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Citizen Security Programme probe… IDB promises range of sanctions if fraud confirmed
Khemraj Rai
The Inter-American Development Bank (IDB) says it could implement a range of sanctions if it confirms a case of fraud involving the US19 million Citizen Security Programme and its former Coordinator Khemraj Rai.
Regarding Rai himself, the IDB could debar him from working on IDB projects in the future.
“If the Sanctions System of the IDB finds that a Prohibited Practice was committed, it may impose a range of possible sanctions that include public debarment,” Christopher Barton, a representative of the Bank, told Kaieteur News.
He said it is not likely that the IDB will make public the report of the investigation.
“While the IDB acts expeditiously when cases of fraud and corruption are brought to our attention, we cannot get into details of the investigation, including any information regarding dates and timelines,” he stated.
Firms and individuals are sanctioned by the IDB Group’s Sanctions Committee because they were found to have engaged in fraud, corruption, collusion, coercion, or obstruction in violation of the IDB Group’s anti-corruption policies.
The Sanctions Committee may impose any sanction that it deems to be appropriate under the circumstances, including but not limited to reprimand, conditions on future contracting and debarment.
The Bank had said that it is “very serious” about claims of fraud and corruption and other prohibited practices involving IDB operations. The IDB is investigating claims that Rai, forged documents in order to bid for contracts. He then allegedly approved those contracts and collected millions of dollars through a bank account he set up.
“Because corruption undermines development, the IDB has adopted an anti-corruption framework that adheres to the highest international integrity standards,” said Barton, the Caribbean Department Liaison with the IDB’s Office of External Relations.
Home Affairs Minister Clement Rohee has said that Police action will have to await the results of the IDB probe.
The IDB investigation began when contractor Viddiadat Jaisari claimed that Rai had bid for several projects using his name amounting to over $7 million.
The contractor was employed as a construction supervisor from November 2011 and was being paid a monthly salary of $250,000. However, most of the work the contractor did was not supervising contracts in West Coast Berbice, but working from Mr. Rai’s own joinery shop. The furniture from that joinery shop was in turn being bought by the Citizen Security Programme.
The provision of goods and services ranged from building pavilions to building and furnishing centres, all under the Citizen Security Programme.
The Police’s Fraud Squad is investigating reports that at least five contracts were signed by Rai using the contractor’s signature. Those contracts were for the rehabilitation of community centres, which the contractor should have been supervising.
The project which is funded under an IDB loan is for 40 years, with a 10-year grace period. Interest rates are one percent a year during the first decade and two percent a year thereafter.
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