The World Bank (WB) continues to take a leadership role in the fight against fraud and corruption, investigating and closing more than 400 cases involving WBfinanced projects over the past two fiscal years and sanctioning over 100 entities for engaging in wrongdoing in projects. Over the past two fiscal years, the World Bank Groups Institutional Integrity Department (INT) investigated and closed 441 external investigations into fraud and corruption in Bank financed projects. As a result of such investigations, the WB debarred 58 firms and 54 individuals due to fraud and corruption over the period covered.

The Integrity Department completed 227 internal cases involving staff misconduct over the past two fiscal years. The remaining allegations were either unsubstantiated (46 cases), meaning the evidence was inconclusive, or referred (60 cases) to others in the institution for resolution. The largest single source of allegations received by INT in Fiscal 06 was World Bank staff and consultants, at 32 per cent of all allegations, the same percentage as the previous fiscal year. The nature of the allegations received relating to lending activities during FY05 and FY06 included procurement fraud, collusion, kickbacks and bribes, the misuse of project assets, and misrepresentation of qualifications in bid submissions.