The Integrity Mission has taken PPAF records into their custody to verify allegations of corruption and fraudulent practices. PHOTO: AFP
The World Bank (WB) has sent an Integrity Mission to probe alleged fraudulent practices in the Pakistan Poverty Alleviation Fund (PPAF), scrutinising records besides interviewing the senior officer-bearer of the body including Group Head of Financial Services Group Yasir Ashfaq, revealed officials privy to the developments.
The mission, which arrived in Islamabad last month, picked about two-down partner organisations of the PPAF for conducting investigations. The PPAF had lent money to these partner organisations for giving small loans and building community infrastructure, they added.
The officials said the investigations were not limited to any specific period. The investigators have taken the PPAF records into their custody.
The WB’s Institutional Integrity Unit works independently and reports directly to Leonard McCarthy, the WB’s Integrity Vice President.
“We take allegations of fraud and corruption impacting bank-financed projects very seriously,” said an Islamabad-based spokesman of the WB. The spokesman further said that the outcome of such investigations is made public once a decision on possible sanctions is reached.
The spokesman refused to divulge the nature of allegations that forced the WB to send the Integrity Mission. He said as per its disclosure policy, the bank does not discuss or disclose such allegations or investigative processes.
The Integrity vice-presidency ensures that funds are used for their intended purposes. The mission mandate is to investigate and litigate cases of corruption in group-supported activities, as well as address evidence of significant fraud or corruption involving staff, according to the WB’s website.
The PPAF was established in 1999 with the help of WB. So far, the WB has approved $890 million for the PPAF including funds for activities in areas affected by the 2005 earthquake.
In recent years, a number of unusual transactions have surfaced in the PPAF, creating doubt in the minds of international lenders and donors. The PPAF management has, however, maintained that operations have been transparent and the entity enjoys the trust of the international lending community.
PPAF says it’s a performance review
While the WB’s written response suggested that an Integrity Mission came to investigate affairs, the PPAF insisted that it was a simple management performance review. “The on-going assessment is a Management Performance Review which is continuing at the moment,” according to the PPAF’s written response. It added this review has not been completed yet.
The PPAF said that the assessment has been undertaken by a third party on behalf of the WB as a result of certain changes that were made within PPAF during and after 2011.
It added in 2011, under the new leadership and with expanding operations and outreach, PPAF recognised the need for reviewing its vision and strategy periodically, to continue to meet the needs of the poor.
The PPAF said the Management Performance Review was initiated to review the amended policies, procedures and processes implemented by PPAF on the World Bank funded project. This included ascertaining the adequacy of implementation agreement for PPAF III. Additionally, the findings of the review will provide a baseline and reference for the next phase with the World Bank, said the PPAF.
Published in The Express Tribune, January 15th, 2015.
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