IFAD Ethics division (ETH) held an informative session on the IFAD Code of Conduct and the recipients’ duty to observe it at all project stages

1. Financial management workshop for
global and regional grants recipients
25 October 2017
Bangkok, Thailand
ETHICS &
BUSINESS Living Our Core Values
CONDUCT
Mame Diagne
Director of Ethics

2. The IFAD Ethics Office
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

3. Framework for an ethical Culture
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

4. Code of Conduct
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

5. Code of Conduct, cont’d
Code Of ConductCode Of Conduct
Personal Legal Obligations
Gifts, honours or decorations
Conflicts of Interest
Outside activities
Use of IFAD’s assets
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

6. Example of Conflict of Interest
Project Staff who work on IFAD-financed projects and recommend
that Technical Assistance is required SHOULD NOT subsequently
perform this work for the project or recommend hiring a family
member that could represent a REAL OR PERCEIVED
CONFLICT OF INTEREST!!
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

7. Managing Grant Recipients
• IFAD has put in place procedures and responsibilities
established to:
Ensure the effective and efficient use of IFAD’ resources;
Manage the risks associated with transferring grant resources,
including inappropriate use.
• Project Staff managing grants should help recipients of grants
to manage ethically and effectively according to the purpose
of the grant
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

8. Some criteria for the selection of IFAD’s Grant
8
 It is the policy of IFAD to
conduct its business operations
with honesty and integrity in
accordance with the highest
legal and ethical standards.
 Therefore the project staff must
comply with the provision of the
code of conduct to reduce the
risk of mismanagement of the
Fund.
 Allocation of IFAD’s Grant
System should be a selective
high demanding exercise in
order for it to be effective.
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

9. Selection of Grants Recipients
Pre-existing linkages with IFAD Recipients countries, farmer’s beneficiaries, typical
rural people beneficiaries of IFAD investment projects
Human resource capacity to fulfil the Grant’s objectives
Existing high level of expertise and long experience in the field of the Grant
Grant
Recipients
Selection
Capacity to implement the Grant in an independent way
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

10. Selection of Grants Recipients
There should be a clear set of criteria for the allocation of the Grant funds and which
should be applied in the most transparent way. These criteria should exclude any
duplication or double benefits of individuals from the same household in order to
benefit the maximum household possible
The Recipient of the Grant should meet the minimum requirements set by IFAD
investment projects
Grant
Recipients
Selection
Grants allocation systems should be advertised as much as possible to potential
Recipient in order to make it fair and avoid any elite capture
Sufficient experience with Recipients countries and Recipients organizations/people
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

11. Selection of Grants Recipients
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

12. General provisions to consider for Grant
Agreement
Implementation
Administration
of the Grant
Disbursement
of Grant
Recipient must exercise the same care in the
administration of the Grant, having due regard to
efficiency and the need to uphold the highest
standards of integrity in the administration of funds
As it refers to benefiting targeted group
Project between the Recipient and a third party must
be approved in advance by IFAD. The Recipient shall
implement the project with due diligence and
efficiency in accordance with the Agreement
Design versus
implementation
consistency
General
Provisions Submission to IFAD a withdrawal Application and
provision of other document required by the Fund
Disclosing any possible conflict of interest (e.g. being
good friends with the Grant sponsor, especially in the
case of competitive selection)
Conflict of
Interest
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

13. General provisions to consider for Grant
Agreement, cont’d
Relations with
external
parties
Progress
Reports
Final
Completion
Report
To be submitted to IFAD within 90 days of the
end of the Recipient’s Fiscal Year
Ensure IFAD is given due visibility/credibility
representing the Fund
General
Provisions
As soon as possible after the Project Completion
Date
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

14. Some Checklist questions
 Do you/any of your family member/friends
have a controlling role in the disbursement
of the Grant?
 Do you/spouse or any family member have
already any commercial interest in the
Grant?
 Is any other family members is applying to
the same Grant?
 Do you, or your immediate family
member received Grant for the same
project?
 Do you/any of your family member have
leadership role on IFAD Grant
management in your community?
 Have you ever been accused for
corruption?
 What is your understanding of
governance and corruption?
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

15. Financial requirements
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

16. Risk management to consider for Grant Agreement
16
• A coercive practice is able to harm any
party/closely related to the party to
improperly influence the actions of that party;
• Collusion practice is between 2 or more
entities without the knowledge of a third
party, designed to improperly influence the
actions of the third party;
• Fraudulent practice is to improperly obtain a
financial or other benefit or avoid an
obligation.
Results
IFAD may suspend or terminate the right of the Recipient to
request and receive disbursement of the Grant if the
Recipient has failed to perform any of its obligations under
the Agreement.
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

17. Concluding remarks-Selection of Grants
and Grants Recipients
Project staff should make the best use of IFAD’s Grant funding to build
expertise in the recipients countries and to transfer existing technologies
to those who need it most in order to reach the overall goal of helping
rural people overcome poverty;
Greater support in planning and monitoring is required;
It is therefore of upmost importance that the IFAD-funded grant serves in
priority IFAD investment projects in the member countries;
We need to maintain ethical culture in IFAD based on accountability,
integrity and reporting of wrongdoing; policies and procedures should be
aligned with good practices.
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

18. Looking forward
Encourage internal whistleblowing by:
 Reporting suspected wrongdoing that implies a
significant risk to IFAD;
 Cooperating with a duly authorized audit or an
investigation of a report of wrongdoing.
Enable IFAD to act early on behaviours that
constitute significant risks to its interests
 Enhance and embrace transparency in
everything we do
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

19. Conclusion
 Reinforce an enduring ethical corporate culture by upholding IFAD’s
commitment to integrity
 Increase Project Staff commitment to IFAD’s mandate
 To increase transparency, the Fund should require Grant award
documents readily available to the public
 Documentation and reporting well established
 Strengthening procedures
 Training of Project Staff on instruments to increase transparency and
accountability in IFAD's grants.
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

20. Thank you
Mame Diagne, Director, Ethics Office
+39-06-5459-2535
ethicsoffice@ifad.org
ETHICS &
BUSINESS Living Our Core Values
CONDUCT

21. Financial management workshop for
global and regional grants recipients
Questions, Concerns,
Advice?
Living our Core Values
ETHICS &
BUSINESS Living Our Core Values
CONDUCT