The World Bank exposed corruption in the implementation of a 203,000 dollar poverty-busting grant in Indonesia, saying it has blacklisted five individuals and two firms in the scandal.

"The Bank found evidence of misrepresentation of bona fides, bid collusion and kickbacks," it said in a statement.

The exposure came as Indonesian President Susilo Bambang Yudhoyono, who is on a visit to Washington, pledged to wipe out graft in the administration following talks with US leader George W. Bush.

The Indonesian government has refunded the full amount of the World Bank project funds linked to the scandal, the Washington-based bank said.

The blacklisted firms and individuals will be ineligible to receive any new World Bank-financed contracts for up to three years.

World Bank Country Director Andrew Steer said, "As we have said before, the World Bank's funds must go to help alleviate poverty for the people of Indonesia.

"As this case shows again, we will be vigilant with regard to the use of Bank funds. When we find instances of fraud and corruption, we will report them openly to the Government and work with them to see that action is taken," he said.

The grant was made in 2001 under the World Bank-administered Asia Europe Meeting-European Union (ASEM-EU) Asian Financial Crisis Response Trust Fund.

It was provided for the purpose of strengthening and monitoring social safety net programs in Indonesia, and implemented by the National Development Planning Agency.