DRC falls out with the World Bank at the cost of $1 billion

The World Bank has halted funding for more than $1 billion in humanitarian and development projects in the Democratic Republic of Congo after the government abruptly liquidated the project fund.

As part of the $1.04 billion total, $91 million had already been granted for the projects, according to the letter, but the bank was still awaiting paperwork on their progress.

According to his statement, the change was attributed to “the evolving legal framework governing public institutions.” Albert Zeufack, the head of operations for the World Bank in the country, mentioned in a letter dated May 12 that the organization became aware of the decision through media reports.

“Before being able to continue to commit the project funds, the government and the World Bank should agree on transitional measures… in order to ensure that the funds are used for the intended purposes,” he said via the letter.

A spokesman for the Congo’s finance ministry stated that he was awaiting approval from the president before making a statement.

Speaking on behalf of the administration, Tina Salama said there would be transitional management of the fund and ruled out any funding suspension. “I think arrangements have been made,” she said. She did not respond to questions about the $91 million.

According to Valery Madianga, the head of a Congolese organization that specializes in public finance auditing, the hasty decision to alter the financing structure is an example of weak governance.

“How can it be … that a public service, which signed a $1 billion program contract with the World Bank, has been dissolved or has changed its social purpose without the latter being aware of it?” he said.

In a letter sent last week, four of Congo’s leading opposition MPs asked the heads of the World Bank, the African Development Bank, and the International Monetary Fund to examine their finances there because they suspected misappropriation.