Fraud is the use of deception to obtain an advantage, avoid an obligation or cause a loss to another party. Corruption is the abuse of public office for private gain.
DFID is committed to ensuring that its resources, voted by the UK Parliament on behalf of the UK Taxpayer, will be used only for the purposes intended. DFID management is committed to minimising the resources lost through fraud and corruption.
The risk of fraud and corruption is increasing given the scale of change that we are experiencing, the amount of money for which we are responsible, the context within which much of our work is done and changes to the method of funding developing countries.
All DFID employees, consultants and contractors, in the UK and overseas, have a responsibility to protect DFID funds and other assets from fraud and corruption.
While it is accepted that there will always be some risk of fraud in DFID programmes, all reported suspicions will be considered for further investigation. Fraud and corruption against DFID funds, either by DFID staff, partner organisations (e.g. contractors) or in partner Governments will not be tolerated because it:
Those found to have been involved in fraudulent and corrupt activity or to have been negligent in the exercise of supervisory duties will be subject to disciplinary and, where appropriate, criminal proceedings.
Action will also be taken to recover any funds that have been lost. Similarly, funding may be recovered, and future funding withheld from partner Governments where arrangements for preventing or detecting fraud and corruption fail to improve.
Also related to fraud is Conflict Of Interest. A conflict of interest arises when an individual could be or is influenced by personal considerations in the course of doing his or her job. This introduces the risk that decisions are made for the wrong reasons - financial or other personal rewards may adversely influence objectivity, integrity or professional commitment and can lead to fraud.
Risks to DFID from conflicts of interest can arise from personal interests within DFID; between DFID staff and suppliers; between DFID staff and other organisations, including Governments and NGOs; and within contracted organisations.
Conflicts of interest adversely affect DFID's reputation, its effectiveness in reducing poverty and value for money. Perceived conflicts of interest could be as damaging to DFID's reputation as actual occurrences, even when the right decisions are being made.
Staff must safeguard themselves as well as DFID against any risk of conflicts of interest. It is particularly important that DFID actively manages any conflicts of interest because of DFID's promotion of anticorruption initiatives in other Governments.
Any allegations or suspicions of fraud or corruption against DFID resources must be reported to the Head of Internal Audit (HIA). (+44 (0) 20 70230193) or by email fraud@dfid.gov.uk who will decide on further action. Neither they, nor their line manager should investigate allegations without advice from the HIA as this is likely to undermine any future action
All investigations of fraud and/or corruption will be directed by the Head of Internal Audit
Heads of Department/Overseas Offices must provide details of all suspected or actual frauds to Internal Audit Department for inclusion in the Annual Fraud Return to Treasury
Directors, Head of Department/Head of Overseas Office must maintain a Conflict of Interest register for each office/operational unit and ensure that this is updated at six monthly intervals
All staff must notify potential Conflicts of Interest and these must be recorded in their departmental register. Nil returns must also be recorded to indicate that staff have read and understood the Conflict of Interests Policy.
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