The World Bank is to offer a conditional amnesty to companies that voluntarily admit to corrupt dealings on bank-funded projects.

The move forms part of a broad anti-corruption drive under the bank's new president, Paul Wolfowitz, the former US deputy defence secretary.

Under the terms of the new voluntary disclosure programme, which was approved by the bank's executive board last week, the bank will not take action against companies that come forward with information about past wrongdoing and will allow them to continue to take part in projects.

Only part of the information will be shared with staff, management and member countries, in order to preserve anonymity. Individuals and non-governmental organisations will also be able to seek amnesty in this way.

The programme covers "fraudulent, corrupt, collusive or coercive acts in bank-financed or supported contracts".

In return, the companies would agree to investigate thoroughly their past dealings with the bank, share this information with the bank, and appoint a bank-approved independent monitor to track internal compliance for the following three years.

The companies will not be required to pay any fine, but will have to pay the cost of investigation and compliance.

Companies that fail to come clean voluntarily but are caught by bank investigations will continue to be debarred from participation in future projects. About 330 companies are currently barred in this way.

Mr Wolfowitz said the scheme would "help the bank further its anti-corruption agenda in a practical and cost-effective way". - (Financial Times service)