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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.

From football to fighting poverty: A shout-out for good governance

Sri Mulyani Indrawati's picture
Children playing football in Timor-Leste. © Alex Baluyut/World Bank


​The investigation, indictment, and arrest of several FIFA officials sends a simple and powerful message: No matter how untouchable an entity seems to be, in today’s world no organization, company, or government is immune from public scrutiny and law enforcement when it comes to allegations of fraud and corruption. Tolerating corruption as a “cost of doing business” is quickly going out of fashion.

The World Bank works hard to tilt the equation in favor of clean business in its fight against poverty. We investigate and hold perpetrators accountable when we receive allegations of wrongdoing in projects. Since we began this work, we have sanctioned more than 700 firms and individuals for misconduct in our projects. Most of these sanctions involve some form of debarment, rendering persons and firms ineligible to bid on future Bank-financed contracts. We recently released an updated review of our experience in investigating and adjudicating fraud and corruption cases, and it shows that it’s possible to tackle corruption in a way that is efficient, effective and fair. 

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.

A Collaborative Approach to Tackling Fraud and Corruption

Adu-Gyamfi Abunyewa's picture
Photo: Tran Thi Hoa / World Bank


Whenever aid and development money is involved, one question consistently emerges: How do you make sure it does not fall on the wrong hands, and be victims of fraud and corruption? This is a question that the World Bank country team in Vietnam and elsewhere has been grappling with. How do we ensure that financing for World Bank projects actually goes to its intended purposes and supports the ultimate goals of eliminating extreme poverty and boosting shared prosperity?

World Bank country staff in Vietnam realized that previous responses to fraud and corruption have focused too narrowly on individual projects. What are the factors that cause and perpetuate fraud and corruption in the first place? They needed to sufficiently address the root causes of the problem, and not just the symptoms. Despite greater awareness and more open debate about corruption in Vietnamese society, there's no evidence that allegations of fraud and corruption have decreased in the last several years.

To nip the canker in the bud, the Vietnam country team is developing a Strategic Action Plan to Address Fraud and Corruption Risks. The plan identifies broad areas of fraud and corruption concerns, categorizes them, and proposes measures and activities for mitigation. Teams across different World Bank units called “Global Practices” have come together to mainstream and implement the plan into core operations.

DataDive Q&A with Data Ambassadors: Identifying Fraud and Corruption with Technology

Itir Sonuparlak's picture

This post is part of the Q&A Series with the Data Ambassadors from DataDive2013. You can also read an interview with the fraud and corruption data ambassadorsa recap of Data Dive 2013, and watch the presentations from the weekend.

Photo credit: Itir Sonuparlak

During DataDive 2013, each project had an assigned data ambassador, a leader to guide and direct the research and efforts of the teams. In the days following the DataDive, we spoke with two of the data ambassadors from the fraud and corruption related projects to learn more about their experiences. Read their responses below and join the conversation in our comments section.

  • Taimur Sajid develops financial models to asses risk for a financial firm and acted as a data ambassador during the DataDive.
  • Marc Maxson is an Innovation Consultant with Global Giving and brought his Heuristic Auditing Tool to the DataDive.

 

Leveraging New Tools to Report Fraud and Corruption: The World Bank Launches its Integrity App

Stephen Zimmermann's picture

The World Bank has been making increasing use of Apps to make its information and data more accessible via mobile devices. The launch of the Integrity App expands the World Bank’s open data universe, and - perhaps even more excitingly - enables users to engage as 'citizen corruption fighters' to help protect the integrity of its projects, and ensure that development funds are used for their intended purposes.

So what does the new World Bank Integrity App do? It enables users to report concerns of fraud or corruption in Bank-financed projects. As with all such reports received, these are handled by the World Bank Integrity Vice Presidency, a specialized unit responsible for investigating and pursuing sanctions in cases of fraud and corruption in World Bank-financed projects.

Users of the Integrity App can identify projects (by name, country, sector or key word) and submit a confidential report of their concerns. Other features include attaching an image or recording the location of the complaint through the optional use of GPS. Users can also view the World Bank’s integrity policies.

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

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Twitter Transparency Report Show Government Requests For User Data. Now It's Facebook's Turn

“For the first time ever, Twitter has issued a transparency report card that sheds light on how often it's been asked by government officials to delete tweets and hand over user information -- and how frequently the social media site has complied.

Twitter's inaugural Transparency Report, based on activity during the first half of this year, details government requests for user data, authorities' efforts to have tweets removed and copyright takedown notices. It suggests officials are taking a more active interest in Twitter users' activity: Twitter's legal policy manager Jeremy Kessel writes, ‘We’ve received more government requests in the first half of 2012, as outlined in this initial dataset, than in the entirety of 2011.’”  READ MORE


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