Knowledge

In 2016, the Office of Audit and Oversight (AUO) and its Investigation Section (IS) played a critical role in upholding IFAD’s zero-tolerance stance towards corruption, fraud and misconduct. AUO ensured a timely and effective response to alleged wrongdoing by completing its investigative actions for 56 complaints during the year – a closure rate much higher than in previous years – and generally ensuring a prompt and effective conclusion to issues. 

Anticorruption awareness outreach was intensified through AUO participation in regional and other events, the pilot launch of an anticorruption e-learning module, celebration of International Anticorruption Day and increased coordination with the Financial Management Services Division (FMD), the Ethics Office (ETH) and the Programme Management Department (PMD). Investigative and sanctions processes were improved through revised procedures and AUO investigation capacity was strengthened through new forensic tools and segregated physical and IT environments. 

The Office of Audit and Oversight (AUO) and its Investigation Section (IS) contributed to institutional risk mitigation in 2015 through its review and/or investigation of 57 complaints of irregularities, through improvements in the investigations and sanctions processes and through anticorruption awareness activities. It was a challenging year due to the high volume and complexity of new complaints; a range of reforms to implement; and key staff changes early in the year. Significant additional budget support provided by Management allowed for the engagement of external expertise and ensured that the investigative work was conducted with the required independence and without limitations in scope.

In line with its mandate, the Office of Audit and Oversight (AUO) and its Investigation Section (IS) played a critical role in upholding IFAD’s zero-tolerance stance towards corruption, fraud and misconduct in 2014. It also supported effectively IFAD’s risk management efforts by focusing on areas of increased relevance to the Fund’s evolving operational and financial model and by ensuring a timely and effective response to alleged wrongdoing. 

The Office of Audit and Oversight (AUO) and its Investigation Section (IS) are mandated to investigate alleged irregular practices in IFAD activities and operations. This mandate stems from the AUO Charter, the IFAD Human Resources rules and Code of Conduct, and the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations. IFAD’s investigative and anticorruption activities aim to ensure that development funds reach intended beneficiaries in the most efficient, effective and transparent manner possible and that IFAD staff adhere to the ethical and integrity standards set by the Fund. The number of new complaints received in 2013 was slightly higher than in 2012 (39 against 33 in 2012). There was an increase in the number of external fraud allegations, particularly in procurement, as well as in the number of staff-related cases. In 2013, AUO successfully closed 41 cases, including several complex allegations, and disciplinary measures or sanctions were applied in six cases: five internal and one external.

FAD’s investigative and anticorruption activities aim to ensure that development funds reach intended beneficiaries in the most efficient, effective and transparent manner possible. Fraud and corruption divert resources away from the people who need them most. The goal of the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1) is the prevention of fraud and corruption within the Fund itself and in activities financed by IFAD at local, national, regional and international levels.

The Office of Audit and Oversight (AUO) and its Investigation Section (IS) have been mandated to investigate alleged irregular practices, namely: (i) fraud and corruption, in relation to entities, contractors and non-staff individuals applying for or participating in an IFAD-financed project or headquarters-related contract; and (ii) staff misconduct. 

In its efforts to help poor rural people overcome poverty, IFAD aims to ensure that development funds reach them in the most efficient, effective and transparent manner possible. Fraud and corruption divert resources away from the people who need them most. The goal of IFAD’s Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1 - “the anticorruption policy”), is the prevention of fraud and corruption within the Fund itself and in activities financed by IFAD at local, national, regional and international levels.

Pursuant to the adoption by the Executive Board in December 2005 of the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1, paragraph 26) (the anticorruption policy), the Investigation Section of the Office of Audit and Oversight (AUO/IS) has a mandate to investigate alleged irregular practices, namely: (i) fraud and corruption, in relation to entities, contractors and non-staff individuals applying for or participating in an IFAD-financed project or headquarters-related contract; and (ii) staff misconduct. Implementation of this policy and the subsequent establishment of a Sanctions Committee have aligned IFAD with best practices applied by other United Nations agencies and the major multilateral development banks in this area.

In 2010 there were some indicators that the proactive anticorruption awarenessraising activities undertaken by AUO/IS in past years were bearing fruit. An increase in complaints received by AUO/IS in 2010, discussed in more detail below, could reasonably be attributed, at least in part, to training and anticorruption presentations given by staff of the Investigation Section. AUO/IS also noted the excellent response in 2010 from Programme Management Department (PMD) staff with regard to reporting allegations and in terms of cooperation afforded to the Section.

The Investigation Section of the Office of Audit and Oversight (OA/IS) has a mandate to investigate alleged irregular practices, namely (i) fraud and corruption, in relation to entities, contractors and non-staff individuals applying for or participating in an IFAD-financed project or headquartersrelated contract; and (ii) staff misconduct, pursuant to the adoption by the Executive Board in December 2005 of the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1). Implementation of this policy, along with the establishment of a Sanctions Committee, has aligned IFAD with best practices in this area of other United Nations agencies and the main multilateral financial institutions.

Twenty-seven new allegations were received in 2009, compared with 30 in 2008. Fifty-nine per cent were external, mostly involving bidding irregularities and procurement-related fraud. Emphasis has been placed on promoting awareness of the anticorruption policy at every stage of the project cycle, thus putting the anticorruption message in the foreground. 

The Investigation Section of the Office of Audit and Oversight (OA/IS) has a mandate to investigate alleged irregular practices, namely (i) fraud and corruption, in relation to entities, contractors and non-staff individuals applying for or participating in an IFAD-financed project or headquarters-related contract, and (ii) staff misconduct, pursuant to the adoption by the Executive Board in December 2005 of the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1, paragraph 26). Implementation of this policy, along with the establishment of a Sanctions Committee, have aligned IFAD with best practices applied by other United Nations agencies and the major multilateral development banks (MDBs) in this area.

OA/IS was fully staffed in 2008, enabling it to pursue its dual role of conducting investigations and, more broadly, implementing the IFAD anticorruption agenda. 

The Investigation Section of the Office of Audit and Oversight (OA-IS) was set up in 2006 with a mandate to investigate 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. This was pursuant to the adoption by the Executive Board in December 2005 of the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1, paragraph 26). The establishment of a Sanctions Committee and the development of debarment procedures in February 2007 further bolstered the effectiveness of the IFAD investigative and sanctions process. These changes aligned IFAD with best practices applied by other United Nations agencies and the major multilateral development banks (MDBs) in this area. 

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. 

The IFAD Oversight Committee (OVC) was established by the President of IFAD in May 2000 to coordinate investigations into alleged irregular practices as a means of ensuring consistent, prompt and appropriate responses to allegations. The OVC investigates allegations of irregular practices pertaining to activities within IFAD or in connection with operations and contracts financed by IFAD, decides on the investigative actions to be taken, determines the role of IFAD in investigations involving external parties (such as national authorities or cooperating institutions), and reports to the President the facts that have emerged from the investigation.

The Oversight Committee (OVC) was established by the President of IFAD in May 2000, pursuant to President’s Bulletin 2000/04, to coordinate investigations into alleged irregular practices as a means of ensuring consistent, prompt and appropriate responses to allegations. The OVC membership comprises the Vice-President of IFAD as Chair, the General Counsel and the Chief, Internal Audit.1 The Special Advisor to the Vice-President and other IFAD officers (on invitation) have also participated in OVC meetings. The mandate of the OVC was reinforced in July 2003 through the adoption of the UN/IFI Uniform Guidelines for Investigation (see President’s Bulletin 2003/06, copy attached).