Role play (fraud and corruption): opportunities from a new project Laget av Yul Shah Malde for Bistandstorget, presentert av Marianne Jorddal

Scenario In Miranda there is a partner (PO) about to open up a new program office in a remote district. John B is an experienced development manager and has gained a good reputation among donors. John B is known to ”deliver”, even in challenging circumstances John B has set up his own local NGO, which a diaspora organisation in Norway is interested in supporting A new project proposal has just been approved by the Norway- based NGO, to support education activities in a remote district John B is now in a Landcruiser driving towards the ”remote district” to start the new program, a 48 hour drive from the capital

Objectives 1.Establish an office (secure premises, employ local staff, etc.) in one out of the two urban centres in the region. 2.Start up activities related to the project 3.The region has poor infrastructure. 4.Most procurement will be done in Madrido in a neighbouring country. 5.Madrido is 8 – 12 hours away, where the nearest international bank is.

Geography Centre A; 8 hours to Madrido – Fairly good electricity and phone/internet – Often cut off during rainy season Center B; 12 hours to Madrido – Good recreation, there is a national park – Small but fairly good mission hospital – All regional authorities are here

Which center is best? Plenty of available plots in both A and B Difficult to rent office premises anywhere Building material is very expensive, substantially better prices in the neighbouring country. There are 2-3 building contractors in any of the two centers Difficult to get qualified staff for just about any job in the office

Supplies In general difficult in both A and B Vehicles, computers, etc. can be found in the Capital (48 hours away) or in the TOWN. Water pumps (etc.) and contractors for drilling boreholes are not locally available. Found in the capital or in the TOWN.

John B’s hidden agenda John B is about to retire and wants to make as much money as possible to supplement his ”private pension” John B knows that the donors have a lot of trust John B knows that due to the remoteness of the area and the trust, it is highly unlikely that any external or internal auditor will visit the programme in the near future

You are John B! How would you go about getting away with as much money as possible? The programme is funded by donors you have reported to and worked with many times previously: – you know the routines with the donors. Each project has different sub projects, sometimes co-funded by more than one donor some funded by only one. -> groupwork

Possibilities … Make the centres ”compete”. Buy a plot through an agent (or fake agent). Offer the seller more than asked. Share profit. Building materials diverted to other use (or sold). Flawed procurement processes, fake bids. Buy everything in the neighbouring country – it may get stolen on the other side of the border… ”Improve” the exchange rates. False travel claims.

More suggestions … Double (or multiple) funding. Marketing makes great opportunities! Ghost workers. Employment of staff – kick back opportunities Fake consultants (or your own company) Ghost beneficiaries in the projects Obtain local pro forma invoices (maybe even receipts) but buy in the neighbouring company

And more possibilities … Avoid banks – use cash. Move the crime away of the office. Use the opportunities of the third country. ”Scimming” rather than ”stealing”. Bring in your own people. ”Pre tender interviews”. Make sure things happen in the projects – keep the donors happy. Write reports, prepare financial accounts, take pictures and keep sending them to donors