How the World Bank is Funding a Corrupt Kenya
By David Asman
Fox Business News
March 14, 2008
Africa is a long way from here, but you might have heard something about trouble in Kenya, where a corrupt election led to fighting that has killed over 1,000 people. So what could any of that have to do with your money? Well, it turns out the World Bank’s been spending a lot of money there, and a good chunk of it backed up by U.S. taxpayers.
So where has that money been going? Apparently, a lot of it has gone to corrupt Kenyan officials, who’ve been skimming money from government projects -- many of them funded by the World Bank. When Kenyan President Kibaki was told about the corruption by a whistleblower, the president looked the other way, and the whistleblower had to run for his life, and now lives in Britain.
Still, the World Bank money kept flowing in. In fact, it doubled. Why? Well it may just be a coincidence, but it turns out the World Bank director who heads up the Kenyan branch is a good friend of President Kibaki. Until recently, he lived in a home “owned” by President Kibaki. This same official got in trouble recently for backing President Kibaki’s claims to victory in the election, even though European election observers said the election was rigged.
Not all World Bank officials are fans of President Kibaki. Former World Bank President Paul Wolfowitz tried to shut down about $260 million in Kenyan loans. But after Wolfowitz was kicked out, the Kenyan money spigot was turned back on. Not all banks are guaranteed returns on their loans, as we’ve seen with the current debt crisis. But some World Bank loans seem designed to fail, and a lot of your money is a part of that design.
Click here for the full story.
Senator Tom Coburn
Subcommittee on Federal Financial Management, Government Information, and International Security
340 Dirksen Senate Office Building Washington, DC 20510
Phone: 202-224-2254 Fax: 202-228-3796
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