Norwegian Consultant Trust Fund in the World Bank re-opened

The Ministry of Foreign Affairs was informed in December 2000 that the World Bank Consultant Trust Funds (CTFs) of six countries had been used in a way that was not consistent with the provisions of the trust fund agreement. Norway strongly deplored the fact that such misuse could occur, and decided to freeze the Norwegian CTF until the matter had been clarified.

The ministry has now received an internal auditor’s report on the way the CTFs have been used, and intends to re-open the Norwegian CTF. It has been stressed that the money in question will be repaid by the Bank.

On the basis of the recommendations in the auditor’s report, the Bank’s management has devised an ambitious action plan to strengthen the administration of the CTFs. The Bank has also carried out broad consultations with the donors to gain support for simplifying the administration. The proposed reorganization and simplification will ensure that the CTFs are much more strictly administered and monitored.

The ministry strongly deplores the fact that poor routines have allowed such misuse to take place, but is satisfied with the thorough way in which the World Bank has followed up the matter.

The ministry has decided to publish the World Bank’s report.

Press contact: Head of Information Jon Mørland, tel: 90 77 02 06.