrs. Edwards, please describe GAP’s powers and authorities in details. Is GAP able to obligate WB to be accountable for its violations? If I am not mistaken, the violations on the part of the WB president have been discovered by GAP, as a result of which he was dismissed from his position this year.
– GAP is a law firm and a non-governmental organization in Washington, D.C. We protect whistleblowers, such as Mr. Tasker, when their rights are violated by corrupt actors in the public, private and intergovernmental sectors. In a national setting, we represent whistleblowers in court or in legal negotiations. With the World Bank, however, which is beyond the reach of national courts, we have no authority. In the matter of Paul Wolfowitz, we served as a conduit of allegations about his corrupt conduct to the press and to certain members of the World Bank Board. A staff member inside the Bank sent us documentation showing that Mr. Wolfowtiz had arranged for his girlfriend to be substantially overpaid. We made this information public. We played this role because the whistleblowers themselves had to remain anonymous, or they would have lost their jobs. As it was, Mr. Wolfowitz’ aides undertook an investigation to find out who was ‘leaking’ documents to GAP.
This action on the part of Mr. Wolfowitz was considered as corruption and he was dismissed form his position in spring. To note, the parliamentary commission has also studied the governmental financial recovery program, which had an aim to concentrate the energetic debts of our country in one place and cover them slowly. According to Tasker, the financial machinations on the part of authorized representative of “A Utility” Richard Walkling are also connected with this governmental project. GAP has certain facts connected with it too.