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WB eyes disclosure tack shift after bid rig mess

By Chito Lozada

04/24/2009

The World Bank (WB) said that it plans a paradigm shift in its disclosure policy on information it holds after the controversy stirred up by sanctions it imposed on three local construction firms and contractor Eduardo de Luna as a result of rigging of bids for a portion of the $2-billion National Road Improvement and Management Project.

A change in the WB tack would likely have implications in obtaining more data that would link First Gentleman Jose Miguel “Mike” Arroyo to the bid-rigging cartel.

A referral report of the WB that was provided the Department of Finance and the Office of the Ombudsman identified Mr. Arroyo as a key figure in the cartel that corners the country’s biggest infrastructure contracts through the rigging of bids.

In a draft of a proposal to change its disclosure policy called “Toward Greater Transparency: Rethinking the World Bank’s Disclosure Policy,” the World Bank said the proposal was for a paradigm shift in its approach to disclosure, from a policy that spells out what documents the Bank discloses under a so-called “positive list” to one under which the Bank would disclose any information that is not on a list of exceptions.

The WB said the shift in the policy would be more consistent with the its expressed presumption in favor of disclosure.

“This approach is consistent with the World Bank’s business model, which recognizes the importance of transparency as a critical tool for enhancing good governance, accountability, and development effectiveness,” it said.

The WB admitted flaws in its current disclosure policy such as the “positive list” approach to disclosure being restrictive.

“The creation of such a positive list creates the perception that there is a presumption against the disclosure of information that is not on that list,” according to the paper.

There is also lack of clarity on what is not disclosed. “All information available under the disclosure policy is subject to a list of constraints, which establish broad principles and the rationale for restricting certain types of information but do not provide clear instructions to staff on what cannot be disclosed,” it added.

It added the policy in effect on the disclosure of historical information “is restrictive, costly and cumbersome to implement.”

The World Bank said the proposed policy would represent a complete paradigm change in its approach to disclosure and would be consistent with the disclosure policies adopted in a number of countries in recent years through freedom of information legislation.

“It would also put the World Bank at the forefront of other multilateral agencies with respect to disclosure,” the paper added.

The proposed policy will also provide greater clarity on what is not disclosed, establish timelines for responding to requests, streamline disclosure authorization and policy waiver procedures, provide clear guidelines on protecting confidential information relating to member countries, and institute an administrative appeals mechanism for those who believe that access to information has been unreasonably denied, the paper added. “These changes would result in a far more transparent World Bank, and they are expected to make it easier for staff to provide information,” it said.