Knowledge

The Investigation Section of the Office of Audit and Oversight (OA/IS) has a mandate to investigate alleged irregular practices, namely (i) fraud and corruption, in relation to entities, contractors and non-staff individuals applying for or participating in an IFAD-financed project or headquarters-related contract, and (ii) staff misconduct, pursuant to the adoption by the Executive Board in December 2005 of the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1, paragraph 26). Implementation of this policy, along with the establishment of a Sanctions Committee, have aligned IFAD with best practices applied by other United Nations agencies and the major multilateral development banks (MDBs) in this area.

OA/IS was fully staffed in 2008, enabling it to pursue its dual role of conducting investigations and, more broadly, implementing the IFAD anticorruption agenda. 

The Investigation Section of the Office of Audit and Oversight (OA-IS) was set up in 2006 with a mandate to investigate alleged irregular practices, namely (i) fraud and corruption, when applied to entities, contractors and non-staff individuals applying for or participating in IFAD-financed activities, and (ii) staff misconduct. This was pursuant to the adoption by the Executive Board in December 2005 of the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (EB 2005/85/R.5/Rev.1, paragraph 26). The establishment of a Sanctions Committee and the development of debarment procedures in February 2007 further bolstered the effectiveness of the IFAD investigative and sanctions process. These changes aligned IFAD with best practices applied by other United Nations agencies and the major multilateral development banks (MDBs) in this area. 

The Oversight Committee (OVC) was established in May 2000 with a mandate to coordinate investigations into alleged irregular practices, namely (i) fraud and corruption, when applied to entities, contractors and non-staff individuals applying for or participating in IFAD-financed activities, and (ii) staff misconduct. The efforts of the Fund to prevent the incidence of fraud and corruption in its activities and operations were further boosted through the adoption of an anticorruption policy by the Executive Board in November 2005. Throughout 2006, IFAD worked towards introducing the structures and tools required for implementing its anticorruption policy. In 2006, the investigative capacity of the OVC was considerably reinforced with the establishment of the Investigation Section within the Office of Internal Audit. The OVC took specific actions to model its operating procedures and practices according to quality standards and best practices. It also took the lead in other activities related to implementation of the IFAD anticorruption policy, which included organizing an external review of the Fund’s investigation and sanction processes. The review prompted a major institutional reform of IFAD’s legal framework and procedures for conducting investigations and imposing sanctions, including the disbanding of the OVC, redefinition of the role of the Office of Internal Audit (renamed the Office of Audit and Oversight), establishment of a sanctions committee, and development of debarment procedures. These changes were introduced in early 2007, aligning IFAD with best practices applied by other United Nations agencies and the major multilateral development banks in this area. 

The IFAD Oversight Committee (OVC) was established by the President of IFAD in May 2000 to coordinate investigations into alleged irregular practices as a means of ensuring consistent, prompt and appropriate responses to allegations. The OVC investigates allegations of irregular practices pertaining to activities within IFAD or in connection with operations and contracts financed by IFAD, decides on the investigative actions to be taken, determines the role of IFAD in investigations involving external parties (such as national authorities or cooperating institutions), and reports to the President the facts that have emerged from the investigation.