BILLIONS MISSPENT: MOSCOW TIMES
In other news, the Moscow Times reported yesterday (8/19) that the Russian government has "grossly misspent" billions of dollars from the World Bank on salaries, offices and public relations, according to a former top economic official. Mikhail Delyagin, who has been a former economic adviser to President Boris Yeltsin and to First Deputy Prime Minister Boris Nemtsov, said at a news conference Wednesday that generally up to 30 percent of World Bank funds disbursed to a project have gone to pay salaries, while another 20 percent to 30 percent go for office rent and overhead expenses. "The World Bank funding program for Russia is the result of the lobbying efforts of various interest groups," said a Finance Ministry official who asked not to be identified.
Speaking on condition of anonymity, another official said federal ministries often continue to push projects that they believe will not work simply because they don't want to halt the cash flow, the story says. The Economics Ministry official also blamed the government for "very often" ruining World Bank-approved projects.
World Bank representatives said Wednesday that projects worth $228.5 million have been cancelled over the past few years, in response to Russia's volatile economic situation, says the story.