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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-