Bank outlines strategy against corruption, fraud
Editor's note: The African Development Bank (AfDB) values professional ethics of its staff and has tightened control over corruption risks. Edward Ouko, director of the Office of the Auditor General, shares his views on this issue.
Q: Could you tells us why the African Development Bank Group (AfDB) needs a strategy to fight corruption, fraud and misconduct?
A: One need not over-emphasize the effect of fraud and corruption in the projects the bank financed.
Fraud and corrupt practices undermine the development mission of the bank. The bank's strategy is one of zero tolerance.
The AfDB president has set the tone in this respect through his consistent public pronouncements against the scourge in official forums and in the bank. The rest is upon each one of us to ensure that in our individual capacity and behavior, we uphold basic principles of professional ethics expected of us as members of the bank's personnel.
Q: What is the role of the Office of the Auditor General (OAG) in the fight against these scourges and what means do you have in place to win this battle?
A: As you are aware, in November 2005, the board of directors approved the restructuring of the former internal audit department into an OAG, with the responsibility for internal audit and also anti-corruption and fraud investigation.
We thus have an internal audit division, whose mandate is the operational aspects of the former internal audit department and investigation division, whose mandate is to undertake unhindered investigations into allegations of fraud, corruption and other misconduct within the bank and in bank-financed projects. The investigation division is up and running and is dealing with a number of investigations.
In January 2007, the board approved a landmark policy on whistle-blowing and complaints handling in the bank, which forms an important pillar in the fight against fraud, corruption and other misconduct in the bank and in bank-financed projects.
I urge all staff to familiarize themselves with this policy by visiting the bank's website. In due course there will be a presidential directive, posters and brochures to raise awareness among the staff.
Q: What are the tenets of the policy and what measures are there to protect whistle-blowers identity and [to stop] retaliation?
A: The main aims of the policy are to provide an avenue for raising concerns related to fraud, corruption and other misconduct and assure that those who disclose information related to fraud, corruption and other misconduct will be protected from retaliation.
To the extent possible, the Auditor-General shall guarantee confidentiality of the identities of whistle-blowers and complainants.
Where bank personnel makes or is in the process of making a report in the reasonable belief that the contents of the report are true on a matter subject to the authority of the anti-corruption and fraud investigation division, the bank personnel's identity shall be fully protected from unauthorized disclosure by the auditor general.
Proven retaliation against a whistle-blower shall be treated as a separate misconduct and sanctioned accordingly.
The space does not allow me to go into more details. I would however like to invite the staff to thoroughly familiarize themselves with this important policy.
Q: Protecting the whistle-blower's identity is critical, have you ensured that all measures have been taken to protect the whistle-blower's identity?
A: Policy wise, I believe that adequate measures have been taken to protect whistle-blowers identities but the proof of the pudding, as the saying goes, will be in the eating. OAGL has been charged by the president to be the advocate for serious whistle-blowers vis--vis management.
In other words, the office will defend a serious whistle-blower by not disclosing the identity and also defend the bank personnel where a retaliatory action by management has been proven. However, those who are making allegations in good faith or without reasonable belief that what is being reported is true may be subject to disciplinary action in keeping with bank rules;
Q: Generally, what message do you intend to pass on to your bank staff?
A: Corruption affects the developmental impact of AfDB-financed projects. It is therefore our collective and individual responsibility to fight it. Let's not turn a blind eye to known corrupt or fraudulent activities. Let's break the silence and report fraud, corruption and any other misconduct in the bank and in AfDB-financed projects.
(China Daily 05/17/2007 page27)
