Africa Groups of Sweden (AGS),
adopted by PU 2009-10-07
Guidelines on how to minimize the risks for
corruption and other irregularities in our
development cooperation
1.
What is corruption?
Corruption - the misuse of entrusted power for personal gain - has a severely debilitating
effect on the economic, social and political environment in which it occurs. Corruption
appears independently of the systemic context and at all levels in industrialised and
developing countries alike.
The definition is used by Transparency International, a global network leading the fight
against corruption
All national legislation considers corruption illegal but there are considerable variations in
how legal systems define and address corrupt behaviour. What to some may appear to be
illicit or illegal practices might by others be seen as acceptable, both legally and culturally.
Petty corruption encourages and lays the basis for large-scale corruption and vice versa. It is
therefore not possible to distinguish between practices that may be generally accepted or
expected, and those that may be considered to be ‘more serious’.
Local legislation, rules and regulations must be respected, but never as an excuse for
supporting corruption or other unethical behaviour. AGS is subject to Swedish legislation and
regulations independent of where and with whom the organisation is working.
Common forms of corruption and other irregularities include, but are not limited to:
Favouritism/nepotism: The unfair favouring of a person or group at the expense of
others.
Bribery: When someone improperly provides goods or services in return for some form
of improper compensation.
Sharing of profits: Such as kickbacks, cuts, etc.
Diversion of resources for private gain: Includes fraud, embezzlement, and theft of
resources for own use etc.
Misuse of power and/or position: To use entrusted power for personal benefits e.g.
money, services, sexual favours etc. in exchange for food, shelter etc.
Failure to take action: for example failure to prosecute someone suspected.
2.
Corruption - a challenge to development
Corruption poses a serious development challenge. It undermines democracy and good
governance by subverting formal processes. It weakens economic development by generating
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distortions and inefficiency. Corruption increases the vulnerability of poor women and men
by denying them free and fair access to the services that they are entitled to.
All organisations involved in development cooperation are at risk of being affected by
corruption. Corruption challenges the objectives of AGS development work as well as the
most fundamental values on which organisations are built.
Civil society has an important role to play in curbing corruption in society. By acting as
“watch dog” and monitoring politicians, the business community and other decision makers,
the organisations could strengthen transparency in society, and, increase the degree of
accountability. Civil society can also reduce corruption by strengthening the people’s
influence over decision-making, and, by contributing to education for a democratic culture
and democratic values of citizens and society at large.
In order to combat corruption and other irregularities AGS consider the following
basic principles as fundamental:
● Awareness - In order to combat corruption and other irregularities it is essential that
AGS and its cooperation partner staff and others involved are aware of our anticorruption principles. The aim is to create a proactive attitude in the identification and
mitigation of risks. Although these guidelines against corruption and other irregularities
are global and absolute, the training of all involved must be adapted to the local context.
Strong systems for financial administration and internal control are not static, but
develop over time based on learning. It must therefore be ensured that lessons learned
are spread throughout the organisation and incorporated into the professional functions.
● Transparency – AGS and partner organisations should be characterized by
transparency. Existing statutes, policies, strategies, plans, decisions, reports and
financial issues must be transparent.
Transparency in activities strengthens control and confidence is created for employees,
donors and other partners as well as to beneficiaries.
Transparency is crucial for tackling corruption.
● Accountability – Responsible persons/organisations must be held accountable to the
bodies that entrusted them to manage the activities/business.
To ensure accountability, organisations and trusts should have regular board meetings
and an annual general meeting where board members are kept responsible for their
actions.
There needs to be clear and well-documented decision-making structures and mandates,
as well as administrative structures that share the tasks concerning responsibility and
control on different posts. These are key elements in the potential for operational
accountability.
An organisation’s financial and internal control capacity must be adequate before AGS
can channel any funds to their activities. When asked for, a partner organisation must
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demonstrate their ability to improve their financial administration and internal control
systems in order to be eligible for continued support.
Financial reports must be followed up and be closely analysed in relation to the
activities of the organisation. AGS programme and financial staff are accountable and
must work hand in hand to ensure that high quality monitoring is provided for.
To mitigate risks and ensure quality in our development work, a close relationship with
the partner organisation and efficient monitoring is a prerequisite to combat corruption.
3.
Obligations to report
Management, staff members, partner organisation’s staff and others involved are obliged to
immediately report on any suspected cases of corruption and other irregularities to the
Coordinator or to AGS management in Stockholm. Coordinator must always inform the AGS
management when there is suspicion of any wrong-doing.
Failure to report suspicion may lead to legal action or other disciplinary measures. Fear of
losing public or financial support will never be accepted as an excuse for failure to report.
4.
How to handle irregularities and corruption
Decisions on how to investigate suspected cases of corruption and other irregularities will
normally be taken by the Africa Director at head office in Stockholm. There is a check list to
guide involved staff on how to be aware of warning signals and how to act when irregularities
and corruption is found.
All illegal actions must be reported to the Police by the organisation where it occurs, see
clause seven in the Partner agreement. AGS reserves the right to withdraw support or deny
funding when there are strong indications of corruption or fraud, even if these can not be
proven or when there is no conviction in a court of law.
Staff will always be given first priority, AGS will not put staff in danger due to strict
adherence to these regulations.
5.
Development of anti corruption work
Board and management have the ultimate responsibility for developing tools and routines of
internal control in order to combat corruption. In practice, prevention of corruption is the
responsibility of all involved in development cooperation financed by AGS and should thus
be embedded in the carrying out of day to day activities.
The specific responsibility for the implementation and development of these guidelines and
monitoring the work against corruption lies with the Africa Director.
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