A US Senate Committee found that the World Bank and US government institutions financed “questionable payments” by Enron for a Guatemalan power project. In 1993 Enron built an electricity generating plant near Puerto Quetzal and sold the power to a government-sponsored utility. The project was partially financed by an IFC loan of $71 million. In an effort to conceal taxable income from Guatemalan authorities, payments were disguised as “add-on fuel charges” and re-routed to a bank account in Miami. Researchers for the Institute of Policy Studies have uncovered numerous allegations of fraud and corruption around Bank-financed Enron projects in Bolivia and Nigeria.
Report finds Development Finance Institutions (DFIs) are not doing enough to eliminate the risk of public money being complicit in tax avoidance schemes.
BWP publishes new booklet on gender-just macroeconomics, a guide to engaging the IMF and World Bank.
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