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www.adb.org/IntegrityIssue 6, July 2009

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Feature: Investigating Allegations of Fraud or Corruption of ADB Staff

ADB staff who have allegedly been involved in fraud, corruption, conflicts of interests, or misconduct may become the subjects of OAGI investigations. OAGI examines and determines the veracity of allegations of fraud, corruption, coercion, collusion, conflict of interest, abuse (theft, waste, or improper use of assets related to ADB-financed activity, either committed intentionally or through reckless disregard); and misconduct.

Misconduct includes, but is not limited to, the failure to observe the Code of Conduct (A.O. 2.02, Section 4 [June 2003]), or other standards of behavior and duties of employment prescribed by ADB, wheresoever located. OAGI does not investigate personnel actions or sexual harassment. However, BPMSD may, within its discretion, refer any matter to OAGI for investigation.

Since 1998, 229 staff have been the subjects of OAGI investigations. Some examples of disciplinary action taken by BPMSD for allegations which have been substantiated on the basis of a balance of probabilities are listed below.


Examples of Staff Cases Referred to the Budget, Personnel and Management Systems Department
Nature of Misconduct Case Resolution Location
Abuse of ADB ICT resources and breach of ICT security rules Demotion and suspension without pay for 1 month Country Office
Abuse of leave benefits Resignation Headquarters
Abuse of medical benefits--- use of forged prescriptions Termination and recovery of fraudulently claimed amount Headquarters
Abuse of rental subsidy Termination and recovery of unauthorized rental subsidy Headquarters
Filing of false allegations with OAGI and unauthorized breach of confidentiality to external parties Termination Headquarters
Improper refund for medical expenses from the insurer Resignation Country Office
Misrepresentation in personal history form Summary dismissal Headquarters
Repeated, unauthorized use of ADB telecommunications facilities Termination Headquarters
Unauthorized outside employment compounded by misrepresentation to OAGI Demotion and suspension without pay for 2 weeks Headquarters
Unauthorized release of confidential information for money and solicitation of financial assistance from ADB consultants Termination Headquarters

 

Examples of misconduct

 

Fraud Conflict of Interest
  • submitting false medical insurance claims
  • fraudulently claiming dependency allowance
  • fraudulently claiming rental subsidy when property is effectively owned by claimant
  • intellectual dishonesty, e.g., plagiarism, copyright infringement
  • allowing unauthorized use of your medical insurance cards
  • submitting false documents-e.g., resumes, certificates of employment, examination transcripts
  • unauthorized use of funds
  • abusing sick leave privileges
  • soliciting and receiving payments on ADB's behalf
  • submitting prescriptions from non-registered medical practitioners
  • abusing travel privileges
  • misrepresenting personal qualifications and experience
  • theft and embezzlement
  • excessive use of e-mail and phone/fax facilities for private purposes
  • trading in short-term securities and currencies of borrowing member countries of ADB
  • facilitating bids, proposals, or submissions in exchange for personal benefit
  • using nonpublic financial information for private advantage, e.g., to profit from short-term trading or investment activity
  • engaging in private employment or in any occupation or profession or own or operate any business
  • providing service as director, officer, or partner of any entity, other than as an authorized representative of ADB, or for a charitable, social, or religious entity
  • family member's election to the government, where dealings with that country is part and parcel of staff member's normal ADB duties
  • receiving expensive gifts which compromises staff to return favor

 

OAGI Investigative Process

OAGI discreetly and confidentially conducts preliminary evaluation of the allegation to determine whether it is credible, material, and legitimate. If the allegation is found to be neither credible nor verifiable, the case is closed with no party being informed, to minimize potential adverse impact on the ADB staff.

During the evaluation process, OAGI may notify the ADB staff and seek clarification. In such a case, the ADB staff member will be informed that, if explanations prove unsatisfactory, BPHR may initiate formal disciplinary proceedings.

Once OAGI concludes its investigations, its recommendations are forwarded to Director, BPHR, who is then responsible for initiating formal disciplinary procedures as deemed appropriate, in accordance with AO 2.04.

These include notifying the ADB staff of the charges and providing an opportunity to review the investigative findings and provide explanations and supporting documents before any disciplinary measures are imposed.

ADB staff may then initiate an appeals process, should he/she disagree with the disciplinary action that has been taken. The staff may consult, at their own expense, outside legal counsel regarding a matter under investigation. However, such legal counsel may not accompany them on ADB premises or during interviews as part of an investigation. This is because ADB's processes are administrative in nature, not legal or judicial.


Staff's Responsibility to Cooperate During the Investigation

ADB staff have a duty to cooperate fully in any preliminary examination or investigation when requested by OAGI to do so. The rules are set out in the Integrity Principles and Guidelines. Such cooperation includes, but is not limited to, the following:

  • Making yourself available to be interviewed.


  • Responding fully and truthfully to all questions asked.


  • Providing OAGI with any items requested that are within your control including, but not limited to, documents and other physical objects.


  • Making available financial information when requested, including providing written authorization to banks or other officials to provide the information to OAGI, as well as any waivers of privacy or confidentiality rights.


  • Permitting fingerprint identification, handwriting analysis, use of a breathalyzer, and physical examination and analysis.


  • Protecting the confidentiality of all information discussed with OAGI and BPMSD.

If a staff member does not comply with any obligation to cooperate, ADB may draw an adverse inference from such refusal. In such cases, OAGI may refer the matter to BPMSD to consider disciplinary action. This shall include not responding timely and fully to OAGI inquiries or providing documents or other evidence that OAGI requests, destroying or concealing evidence, or misrepresenting facts during, or otherwise inhibiting, an OAGI investigation.


How to Avoid Becoming a Subject of Investigation

Frequently Asked Questions on Anticorruption and IntegrityIf you scrupulously observe ADB's Code of Conduct and avoid potential and actual conflicts of interest, it is unlikely that you will ever become the subject of investigation by OAGI. It is misconduct for staff to file frivolous or malicious allegations, and ADB has imposed disciplinary action against staff where it has been proved that the allegations are frivolous or malicious.

To learn more about ADB's required standards of behavior and the Code of Conduct, read Frequently Asked Questions on Anticorruption and Integrity.