Projects

If there are no further comments, let me make a brief concluding remark. We had a very useful Board meeting. I take it that the Board noted the Report of the Board Inspection Committee and approved the recommendations with the clarification provided by the Chairman of the Board Inspection Committee. The Secretary will reflect the Board decision appropriately in the Minutes and the Board will have an opportunity to approve it at the next meeting.

Let me thank the Board members for a very frank and useful discussion.

The range of issues discussed today and the variety of views expressed are not surprising. The Inspection Policy was fully applied and tested for the first time. We have learned many lessons and these will be very useful for the review of the inspection function that is ongoing. You have made valuable suggestions and comments, and let me assure you that these will be seriously considered during the review. We all recognize the importance of the inspection function and we should strive to improve the process.

While the recommendations approved today did not specifically mention the question of compliance with ADB's operational policies and procedures, views on that key question were divided. We all know the views expressed in the Panel's Report, Management's response, and the BIC report; and I do not need to mention them here. Let me emphasize, however, that I respect their respective views and professional judgements. What is more important to me today, in my capacity as Chairman of the Board, is that I have heard the views of the Board of Directors. Your views and advice as the shareholders of this institution are most important.

This first inspection case has provided a great learning opportunity. In fact, we had to learn, understand, interpret and clarify the working of the inspection process as we went along. There have been instances where what one party felt was not what the other party understood. What one party thought as a response, was considered by the other, as an insufficient or, even lack of, response. A case in point is the reference to a memorandum of 12 September 2001 in the BIC Report. What the Government considered an invitation to the visit was understood differently by others. There may be other similar instances. However, now that this inspection in respect of Samut Prakarn has been concluded, it is both timely and important that we move on, without further delay, to focus on the improvements of the Inspection Function, a key instrument of governance. You are aware that I have already created a Steering Committee and a Working Group for reviewing the current inspection policy. We must all participate actively in the ongoing review. I have placed utmost importance to ensuring that consultation both within and outside ADB is done conscientiously and diligently to fully reflect the views of all stakeholders. I have also asked Staff to ensure transparency and frequent consultation with the Board during the preparation of this very important policy paper. Concurrently with the review of the Inspection Policy, we are vigorously conducting a comprehensive and systematic review and updating of all OM sections to ensure that operational policies are properly incorporated into the relevant OM sections.

Finally, I would like to thank the Board members, the members of BIC and the Panel, officials of the Government of Thailand involved in this inspection, Management and Staff for their contribution and hard work. The Panel did what it had to do as an independent body. The Government provided its views as it considered appropriate. Management and Staff responded on the basis of their expertise and experience. BIC reflected their assessment in their Report. And the Board exercised its final responsibility. They all performed their roles. The beneficiary of all their views and hard work is ADB. Thank you.