Annual Report on IFAD’s Investigation and Anticorruption Activities during 2020

This report presents information on the investigation and corruption prevention activities carried out by IFAD’s Office of Audit and Oversight (AUO) in 2020. Information is also provided on investigation outcomes and sanctions, on outreach and cooperation efforts, and on the use of staff and other resources.

In 2020, AUO received 83 allegations of misconduct or of prohibited practices, an increase from 2019. Of these, 55 per cent related to alleged fraud or corruption in IFAD-financed projects. Notwithstanding the COVID-19-related slowdown in some IFAD-financed operations, AUO received slightly more allegations of fraud and corruption concerning IFAD project activities in 2020 as compared to previous years, confirming the need for continuous vigilance by all parties involved. At the same time, IFAD and AUO stepped up the anticorruption response and addressed many more allegations in 2020 than in previous years, resulting in operational remedial measures or sanctions where substantiated. Although this trend is indicative of the inherent corruption risk in the difficult environments where IFAD operates, it is also a result of the strengthened anticorruption advocacy of recent years, increased visibility of IFAD’s reporting channels, and the continued mainstreaming of the Revised IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations, approved by the Executive Board in 2018. IFAD put in place a wide range of timely measures that mitigated the adverse impact of most COVID-19-related risks.

As in previous years, most of the external allegations received in 2020 related to project procurement or contract management activities. Several of these implicated project staff/government officials. IFAD has strengthened its procurement oversight capacity in these areas and further capacity-enhancing efforts are in progress. AUO maintains a close working relationship with operations units, including the Programme Management Department (PMD), the Financial Management Services Division (FMD), and the Financial Controller's Division, to proactively mitigate emerging and residual risks relating to such allegations.