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Internal report damns ADB role in Cambodia rail project
ABC Radio Australia - February 10, 2014
The 143-million dollar project, which was partly funded by the now-defunct Australian aid agency AusAID, forced the relocation of more than three thousand people. An internal review found the Bank did not comply with its own policies, despite years of complaints.
Correspondent: Karon Snowdon
Speaker: David Pred, Managing Director, Inclusive Development International
Snowdon: Over the decades it took for Cambodia's rail system to fall into disrepair thousands of people moved into ramshackle housing along its 600 or so kilometre length.
They are described by the ADB's internal watchdog, the Compliance Review Panel as poor but extremely industrious people, working hard to make a living. A substantial number of these people are according to the Review Panel now "worse off and impoverished" by the ADB's failure to implement its own policies.
David Pred, Managing Director of Inclusive Development International filed a complaint on behalf of the affected families which resulted in the Panel's 17 month investigation.
Pred: Completely poorly designed inadequate resettlement plans and inadequate budget was the starting point. And then very poor implementation of those poor plans basically led people into impoverishment.
Snowdon: Some people were moved 20 to 30 kilometres from work, they became victims of loan sharks with unmanageable debts, roads and services were poor, one medical facility was described as "appalling".
The 180 page report describes the project's long list of failings as "a particularly grievous case". It also concluded the project contributed to the circumstances causing the deaths of three children. It recommends the Bank pay compensation to those families for emotional pain without assuming liability.
The Bank had said no person would be worse off as a result of the project Its funding partner AusAID contributed 27 million dollars and said the project would help the poor. It provided additional funding when resettlement problems arose.
David Pred says along with the ADB and AusAID, the Cambodian Government and Australian company Toll Holdings bear responsibility for the people's losses and trauma.
Pred: Both the Australian government and Toll Holdings which is the main beneficiary that's going to profit the most from Australian aid in this case absolutely have a responsibility to contribute to solutions for people who gave up everything to make this project possible.
Snowdon: In a statement the Australian Government says it supports the Panel's findings and will work with its partners to implement the report's recommendations.
The major recommendation is for a compensation scheme of three to four million dollars for the loss of land and income. The draft report said this should be paid for by the ADB, the final report shifts the cost to the Cambodian government through a loan from the Bank. David Pred says this is passing the buck.
Pred: We think there's a huge disconnect between the findings that the harm flowed from the ADB's negligence and failure to comply with its policies to require the Government to pay for the cleanup.
Snowdon: No-one from the ADB was available for comment despite the seriousness of the Panel's findings.
In an email response, the Bank avoided the question of why the Cambodian government should be required to foot the bill for compensation. It added the Bank has taken several measures to strengthen its safeguards.
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