guide.iacrc.orgGuide to Combating Corruption & Fraud in Development Projects

Guide to Combating Corruption & Fraud in Development Projects Guide to Combating Corruption & Fraud in Development Projects Home Detection Complaints Red Flags Due Diligence Proof Proving Common Schemes Elements of Proof Prevention Mitigate the Risk How Corruption and Fraud Occur How to Use This Guide This Guide provides step-by-step instruction on how to detect and prove corruption, bid rigging, collusive bidding and fraud in international development projects. Click on the links below and to the right to see more detailed information on each of the topics. The topics are presented in the general order that they occur in an investigation, from the initial complaint through the steps of proof to measures to reduce the risk of corruption and fraud in future projects. Detection How to Respond to a Complaint Most significant cases begin with a complaint and many cannot be proven without the cooperation of an insider, so it is important to know how to respond to a complaint. See initial questions to ask a complainant , information on how to evaluate and follow up on a complaint, and basic but important information on how to interview a cooperative witness . Also find information on how to generate complaints and reports and a list of fraud reporting sites for Multilateral Development Banks . The Most Common “Red Flags” of Corruption, Bid Rigging, Collusive Bidding and Fraud This section lists the most common indicators or “red flags” of possible corruption, bid rigging, collusive bidding and fraud, organized according to the contract and procurement stages. You can match each indicator to the related scheme or schemes and learn how to follow up. Also see the “ visible red flags “ of fraudulent practices in construction contracts and “proactive,” computer-aided tests for collusive bidding and other offenses. “Due Diligence” Background Checks on Firms and Individuals Learn how to conduct effective on-line and on-site background checks on firms and individuals to confirm their existence, ownership, affiliations and credentials. Proof The Most Common Schemes and How to Prove Them Learn how the most common corruption , bid rigging , collusion and fraud schemes in development projects operate, their specific red flags, summaries of actual cases and the basic steps to detect and prove each scheme. The Basic Steps of a Complex Corruption and Fraud Investigation See how to proceed in a logical and efficient manner through a complex corruption and fraud investigation from the initial complaint or discovery of a red flag to the final report. Included is specific advice on the collection of documentary evidence, background checks on firms and individuals, the tracing of bribe payments and how to conduct interviews of co-conspirators and the subjects of the investigation. See a case exercise that illustrates the investigative steps discussed above. The Elements of Proof for Sanctionable Offenses Learn t he elements of proof for corrupt , fraudulent , collusive , coercive and obstructive practices as defined by IFI and World Bank Guidelines, to help ensure that all relevant evidence is collected and included in a report. Evidence See important information on the basics of evidence for fraud and corruption investigators to make sure the evidence you collect and present is relevant and convincing. Prevention Resources to Research and Mitigate the Risk of Corruption and Fraud See links to numerous anti-corruption websites with information on how to identify and reduce the risk of corruption and fraud. Also see information from actual cases on how corruption and fraud occurs in development projects . SEARCH Quick Access Categories DETECTION HOW TO RESPOND TO A COMPLAINT – Questions to ask a complainant – How to generate complaints and reports – List of MDB fraud reporting sites RED FLAGS OF CORRUPTION, BID RIGGING AND OTHER SCHEMES – Red flags listed by project cycle – The “visible red flags” of implementation fraud – “Proactive,” computer-aided tests for red flags DUE DILIGENCE BACKGROUND CHECKS – “Top Five” due diligence checks – Free and subscription internet sites – Local, on-site due diligence checks – Due diligence service providers PROOF THE MOST COMMON SCHEMES AND STEPS OF PROOF – Corruption schemes – Bid rigging schemes – Collusive bidding by contractors – Fraud schemes – The basic investigative steps in a complex case THE ELEMENTS OF PROOF FOR SANCTIONABLE OFFENSES – Corrupt practices – Fraudulent practices – Collusive practices – Coercive practices – Obstructive practices – The basics of evidence for investigators PREVENTION Research and mitigate the risk of corruption and fraud Info on corruption and fraud in aid projects © 2021 Guide to Combating Corruption & Fraud in Development Projects • All rights reserved...