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MINISTER COMMENTS ON WORLD BANK'S REPORT ON IRREGULARITIES IN PILOT PROJECT

ZAGREB, Nov 26 (Hina) - Commenting on a decision of the World Bank tosanction the BIS Healthcare company and its principal Bruno Gomes forfraudulent practices in relation to the World Bank-financed "CroatiaHealth System Project" (CHSP), Health Minister Andrija Hebrang said onFriday that at the very beginning of his term he pointed to the factthat 7.5 million dollars from a World Bank loan had been spent forintellectual services.
ZAGREB, Nov 26 (Hina) - Commenting on a decision of the World Bank to sanction the BIS Healthcare company and its principal Bruno Gomes for fraudulent practices in relation to the World Bank-financed "Croatia Health System Project" (CHSP), Health Minister Andrija Hebrang said on Friday that at the very beginning of his term he pointed to the fact that 7.5 million dollars from a World Bank loan had been spent for intellectual services.

"The World Bank announced the debarment for four years of one individual and one firm for fraudulent practices in relation to the World Bank-financed 'Croatia Health System Project' (CHSP). This firm and the individual will be ineligible to receive any new World Bank-financed contracts for the periods of their debarments," reads a press release issued on the World Bank's web site.

"BIS Healthcare and its principal, Mr. Bruno Gomes, were sanctioned for failure to comply with the Consultant Guidelines. The experience and qualifications of the principal as well as the qualifications and certifications of BIS Healthcare were misrepresented. The Sanctions Committee found fraudulent practice in the numerous misrepresentations in the contractor"s proposal," the statement added.

Hebrang told Hina today that the British company and its head had so far received 1.2 million dollars out of a total of two million it was expected to receive. The cooperation between the co-ordinators of the project in Croatia and BIS Healthcare and Mr. Gomes was severed, as the former were dissatisfied with the company's services.

"The investigation of the World Bank, the findings of which can be expected next month, is a sort of satisfaction for me, since from the very beginning I have been warning that the project (in Koprivnica-Krizevci County) is faulty and that there are irregularities," Hebrang said.

The project of reorganisation of the hospital in the northern city of Koprivnica will continue, and an additional five million dollars should be invested for this purpose by 30 June, the deadline for the completion of the reorganisation.

In 1999, the World Bank approved a USD 29-million-dollar loan for the reform of the Croatian health sector.

The loan, signed by the then Croatian Health Minister Zeljko Reiner, should be used by 30 June 2005.

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