Pakistan Anti-Fraud Hotline (AFH)

Saad Rashid, Executive Director, TI-Pakistan

• Established as a Trust in 2001• Accredited as a National

Chapter since 2005• Head Office is in Karachi• Operates Independently

under TI’s Governance Policy• Oversight by a 9 member

volunteer Board of Trustees

• USAID Anti-Fraud Hotline• Advocacy and Legal Advice Center• Public Procurement Monitoring• Anti Corruption Pakistan Project

(Awareness in Youth and Children)

• National Integrity System Study (2002 and 2013)

• National Corruption Perception Surveys

About us What We Do

Complaint Handling Procedure

• Complaints can be filed in-person or by phone, Internet, fax, mail, or email.

• Telephone operators speak English, Urdu, Pashtu, Sindhi, Punjabi and other local dialects.

• Complaints of fraud or corruption in USAID projects referred to USAID OIG for investigation.

• Service delivery issues related to some USAID projects referred to Mission and implementing partner.

• Complaints on non-USAID projects referred to implementers, when possible.

Complaint Handling methods. There are two methods by which complaints will be generated by Transparency International, Pakistan with reference to the AFH:

1. Through scanning of procurement notices of USAID funded projects published in newspapers and the PPRA website.

2. By complaints received through the AFH website, email, calls received on the toll free number, fax, postal mail or visit to TI-P office.

Handling PPRA related complaints

A. Method One

• TI-Pakistan’s procurement experts examine complaints related to procurement to find alleged violations of the Public Procurement Rules 2004, Sindh Public Procurement Rules, 2010 and Punjab Procurement Rules.

• If the complaint is genuine, TI-P will write to the organization informing it of the details of the complaints and pointing out violation of rules allegedly committed.

• Organization asked to respond as soon as possible with clarification.

Continued……..Notes All complaints are investigated by OIG. TI-P uploads all communications of the case on its website. Copies of the letter will also be marked to the concerned authorities.

Handling PPRA related complaints A. Method One

• If violation is detected in the procedures adopted by the Procuring Agencies/NGOs, TI-P suggests to  the organization of the violations,  requesting them to rectify it.

• If the complainant's contention is incorrect he is advised accordingly and the case is closed.

• TI-P will also inform the concerned Minister, AGP/Provincial AG, NAB, PACs ,Public Procurement Regulatory Authority and OIG as the case may be.

• TI-P will also upload all communications of the case on its website.

Notes All complaints are investigated by OIG. TI-P uploads all communications of the case on its website. Copies of the letter will also be marked to the concerned authorities.

Handling Non PPRA complaints

• Complaint ID with system assigned pin to check status online.• Alerts to complainants if they provide email address• Multiple allegation types, Gender selection, location selection, Project,

NGO name, Awareness medium for e.g. TV, Radio, Newspaper, Bill Board

• Reports are readily available for all complaints that are uploaded.• Instant Alerts to TIP and OIG selected staff• SSL secured website• Independent hosting with immediate shutdown accessibility if

required.

A. Method Two

AFH Referrals

Hotline Activity• 5,941 complaints received by Hotline (vast majority related to

flood-relief programs)

• 1,646 referrals

– Hundreds of referrals to UNWFP regarding fraud, corruption, and service delivery issues

– Many referrals to USAID Pakistan on program effectiveness– Referrals sent automatically to: BISP, FAO, UNDP, UNFPA, UNICEF,

UNOPS, World Bank, Save the Children, ECHO, and DFID

• 15 complaints received regarding PPRA violations on G2G projects. Resulted in numerous cancelled procurements and re-tendering

G2G Projects• Complaints regarding Procurement violations by GoP entities on

USAID-funded projects handled by TI-P in accordance with Pakistani law (with OIG notification)

• Monitoring Tender Advertisement, Media reports, Complainants

• 14 complaints of Procurement Rules violations Water and Power Development Authority 8 Benazir Income Support Program 2 Sui Southern Gas Company 3 Sindh Department of Education 1

• In all cases Transparency International Pakistan wrote letters to the relevant Procuring Agency highlighting the violation of Rules

• Majority of tenders were re-invited

Quarterly progression of Complaints Vs. Calls

391

60915

467

3109

736

519

AID requestotherPPRA violationProcurement fraudService Delivery IssueSolicitation of bribeTheft of goods

Allegation Type – Inception till Sep 2013

Quarterly progression – Logged Complaints

Jan-Mar'11 (Qtr 2 Yr 1)

Apr-Jun'11 (Qtr 3 Yr 1)

Jul-Sep'11 (Qtr 4 Yr 1)

Oct-Dec'11 (Qtr 1 Yr 2)

Jan-Mar'12 (Qtr 2 Yr 2)

Apr-Jun'12 (Qtr 3 Yr 2)

Jul-Sep'12 (Qtr 4 Yr 2)

Oct-Dec'12 (Qtr 1 Yr 3)

Jan-Mar'13 (Qtr 2 Yr 3)

Apr-Jun'13 (Qtr 3 Yr 3)

Jul-Sep'13(Qtr

4 Yr 3)

OIG Fig 516 1303 549 489 605 591 395 432 378 278 252

100

300

500

700

900

1100

1300

516

1303

549 489605 591

395 432 378278 252

Quarterly Progression - Logged Complaints

Provincial Breakdown of Complaints

10.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

11.58%

73.93%

6.13% 4.41% 3.52%

Province Percentage

PunjabSindBalouchistanKPKOther

Provincial Breakdown of Complaints

312 70

759

11

78

424

4211

76

KhyberpakhtunkhwaFATAPunjabGilgit BaltistanAzad KashmirBalochistanSindhFederal Government

Results

• Significant program improvements

– USAID scholarship program procedures improved– $200 million + in grants programs managed by local NGOs enhanced– Increased emphasis on conflict of interest policies– Service delivery improvements by WFP

• Termination of 3 USAID Projects• 3 USAID debarments/1 UN permanent suspension• Questioned costs of over $6 million• Expected savings of over $2 million• Termination of over 25 NGO employees • Recoveries or savings of over $200K on grants programs• Numerous education officials terminated for diverting cooking oil

meant for children

Thank You