Anti- Fraud & Corruption Policy

Fraud refers to dishonest activity causing actual or potential financial loss to any person or entity including theft of monies or other property by employees or persons external to the entity and where deception is used at the time, immediately before or immediately following the activity. This also includes the deliberate falsification, concealment, destruction or use of falsified documentation used or intended to be use for a normal business purpose or the improper use of information or position for personal financial benefit.

 

Corruption is dishonest activity in which a director, executive, manager, employee or contractor of an entity acts contrary to the interests of the entity and abuses their position of trust in order to achieve some personal gain or advantage for themselves or for another person or entity. The concept of ‘corruption’ can also involve corrupt conduct by the entity or a person purporting to act on behalf of and in the interests of the entity, in order to secure some form of improper advantage for the entity either directly or indirectly.

• Corrupt conduct, as defined in detail under the Nigerian constitution, section 419,421,422,423 and chapter 40 of criminal code of conduct, chapter 24 of the penal code, The Companies and Allied Mutter Act (CAMA), The money Laundering (Prohibition) Act.

The Economic and Financial Crimes Commission Act

Section 10 of the Advance fee Fraud Act.

Federal Inland Revenue service (Establishment) Act

Conduct that affects or could affect Fillgap Africa Development Initiatives (an employee of Fillgap Africa Development Initiatives) so that the performance of their functions or the exercise of their powers:

• is not honest or impartial; or
• knowingly or recklessly breaches public trust; or
• involves the misuse of agency-related information or material.
• Common examples of corrupt conduct include fraud and larceny, extortion, unauthorised release of information, obtaining or offering a secret commission and nepotism, misappropriations of assets. bribery and corruption.
• Procurement fraud.
• Financial accounts misstatements.
• Illegal accounting procedures.
• Insider trading.
• Underreporting of line costs and inflation of revenue.
• Money laundering.
• Abuse of a dominant position.
• Bid-rigging.
• Conspiracy.
• Tax-related offence.

 

Planning and Resourcing

Fillgap Africa Development Initiatives considers that its fraud and corruption control system is an integral component of its overall financial and risk management framework and will plan and resource activities accordingly.

Governance and Risk Management manages the Fraud and Corruption Control Plan, which is reviewed and amended at least biennially. The Fraud and Corruption Control Plan outlines the key strategies, actions and accountability for fraud and corruption control.

 

Prevention

Fillgap Africa Development Initiatives has a sound integrity framework with key elements and actions to support this. The framework is supported by an internal control system and other preventative measures including workforce screening, physical security and asset management in addition to the management of risks connected to gifts, conflicts, hospitality and vulnerable people interest.

Senior management team demonstrate a high level of commitment in controlling the risk of fraud and corruption within and outside.

Furthermore, every employee and staffs of (FADI) has a general awareness of fraud and corruption and how they should respond if this type of activity if detected or suspected.

Categories of fraud and corruption risks are identified in the Fraud and Corruption Control Plan and are managed and updated as required by the board of Directors, Governance, Financial and Risk Management team. Additional fraud and corruption risks are identified, evaluated and managed by Organisational Unit Managers and maintained in Organisational Unit Risk Registers, which are updated quarterly with appropriate review of control strategies and actions required.

 

Detection

In the event that Fillgap Africa Development Initiatives preventative systems fail, the FADI has implemented systems aimed at assisting with the detection of fraud and corrupt conduct as soon as possible as it has occurred.

Detection controls are managed by various Organisational Units and recorded in the FADI’s Fraud and Corruption Control Plan. Detection controls include post-transactional review, analysis of management accounting reports, data analytics and complaint management. Refer to the Audit Assurance Framework – Governing Policy for the role of auditors in detection.

Mechanisms for reporting suspected fraud and corruption incidents

All staff are expected to report instances of suspected fraudulent and/or corrupt behaviour as outlined in the Staff Code of Conduct – Governing Policy.

Suspected fraud or corrupt conduct can be reported by writing to various internal personnel. External personnel/bodies are also listed as an alternative mechanism to promote reporting. While there is a preference for reports where the discloser is known, due to the increased likelihood of successful investigations, anonymous disclosures are permitted.

Suspected fraud and corruption incidents may be reported to:

(a) the Executive Director,

(b) Senior management team;

(c) the staff member’s manager, supervisors.

If staff are not comfortable or able to report internally, they may report to FADI external and independent whistleblowing service provider. Your Call Whistleblowing Solutions receives and manages disclosures with confidentiality and impartiality. This option allows staff to:

(a) remain completely anonymous; or

(b) identify themselves to Your Call only; or

(c) identify themselves to both Your Call and the Collett.

The Your Call reporting options include:

• Website: https://www. Fillgapafrica.org. /report (available 24/7 using unique identifier)
• Telephone: delegated for such with relevant number (available 9am and 5pm, business days, W.A.T)

Your Call remains the intermediary at all times, receiving and forwarding communication between all parties, the Executive Director, nominated People and staff.

Anonymous complaints

Anonymous complaints relating to suspected fraud and corruption will be accepted and considered by Fillgap Africa Development Initiatives. However, the action taken will be dependent on whether sufficient information is provided to warrant further enquiries.

 

Response

Fillgap Africa Development Initiatives needs to be responsive and vigilant in undertaking preliminary investigations to determine whether allegations have sufficient grounds to be taken further.

In some situations, this may be straightforward (i.e. in the instance of theft of property or money in which case, the matter would be referred to the Nigerian Police Service). Other possible fraudulent behaviour may not be as clear to identify and some preliminary work will need to be undertaken to form an opinion by senior management or referral to the Nigerian Police Service is warranted.

• Fraud and corruption can also be closely connected to corrupt conduct which is particularly dealt with under the provisions of the section 419, 421,422,423 and chapter 40 of the Criminal Code.

 

Procedures for investigating detected or suspected incidents

Fillgap Africa Development Initiatives response to fraud and corruption allegations or matters will vary according to the nature and seriousness of the alleged conduct. In all other instances the Board of Directors, and Management staffs are to be responsible for the management of the alleged conduct under these Procedures. If the suspected incident involves any director, President and other board of directors will assume this responsibility with Audit and Risk management committee. An appropriate investigator will be appointed to deal with the matter and will be subject to any monitoring or directed to external authorities. The outcome of the investigation will then be reviewed to determine the appropriate action, which may include disciplinary action and/or a review of internal controls and processes. a review of the control environment will be undertaken to continually improve risk management practices in relation to the management of fraud and corruption risk.

 

Disciplinary procedures

For staff covered by appointment letter, any disciplinary action will be dealt with in accordance with the Agreement letter, specifically those provisions regarding misconduct and disciplinary action relating to staff not covered by appointment letter they will be in accordance with the provisions of their Contract of Employment.

 

Civil proceedings to recover the proceeds of fraud or corruption

In the event of an instance of fraud or corruption that has resulted in monetary loss to Fillgap Africa Development Initiatives, the organisation will take action to recover any lost funds. The recovery process will be initiated in instances where the likely benefits of recovery are expected to exceed the funds and resources invested in the recovery action.

 

Review of Internal Controls

Following the detection of fraud, the Organisational Unit Manager, in consultation with the Director, Governance and Risk Management, will re-assess the adequacy of the internal control environment and identify actions to strengthen the controls.

 

Records Management

Significant instances of fraud and corruption are maintained in a database within the internal control. All records will be captured in an approved management system in accordance with the Information Management Framework – Governing Policy. Records are classified as ‘restricted’ in accordance with the Information and Records Management – Procedures.