Prevention, Detection and Remediation of Fraud and Corruption

Transcription

1 Prevention, Detection and Remediation of Fraud and Corruption Presented by Jolyne Sanjak Managing Director, Implementation Support, MCC April 15, 2009

2 What We Already Do: Fiscal Accountability: Program Procurement Guidelines, Procurement and Fiscal Agents, Fiscal Accountability Plan, Financial Audits, Cost Principles. Technical Due Diligence, Oversight and Ex-post reviews: Staff and contracted sector experts, social and environmental specialists, and independent engineers regularly engage the MCA in review and approval processes and periodically conduct independent ex-post sector and procurement reviews of value-for-money; Monitoring and Evaluation: non-sector monitoring experts work with MCA to develop and use plans for monitoring process milestones and results; evaluating impact. Structural: MCC-OIG, Legal agreements e.g. The Compact sets out host-country government responsibility for Compact funds (e.g. reimbursement to MCC for misuse), Character Risk Due Diligence (CRDD) for MCA Staff, MCC Approval rights over MCA structure, disbursement discretion, suspension and termination abilities. These functions begin in Compact development and carry forward until the end of the Compact implementation period; as country capacity grows, MCC hands-on support is reduced while approval processes continue

3 Policy Development Process: Donor and Agency Research and Coordination Definitions of Fraud and Corruption (World Bank, IDB, Asian Development Bank, Expert Roundtable at MCC, IFI Anti-Corruption Task Force) Allegation Processing Procedures and Sanctions (World Bank, IDB, IFI Anti-Corruption Task Force, USAID (FAR only), OPIC (FCPA), DoJ) Possible Requirement of MCA-Entity Compliance Officer (DANIDA)

4 Policy Development Process: Donor and Agency Research and Coordination (continued) MCA-Entity Fraud and Corruption Action Plan (Expert Roundtable at MCC, World Bank) Civil Society Monitors/Consultation Civil Society Monitors/Consultation (Expert Roundtable at MCC, PIR participation in OSI conference, Princeton Research)

5 Approval of a Policy that: Clearly articulates the importance of preventing F&C and managing the associated risks Makes clear the scope of MCC concerns on F&C Calls for greater consistency in actions (including reporting) Defines the array of administrative actions that MCC management may determine to take

6 Fraud and Corruption: Three areas of focus Checks and balances MCC and MCA systems in place already as well as planned for future development Prevention Detection Techniques for determining when activities suggest fraudulent or corrupt activity. Remediation MCC response and reporting options and procedures

7 Fraud and Corruption: What s New: Prevention MCC model already includes a number of checks and balances which can be effective but are mostly reactive (e.g. approvals process, Procurement and Fiscal Agents, transparency requirements) Biggest change going forward is to require proactive involvement of MCA management MCA Assessments and Action Plans

8 Fraud and Corruption: What s New: Detection To bolster interest in and capacity for detection: Training for MCC and MCA staff Communications strategy Transparency and monitoring supports via civil society engagement

9 Fraud and Corruption: What s New: Remediation Clarification that the following administrative measure may be applied to mitigate risk: Prohibition of contractors from participation in MCC funded programs; Administrative measures: ineligibility, removal from a procurement, adverse performance rating, withholding of MCC disbursements; Recommendation to MCA management or other appropriate government official to take administrative action; and Termination of the Threshold program or compact

10 Upcoming Milestones: Issuing Version 1.0 of the Tools and Techniques Document Approach to risk assessment and action planning for projects in implementation Approach to use of civil society monitors Procedural guidelines finalized and publicized Training planned and underway

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