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Compliance

Does it help to complain?

Jan Mattsson's picture

Masai in KenyaIt is a year since I blogged about my early impressions of the Inspection Panel and specifically a complaint from a Maasai community that was resettled to accommodate a geothermal plant in Kenya.

Since then I have heard variants of the question: Do accountability mechanisms make a difference?  In this case, I believe the Inspection Panel has made a positive contribution. But the ultimate test of the effectiveness of the Bank process, of which the Panel is only one part, must be the redress of any harm caused. Signs are encouraging, and we shall see.

We submitted our investigation report in early July. The Board meeting in October resulted in a clear direction for the future (see press release). This was followed by the Panel’s debriefing of the community and other stakeholders in Kenya. 

As we analyzed the facts it became clear the Bank had failed to bring to bear its rich experience with resettlement and the full force of its safeguard policies. This had negative repercussions for many of the project-affected people, especially the poor and vulnerable.

In a nutshell, the requirement to engage resettlement expertise was not met, consultations were hampered by the absence of Maa language and by sidelining the traditional Maasai authority structure, and there was no effective monitoring against a comprehensive socio-economic baseline. We also highlighted many positive aspects, including the climate-neutral generation of electricity and the investment in new infrastructure for schools and dwellings in the resettlement area.

International organizations tip the scale towards integrity

Stephen Zimmermann's picture

Anti-corruption imageOver the last year, we have reached several noteworthy milestones in the global fight against corruption. In the arena of fighting corruption in international development, two important milestones stand out as having paved the way for significant progress and in setting us on a course for our continued success in reducing the impact of corruption on the poor.

It was ten years ago that the investigation into the UN’s Oil for Food corruption scandal came to an end. This was perhaps the biggest, most complex, corruption investigation to date involving an international organization. By virtue of its extraordinary status, the investigation was conducted under the leadership of an independent panel, including Paul Volcker (as Chair), Mark Pieth and Richard Goldstone, all of whom were and continue to be thought leaders for global integrity. The findings of the panel were sweeping and unflinching and, importantly, largely public.  An important consequence of the scandal and the ensuing investigation was in creating both the opportunity and a pressing mandate for international development agencies to take on corruption inside their own programs, and among their own staff.

As a result of this investigation, most UN agencies and other international financial institutions now have their own independent integrity office charged with rooting out fraud and corruption in their activities. While many are still small, under-resourced and looking for support from their leadership, individually and collectively they have the ability to make a difference. I am proud to say the World Bank Group has remained a leader in setting a high bar for integrity standards and in international development financing.  Within that framework, the 90 staff of the Integrity Vice Presidency (INT) dedicate themselves to investigating, sanctioning and ultimately preventing fraud and corruption in Bank Group-financed operations. 

Corruption in fragile states: A panel discussion on the intersections of development, conflict and exploitation

Roxanne Bauer's picture

Just say NO to corruptionCorruption is a global threat to development and democratic rule. It diverts public resources to private interests, leaving fewer resources to build schools, hospitals, roads and other public facilities. When development money is diverted to private bank accounts, major infrastructure projects and badly needed human services come to a halt. Corruption also hinders democratic governance by destroying the rule of law, the integrity of institutions, and public trust in leaders. Sadly, the vulnerable suffer first and worst when corruption takes hold.

In fragile environments, however, the effects of corruption can be far more expensive. Corruption fuels extremism and undermines international efforts to build peace and security.

This was the theme of a panel discussion, entitled “Corruption in Fragile States: The Development Challenge,” which brought together Leonard McCarthy, the World Bank’s Vice President of Integrity; Jan Walliser, the World Bank Vice President of Equitable Growth, Finance and Institutions; Shanta Devarajan, World Bank Chief Economist of Middle East & North Africa; R. David Harden, USAID Mission Director for West Bank and Gaza; Daniel Kaufmann, President of Natural Resource Governance Institute; and Melissa Thomas, Political Scientist and author of “Govern Like Us.”

#9 from 2015: A global movement against corruption: It is happening now!

Leonard McCarthy's picture
Our Top Ten blog posts by readership in 2015. This post was originally posted on October 26, 2015.


Also available in: Español | Français | العربية

Third Annual International Corruption Hunter AllianceTaking note of headline news in recent weeks, one cannot escape the reality that efforts to fighting corruption are succeeding. A decade ago, success was a privilege to societies who -by virtue of democratic gains- could claim rights to holding public officials accountable. Today, it is not easy to get away with corruption. Not even if you are a major multinational, a senior government official, or an institution with millions of followers across the world.

Within our network- the World Bank International Corruption Hunters Alliance- we feel optimistic about all that is happening to support our mission; that of ensuring every development dollar is spent with integrity. We go to work every day and the focus is how do we prevent bad things from happening. To achieve that at the World Bank Group, we are continually advancing our investigative techniques, our preventive advice, monitoring the compliance standards of debarred entities and engaging with partners across multilateral development banks, national enforcement agencies and CSOs to strengthen this young global movement against corruption. It is critical that this momentum continues to sustain change at a global scale.

Undoubtedly we face a few challenges along the way; some more complex than others, none that cannot be overcome. Last fiscal year, the World Bank prevented approximately $138 million across 20 contracts from being awarded to companies that had attempted to engage in misconduct. This is progress that could not have been achieved without years of investigative experience invested in gathering evidence, recognizing patterns of misconduct, and documenting lessons learnt.

A global movement against corruption: It is happening now!

Leonard McCarthy's picture

Also available in: Español | Français | العربية

Third Annual International Corruption Hunter AllianceTaking note of headline news in recent weeks, one cannot escape the reality that efforts to fighting corruption are succeeding. A decade ago, success was a privilege to societies who -by virtue of democratic gains- could claim rights to holding public officials accountable. Today, it is not easy to get away with corruption. Not even if you are a major multinational, a senior government official, or an institution with millions of followers across the world.

Within our network- the World Bank International Corruption Hunters Alliance- we feel optimistic about all that is happening to support our mission; that of ensuring every development dollar is spent with integrity. We go to work every day and the focus is how do we prevent bad things from happening. To achieve that at the World Bank Group, we are continually advancing our investigative techniques, our preventive advice, monitoring the compliance standards of debarred entities and engaging with partners across multilateral development banks, national enforcement agencies and CSOs to strengthen this young global movement against corruption. It is critical that this momentum continues to sustain change at a global scale.

Undoubtedly we face a few challenges along the way; some more complex than others, none that cannot be overcome. Last fiscal year, the World Bank prevented approximately $138 million across 20 contracts from being awarded to companies that had attempted to engage in misconduct. This is progress that could not have been achieved without years of investigative experience invested in gathering evidence, recognizing patterns of misconduct, and documenting lessons learnt.

Today, we are able to support project teams to make smarter risk-based interventions. Whether at  project design, supervision and/or evaluation; our diverse team of investigators and forensic/preventive specialists offer a solid interpretation of red flags, unusual/awkward behavior by contractors, in addition to an effective response to allegations of misconduct impacting World Bank-financed projects.

Broken Windows: Mending the Cracks

Leonard McCarthy's picture

When the World Bank investigates and sanctions a major corporation for corruption related to one of its project, the deterrent impact is readily apparent. However, not every case the World Bank investigates is a major corruption case. In the past year, the World Bank Integrity Vice Presidency (INT) received many complaints related to fraud, and it is important to demonstrate responsiveness to complainants who report credible allegations as well as fix the weaknesses identified. Sanctioning cases of fraud also sends a strong message about abiding by high integrity standards in World Bank-financed projects. 

Left unchecked, fraud erodes development effectiveness. It often coincides with poor project implementation, which can result in collapsing infrastructure or the distribution of counterfeit drugs. It causes costly delays and can lead to direct financial losses for countries which cannot afford it. Fraud also fosters a negative enabling environment, creating opportunities for more serious and systemic misconduct to occur.

An International Alliance against Corruption: Mindful of its Actions but Determined to Act

Dina Elnaggar's picture

When they first met in 2010, they hardly knew each other.  This week, members of the World Bank’s International Corruption Hunters Alliance convened their second meeting and for many of them, the fight against corruption is no longer solo. 
 
Once again, the World Bank welcomes more than 200 corruption fighters driving an agenda that is focused on international cooperation, technological tools and new approaches that can be incorporated in their anti-corruption mission.  Since their meeting in 2010, a lot has happened.  Corruption did not end but many of their collective actions had a profound impact in spreading a higher standard of accountability in public procurement and creating a broader range of enforcement powers.  Cooperation between the World Bank Integrity Vice Presidency and a number of national prosecution and investigative bodies has resulted in action against corrupt companies and officials.  Examples are many.  The point is, working as an Alliance is about sharing information and conducting parallel investigations, that is turning transnational crimes from a challenge to a success story.