Following the unexpected liquidation of the project fund by the government of the Democratic Republic of the Congo, the World Bank halted funding for more than $1 billion in humanitarian and development activities.
In a letter obtained last week, the World Bank notified Congo’s finance minister that the suspension would affect over 600,000 beneficiaries, including victims of sexual assault. A World Bank official has confirmed its validity.
The letter also said that $91 million of the total $1.04 billion had already been allocated for the projects, but the bank was still awaiting documentation on the status of those monies.
President Felix Tshisekedi of the Democratic Republic of the Congo liquidated the “Social Fund of the Democratic Republic of the Congo” and formed a new public fund on May 4th, by executive order.
“the evolution of the legal framework governing public institutions,” he said as the cause of the change.
In a letter dated May 12, World Bank Country Director Albert Zeufack said that the institution learned about the decision “through the press.”
He said that the government and the World Bank must “agree on transitional measures… to ensure that the funds were used for the intended purposes” before the latter can continue to contribute funding to the project.
The spokesman for the Congolese finance ministry said he couldn’t comment until he heard from the president.
Tina Salama, the president’s spokesperson, has denied claims of a funding freeze and instead said that the fund will be handled during a time of transition. She eventually said, “I think arrangements have been made.” She provided no answer when questioned about the $91,500,000.
The Panzi Foundation of Congolese doctor and Nobel Peace Prize recipient Denis Mukwege was one of the groups that received financing from the project.
According to Mukwege, “It’s a catastrophe for the victims.” He said that he had been notified several days before that he would no longer be reimbursed for program-related charges. According to the program’s coordinator, several victims were sent away.
Valery Madianga, a Congolese specialist in public finance audits, argued that the unexpected move to change the financing system was an example of inadequate governance.
“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.
Four of Congo’s most senior opposition parliamentarians accused the International Monetary Fund, World Bank, and African Development Bank of squandering their financing in Congo in a letter issued last week.
