The World Bank has said that it hopes for professional investigations based on credible evidence on allegations of corruption leveled against Nepal Rastra Bank (NRB) governor and official by the Commission for Investigation of Abuse of Authority (CIAA).

“The World Bank’s attention has been drawn to the controversy surrounding alleged fraud in a World Bank financed contract administered by the Nepal Rastra Bank,” states a press release issued by the Bank.

“We take these allegations very seriously and hope that the investigations are carried out in a professional manner and on the basis of credible evidence,” said Susan Goldmark, World Bank Country Director for Nepal, in the statement.

“We are also carrying out our own internal review of the allegations and the circumstances around them,” she said. “At this point we can confirm that the World Bank provided it’s no objection to both the award and termination of Nepal Rastra Bank’s contract with IEF Inc. under routine World Bank procedures. Furthermore, we have received a copy of the consultant’s Inception Report, which was the basis for Nepal Rastra Bank’s release of payment to IEF Inc.,” she added.

“More importantly, we hope that the uncertainty will clear soon so that Nepal’s attention can be refocused on the important task of reforming the financial sector,” said Goldmark. “We hope that these recent developments do not undermine the morale of staff of the Nepal Rastra Bank who are leading these efforts in a very challenging environment,” she said.

The CIAA has charged governor Bijaynath Bhattarai and NRB director Surendra Man Pradhan of committing irregularities of Rs 24.5 million in carrying out a programme under the financial sector reforms initiatives. The CIAA has filed cases of corruption against them at Special Court.

Earlier, Finance Minister Dr. Ram Sharan Mahat, too, had said that the action taken by the anti-graft body CIAA will adversely affect the ongoing financial sector reforms program in the country. “This case is already sub-judice now. But I think this will affect financial sector reforms adversely. It will also affect morale of employees working in this program,” Dr. Mahat said.