Some images first to set the scene:
Forward:
This piece is about a definition submitted to Wikipedia I hope to add to Foreign Aid literature so that misconduct whenever it occurs is not kept being seen in isolation but part of a wider phenomenon peculiar to the sector, with circumstances creating a culture that tolerates it instead of deterring it.
As well as "Malfeasance in Foreign Aid", there are three closely-related pages:
Development Aid - section on Corruption
My suggestions for amendments here can be found below "Notes".
There is some excellent work done by Oliver May, formerly of OXFAM, including an excellent tool-kit that should be used extensively by all charities and NGOs operating abroad.
.....ooo0ooo.....
Malfeasance in Foreign Aid
Malfeasance [1] in Foreign
Aid [2] or Development
Aid [3] is wrongdoing by an officer or agent of an
organisation, public or private, not-for-profit or commercial, engaged in the
administration and arrangement of funds and assets given for the relief and
development of people in need usually in a “developing” or “least developed country”. [4]. Malfeasance
also occurs in Humanitarian Aid. [5] (Old English includes the word "misfeasance".)
Malfeasance in Foreign Aid
has existed for many years, reported as far back as 2002 [6] and before,
but has become more well-known after 2017 because of serious cases rapidly
receiving widespread attention in mainstream and social media.
The phrase “Malfeasance in
Foreign Aid” was added to the development literature in the Foreign Aid
community network DEVEX in
2018 by John Lowrie [7] It was
coined in response to the perceived increase in scale and diversity of
wrong-doing being reported and recognised around the world but not covered by a
generic phrase. The argument is that wherever one type of misconduct is
unearthed, often there are others, combined with weak governance; supervisory
and inspection regimes within those organisations and external regulatory
bodies.
The most common
malfeasance, although its incidence is not fully-known is financial
impropriety, through fraud and other measures that prevent money and resources
being used for the exact purpose for which the funds were raised.
[8] A leading work [9] on this was
published in 2014 is by Oliver B. May entitled: “Fighting Fraud and
Corruption in the Humanitarian and Global Development Sector”.
More malfeasance emerged in 2017 in the form of even more insidious criminal behavior of serious sexual abuse and exploitation within development NGOs receiving widespread attention after revelations of abuse by Oxfam leaders in Haiti. [10]
More malfeasance emerged in 2017 in the form of even more insidious criminal behavior of serious sexual abuse and exploitation within development NGOs receiving widespread attention after revelations of abuse by Oxfam leaders in Haiti. [10]
Although the incident was concerned with a British organisation, it
quickly spread to encompass many others, indeed serving as a springboard for
more revelations and allegations to emerge. Not only did the United
Kingdom’s charity regulator the Charities Commission invoke investigations [11] but so did relevant Government
Ministers such as DfID Minister Penny Mordaunt [12] and the International
Development Committee of the UK Parliament. Its report [13] issued on 31 July 2018 gained rapid attention in the
media and foreign aid sector around the world highlighting within the Foreign
Aid sector “Complacency verging on complicity...more concern for
victims than reputations”.
Misrepresentation
can also be a serious form of malfeasance in Foreign Aid. One
troubling form, mentioned in Graham Hancock’s seminal work in 1994 on
Foreign Aid Lords of Poverty [14] are “suitcase
NGOs” that turn up during disasters and crises, portending to offer aid
alongside legitimate NGOs but instead are there for easy funding
opportunities. See also Maryan L Tuppy. [15]
Another equally dishonest form of misrepresentation in Foreign Aid is
where an organisation or individual deliberately fabricates or exaggerates
facts to raise funds. Celebrity philanthropist and NGO founder Somaly Mam was exposed in 2014 [17] making false claims about
her human rights victims.
Misrepresentation in Foreign Aid also appears in forms that can vary in
acceptability due to the nature of modern fundraising. Donors invite
NGOs to submit proposals to tackle pre-identified “targets” of where and how
to work in specified sectoral or geographical areas and/or vulnerable client
groups. Some NGOs “chase the money”, changing their mission,
reinventing their core expertise. In extreme cases, if not
eliminated as part of due diligence [17] checks that may not be thorough, it amounts to a serious
misuse of funds as well as depriving better-placed legitimate NGOs of the money
and providing proper services and benefits.
Other forms of malfeasance or misconduct include but are not limited to
misuse of resources such as vehicles for personal/unauthorised purposes; not
adhering to contracts of employment; conditions of service, as well as expected
rules and ethics. Such behavior is easier to carry out and get away
with, according to colleagues[18] because Foreign Aid
people are in privileged jobs and high status social positions in capitals of
developing countries. They are more likely to breach standards of
accountability than in their home country capitals. Such behavior
can be emulated by domestic employees.
Malfeasance in Foreign Aid takes place in the lucrative areas of consultancy contracts. [19] This has led to
larger donors like USAID strengthening controls.
Failure to declare interests for consultancies and evaluation contracts can
also amount to malfeasance. For example, a person connected with an
organisation presently or in the recent past should not be engaged to conduct an "independent" evaluation of it or close peers. Although a light-hearted analysis, one article [20] does make some leading points to
avoid malfeasance.
Malfeasance occurs in employment policies in Foreign Aid, through favoritism towards family members (nepotism) [21} and friends (cronyism). In Asian countries especially such practices can be seen as legitimate “Asian Values”. Self-serving patron-dependency networks can operate within organisations. True connections may be concealed especially where family names differ or can be changed. This is particularly concerning when taking up references as the referee may not be impartial - he or she may not even be authorized to give a reference on behalf of an organisation. Employment histories may also be doctored to hide previous misconduct. In Cambodia a particular practice persists where serving government officials are allowed leave to work for NGOs and other better-paid posts. Very often they are arranged informally, without transparency or conflicts of interest being declared. Indeed often their public service salary is collected and retained by superiors. The practice explains why there are so many "ghosts".
Malfeasance in Foreign Aid runs counter to global efforts to promote Foreign Aid effectiveness – better use of aid money and resources, as advocated by several initiatives, of which the most prominent began in Paris with Accra [22] and Busan. [23]
Malfeasance occurs in employment policies in Foreign Aid, through favoritism towards family members (nepotism) [21} and friends (cronyism). In Asian countries especially such practices can be seen as legitimate “Asian Values”. Self-serving patron-dependency networks can operate within organisations. True connections may be concealed especially where family names differ or can be changed. This is particularly concerning when taking up references as the referee may not be impartial - he or she may not even be authorized to give a reference on behalf of an organisation. Employment histories may also be doctored to hide previous misconduct. In Cambodia a particular practice persists where serving government officials are allowed leave to work for NGOs and other better-paid posts. Very often they are arranged informally, without transparency or conflicts of interest being declared. Indeed often their public service salary is collected and retained by superiors. The practice explains why there are so many "ghosts".
Malfeasance in Foreign Aid runs counter to global efforts to promote Foreign Aid effectiveness – better use of aid money and resources, as advocated by several initiatives, of which the most prominent began in Paris with Accra [22] and Busan. [23]
Malfeasance in Foreign Aid, despite amounting to crimes in judicial systems in
both host and donor countries seldom results in formal reporting to law
enforcement authorities, a failing [24| acknowledged by OXFAM.. There is a growing
realization that impunity must not be allowed to flourish in Foreign Aid.
In 2018 there is still no organized international inspectorate of Foreign Aid,
not even within the vast United
Nations system, to carry out inspections or co-ordinate information
about malfeasance to fulfill similar cross-country functions such as Interpol. Most donor agencies
have some internal capacity as well as relying on regulators but very few if
any deploy inspectors overseas as a routine to deter
malfeasance. OECD estimates that worldwide US$ 146billion is spent on Foreign Aid
worldwide.
There have been local initiatives to inculcate more effective and ethical
working such as the Cambodia Co-operation Committee’s NGO Governance Scheme [25] This scheme
originated in response to the concerns expressed in cases cited by Robert
Carmichael Op cit. It is in essence a self-certification process by an
umbrella group of NGOs of its fellow members in the absence of independent
accreditation checks.
Notes
1
https://www.vocabulary.com/dictionary/malfeasance “Malfeasance is bad behavior,
especially from officials or people who should know better”
2 https://simple.wikipedia.org/wiki/Foreign_aid
“Foreign aid is when one country helps another country. The country may give
money or things; it may also send people. This is especially needed when a
disaster happens in a poor country. Sometimes this help comes from a country's
government and sometimes the ordinary people give money.
3 https://en.wikipedia.org/wiki/Development_aid
Development aid or development cooperation (also development assistance,
technical assistance, international aid, overseas aid, official development
assistance (ODA), or foreign aid) is financial aid given by governments and
other agencies to support the economic, environmental, social, and political
development of developing countries.
4
https://www.un.org/development/desa/dpad/least-developed-country-category.html
Least developed countries (LDCs) are low-income countries confronting severe
structural impediments to sustainable development. They are highly vulnerable
to economic and environmental shocks and have low levels of human assets.There
are {August 2018] 47 countries on the list of LDCs which is reviewed every
three years by the United Nations Committee for Development .
5
https://en.wikipedia.org/wiki/Humanitarian_aid “Humanitarian aid is
material and logistic assistance to people who need help after natural
disasters, wars and famines with the aim of save lives, alleviate suffering,
and maintain human dignity
6
https://www.phnompenhpost.com/national/donor-dollars-and-ngo-accountability-getting-balance-right
Robert Carmichael former editor Phnom
Penh Post and author of “When Clouds Fell From the Sky” published in April 2015
a story that “humanizes and brings new insights into the causes of the Khmer
Rouge's reign and tragedy in Cambodia”.
7
http://mondulkiri-centre.org/uploads/JOHN%20LOWRIE%20brief%20CV%20English%202017.pdf
John Lowrie has been a development and human
rights worker since 1987 working in Saint Helena Island; Saudi Arabia, Malawi,
Rwanda and for the last 20 years in Cambodia.
8 https://www.fundraisingregulator.org.uk/code
Rule 1.4c applies particularly to prevent fraud or unauthorised viremeent.
9
https://www.amazon.com/Fighting-Corruption-Humanitarian-Global-Development/dp/147245314X Fighting Fraud and Corruption in the
Humanitarian and Global Development Sector by Oliver May “is a timely,
accessible and relevant how-to guide, which explores the scale and nature of
the threat, debunks pervasive myths, and shows readers how to help their NGOs
to better deter, prevent, detect and respond to fraud and corruption”.
10
https://www.thirdsector.co.uk/oxfam-timeline-haiti-scandal-unfolded/governance/article/1459242
September 2011:
Six Oxfam members of staff in Haiti leave the charity after being found guilty
of misconduct.
11
https://www.thirdsector.co.uk/regulator-contacts-oxfam-sexual-harassment-allegations/management/article/1448661
“The Charity Commission has responded to an article in The Times that claimed a
former Oxfam manager was sacked after making allegations of sexual assault
against a senior colleague.”
12
https://www.gov.uk/government/people/penny-mordaunt
13 https://twitter.com/CommonsIDC/status/1024067367876276224
“Hard hitting report calling for a raft of changes to better safeguard people
from abuse in the aid sector” per Councillor Helen Evans former Oxfam Client
Safeguarding Officer.
13
https://www.thirdsector.co.uk/minister-says-government-will-stop-funding-organisations-dont-meet-standards/policy-and-politics/article/1458033
14
https://www.amazon.com/exec/obidos/ASIN/0871134691/reasonmagazineA
“Thanks to bureaucratic inefficiency,
misguided policies, large executive salaries, political corruption, and the
self-perpetuating “overhead” of the administrative agencies, much of this
tremendous wealth is frittered away.”
15
https://object.cato.org/sites/cato.org/files/pubs/pdf/dpa9.pdf s.
“Unfortunately, aid has harmed rather than helped Africa. It has failed to
stimulate growth or reform, and encouraged waste and corruption.”
16
https://www.newsweek.com/2014/05/30/somaly-mam-holy-saint-and-sinner-sex-trafficking-251642.html
“Ratha finally confessed that her story was fabricated and carefully
rehearsed... She, like Pross, was never a victim of sex trafficking; she and a
sister were sent to AFESIP in 1997 because their parents were unable to care
for all seven of their children.”
17 https://www.international-due-diligence.org/due-diligence-ngos-and-charities/
“Aaround the world NGOs or charities that are just used to get donations from
guilty thick wallets operated by thins minds. Everything from helping the
disabled, to car donations, etc… are used to fund a business whose sole purpose
is to live off the donated funds.”
18
https://www.fundsforngos.org/article-contributions/663/ “Aid for Who?” by Chris Minko “This Culture
of Comfort wastes money and often causes justifiable anger and resentment from
local people who see foreigners living luxurious lives based on their poverty”.
19 As for [6] above.
20
https://www.linkedin.com/pulse/how-sabotage-independent-evaluation-8-steps-undermining-zyck/
“You too can,
like so many before you, sabotage that independent monitoring or evaluation
process by following these simple steps.”
21
https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/1836.pdf
“Many
humanitarian workers have a narrow view of what constitutes corruption, seeing
it primarily as a financial issue, rather than abuse of power.”
22 Paris and Accra
http://www.oecd.org/dac/effectiveness/34428351.pdf “Many donors and partner
countries are making aid effectiveness a high priority, and we reaffirm our
commitment to accelerate progress.”
23 Busan
http://www.oecd.org/dac/effectiveness/fourthhighlevelforumonaideffectiveness.htm
24
https://www.oxfam.org/en/how-we-are-working-rebuild-your-trust New measures to
regain confidence of donors, regulators and beneficiaries.
25 http://www.ccc-cambodia.org/en/membership/ngo-governance-professional-practice-gpp “Good Practice Project), aiming at promoting professionalism and good practice within NGOs operating in Cambodia.”
25 http://www.ccc-cambodia.org/en/membership/ngo-governance-professional-practice-gpp “Good Practice Project), aiming at promoting professionalism and good practice within NGOs operating in Cambodia.”
Suggestions for clarifications and explanations Wikipedia Pages on Malfeasance in Foreign Aid
Although
fraud and misuse of Foreign Aid has been known to exist for many years (see Note 1] only in 2017 did a more insidious form of malfeasance come to light. This was
criminal behavior, serious sexual abuse and exploitation, within international
development NGOs that first received widespread attention after revelations of
abuse by Oxfam leaders in Haiti. [2] This
was blatant abuse of power by top officials exploiting the world's most
vulnerable groups in the midst of a disaster.
Although the
incident was concerned with a British organisation, the phenomenon spread
quickly to many others, indeed serving as a springboard for more revelations
and allegations to emerge. Not only did the United Kingdom’s charity regulator
the Charities Commission invoke investigations [3] but
so did relevant Government Ministers such as DfID Minister Penny Mordaunt [4] and
the International Development Committee of the UK Parliament. Its report [5] issued
on 31 July 2018 gained rapid attention in the media and Foreign Aid sector
around the world highlighting within the sector “Complacency verging on
complicity...more concern for [their own] reputations than for victims”.
International
NGOs like Save the Children [6] strengthened
their policies with new safeguarding instructions. [7]
The United
Nations too has been rocked by more allegations of abuse by its official
Peace-Keepers, military forces from member states around the world, deployed as
Blue Helmets [8] on
its behalf, to keep peace and protect civilian populations in conflict
situations. [9]
Below United
States
Other
Countries
The
predominance in use of English around the world has meant that terms such as
malfeasance now feature in official reports in other countries. For example in
Cambodia it is used to describe where corruption extends beyond financial
impropriety to include abuse of power. For example the Cambodia Daily [10] in
2011 quoted “Finance Minister Keat Chhon wrote to Social Affairs Minister Ith
Sam Heng, saying a recent AntiCorruption Unit probe had revealed evidence of
broad-based malfeasance”. Officials in all of the ministry’s provincial offices
had made arbitrary deductions from pensions and illegally acquired the pension
rights of pensioners collecting and retaining payments in their name.
Malfeasance
has also extended beyond public service in to Foreign Aid. For example
Professor Sophal Ear refers to “In June 2006 more financial malfeasance was
uncovered with seven additional World Bank projects.” [11] World
Bank [12]
Professor
Sophal Ear is the author of “Aid Dependence in Cambodia: How Foreign Assistance
Undermines Democracy” [13]
A more
recent example reached a wider world audience as one of the largest donors, the
Global Fund to Fights AIDS, Tubercolosis and Malaria" [14] after
an investigation in 2012 revealed serious financial malfeasance had been
committed by the Cambodian Ministry of Health” [15] as
well as by MEDICAM the alliance of Health NGOs. [18]
In Section 5
Corruption A new paragraph at the end. Corruption and financial impropriety are
not the only forms of serious misconduct or malfeasance that can afflict
foreign aid. It extends to include abuse of power that harms not only the
effective delivery of aid but also its impact for intended beneficiaries i.e.
the world's poor people. One of the largest donors, the Global Fund to Fights
AIDS, Tubercolosis and Malaria ” [16] after
an investigation in 2012 revealed serious financial malfeasance had been
committed by the Cambodian Ministry of Health” [17] and
by "MEDICAM" the Health NGO Alliance. [18]
I notice
that in the section on Aid Effectiveness, there is no mention of
the international gatherings to promote foreign aid effectiveness that I had put
in to my first suggestion to you. That is an omission. You could add at the
end:
Global efforts have been made in recent years to promote Foreign Aid effectiveness of which the most prominent began in Paris [19] followed by Accra and Busan.[20]
Global efforts have been made in recent years to promote Foreign Aid effectiveness of which the most prominent began in Paris [19] followed by Accra and Busan.[20]
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