Key Takeaways
Shifts in the development landscape have led ADB to embark on its most significant organizational change in a decade. In response to the climate mitigation and adaptation challenges facing the Asia and Pacific region, ADB adopted a new operating model that offers better solutions for clients to scale up climate action, support private sector development, and mobilize private financing while becoming more client-centric.
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Quality governance is closely linked to economic and social development in Asia and the Pacific.
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Transparency and accountability are key to combating widespread corruption that holds back development in many countries.
How has ADB's Office of Anticorruption and Integrity responded to the bank-wide transformation agenda of the new operating model?
The new operating model calls for wider application of risk-based and client-centric approaches. In response, ADB's Office of Anticorruption and Integrity (OAI) has started to introduce new procedures and tools to empower operational units so that they are better able to identify and manage integrity risk across sovereign, nonsovereign and institutional operations. This includes developing a more formalized and consistent framework for identifying and assessing risks, better training and guidance so that operational units are better able to spot and assess integrity issues, and better technological tools to screen for integrity risks.
What were the key integrity-related measures undertaken by ADB in 2023?
In 2023, OAI reviewed 1,275 entities for integrity due diligence, a 10% increase from 2022. OAI also increased the total entities under continuous screening in the Sanctions Screening Portal by 35% (to more than 163,000 entities).
OAI also responded to allegations of fraud, corruption, or other misconduct. In 2023, these efforts led to the debarment of 372 firms and 10 individuals. They are no longer eligible to participate in ADB activities for the debarment period. It likewise reinstated the eligibility of 142 firms and six individuals.
OAI continued to assist member countries through three regional technical assistance programs on integrity, anti-money laundering and countering the financing of terrorism, and tax integrity. Specifically, OAI supported member countries in developing policies and procedures, adopting risk assessment methodologies and tools, and providing training and policy advice.
It conducted 84 knowledge-sharing sessions – all geared towards raising awareness on corrupt practices and how to protect ADB-funded projects.
More information on OAI’s integrity work can be found in OAI’s 2023 Annual Report.
How will OAI continue its transformation agenda in the year ahead?
In 2024, OAI will continue to develop and refine policies, processes, and systems for integrity risk management across ADB. OAI anticipates enhancing its tools for integrity risk management, including the development of technological aids to help identify, monitor, and manage integrity risks. This includes the expansion of the Sanctions Screening Portal (SSP) to cover a broader array of potential integrity risks on top of debarments, cross debarments, and United Nations Security Council and other national sanctions. By doing so, OAI seeks to fully leverage the monitoring capabilities the SSP can provide project teams.
OAI will release a new investigations and enforcement framework. Under the new framework, ADB will further improve the tools to protect ADB funds through robust investigations and strengthen the independence and transparency of enforcement actions taken after a finding of fraud or corruption. The new framework will strengthen the independence of ADB’s sanctions process by introducing a first-tier sanctions body (i.e., the Integrity Enforcement Committee) and an appeals body (i.e., the Enforcement Appeals Committee), and expanding the grounds for appeal and the bases for publication of ADB debarment sanctions.
In November 2024, ADB, with OAI at the helm, will be hosting for the first time the Conference of International Investigators at its headquarters in Manila, inviting investigations professionals from international and multilateral agencies around the world to discuss collaboration, harmonization, and challenges in fraud and corruption investigations.
The Office of Anticorruption and Integrity (OAI) leads the integrity initiative of ADB by mitigating integrity risks, investigating integrity violations, and promoting integrity among ADB’s stakeholders. Aligned with ADB’s broader commitment to combat corruption and improve governance as an operational priority of ADB Strategy 2030, OAI’s mandate is underpinned by ADB’s zero tolerance for corruption.
