Pakistan Anti-Fraud Hotline (AFH)

1. Pakistan Anti-FraudHotline(AFH) Saad Rashid, Executive Director, TI-Pakistan

2. About us What We Do • 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

3. 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.

5. Complaint Handling methods. There are two methods by which complaints will be generated by Transparency International, Pakistan with reference to the AFH: • Through scanning of procurement notices of USAID funded projects published in newspapers and the PPRA website. • By complaints received through the AFH website, email, calls received on the toll free number, fax, postal mail or visit to TI-P office.

6. Handling PPRA related complaints • 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.

7. Handling PPRA related complaints • 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.

8. Handling Non PPRA complaints • Method Two • 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.

9. AFH Referrals

10. 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

11. 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

12. Quarterly progression of Complaints Vs. Calls

13. Allegation Type – Inception till Sep 2013

14. Quarterly progression – Logged Complaints

15. Provincial Breakdown of Complaints

16. Provincial Breakdown of Complaints

17. 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

18. Thank You