The World Bank has halted funding for more than $1 billion in humanitarian and development projects in the Democratic Republic of the Congo [DRC] after the government abruptly liquidated the project fund, according to the lender.
Albert Zeufack, the country’s head of operations for the World Bank, stated in a letter dated May 12 that the organisation had learned of the choice through the media.
“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 in the letter.
As part of the $1.04 billion total, $91 million had already been advanced for the projects, according to the letter, but the bank was still awaiting paperwork on their progress.
On May 4, by executive order, President Felix Tshisekedi of the Democratic Republic of the Congo dissolved the organisation known as the “Social Fund of the Democratic Republic of the Congo” and established a new public fund.
According to his statement, the adjustment was brought about by “the evolution of the legal framework governing public institutions.”
A spokesman for the Congo’s finance ministry stated that he was awaiting approval from the president before making a statement.
Presidential spokesperson Tina Salama denied any suspension of funding and said there would be transitional management of the fund. “I think arrangements have been made,” she said. She did not respond to questions about the $91 million.
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 audit their finances there because they suspected misappropriation.
More than 600,000 recipients, including those who have experienced sexual assault, will be impacted by the suspension, the World Bank said the DRC‘s finance minister in a letter seen last week. A representative for the World Bank attested to its legitimacy.
The Panzi Foundation, run by Congolese doctor Denis Mukwege, who received the 2018 Nobel Peace Prize for his work with victims of sexual assault, was one of the fund’s recipients.
“It’s a catastrophe for the victims,” Mukwege told Reuters. He said he had been warned a few days before that expenses incurred on his programme would stop being reimbursed. A programme coordinator said that he had had to turn victims away.
The abrupt decision to change the financing structure was an example of poor governance, said Valery Madianga, the director of a DRC organisation specialising in public finance auditing.
“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.
