DIR

INVESTIGATION

  INT in consultation with the borrower government and Country management unit

1
Initiative

 INT

Diagnostic 

2
Nature

Formal investigation

Request for assessment of vulnerability to fraud and corruption of one or more projects in discussion with the Bank’s Region and/or Country management  

3 
Based on

Allegation from Bank staff, beneficiary, company/NGO, government official, anonymous  

Projects in a country and/or sector are selected for review in the context of a past INT investigation or because a need has been identified for stronger procurement, financial or project implementation controls

4
Selection

A case is prioritized, in consultation with the Country team, based on multiple criteria.  Only High and Medium Priority cases have been investigated

All contracts of the project, independent of observed irregularities

5
Scope

The specific acts covered by the allegation, as well as additional evidence that may emerge over the course of the investigation

Assess the likelihood of fraud, corruption and mismanagement in Bank-financed projects, assess the “where and why” of control weaknesses, and offer recommendations

6
Objective

Determine whether an allegation is substantiated, unsubstantiated or unfounded and recommend follow-up actions by the relevant Bank management and borrower government

Data collection, analysis and review of procurement contracts, financial management activities, and implementation activities

7
Process

Preliminary (desktop) inquiry followed by a full investigation

DIR report with findings of fraud and corruption indicators and risks and recommendations for improvement of controls to the Bank, the relevant country government and relevant donors

8 
Outputs

In case of substantiated allegation: final investigative report to Regional/Country office; proposed Notice of Sanctions Proceedings; and referral report to the borrowing government/other donor

Assistance to operational staff and the borrower government in improving project design, implementation and supervision

9
Outcomes

Sanctioning of corrupt and/or fraudulent companies creating a deterrent effect

Investigations, project design improvements, and operational institutionalization of risk mitigation measures.

10 
Follow-up

Operational team in its ongoing dialogue with the borrowing government discusses recommendations made in referral reports.