Presenters:
Christian van Stolk, Senior Analyst, RAND Europe, Cambridge
Emil Tesliuc, Sr. Economist, HDNSP, World Bank
Katerina Petrina, Sr Social Protection Specialist, ECSHD, World Bank
Boryana Gotcheva, Sr Social Protection Specialist, ECSHD, World Bank

Chair:
Emil Tesliuc, Sr. Economist, HDNSP, World Bank

This session presented two institutional assessments on combating error, fraud and corruption (EF&C) in social assistance programs in Ukraine and Kyrgyzstan, and argue that they constitute a promising avenue for business development in the SP sector and beyond, in any operation which a large number of cash or quasi-cash transactions.

With support from the United Kingdom’s Department for Work and Pensions and RAND Europe, we a common framework was adapted for use by ministries of social protection in OECD countries to protect public spending from EF&C to the conditions prevailing in two of our client countries.  To make sure that benefits transferred through SP programs reach the right beneficiary, in the right amount, at the right time, the delivery agency has to put in place mechanisms to prevent EF&C from entering in the program; to detect it, if it entered; and, in general, to deter fraudsters and clients and staff from making erroneous decisions.

There have been numerous practical areas identified where country practices can be improved via know-how transfer, such as:

• Developing and improving the intelligence on type of clients, program phases or service units more prone to EF&C, by using the results of audits and inspection to profile risky clients or business areas; (ii) opening up channels for the public, staff and clients to report suspicion of cases that might be affected by EF&C, via appeals and complaint mechanisms, telephone or internet hotlines.
  Improving the capacity of the administrations to detect cases of EF&C, through data-matching and client profiling.
• Deter fraudsters or corrupt staff for erring in the first place, by developing an effective sanction regime, having clear legal definition of what constitute error, fraud or corruption, and disseminating information on successfully prosecuted cases of fraudsters or corrupt officials.
  Improvement in the monitoring of EF&C.

Presentation

"Reducing Error, Fraud and Corruption in Social Assistance Programs in the Ukraine and Kyrgyzstan" (235kb pdf)
by David Barr, Christian van Stolk, Boryana Gotcheva, Katerina Petrina, Emil Tesliuc