Fraud reporting mechanisms at International Non-Governmental Organizations
This OIG thematic review examines the way four INGOs respond to fraud. The review also makes generic recommendations that can be adopted by other Global Fund implementers to encourage a ‘speak out’ culture to prevent and disrupt fraud.
The OIG looked at fraud reporting compliance at Catholic Relief Services; Population Services International; Save the Children Federation, Inc./Save the Children International; and World Vision International. The four INGOs are responsible for implementing more than 30 active Global Fund grants totaling over US$1.2 billion in countries categorized as ‘extreme’ or ‘high’ risk’ by the Global Fund.
The OIG found that all four INGOs had strong anti-fraud policies and procedures in place, although it found a few examples of historical under-reporting, which have since been rectified through the implementation of improved procedures.
Whilst fraud reporting channels were in place in all the INGOs, they do not all currently provide online anonymous reporting. The OIG also found some gaps and inconsistencies in the implementation of INGO fraud reporting policies and procedures at country level.
In its review, the OIG makes a number of recommendations to encourage implementers to respond better to wrongdoing, including underlining the importance of recording all allegations, of clarifying that any retaliation against whistle-blowers should be taken seriously, of putting in place anonymous reporting channels and of notifying the OIG if any investigative work takes place.
All Global Fund implementers are encouraged to read this report in conjunction with the Global Fund’s anti-corruption e-learning platform available at this address: http://www.ispeakoutnow.org. The platform contains e-lessons and case studies on different types of wrongdoing as well as free and downloadable resources such as a new anti-corruption tool kit for implementers available in English, French, Spanish and Russian.