USAID, TI Pakistan project: Anti-Fraud Hotline to commence operation by February

The "Anti-Fraud Hotline" project established following the signing of a five year agreement for cooperation in Islamabad on Sept 22 last year between US Agency for International Development (USAID) and Transparency International Pakistan would commence operation in the first week of February 2011.
Chairman, Transparency International Pakistan, Syed Adil Gilani told Business Recorder here on Thursday that the objective of the project was to ensure Transparency and prevention of corruption in the utilisation of grant to be provided to Pakistan by USAID, including the $7.5 billion under Kerry Lugar Law.
Citizens and civil society organisations are welcomed to report corruption and register their complaints direct through Anti-Fraud Hotline website, toll free phone, mail, fax, email or by personal complaints. Website address is: www.anti-fraudhotline.come and Hotline toll free phone number is: 0800-84700.
The US Agency for International Development, Office of Inspector General (OIG) is a dynamic, proactive, and responsive organisation serving the American public. The OIG operates under the Inspector General Act of 1978, as amended. Major responsibilities of the OIG are to detect and prevent fraud, waste, abuse, and violations of law and to promote economy, efficiency and effectiveness in the operations of the US Agency for International Development. Upon request, the OIG also provides oversight services to the Overseas Private Investment Corporation.
Referrals: OIG will ensure that allegations are properly handled. The TI Pakistan will handle allegations in accordance with USAID OIG guidelines and will not conduct any investigative activity. Publicity: TI Pakistan Develop a marketing plan for the hotline to ensure the general public in key areas with USAID investment knows how to report allegations of fraud, waste, and abuse. Once a marketing plan has been agreed upon with USAID/Pakistan and USAID/OIG, market the hotline using appropriate avenues of advertising, including brochures, posters, TV, radio and newspapers.
Public Education: TI Pakistan in conjunction with USAID/OIG and USAID/Pakistan, develop and deliver Pakistan focused fraud awareness presentations, as well as develop and distribute fraud awareness materials. The IP will capitalise on information obtained through the hotline process (and other data provided by USAID OIG) to develop focused fraud prevention and awareness materials.
There are two methods by which complaints will reach TI Pakistan: Through scanning of procurement notices of USAID funded projects published in newspapers and PPRA website and keeping constant watch if any violations of rules have been committed. By complaints received through Anti-Fraud Hotline web, email, toll free phone, fax, mail or visit to TI office.
STAGE 1: After receipt of complaints the TI Pakistan experts will examine it to determine whether any rule of Public Procurement Rules 2004, Sindh Public Procurement Rules, 2010 and Punjab procurement is violated. If necessary, the complainant may be requested to visit the TI Pakistan office and present the necessary documents/information or mail the documents. If the TI Pakistan Experts determine that the complaint is genuine, and violations of rules are committed only then the complaint will be considered for further action.
STAGE 2: TI Pakistan will write to the organisation against whom the complaint has been made, informing them of the details of the complaints, pointing out violation of rules allegedly committed by them as reported by the complainant. They will be requested to provide clarifications so as to confirm whether the complaint is genuine or not, and to provide documents under the PPRA/Freedom of Information Ordinance for verification of PPRA compliance against the allegation.
Copies of the letter will also be marked to following agencies: In case of public agency, to the concerned Minister, AGP/ Provincial AG, NAB, PACs ,Public Procurement Regulatory Authorities and OIG. In case of local NGOs, to NAB, Public Procurement Regulatory Authorities and OIG. In case of US NGOs, to Public Procurement Regulatory Authorities and OIG. Documents provided by the procuring agency would be examined by the TI Pakistan team. If the complainant's contention is incorrect he is advised accordingly and the case closed.
STAGE 3. In case violation of rules is detected in the procedures adopted by the Procuring Agencies/NGOs, then TI Pakistan will suggest to the organisation of the violations, requesting them to rectify it. TI Pakistan will also inform the concerned Minister, AGP/Provincial AG, NAB, PACs, Public Procurement Regulatory Authority and OIG as the case may be.
TI Pakistan will also upload all communications of the case on its website. TI Pakistan will only review and communicate with the procuring agency compliance/non compliance of Public Procurement Rules 2004 by the procuring agency. All complaints will be investigated by OIG.
STAGE 4. After the contract has been awarded, and complaints of corruption received about corruption during tendering process, or in the project implementation, like use of substandard material, extra works sanctioned without justification, or when the value of contract is extended beyond the 15 percent allowed under Public Procurement Rules 2004, Sindh Public Procurement Rules, 2010 and Punjab Procurement Rules 2009, the complaint will be dealt by OIG/USAID who will decide further action.
If OIG deems it necessary it may describe the complaint handling mechanism when it starts the investigation, and the role of TI Pakistan on the results of the completed inquiry. OIG will also handle Complaints under 2,3 and 4, which are: 2 - Administrative, including corruption in appointments, postings, terminations etc. 3 - Disbursements of grants to affected persons such as IDPs, Poverty Alleviation grantees, natural disaster victims etc., and 4 - Others.