The World Bank has cancelled three loans to Indonesia after corrupt practices were found to be linked to the loans.In a letter to Finance Minister Sri Mulyani, the bank said agreements for loans totalling US$1.5 million yet to be disbursed were dropped over alleged bribery in the hiring of consultants, The Jakarta Post reported.
The bank said it had received allegations from a contractor that the consultants - WSP International, paid bribes worth US$356,703 to civil servants.
In addition to cancelling the loans, the bank has also demanded the return of $4.6 million which had already been disbursed.
