Anti-Fraud Hot Line

1. SUPPLY OF SUBSTANDARD GOODS OR SERVICES  Supply of medical equipment to a hospital under a health project was awarded to a surgical supplier  Project Head tried to engage the vendor in collusion, to provide used equipment at the price of new  The company refused to participate  Project head cancelled the award to that vendor  Award was given to a party that agreed to correspond to be in conformity with the project head

1. SUPPLY OF SUBSTANDARD GOODS OR SERVICES Set up an independent monitoring system  Frequent, unannounced control checks to monitor implementation  Independent internal audits to deter collusion or cover-up  Ensure external auditors compare final costs and results with estimates and expectations  Investigate discrepancies and hold those responsible to account  Inform beneficiaries of quality standards Preventive Measures

1. SUPPLY OF SUBSTANDARD GOODS OR SERVICES  Inflated prices substantially above market levels  The amount of goods or services delivered being less than or low in quality than requested  Goods that don’t match the sample provided with the bid  Goods with imminent or past expiry dates  Excessive or frequent change orders, requests for contract variations or efforts to renegotiate contract terms during implementation What to look out for!

2. BIASED LOCAL RELIEF COMMITTEE  For the implementation of a project supporting rural areas, toilets had to be constructed.  Implementing Partner formed a committee with representatives belonging to a particular group  A president was appointed to oversee preparation of list of deserving beneficiaries  President allegedly listed beneficiaries on the basis of favoritism, even if they already had a toilet facility  The committee also registered 5-10 persons from the same family

2. BIASED LOCAL RELIEF COMMITTEE Preventive Measures Understand local power structures  As part of your risk analysis prior to or in the initial phase of a crisis, learn about the political, economic, social, religious, ethnic and clan structures in target communities, so that committees and volunteers can be as free from conflict of interest as possible.  Require that all committee decisions are publicized transparently and that people know their entitlements, so they can speak out or complain privately if they feel a committee isn’t representing them fairly.

2. BIASED LOCAL RELIEF COMMITTEE Preventive Measures Don’t give committees or volunteers total discretionary power  Ensure that committee or volunteer work is adequately monitored and evaluated.  Make random, surprise visits to observe committees or volunteers in action.  Explain their roles and responsibilities to the community and set up an independent complaints mechanism (i.e. not through the committee or volunteer structure).

2. BIASED LOCAL RELIEF COMMITTEE Preventive Measures Be explicit about payments or rewards for committee members  Depending on context, either establish and publicize a nominal payment for committee members or publicly state that committee members should not be paid – including by beneficiaries. Make sure everyone understands and agrees to this, so that committee members don’t feel entitled to skim off unofficial ‘payment’ in relief goods which they feel they’ve earned.  Publicly acknowledge members’ contribution, to inspire loyalty to your agency and make them feel valued.

2. BIASED LOCAL RELIEF COMMITTEE Committees composed only of established local leaders or public authorities Committees with members of only one particular group Members who attend committee meetings intermittently Unexplained substantial improvements in volunteer or committee member lifestyles Committees resistant to monitoring and evaluation Reports of extortion of staff or beneficiaries What to look out for!