Key Takeaways
Emergency and crisis situations are often followed by a second tragedy: corruption, fraud, and misuse of funds. These and other integrity risks are exacerbated in crisis situations due to sudden pressure on decision-making and disbursement processes, a high volume of funds, and the flurry of logistical and coordination challenges across government, private, and civil sectors that can blur the lines of accountability.
The Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD) have entered into a knowledge partnership agreement to bolster national and multilateral efforts to address corruption risks in responses to emergency situations in Asia and the Pacific. The project's scope of work includes two topics related to public integrity and law enforcement as they have a high impact on the success of current and future emergency interventions: (1) promoting accountability, control, oversight, and management of economic stimulus packages and recovery funds; and (2) strengthening law enforcement and investigation of corruption and fraud in emergency response activities.
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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.
"Recognizing these challenges, the knowledge partnership agreement will support governments in mitigating and addressing corruption risks in emergency situations to promote resilient economies in the region and help them to prepare more effectively for such crises in the future," said ADB Office of Anticorruption and Integrity’s Advisor, Lisa Kelaart-Courtney.
"When aid or stimulus packages are lost to corruption, ordinary citizens - those hit hardest by the crisis -suffer most," notes Nicolas Pinaud, Acting Head of the OECD's Anti-Corruption Division. "This can prolong a crisis and undermine recovery and growth, underlining how important it is that governments are equipped to prevent and respond to corruption in this context."
The first project under the partnership will focus on promoting accountability, control, oversight and management of economic stimulus packages and recovery funds, both in the immediate aftermath of a crisis and in the medium to long term. The Anti-Corruption Initiative for Asia and the Pacific (ACI), which was established jointly by the OECD and ADB, will engage with government institutions responsible for promoting integrity and accountability, through its Public Sector Integrity network, to identify ways to mitigate the related corruption risks.
The second project will focus on strengthening law enforcement capacity to investigate corruption and fraud in emergency response for the 34 economies of the ACI. Through the ACI's Law Enforcement Network investigators and prosecutors will learn about good practices, strategies, and techniques of detection, investigation, and prosecution of corruption offenses related to crises.
In consultation with ACI's networks, a study for the region will be developed in 2024, which draws on evidence-based policy analysis. The study will be used to build capacities in the region.
By facilitating collaboration, knowledge sharing, and promoting good practices, the OECD-ADB partnership aims to safeguard public integrity in Asia and the Pacific to ensure the success of future emergency interventions and recovery efforts and enhance the capacity of law enforcement to detect and sanction emergency-related corruption.
