At a Glance
• The World Bank Group’s Integrity Vice Presidency (INT) was established in 2001 as the independent arm of the Bank responsible for investigating allegations of fraud and corruption in Bank-financed projects, as well as allegations of possible staff misconduct.
• As a result of these investigations, 541 firms, individuals, and non-governmental organizations (NGOs) have been debarred by the Bank for engaging in wrongdoing, including 83 in FY11.
• Since December 2010, the World Bank has also cross-debarred 139 firms and individuals and continues to cooperate with other signatory multilateral development banks (MDBs) to advance the enforcement of the Cross-Debarment agreement signed in April 2010.
• INT also assists in preventing corruption in Bank-financed operations, delivering fraud prevention and “red flag” detection training over the past year to over 2700 professionals.
• In September 2010 as part of its sanctions reform, the Bank adopted debarment with conditional release as its default sanction, and INT established the Office of Integrity Compliance and posted the Bank’s new Integrity Compliance Guidelines. The guidelines incorporate internationally recognized integrity standards and principles, and set a benchmark that all debarred firms need to reach before they may recommence work on Bank-financed projects.
• In June 2012, the Bank convened the Second International Corruption Hunters Alliance (ICHA), a network of more than 200 anti-corruption officials from the six regions where the World Bank operates. This year’s ICHA delivered a number studies on settlements in foreign bribery cases and asset recovery as well preventing fraud and corruption risks. In addition ICHA 2012 included a one-week training and a Technology Expo which featured resources designed to address new challenges in the age of digital information. This included forensic software and resources for using open source information in corruption cases, case management systems, software to detect collusive bidding patterns and extract, organize and analyze electronic evidence from computers, servers, email, mobile phones and other devices.
• The Integrity Vice Presidency is staffed by over 100 professionals, with backgrounds in prosecution, law enforcement, forensic accounting, and preventive services, among others.
What We Do
The work of the World Bank Group’s Integrity Vice Presidency is to deter and prevent integrity risks, investigate allegations of fraud and corruption in Bank Group–financed activities (external investigations) as well as allegations of significant fraud and corruption involving staff (internal investigations).
By combining investigation with an enhanced focus on compliance and prevention and detection of red flags in Bank-financed projects, INT promotes a proactive approach to managing fraud and corruption risks that impact development resources particularly in fragile contexts and high-risk sectors.
The Integrity Vice Presidency has ramped up its investigative, preventive and forensic resources to reduce the risk of fraud and corruption in Bank-financed projects while holding wrongdoers accountable for the waste of development funds. Below are some highlights of INT’s efforts in 2011/2012:
• Under the Cross-Debarment Agreement, entities debarred by one multilateral development bank may be sanctioned for the same misconduct by the other participating development banks. This fiscal year, the Bank cross-debarred 102 entities.
• More cases sent to sanctions, more entities debarred. The Bank has debarred 541 firms, individuals, and non-governmental organizations, preventing them from participating in future Bank-financed projects; 83 of those entities were debarred in this fiscal year. A recent reform to the sanctions process enables the Bank to temporarily suspend a company’s eligibility to bid in Bank-financed projects when INT has established that the company has engaged in at least one sanctionable practice, but INT continues to investigate other related allegations.
• Restitution payment as part of a negotiated resolution agreement with Asltom Hydro France, Alstom Hydro Network Schweiz AG (Switzerland) and their affiliates. In February 2012, the World Bank Group debarred Alstom Hydro France, Alstom Hydro Network Schweiz AG (Switzerland) and their affiliates for three years in the wake of the companies’ acknowledged misconduct in a World Bank investigation relating to a Bank-financed hydropower project in Zambia. Under the negotiated resolution agreement, Alstom has committed to pay an estimated S9.5 million and meet corporate compliance requirements. The companies have also been cross debarred by other MDBs.
• Negotiated Resolution Agreement with Oxford University Press. In July 2012, The World Bank Group announced the debarment of two wholly-owned subsidiaries of Oxford University Press (OUP), namely: Oxford University Press East Africa Limited (OUPEA) and Oxford University Press Tanzania Limited (OUPT) - for a period of three years following OUP’s acknowledgment of misconduct by its two subsidiaries in relation to two Bank-financed education projects in East Africa.
• New tools and advisory services continue to enhance prevention. Working with key partners across the World Bank Group, INT seeks to assist operational staff in building preventive measures into everyday Bank operations. As of January 2011, INT launched “Integrity Clinics” for operational staff to enhance knowledge and lessons learned from case and sector-specific forensic audits and investigations. In June 2011 INT released its first global report on the roads sector based on lessons derived from its investigations and building on the experiences of a number of developed and developing countries. The report highlights the most common fraud and corruption risks and best practices in mitigating those risks as experienced by developed and developing countries. This work focuses on addressing vulnerability of the roads sector, which is critical to advancing poverty reduction and economic growth in poor countries.
• This fiscal year, the World Bank welcomed action on its referrals by a number of national authorities including UK, Dutch and Nigerian authorities on a number of different cases in addition to the Royal Canadian Mounted Police in relation to allegations of corruption in the bidding processes for Bangladesh Padma Multipurpose project.
• A Disclosure Policy of the World Bank Group’s Integrity Vice Presidency. As of February, 2011, INT’s first disclosure policy became effective following the approval of the World Bank Board of Directors. INT’s disclosure policy was developed in conjunction with the World Bank’s Access to Information Policy, which calls for the development of separate disclosure regimes for certain groups, including INT. In line with the Policy, INT publishes redacted reports summarizing its investigations as well as a complete list of referrals which is included in its Annual Report.
Why We Do It
In fiscal 2011, the Bank Group committed (amount) billion in loans, grants, equity investments, and guarantees. With this support comes an even greater responsibility to ensure the highest accountability and transparency in the Bank Group’s provision of financial and technical resources.
As a public institution, the World Bank Group needs to ensure that development resources reach their intended beneficiaries. Working with governments, the private sector, and other international institutions, the work of the Integrity Vice Presidency is critical to the Bank’s governance and anti-corruption efforts.
To receive allegations, INT maintains a free fraud and corruption hotline that an independent third party operates: 1.800.831.0463 (inside the US) or 1.704.556.7046 (outside the US). Allegations can also be sent directly to INT via email: firstname.lastname@example.org.
Contact: Dina Elnaggar, (202) 473-3245, Delnaggar@worldbank.org
Updated September, 2012