Water Services Trust Fund Financial Support for Improved Access to Water and Sanitation

1. Water Services Trust FundFinancial Support for Improved Access to Water and Sanitation Your integrity and Dealing with Corruption Elizabeth Waruingi

2. This presentation Introduction : 3 Minutes Group work (3 groups) 10 Minutes Presentation by the groups: 10 Minutes Conclusion : 2 Minutes

3. Introduction Contexts of Integrity • Individual • Organization/Institution/Company • Reporting • Losing your Good Name is Risky!

4. Integrity and Ethics (Draft King III report): • Integrity equals the adherence to formal requirements and the voluntary commitment to ethical standards and values • Ethics equals integrity and responsibility • Good corporate citizenship equals the establishment of an ethical relationship of responsibility between the Institution and the society in which it operates

5. Socrates, Plato and Aristotle • Ultimate object of human activity is happiness, and the necessary means to reach it, virtue • Virtue and ethics were directly associatedwith wisdom and that insight into life would naturally lead to right conduct • Plato: ancient Greek philosopher, the second of the great trio of ancient Greeks; Socrates, Plato, and Aristotle, who between them laid the philosophical foundations of Western culture (source: Encyclopedia Britannica).

6. • The best way for people to live was to focus on self-development rather on the pursuit of material wealth The converse of these is equal to CORRUPTION = dishonesty, bribery, sleaze, fraud, vice …..

7. Group Work – 10 Minutes • Presentation by the group leaders - 10 Minutes

8. Lessons learned from the pilot audit • Non Compliance with the financing contract: • Opening of bank accounts • Reporting requirements • Ineligible expenses: • Reallocation of budget lines • Unbudgeted payments • Over expenditures on set budget lines

9. Lessons learned from the pilot audit • Unsupported Expenses • Poor Financial and Cash Management: • Use of a spreadsheet as an accounting system • Budget overruns • No bank reconciliations • Commingling of the project and WSP funds

10. Lessons learned from the pilot audit • Unaccounted Imprest • Inadequate monitoring • Lack of value for money due to: • Poor constitution of the procurement committees eg duplication of members in the tender and evaluation committees • Lack of competitive bidding while procuring e.g. contractors

11. Lessons learned from the pilot audit • Poor governance: • Ineffective Board – Lack of focus • Corrupt Management • Weak or no Internal audit • No checks and balances in the organization structure • Duplication of sensitive roles e.g. Finance and procurement • Poor project implementation: • Leaking pipes • Vandalism • Procurement flaws

12. Conclusion • “It takes 20 years to build a reputation and 5 minutes to ruin it and if you understand this you will do things differently” • “If you lose dollars for the firm by making bad decisions, I will be very understanding. If you lose reputation for the firm, I will be ruthless.”- Warren Buffett

13. Thank you