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Table of Contents
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I. Introduction
II. ADB'S Response
III. Definitions of Corruption
IV. The Costs of Corruption
V. ADB's Position on Anticorruption Issues
>>VI. Conclusions and Recommendations
VII. Appendixes
Anticorruption

VI. Conclusions and Recommendations

74. This paper recommends a number of concrete measures for establishing ADB’s anticorruption policy. These measures can be broken down along three lines: revisions of ADB policy and staff guidelines, new programming and project management initiatives, and internal administrative changes.

75. The following policy recommendations are submitted for consideration and approval by the Board:

  1. Adopt the approach and recommendations contained within this document as a policy paper and as a Management directive in the form of staff instructions.
  2. Approve the revisions to the ADB’s guidelines for procurement and on the use of consultants and the proposed amendment to ADB’s ordinary and special operations loan regulations as set forth in Appendixes 2 and 3.
  3. Consider additional changes in the Project Administration Instructions and Loan Disbursement Handbook to strengthen financial controls and improve reporting requirements.

76. The paper recommends the following changes in ADB programming and project management:

  1. Continue to expand ADB’s assistance on issues of governance and capacity building, with particular attention to promoting market liberalization and public administration reform.
  2. Give increased emphasis to strengthening key institutions for advancing transparency and accountability in the DMCs (such as supreme audit agencies, procurement agencies, regulatory agencies, ombudsman offices, etc.) as part of ADB’s broader emphasis upon governance and capacity building.
  3. Where appropriate, support regional initiatives and research on advancing accountability and transparency in the Asia and Pacific region through TA grants.
  4. Upgrade the quality of supervision during project implementation and strengthen project review missions, with particular emphasis upon those projects most at risk.
  5. Develop a series of training seminars, workshops, etc., on the ADB’s anticorruption policy and how staff can best advance integrity within ADB operations and in collaborative work with the DMCs.
  6. Publish a simplified brochure and other information materials describing the ADB’s anticorruption policy for public dissemination.

77. Finally, the paper recommends the following administrative changes in ADB operations at the department/office level:

  1. Enforce current procurement guidelines more rigorously to avoid unnecessary delays, extensions, and excessive change orders.
  2. Designate OGA as the initial point of contact for alleged incidents of corruption among ADB projects and staff, and instruct OGA to work out appropriate procedures for performing this function in consultation with relevant ADB departments.
  3. In consultation with BPMSD, consider increasing OGA’s staff complement to enable it to better fulfill its responsibilities under this policy.
  4. In consultation with BPMSD and COSO, consider cost-effective ways to strengthen project monitoring and supervision, and any additional resources that may be necessary to perform these tasks.
  5. Direct OGA and BPMSD to collaborate in providing training in forensic accounting and other investigative techniques to select OGA staff, financial analysts, and project implementation officers.
  6. Direct OGC and BPMSD to conduct a series of seminars and/or other informational activities to inform ADB staff about the revisions to Administrative Order No. 2.02; Section 4 regarding the staff Code of Conduct, which were endorsed by Management on 28 May 1998.

78. To monitor and coordinate the ADB’s efforts with respect to anticorruption initiatives and programming, the departments and offices concerned will be requested to provide SPD, OGA, and OGC (in respect of legal frameworks and legal issues of relevance to other areas of action) with periodic appraisals on ways in which they are implementing the policy’s provisions.

79. After Board approval of the ADB’s operational policy on anticorruption issues, a Board paper will be circulated in due course analyzing the ADB’s experience with the anticorruption policy, proposing modifications to the operational approach as necessary, and indicating more specific budgetary and other resource implications.


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VII. Appendixes