World Bank suspends $1 bln worth of project funding in Congo

KINSHASA, (Reuters) - The World Bank has suspended funding for humanitarian and development projects in Democratic Republic of Congo worth more than $1 billion after the government dissolved the project fund without warning, the lender said.

The suspension will affect more than 600,000 beneficiaries, including victims of sexual violence, the World Bank told Congo's finance minister last week in a letter seen by Reuters. A World Bank spokesperson confirmed its authenticity.

The letter also said that the bank was still waiting for documentation on the status of $91 million which had already been advanced for the projects out of the total $1.04 billion.

On May 4, Congolese President Felix Tshisekedi dissolved the structure, the "Social Fund of the Democratic Republic of Congo", by presidential order and created another public fund.

The change was due to "the evolution of the legal framework governing public institutions," according to his statement.

In the letter dated May 12, the World Bank's director of operations for the country, Albert Zeufack, said the institution had found out about the decision in the press.

"Before being able to continue to commit the project funds, the government and the World Bank should agree on transitional measures... in order to ensure that the funds are used for the intended purposes," he said in the letter. A spokesperson for Congo's finance ministry said he was waiting for the go-ahead from the presidency before he could comment.

Presidential spokesperson Tina Salama denied any suspension of funding and said there would be transitional management of the fund. "I think arrangements have been made," she said. She did not respond to questions about the $91 million.