African Development Bank debars four companies involved in fraudulent and collusive practices for 24 months

Integrity and Anti-Corruption

The African Development Bank Group views corruption, fraud and other sanctionable practices as highly inimical to the achievement of its mandate. In order to spur sustainable economic development and social progress on the continent, AfDB endorses a multipronged approach to combating these harmful practices. Consequently, IACD uses proactive measures including risk assessments and sensitization programmes to deter sanctionable practices and prevent their occurrence in internal corporate procurement issues and operations financed by the Bank Group.
Mandate

The Integrity and Anti-Corruption Department has the overriding mandate to carry out independent investigations into allegations of corruption, fraud and other sanctionable practices in Bank Group Financed Operations. “Bank Group Financed Operations” are internal corporate procurement issues and operations financed by the Bank Group. The Department also develops preventive measures to proactively reduce the potential for corruption, fraud, misconduct and other sanctionable practices within Bank Group Financed Operations. IACD’s operational responsibilities further include risk assessments and employment of surveillance measures towards investigations.

IACD was established in November 2005 and became operational in June 2006. In order to further strengthen the Bank’s anti-corruption agenda, the Board of Directors approved the restructuring of the Department on the 5th of July 2012. IACD’s mandate is reflected in its independence, authority, access and operations provided in its terms of reference.
Strategy

Where these sanctionable practices are alleged to have been committed, IACD’s investigative powers promote tighter adherence to the highest standards of corporate governance and integrity. This strategy is reflected in its composition. IACD is comprised of two divisions: the Integrity and Prevention Division (IACD.1) and the Investigations Division (IACD.2).

IACD does not make sanction decisions. IACD.2 receives allegations of sanctionable practices and conducts investigations. It then forwards its report to the relevant authority under the Bank’s sanctions process. Where the allegations relate to fraud, corruption and misconduct by Bank Group staff, and involve administrative budgets and misuse of Bank resources, the report will be transmitted to the President. In other cases, the report will be made to the Sanctions Commissioner under the new framework, approved by the Board of Directors of the Bank Group on the 5th of July 2012.
How IACD Carries Out Its Integrity Strategy:

Proactive prevention through risk assessments, sensitization programmes, due diligence, and other activities
Mainstreaming integrity issues into Bank Group operations and activities
Providing technical support to regional member countries in integrity issues and enhancing accountability
Participation in international and regional integrity initiatives
Investigations, sanctions and other deterrence processes

Code of Conduct

The Bank has Code of Conduct for staff members and a separate Code of Conduct for Executive Directors. Their purpose is to outline basic principles of professional ethics expected from international civil servants, and is intended to provide guidance to Bank personnel to avoid situations of real or apparent conflict between their private interests and their public duties. They elucidate and supplement the relevant provisions of the Agreement Establishing the Bank ("AfDB Agreement"), the Staff Rules and Regulations, and other relevant legal instruments.

The Codes of Conduct do not set out to define every possible situation that may confront Bank personnel nor are they intended to be exhaustive or all inclusive. Bank personnel are expected to use their own good judgment or seek appropriate advice form the Head of Department or Unit, or the Director of Human Resources Management.