ASIAN DEVELOPMENT BANK

FRAUD & CORRUPTION REPORTING

ADB's Anticorruption Policy designates the Office of the Auditor General (OAG) as the point of contact to report allegations of fraud or corruption among ADB-financed projects or its staff.

OAG has established an Anticorruption Unit (OAGA) to handle all matters related to allegations of fraud and corruption. OAGA handles such matters through:

For a more detailed explanation of how ADB addresses fraud and corruption, see the Anticorruption Policy and Procedures at the ADB website .

Screening and Investigation

Screening

The Anticorruption Unit of the Office of the Auditor General (OAGA) will screen any allegation or evidence of fraud or corruption to determine whether it warrants further investigation.

While OAGA will receive and screen anonymous submissions, OAGA encourages anyone submitting an allegation or evidence to do so on an identified basis to facilitate investigation.

OAGA will treat sources of allegations of fraud or corruption with the utmost confidentiality and discretion.

Oversight Committee

An Oversight Committee on Anticorruption approves OAGA's engagement of its retained investigative consutants. The Oversight Committee may also recommend whether ADB should proceed with a project or contract award while an investigation occurs or should wait until an investigation concludes.

The Oversight Committee consists of three regular voting members, and three alternate members who fill any vacancies that may occur among the regular members due to absence or conflict of interest. Members have been nominated by the Auditor General and approved by the President. The heads of ADB’s Budget, Personnel and Management Systems Department and Central Operations Services Office (or their designees), and an Assistant General Counsel designated by the General Counsel will advise the Committee.

Investigation

OAGA, external auditors, investigators, or other experts selected and managed by OAGA, or others designated by the Oversight Committee, may conduct investigations.

In certain cases, the Oversight Committee, with the concurrence of the President, also may refer matters for investigation to appropriate authorities of a concerned member government. This may include the borrowing country, the country of which the subject of investigation is a national, or the country where the alleged incident occurred.

To the extent possible, OAGA will give the subject of investigation an opportunity to comment in writing upon the allegation(s) and to bring to the Oversight Committee's attention any other relevant information.

When an investigation is complete, OAGA will submit its findings to the Oversight Committee. The Oversight Committee retains sole discretion to determine the relevance of the evidence submitted before it.

On the basis of OAGA's findings, and taking into consideration the submissions of the subject of investigation, the Oversight Committee will assess whether the alleged violation took place, if the case should continue for further inquiry, or if the case should close.

Penalties

Corrective Action

If the Oversight Committee determines that the subject of investigation has engaged in fraudulent or corrupt practices as defined by ADB's Anticorruption Policy in any ADB-financed operations, it then decides what sanction or remedial action ADB should impose.

ADB may declare a firm or individual ineligible from participating in ADB-financed projects and activities for a specified period of time or indefinitely. ADB may refuse to finance certain expenditures, suspend disbursements, accelerate maturities of loans, or cancel loans.

If ADB consistently encounters problems within a particular executing agency or sector, it could change its programming mix to avoid future lending and Technical Assistance (TA) operations in that area. In consultation with the member country, ADB can also focus its lending and TA program upon strengthening government institutions, nongovernment organizations, and civil society to facilitate greater transparency and accountability in that sector.

If ADB finds its staff engaged in corrupt conduct, it may subject the staff member to :

These sanctions will apply equally to situations in which staff improperly and unlawfully enrich themselves or those close to them, and circumstances in which they induce others to do so.

Suspension or Cancellation of Loans

ADB may cancel the portion of a loan allocated to a contract for goods or works if it determines that representatives of the borrower or a beneficiary of the loan engaged in corrupt or fraudulent practices.

If ADB determines that corruption has reached such proportions that it is a significant impediment to the integrity of ADB operations or the attainment of a country's fundamental development objectives, it could elect to suspend ADB lending and TA operations to that country.

Conversely, where a member country has made significant progress in improving the efficiency, effectiveness, and integrity of its public and private sectors, ADB may accelerate the lending program or provide additional TA resources to ensure sustainability of the reforms.

As a matter of general policy, ADB does not release to external parties any information pertaining to a specific fraud or corruption investigation until it completes its investigation. When there is compelling evidence that corrupt activities have hampered the effectiveness of ADB-financed projects or lowered their rate of return, ADB staff should explicitly note this in ADB documentation.

Individuals and firms may appeal sanctions to a Review Committee on Anticorruption, composed of three Vice-Presidents. The applicant must submit an appeal within 90 days from the date ADB issued the Oversight Committee's decision, which it provides either by written notice or by posting on this website. Appeals must be in writing and must clearly and succinctly state the reason(s) for the requested review of the decision of the Oversight Committee.

The Review Committee shall consider any new information to the extent that such information was not known, or could not reasonably have been known, to the firm or the individual at the time that explanations were sought by the Oversight Committee and such information is relevant to the decision of the Oversight Committee.

The decision of the Review Committee on any such appeal is final and binding and not subject to further appeal.

A Vice-President chairs the Review Committee, which consists of three Vice-Presidents or their designated representatives. The Auditor General and General Counsel, or their designated representatives, shall be present in a nonvoting capacity. OAG serves as the secretariat.

The Review Committee will render its decision only on the basis of a consensus of all the members. In case of failure to reach a unanimous decision of the members, the Chair will refer the matter to the President to resolve the differences and reach a unanimous decision. If a unanimous decision is still not possible, the President shall make a final decision.

ADB: Reporting Fraud & COrruption

Anyone who believes or has evidence that fraud or corruption may have occurred or is occurring related to any ADB-financed activity should report that information to the Anticorruption Unit (OAGA). ADB's Anticorruption Policy designates the Office of the Auditor General (OAG) as the point of contact for all such concerns. OAG established OAGA to analyze and, if appropriate, investigate whether fraud or corruption has occurred.

Allegations may be reported with attribution or anonymously. However, anonymous reports are much harder to investigate as it may be more difficult to ascertain the truth, anyone making an allegation is encouraged to provide some means that will allow OAGA to communicate with him or her. OAGA strictly honors confidentiality, and will not reveal the identity of any allegation or source of information without express authorization.

To report allegations, please provide as much information and detail as possible, including who, what, when, where, why, and how. For example

Who do you think committed the corruption or fraud? Who else was implicated? Who else might have been involved?

What happened? Describe the events fully and using as much relevant detail as possible.

When did it happen? Provide dates, time, and how many times.

Where did it happen? Include not only the city and country, but, if possible, an actual address, the name of the building, the office number.

How does your allegation relate to ADB business? Was ADB staff involved?

If you have documents, photographs, or other physical evidence of the alleged fraud or corruption, please send that information to OAGA, either with your report or separately.

Information concerning the identity of a complainant is strictly controlled and will not be released to other ADB staff or to anyone outside ADB without the consent of the complainant.

Contact the Anticorruption Unit of the Office of the Auditor General (OAGA) to report concerns or evidence that fraud or corruption may have occurred or is occurring related to any ADB-financed activity. You may report allegations by contacting OAGA by email, facsimile (fax), mail, in person, or by telephone. Only OAGA staff can access any such communication.

When reporting concerns, please provide as much information and detail as possible, including who, what, when, where, why, and how. For further guidance, see What To Report.

E-mail: You may send an e-mail to our secure e-mail server at anticorruption@adb.org. You may also use our Complaint Form.

Facsimile (Fax): You may send information to OAGA's confidential fax at + 63-2-636-2152. This is not a toll-free number, and normal local or long-distance telephone charges will apply.

Mail: You may also contact OAGA at the following addresses. Please mark correspondence "Strictly Confidential."