Anti-corruption programme for funders

Aid agencies, multi-lateral development banks, commercial banks, export credit agencies, guarantors and insurers (“funders”) play a central role in infrastructure development, whether by way of providing general budget support, or by providing funding, insurance or guarantees for individual projects. 

 

In doing so, they face serious risk of incurring criminal and civil liability for corruption through the activities of their staff and their business associates.  In addition, there is the risk that the funds which they provide will be wholly or partially lost due to corruption, or be used for corrupt purposes.  Involvement in a corrupt project will also result in reputational risk.

 

To minimise these risks, funders should take anti-corruption action by implementing systematic programmes to prevent, detect and address corruption within their own organisation, in their dealings with their business partners, and in the projects funded by them.

 

Because of their role in providing funding, funders can exercise significant leverage over infrastructure development. They have, therefore, a particularly important role in ensuring that adequate anti-corruption measures are implemented in relation to the provision and management of the financing for a project, and in relation to project tendering and execution.

 

GIACC in this section provides outline recommended actions for funders to help reduce the risk of corruption.  Links are provided from some actions to other GIACC web-pages which provide more detailed recommendations.


 

 


Template: Anti-Corruption Programme


  1. The funder should implement an organisational anti-corruption programme designed to prevent, detect and address corruption in relation to the funder’s activities. (See Anti-corruption programme for organisations which provides requirements, supporting guidance and templates for such a programme).

  2. A funder should provide finance, guarantees or insurance in relation to an infrastructure project only if the project owner takes the following steps:

    1. Implements an organisational anti-corruption programme designed to prevent, detect and address corruption in relation to the project owner’s activities. (See Anti-corruption programme for organisations which provides requirements, supporting guidance and templates for such a programme).
    2. Implements a project anti-corruption programme designed to prevent, detect and address corruption in relation to the project.  (See Project Anti-Corruption System which provides requirements, supporting guidance and templates for such a programme).
    3. Ensures that all contractors, consultants, suppliers and other organisations which bid for contracts over a reasonable minimum value threshold on the project are only permitted to bid if they can provide sufficient proof that they have implemented an organisational anti-corruption programme designed to prevent, detect and address corruption in relation to the organisation’s activities. (See Anti-corruption programme for organisations which provides requirements, supporting guidance and templates for such a programme.

  3. Where a funder is providing funding to a project, it should take reasonable steps to ensure that payments which are due to contractors, consultants, suppliers and other organisations working on the project are paid by the project owner in full and on time.

  4. The funder should: 

    1. Publicly disclose that it is the funder for a particular project and any employee or third party should be able to report matters of concern in a confidential manner to an appropriate senior manager of the funder.
    2. Report allegations of corrupt practices in relation to the project to the authorities, and to any applicable trade or professional association. 



Most recent update on 17th January 2016
Page first published on 1st May 2008



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