b}lgs /ftf] em08fx?

sf]
klxrfg

Spotting
Everyday
Red Flags
sfof{zfnfsf] c+zxx? Workshop
components
ƒ Odfgbfl/tfsf]
l ] kl/ro
l „ I t d ti to
Introduction t Integrity
I t it

„ ADB s Anticorruption
ADB’s
ƒ Pl8aLsf e|
Pl8aLsf] ei6frf/
i6frf/ lj/fwL
lj/f]wL gLlt Policy, Guidelines and
lgb]{lzsf tyf k|lqmof Process

ƒ cfwf/e"t oyf]lrt kl/>dsf] „ Conducting Basic Due

;~rfng Diligence

„ Spotting Every Day Red

ƒ b}lgs /ftf] em08fx?sf] Flags
klxrfg
 Definition –
kl/efiffff — /ftf
kl/ef /ftf] em
em08f
8f
Red Flag

„ r]tfjgLsf] ;+s]t „ A warning signal

„ cf;Gg ;d:of jf vt/fsf „ something that

af/] rtfjgL
af/ r]tfjgL ;fljt x'xG5
G5 serves as a
warning of
trouble or
danger ahead
 ;Dks{ ;"rgfdf Irregularities in
clgoldttf contact information

„ ck"/f] ;"rgf „ Incomplete information

„ PO Boxes
„ kf]i6 aS;x?
kf „ Telephone number in
one country, address in
„ Ps b]zsf] 6]lnkmf]g gDa/, csf]{ another country
b]zsf] 7ufgf
bzsf 7]ufgf „ N
Non-standard
t d d
information
„ dfkb08 k|lts"n ;"rgf
example:
p
pbfx/0f M– xxx@adb.com
xxx@adb.com
 /ftf]] em08fx? R d Fl
Red Flags
„ ;Defljt hf]lvdx? Klxrfg „ Help to identify potential
ug{ ;xof]u ub{5 risks

„ cltl/Qm oyf]lrt kl/>d „ Require additional due

cfjZos kb{5 diligence

„ :jtGq oyf]lrt kl/>daf6 „ May not be a problem if

JofVof eP ;d:of gx'g explained through
;Sb5 i d
independent
d td due
diligence
b'O{ sDkgLsf Ps} ;Dks{ Same contact
information for two
;"rgf
companies
Firm A Firm B
T ((xxx)) 720-5096
0 5096
T (xxx) 739-3827 T (xxx) 739-3827
F (xxx) 724-5061
724 5061 F (yyyy) 111-2058
111 2058

jf df]a] fOn gDa/ dfq Or only

O l a mobile
bil
pknAw u/fOPsf] telephone number
presented
t d
sDkgLnfO{ ;Dks{ ug{ Inability to contact a
g;Sg' company

„ Through presented
„ pknAw u/fOPsf] telephone/fax number
6]lnkmf]g/ˆofS;dfk{mt
6lnkmfg/ˆofS;dfkmt
„ By e-mail
„ Od]ndfk{mt
„ By DHL or Mail
„ l
l8PrPn jf x'nfsdfk{m{ t
PO Boxes may be a
sDkgLL pQm 7]u] fgfdf 5}}g eGg]] ;+s
+ ]t red flag, as it may
u/]/ kf]i6 aS;x? /ftf] em08f indicate that a firm is
x'xg;Sb5
g;Sb5 . nott located
l t d att that
th t
address.
sfof{nosf] :yfg jf 7]ufgf ;Gb]xk"0f{ 5
I
Improbable
b bl address
dd
7]7ufgf
ufgf tyf ;
;Dks{
ks ljj/
ljj/0fx?
fx? Check address and
OG6/g]6df hfFr ug]{ -pbfx/0f contact details on the
internet (e.g. Google
u"un cy{_ Û
Earth)!
OOG6/g]
6/g6df
6df pkl:ylt Internet presence

„ OG6/g]6df pkl:ylt 5}g -ljz]if „ No iinternet presence

N
u/]/ cfO6L sDkgLsf nflu_ (especially for IT company)
„ Only basic internet
presence
„ cfwf/e"t OG6/g]6 pkl:ylt dfq „ Can’t click through links
„ lnÍx?dfk{mt lSns ug{ g;lsg] „ No identification on site,
„ j]a] ;fO6df s'g} o:tf klxrfg
l including
pNn]v 5}g „ Directors
„ lgb]{zsx?
„ Address
„ 7]ufgf
„ Specific contact
„ ljlzi6 ;Dks{ ;"rgf information
„ Unusual characteristics on
„ j]a;fO6n] c;fwf/0f ljz]iftfx? website
k|bz{g ub{5
 sfuhftx? pkn
pknAww u/fpg Refusal, delay in
c;xdlt, l9nf;':tL providing documents
„ nufot „ Including
„ btf{;DaGwL
sfuhftx? „ Registration
documents
„ kf;kf]6{
„ Passport
p
„ ;"rgf information
„ Other credentials
„ cGo cfwf/x?
sDkgL ;lrjx?sf] k|of]u Use of corporate
secretaries
t i

„ ;~rf/df sDkgL ;lrjsf] „ Significant involvement

cxd
x ;xeflutf,
x , of corporate secretary
i communications
in i i
;fwf/0ftof sDkgL ;lrjx?
geP/ Joj:yfkg jf Usually, management
lgb]{zsx? k|:tfjgf tyf or directors are
;+emf}tfx?df ;+
;emftfx?df ;nUg
nUg x'xG5g
G5g\ involved in proposals
and contracts, not
corporate secretaries
secretaries.
n]6/x]8 3/df agfOPsf] Letterhead looks
h:tf]] b]l] vG5 home-made
 Frequency of
af]n saf]nsf If0fx?, tyf
bidding and
bidding,
s;sf] lj?4df
against whom

Company X

Company Z Company Y

uf]Ko ;+emf}tfs]f ;Defjgf — Possible collusion

af]n saf]nsf] cfnf]kfnf] Û – bid rotation!
 Appropriateness of
af]n saf]
afn safnsf
nsf] pko'
pkoQmtf
Qmtf
bidding

„ sDkgLn] ;a}yf]sdf af]n „ The company bids on

saf]n ub{5 everything
„ Consultancies
„ k/fdz{
„ Heavy equipment
„ ef/L pks/0f
„ M di l supplies
Medical li
„ :jf:Yo ;fdfu|Lx? „ Microfinance services
„ n3 nufgLsf ;jfx?
n3' ;]jfx? „ Construction
„ lgdf{0f „ Etc.
„ cflb
 /ftf] em
/ftf em08f
8f bzx?
b]zx? Red Flag Countries
„ Companies
p registered
g in
„ lgDg b]bzx?df
zx?df jf dft
dft[ sDkgLx?df the following countries,
btf{ ePsf sDkgLx? M– or with parent companies
in the following:
„ ad{'8f
„ Bermuda
„ dfg 6fk'
„ The Isle of Man
„ s]dfg pkåLk
sdfg „ The Cayman Islands
„ hLa|fN6/ „ Gibraltar
„ g]b/Nof08 PG6Llnh „ The Netherlands Antilles
„ a]n
] fotLL elh{
l g{ pkåLk
L „ British Virgin Islands

oL b]zx? Pl8aL ;b:o sDkgLx? xf]Ogg\\, NOT ADB-member

/ oL b]zx?df btf{ ePsf sDkgLx? countries,
ti i li ibl tto
ineligible
Pl8aL nufgL k|fKt ug{ of]Uo xF'b}gg\ . receive ADB funds.
 ljleGg sDkgLx?sf nflu PPs} x:tfIf/ k|of]u ePsf]
P

cnL afaf k|sfzg cnfsfhfd 5fkfvfgf aLhnaa 5fkvfgf jL–aL 5fkvfgf

Ali Baba
B b Printing
P i i Al k z m P
Alakazaam Printing
inting B l b b Printing
Beezlebub P W
WE-BE PRINTING

Same signature used

for different companies
b:tfj]hx? kl/jt{g Documents have
ul/Psf 5g\ been modified
Integrity Workshop, October 2009 , URM/TJRM
 bfjLx? Gofo;+ut Claims are
5}g} g\ illogical
sDkgLn] of]
;8sdf ;''?ª
lgdf{0f u/]sf]
bfjL u/]sf] 5 .

A company
p y
claimed to have
built a tunnel
on this road.
 JolQmut ljj/0fx? Resumes look
;Gb]x] k"0f{{ b]l] vG5 i
improbable
b bl

„ pbfx?0f M– k/fdz{bftf;Fu „ Example: a

„ xfj8{sf] :gfts k|df0f kq 5 consultant has
„ An undergraduate
„ o]nsf] :gftsf]Q/ k|df0f kq 5 degree from
„ cS;km8{8sf
cS;k sf] ljBfjf/LwL k|dff0ff Harvard
kq 5 „ A graduate degree
from Yale
„ A doctorate degree
from Oxford
 sxfF /ftf]
em08fx? b]Vg Where can y you
kfpg ;Sg' x'G5 < find red flags?

„ k"j afn
kj{ af]n safn
saf]n b:tfj]
b:tfjhx?
hx? „ Pre bidding documents
Pre-bidding
„ k|:tfjgf „ The Proposal
„ TECH-1 (for a TA,
„ 6]s–! -e|d0f eQfsf] nflu,
„ Letters of Commitment
„ k|ltj4tf kqx? „ Power of Attorneyy
„ clVtof/gfdf „ Joint Venture partnerships, agreements
„ TECH-2 Consultant’s
„ ;+o'Qm pBd ;fe]mbf/L, ;+emf}tfx? Organization and Experience
„ 6]s–@ k/fdz{bftfsf] ;+u7g tyf cg'ej „ TECH-3 Comments and
„ 6]s–# sfo{ ljj/0f ;DaGwdf 6LKk0fL tyf Suggestions on the Terms of Reference
;'emfjx? „ TECH-5 Team Composition,
Task Assignments, and Summary of
„ 6]s–% ;d"xsf] agf]6, sfo{ lhDd]jf/Lx?, tyf CV Information
JolQmut
olQ ut ljj/
ljj/0fsf]
fsf ;f/ „ TECH-6 Curriculum Vitae ((CV))
for Proposed Professional Experts
„ 6]s–^ k|:tfljt Joj;flos lj1sf nflu
„ TECH-7 Personnel Schedule
JolQmut ljj/0f -;LeL_
„ TECH-8 Work Schedule
„ 6]s–& sd{rf/L tflnsf
„ 6]s–* sfo{ tflnsf ANYWHERE and EVERYWHERE!

hxfF klg / ;a}lt/ Û

 cEof; — Exercise –
tkfOF{sf] zLkx? hfFRg'xf];\ Û Test your skills!

„ b'O{ j6f :jf:Yo k|df0f kq „ Compare the two

bfFHg''xf];\ health certificates

„ /ftf em08fx?df uf]

/ftf] ufnfnf] „ Circle the Red
nufpg'xf];\ Flags
„ Pp6} ;~rf/sf ;+Vof „ Same communications number
„ zt{sf nflu Pp6} ;Gbe{ „ Same
Sa e reference
e e e ce to co
condition
dto
„ Pp6} 7]ufgf
„ Same address
„ efiff
„ Language
„ Jofs/0fdf q'6Lx?
„ Ga
Grammar a errors
e os
„ l
lj/fd llrGx ;DaGwLL q'6Lx?
L
„ Punctuation errors
„ 7"nf cIf/ ;DaGwL q'6Lx?
„ Capitalization errors
„ lxHh] ;DaGwL q'6Lx?
„ Spelling errors
„ lrlsT;sx? gfdaf6 anfotL
a]nfotL blvP
b]lvP
klg „ Although doctors appear to be
British from their names
„ 6fOkLª ;DaGwL q'6Lx?
„ Æjf% #cf/PrÆ
„ Typographical errors
„ z}nL „ “Wa5 3RH”
„ 7]ufgf 3/L afofF, 3/L bfofF „ Format
„ Æof] hf];Fu ;DalGwt 5Æ „ Address is flush left, flush right
„ “To
To whom it may concern”
concern
 Actions taken
;DkGg sfo{x{ ?
k'ki6L
i6L Verification
„ pknAw 6]lnkmf]g gDa/df kmf]g
„ Called the telephone
u/]sf] number given
„ gLhL 3/sf] lyof] „ Belonged to private
residence
„ c:ktfnx? u"un u/]sf]
„ Googled
g the hospitals
p
„ ljleGg
l l 7]]ufgfx?df cjl:yt
l llyP „ Located at different
„ c:ktfnx?df kmf]g u/]sf] - addresses
OG6/g]6sf] ;""rgfsf cfwf/df_ „ Called the hospitals (per
i t
internet t iinfo)
f )
„ s'g} klg lrlsT;sx? c:ktfndf „ Neither doctor works at either
sfd ub}{gg\ hospital

nfu]sf] ;do M– #) ldg]6 Time spent: 30 minutes

Q
Questions
ti / Discussion
Di i