Keynote speech by Roberta Casali, ADB Vice-President for Finance and Risk Management, at the 2nd Asia-Pacific Anticorruption and Integrity Forum, 27 August 2024, Xiamen, People's Republic of China
Thank you for the introduction, Mr. Jingyi Han.
Mr. Xiaozhou Huang [Executive Vice Mayor, Xiamen Municipal Government], Mr. Xianchun Xiang [Second-level Inspector, Department of Asset Management, Ministry of Finance], Mr. Zhongjing Wang, [Chief Executive Officer of the Multilateral Cooperation Center for Development Finance (MCDF)], panelists, participants and colleagues, a very good morning to you all!
Last year and this year’s Forum
On behalf of the Asian Development Bank (ADB), I am pleased to welcome you to the 2nd Asia-Pacific Anticorruption and Integrity Forum jointly organized by ADB, the Xiamen National Accounting Institute (XNAI), the Multilateral Cooperation Center for Development Finance, China International Contractors Association, and the Secretariat of the Maritime Silk Road Central Legal District.
I am glad and honored to be back in Xiamen for the second edition of this forum!
At this time last year, ADB and Xiamen National Accounting Institute successfully co-organized a 3-day event to build capacity on anticorruption, procurement, and safeguards requirements. High-level government and private sector officials from the People’s Republic of China (PRC), Xiamen National Accounting Institute, ADB, and the Asian Infrastructure Investment Bank (AIIB) supported and participated in the event. One thing we’ve learned is that there is great appetite from PRC contracting community for further and deeper discussions, specifically around compliance practices, additional case studies, and the MDB sanctions system.
We continue to witness a growing number of companies who are implementing robust anticorruption compliance systems and strengthening their internal controls across their operations with the assistance of an ADB-approved monitor. Such results demonstrate the tangible impact of our many years of "anticorruption collaboration" with the PRC business community.
Today and in the next couple of days we have the great opportunity to come together again to build on the success of last year’s event and further develop its achievements in two important ways:
- First, by welcoming and engaging with participants from countries beyond the PRC to the broader Asia and Pacific region. For many years, ADB has had a fruitful cooperation with PRC on anticorruption and integrity, including ADB’s participation and organization of several workshops, knowledge sessions and capacity building events.1 I am delighted that the cooperation has now expanded to include participants from other countries in the Asia and Pacific region. Corruption knows no borders, and so shouldn’t we.
- Second, by working together with peer multilateral development banks (MDBs) benefitting from a broader base of knowledge and experience. On this, please allow me to welcome and thank the colleagues from the African Development Bank, AIIB, New Development Bank and the World Bank Group (including the International Finance Corporation) for their support and participation. This highlights the commitment of the international community to fighting corruption and promoting integrity in development projects. ADB has been cooperating with other MDBs for almost two decades in harmonizing the features of our respective sanctions mechanisms to promote consistency and establishing a formidable additional deterrent to firms and individuals engaged in fraud and corruption by multiplying the effect of enforcement actions taken by the other MDBs.2
With these, we’ll all have a unique and fantastic opportunity to (1) share a great wealth of experiences, (2) build strong cooperation on anticorruption and integrity, especially around this year’s theme: Delivering Development with Integrity, and (3) highlight the importance of having in place business integrity programs. There will be several panel discussions and workshops focused on sharing knowledge and discussing case studies particularly on this topic.
Importance of doing business with integrity
Why is “doing business with integrity” so important for all of us?
Doing business with integrity is key to a sustainable business. There is no other way. The world’s most ethical brands have consistently outperformed their peers, especially in this day and age when companies are held to a higher standard on ESG (environmental, social, governance) issues. Doing business with integrity provides for more certainty and control over operations and protects a company’s reputation. And it opens doors to new partnerships with like-minded investors and business partners who also value integrity.
On the other hand, companies that engage in unethical behavior risk prosecution, sanctions, and reputational damage, leading to significant costs for the organization. Such costs may come from debarment by MDBs and blacklisting by governments, restitution, fines, and even imprisonment of individuals. But the greatest cost is the harm to a company’s reputation and trust which will take years, if not decades, to restore.
Importance of business integrity programs and the MDBs
This is where we come into play. Business integrity programs aren’t just about ticking a box. They play a crucial role in MDBs’ efforts to deliver development, free from fraud and corruption. Last year, we collaborated and issued the General Principles for Business Integrity Programmes. These principles serve as a resource to guide companies on the way forward, especially since the ADB, and MDBs in general, expect those who participate in its projects to maintain the highest standard of integrity. And having a business integrity program helps ensure those standards are upheld consistently.3
ADB has always emphasized the importance of business integrity programs in its work. Under ADB’s framework, the implementation of strong internal controls to prevent integrity violations can result in mitigating the length of debarment. Debarred companies must prove that they have successfully implemented a business integrity program before becoming eligible to participate in ADB projects again. From 2000 up to June 2024, ADB has reinstated 439 firms for successfully meeting ADB’s compliance conditions.
But it’s not just the MDBs. International organizations are focusing on the importance of such programs in avoiding prosecution or mitigating fines. Governments are also legislating to encourage or require companies to establish effective business integrity programs.
Without the engagement and participation of companies like you, these standards would be meaningless. Because it is at the company level where the hard work of implementation takes place. Your participation at this event is a testament of your commitment to conduct business ethically and with the highest standards of integrity.
Closing
In closing, I wish you all a productive seminar full of discussions, active interaction and participation as we all seek to cooperate and learn from each other—that is, for the companies to learn from the MDBs’ extensive experience and expertise in anticorruption and business integrity, and on the one hand, for the MDBs to learn from the companies about the challenges they have in meeting international integrity standards on the ground—and what solutions they’ve come up with.
Thank you in advance for being here and sharing your experiences!
1 There have been 7 events since 2018.
2 Cross Debarment. 2011. Cross Debarment Agreement for Mutual Enforcement of Debarment Decisions among Multilateral Development Banks
3 Cross Debarment. 2011. MDB General Principles for Business Integrity Programmes
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