South Sudan donors yesterday criticised the World Bank for failing to pay out two thirds of the money sent to finance reconstruction and development projects in the region.
The Multi Donor Trust Fund was set up by the World Bank as one of the main ways for donors to channel cash to the development of South Sudan.Michael Elmquist, the head of a donor umbrella group including European and North American governments, told Reuters that the fund received 524.1 million US Dollars since 2005, but only 188.1 million has so far been spent.
Mr. Elmquist added he doubts whether the World Bank would be able to process the rest of the funding before a deadline of the end of 2011.
He explained that the Fund’s legal and fiscal procedures may have been too awkward for operating in an environment like South Sudan.
Mr. Elmquist added that projects to build new schools and health centres have suffered due to World Bank red tape.
The head of the World Bank’s South Sudan office, Laurence Clarke, declined to comment.
Mr. Clarke told the Financial Times on Wednesday there had been criticism from donors, but defended the Fund’s record.
The World Bank’s website says that corruption and funds mismanagement were seen as a high risk in the south, necessitating “special measures”.