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SEC. 7002. ANTICORRUPTION PROPOSALS AND RE-
PORT. (a) PROPOSALS.—Not later than September 1, 2006, 
the Secretary of the Treasury shall develop proposals, in-
cluding 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. 
(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). 
SEC. 7003. PROMOTION OF POLICY GOALS AT MULTI-
LATERAL DEVELOPMENT BANKS. Title XV of the Inter-
national Financial Institutions Act (22 U.S.C. 262o et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 1505. PROMOTION OF POLICY GOALS. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Director at each multilateral devel-
opment 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:
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‘‘(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. 
‘‘(2) Links project and program design and re-
sults to staff performance appraisals, salaries, and bo-
nuses. 
‘‘(3) Implements whistleblower and witness pro-
tection 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 law-
ful public disclosures by the bank’s employees and 
others affected by such bank’s operations of mis-
conduct that undermines the bank’s mission, and for 
retaliation in connection with such disclosures. 
‘‘(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. 
‘‘(5) Ensures that all loan, credit, guarantee, 
and grant documents and other agreements with bor-
rowers include provisions for the financial resources
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and conditionality necessary to ensure that a person 
or country that obtains financial support from a 
bank complies with applicable bank policies and na-
tional and international laws in carrying out the 
terms and conditions of such documents and agree-
ments, 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 en-
vironmental protection. 
‘‘(6) Implements clear procedures setting forth 
the circumstances under which a person will be 
barred from receiving a loan, contract, grant, or cred-
it from such bank, shall make such procedures avail-
able to the public, and makes the identity of such per-
son available to the public. 
‘‘(7) Coordinates policies across international in-
stitutions on issues including debarment, cross-debar-
ment, procurement, and consultant guidelines, and fi-
duciary standards so that a person that is debarred 
by one such bank is subject to a rebuttable presump-
tion of ineligibility to conduct business with any 
other such bank during the specified ineligibility pe-
riod.
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‘‘(8) Requires each borrower, grantee, or con-
tractor, and subsidiaries thereof, to sign a contract to 
comply with a code of conduct that embodies the rel-
evant 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 corrup-
tion. 
‘‘(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. 
‘‘(10) Implements an internationally recognized 
internal controls framework supported by adequate 
staffing, supervision, and technical systems, and sub-
ject to external auditor attestations of internal con-
trols, meeting operational objectives, and complying 
with bank policies. 
‘‘(11) Ensures independent forensic audits where 
fraud or other corruption in such bank or its oper-
ations, projects, or programs is suspected. 
‘‘(12) Evaluates publicly, in cooperation with 
other development bodies, the interim and final re-
sults of project and non-project lending and grants on
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the basis of Millennium Development Goals, the goals 
of the Organisation for Economic Co-operation and 
Development related to development, and other estab-
lished international development goals. 
‘‘(13) Requires that each candidate for adjust-
ment or budget support loans demonstrate trans-
parent budgetary and procurement processes includ-
ing legislative and public scrutiny prior to loan or 
contract agreement. 
‘‘(14) Requires that before approving any nat-
ural resource extraction proposal the affected coun-
tries disclose accurately and audit independently all 
payments and revenues in connection with such ex-
traction or derived from such extraction. 
‘‘(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.’’. 
This Act may be cited as the ‘‘Department of State, 
Foreign Operations, and Related Programs Appropriations 
Act, 2006’’. 
Amend the title so as to read: ‘‘An Act making ap-
propriations for the Department of State, foreign oper-
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ations, and related programs for the fiscal year ending 
September 30, 2006, and for other purposes.’’. 
Passed the House of Representatives June 28, 2005. 
Attest: 
JEFF TRANDAHL, 
Clerk. 
Passed the Senate July 20, 2005. 
Attest: 
EMILY J. REYNOLDS, 
Secretary.