Annual report on investigative and anti-corruption activities 2006

The Oversight Committee (OVC) was established in May 2000 with a mandate to coordinate investigations into alleged irregular practices, namely (i) fraud and corruption, when applied to entities, contractors and non-staff individuals applying for or participating in IFAD-financed activities, and (ii) staff misconduct. The efforts of the Fund to prevent the incidence of fraud and corruption in its activities and operations were further boosted through the adoption of an anticorruption policy by the Executive Board in November 2005.

Throughout 2006, IFAD worked towards introducing the structures and tools required for implementing its anticorruption policy. In 2006, the investigative capacity of the OVC was considerably reinforced with the establishment of the Investigation Section within the Office of Internal Audit. The OVC took specific actions to model its operating procedures and practices according to quality standards and best practices. It also took the lead in other activities related to implementation of the IFAD anticorruption policy, which included organizing an external review of the Fund’s investigation and sanction processes. The review prompted a major institutional reform of IFAD’s legal framework and procedures for conducting investigations and imposing sanctions, including the disbanding of the OVC, redefinition of the role of the Office of Internal Audit (renamed the Office of Audit and Oversight), establishment of a sanctions committee, and development of debarment procedures. These changes were introduced in early 2007, aligning IFAD with best practices applied by other United Nations agencies and the major multilateral development banks in this area.