To promote reform of the multilateral development banks.

1. Adds TITLE VII--MULTILATERAL DEVELOPMENT BANK REFORM on page 326, between lines 9 and 10

   Adds a titlePrinted page

   Inserted: TITLE VII--MULTILATERAL DEVELOPMENT BANK REFORM

   Inserted: SEC. 7001. DEFINITIONS.

   Inserted: In this title:

   Inserted: (1) Appropriate congressional committees.--The term "appropriate congressional committees" means the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives.

   Inserted: (2) Multilateral development bank.--The term "multilateral development bank" has the meaning given that term in section 1622 of the International Financial Institutions Act (22 U.S.C. 262p-5).

   Inserted: SEC. 7002. ANTICORRUPTION PROPOSALS AND REPORT.

   Inserted: (a) Proposals.--Not later than September 1, 2006, the Secretary of the Treasury shall develop proposals, including establishing one or more trusts and a set-aside of loans or grants, to establish a mechanism to assist poor countries in investigations, prosecutions, prevention of fraud and corruption, and other actions regarding fraud and corruption related to a project or program funded by a multilateral development bank.

   Inserted: (b) Report.--Not later than September 1, 2006, the Secretary shall submit to the appropriate congressional committees a report on the proposals required by subsection (a).

   Inserted: SEC. 7003. PROMOTION OF POLICY GOALS AT MULTILATERAL DEVELOPMENT BANKS.

   Inserted: Title XV of the International Financial Institutions Act (22 U.S.C. 262o et seq.) is amended by adding at the end the following:

   Inserted: "SEC. 1505. PROMOTION OF POLICY GOALS.

   Inserted: "The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank to use the voice and vote of the United States to inform each such bank and the executive directors of each such bank of the goals of the United States and to ensure that each such bank accomplishes the goals set out in section 1504 of this Act and the following:

   Show 15 more inserted paragraphsShow less

   Inserted: "(1) Requires the bank's employees, officers, and consultants to make an annual disclosure of financial interests and income of any such person and any other potential source of conflicts of interest.

   Inserted: "(2) Links project and program design and results to staff performance appraisals, salaries, and bonuses.

   Inserted: "(3) Implements whistleblower and witness protection matching that afforded by the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.), the Inspector General Act of 1978 (5 U.S.C. App.), and the best practices promoted or required by all international conventions against corruption for internal and lawful public disclosures by the bank's employees and others affected by such bank's operations of misconduct that undermines the bank's mission, and for retaliation in connection with such disclosures.

   Inserted: "(4) Implements disclosure programs for firms and individuals participating in projects financed by such bank that are consistent with such programs of the Department of Defense and the Environmental Protection Agency.

   Inserted: "(5) Ensures that all loan, credit, guarantee, and grant documents and other agreements with borrowers include provisions for the financial resources and conditionality necessary to ensure that a person or country that obtains financial support from a bank complies with applicable bank policies and national and international laws in carrying out the terms and conditions of such documents and agreements, including bank policies and national and international laws pertaining to the comprehensive assessment and transparency of the activities related to access to information, public health, safety, and environmental protection.

   Inserted: "(6) Implements clear procedures setting forth the circumstances under which a person will be barred from receiving a loan, contract, grant, or credit from such bank, shall make such procedures available to the public, and makes the identity of such person available to the public.

   Inserted: "(7) Coordinates policies across international institutions on issues including debarment, cross-debarment, procurement, and consultant guidelines, and fiduciary standards so that a person that is debarred by one such bank is subject to a rebuttable presumption of ineligibility to conduct business with any other such bank during the specified ineligibility period.

   Inserted: "(8) Requires each borrower, grantee, or contractor, and subsidiaries thereof, to sign a contract to comply with a code of conduct that embodies the relevant standards of section 104 of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2) and the international conventions against bribery and corruption.

   Inserted: "(9) Maintains independent offices of Inspector and Auditor General which report directly to such bank's board of directors and an audit committee with its own additional experts who are independent of management, or access to such experts, to assist it in ensuring quality control.

   Inserted: "(10) Implements an internationally recognized internal controls framework supported by adequate staffing, supervision, and technical systems, and subject to external auditor attestations of internal controls, meeting operational objectives, and complying with bank policies.

   Inserted: "(11) Ensures independent forensic audits where fraud or other corruption in such bank or its operations, projects, or programs is suspected.

   Inserted: "(12) Evaluates publicly, in cooperation with other development bodies, the interim and final results of project and non-project lending and grants on the basis of Millennium Development Goals, the goals of the Organisation for Economic Co-operation and Development related to development, and other established international development goals.

   Inserted: "(13) Requires that each candidate for adjustment or budget support loans demonstrate transparent budgetary and procurement processes including legislative and public scrutiny prior to loan or contract agreement.

   Inserted: "(14) Requires that before approving any natural resource extraction proposal the affected countries disclose accurately and audit independently all payments and revenues in connection with such extraction or derived from such extraction.

   Inserted: "(15) Requires each project where compensation is to be provided to persons adversely impacted by the project include impartial and responsive mechanism to receive and resolve complaints.".

   Original wording

   On page 326, between lines 9 and 10, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed