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Article

19 Aug 2005

Author:
Dino Mahtani, Financial Times

World Bank concern over Chad oil revenues

The World Bank has expressed serious concern about the use being made by the government of Chad of oil revenues from a big pipeline project assisted by the bank. Chad is an important test case for the World Bank in encouraging oil and mineral-rich African countries to improve transparency and tackle corruption...It has established a legal framework to earmark oil revenues for poverty reduction programmes...[An] oversight committee...“...report cites incidents of irregularities in transfers of funds; poor quality of, and long delays in the delivery of goods and services; and lack of competitive bidding processes, and cases of over-pricing of goods and services,” the bank said...Chad and [Rep. of] Congo, along with Africa's four leading oil producers Nigeria, Angola, Equatorial Guinea and Gabon have a poor track record in transparent government spending.