NRC encourages open discussions and acknowledges that corruption may occur even under the best of control systems. Our policy is to be transparent, and one element of that is that annually by June 30, we publish an overview of the closed corruption cases which were investigated from the previous year.
During 2023, a total of 41 cases of alleged financial corruption/misconduct were investigated and concluded. These were allegations to which a substantive, possible or attempted financial loss can be attributed, or where the nature of the allegation is explicitly impactive financially (i.e. fraud, extortion, bribery etc.). The cases detailed below are closed (i.e. the investigation is concluded). All cases were detected because of NRC’s internal control measures or through whistleblowing. Affected donors have been informed and where money has been lost, NRC has sought to recover the amount or cover it. Proper prevention measures were applied accordingly, and appropriate disciplinary action taken in line with NRC policy and local law.
From cases which were allocated for investigation and closed, 23 cases were found to be either groundless, not substantiated or related to negligence, procedural impropriety and/or bad performance as opposed to corrupt acts or fraudulent activity.
Afghanistan
Procurement Fraud – Case Number 00008028
Concerns were raised by an NRC staff member about the procurement process for education kits, noting similarities in supplier phone numbers and handwriting on quotations. The case was substantiated, revealing collusion among suppliers. Financial loss was USD $270.
Procurement Fraud – Case Number 00008531
Following a report on Facebook about the distribution of low-quality hygiene kits in schools, receiving 675 reactions, 44 comments, and 29 shares, an investigation was opened and showed elements of procurement mismanagement. The case was substantiated, resulting in a financial loss of USD $13,942.
Procurement Fraud– Case Number 00009014
An NRC staff member found inconsistencies in the contract for the construction of pipe schemes. A review showed significant unauthorized increases in the final cost and suspicious item price hikes. The case was substantiated.
Kickbacks– Case Number 00009038
A staff member alleged that 12 out of 16 project participants employed by an NRC supplier were relatives of the owner, who had bribed NRC staff with AFN 500,000 (USD $7,100) for future project allocations. The bribed staff allegedly threatened other NRC staff with retaliation involving the authorities. The case was not substantiated.
Aid Diversion – Case Number 00009039
An assessment was conducted without female staff, and local authorities interfered in the selection process. 30 out of 62 families receiving emergency cash were recommended by a senior authority member. The case was partially substantiated with a proven financial loss of USD $1,185.
Bribery – Case Number 00009119
It was alleged that a senior NRC staff had an inappropriate relationship with a subordinate, who falsely claimed mahram costs totaling USD $20. Additionally, the NRC staff member was accused of mistreating other staff and preventing them from reporting, and that they solicited gifts from project participants for inclusion in assistance lists. The case was substantiated, and disciplinary action recommended.
Aid Diversion – Case Number 00009218
After the distribution of deadstock items in Jalalabad, an NRC staff member took home several items meant for auxiliary staff. The case was substantiated, and disciplinary action was recommended.
Bangladesh
Theft -Case Number 00008543
In June 2023, it was discovered that a safe box containing 161,020 BDT (USD $1370.29) and two chequebooks was left unlocked overnight. An NRC staff member had failed to secure it the previous evening, and their supervisor discovered the oversight the following morning. There was found to be no loss to NRC, although disciplinary action was recommended for a breach of security procedures.
Corruption of Staff – Case Number 00009032
An anonymous letter reported corruption and nepotism within a local NRC project area. Allegations included relatives being hired, staff taking bribes to appoint contractors, and a project engineer working for two NGOs simultaneously. The NRC staff member concerned was also accused of unethical behaviour in previous roles. The case was substantiated, and disciplinary action recommended.
Cameroon
Fuel misappropriation – Case Number 00008153
During a routine review of vehicle fuel consumption reports in February 2023, irregularities were noted in the fuel consumption records of one of the vehicles. Further investigations revealed falsified records and fuel diversion. Disciplinary action was recommended against one NRC staff member, but they had already been dismissed for other unrelated violations of the code of conduct.
Aid diversion – Case Number 00008362
After the distribution of hygiene kits to women by a local partner, a project participant reported to NRC through the CFM reporting mechanism stating that a ‘profiler’ collected their kit.
The investigation revealed that the profilers were adding fake project participants to the distribution list and paid someone to go to collect the kits and then claim the kits later. The Investigation team recovered the kit of the complainant’s and 5 other kits that had been diverted. The local partner suspended the community workers (profilers) involved in this activity.
Aid diversion – Case Number 00008363
In April 2023, during an evaluation of shelter activities conducted by a consultant, the community leaders declared that project participants were asked to sign the distribution lists, but the villagers did not receive the kits. The village leaders explained that they were told that the distribution partner would come later to distribute kits but that was not done. The allegation was not substantiated as project participants confirmed to have received their kits. The distribution was carried out in a neighboring location due to inaccessibility in the former location.
Material diversion – Case Number 00007553
An anonymous reporter made an allegation stating that NRC staff had stolen construction material (cement bags). A second allegation was received stating that some tarpaulins meant for non-food item distribution and kits for emergency distribution were allegedly diverted by NRC team members. The two incidents, given that they arrived at the same time, and involved the same teams, were treated as one investigation. The allegation was partially substantiated and disciplinary measures recommended against the staff.
Forgery – Case Number 00008532
During a review of payment documents, it was noticed that the signature of the authorizing NRC staff member was forged in fuel issue documents to extract 245 litres of fuel in the month of April 2023. The signature forgery was confirmed after the staff members’ contract had ended.
Central Africa Republic
Cash Misappropriation – Case Number 00008835
The closing of the accounts for the month of July 2023 revealed a negative balance of XAF 1,500,000 (USD $3,000) in an area sub-office cash account. An NRC staff member had initially submitted a cash count showing a zero balance. Upon review of documents, it was discovered that the signature of the authorizing NRC manager was forged, and the NRC staff member concerned acknowledged the discrepancy in cash. A new cash count showing a difference of XAF 1,500,000 (USD $3,000) was submitted. Disciplinary actions were taken against the staff.
Colombia
Fraud – Case Number 00008401
It was alleged that a large tender for educational products in Colombia had been manipulated to the benefit of a particular supplier. Following an investigation, NRC staff in Colombia were found not to have followed correct procedures – no evidence of corruption or financial gain was found.
Fraud – Case Number 00008961
Following payment of a fee to a caterer at an event, a member of NRC staff was found to have cancelled the event, and to have arranged for the refund from the caterer to be made directly to themselves, thereby fraudulently obtaining USD $125. The allegation of fraud was substantiated, and the staff member sanctioned.
Corruption – Case Number 00009088
It was alleged that NRC staff were complicit in attempts to extort cash from potential project participants using a WhatsApp group managed by community leaders. Whilst it was found that NRC staff had breached several procedures in relation to data protection and the formation of formal agreements with community leaders, there was no evidence of personal financial gain or corruption in this matter. The allegation of corrupt practices was therefore unsubstantiated.
Democratic Republic of Congo
Fraudulent registration of Project Participants – Case Number 00008290
In March 2023, community members made a complaint of fraudulent registration of project participants through the NRC Complaint Feedback Mechanism (CFM) reporting channel. The allegations stated that some ‘traders’ and other people with good livelihood had paid enumerators to be registered as displaced persons to benefit from assistance. It also mentioned that NRC refused to register households that met the vulnerability criteria. The allegation was unfounded.
Ecuador
Corruption/Aid Diversion – Case Number 00008061
It was alleged that beneficiaries had signed up for cash assistance which was not delivered by NRC staff. An investigation found that the beneficiaries had misunderstood the nature of the document which they had signed (which was not for receipt of cash as they thought), and that there was no corruption or aid diversion on the part of the NRC staff. Documents for beneficiaries were reworded to be clearer and more precise. The allegation was unsubstantiated.
Iran
Recruitment Collusion– Case Number 00009177
A candidate did not take a required test, with indications that an NRC staff member from the same unit took the test on their behalf. There was no evidence of financial gain on the part of the NRC staff member, although a breach of procedure was proven, and the case was substantiated with disciplinary action recommended.
Jordan
Corruption - Case Number 00008913
On August 23rd, allegations were raised about a direct procurement by an NRC staff member for ancillary supplies. The investigation found that the purchased items, costing 20 JOD (USD $28.21) each, were significantly overpriced compared to the market rate of 3-5 JOD (USD $4.23 – USD $7.05). Additionally, the supplier documented in the purchase records did not sell those specific items. Despite the staff members resignation from NRC, the investigation confirmed both allegations, resulting in an estimated loss of 100 JOD (USD $141.04). The case was closed with no further action possible.
Kenya
Corruption and Nepotism – Case Number 00008549
Whistleblowing report alleging corruption and nepotism in the selection of local partners. A review was conducted of the selection process and no instances were identified of NRC staff not following the required procedure as per the NRC Partnership Handbook or of staff influencing the decision of the local partners selected. The allegation was not true and there was no financial loss to NRC.
Mali
Bribery and Corruption – Case Number 00008772
A supplier made an allegation stating that NRC staff incessantly asked them to always consider providing a commission on each Purchase Order (PO) extended to them. This was a practice they refused to honor, and they believed they were no longer receiving purchase orders because of that. The allegation was partially substantiated, and an NRC staff member was sanctioned.
Extortion of Project Participant – Case Number 00008916
In September 2023, a report was received through the CFM reporting platform alleging that after the distribution of Non-Food Items (NFIs) and food items to IDPs, the community authorities went round to collect money from project participants, namely XOF 10,000 (USD $16.09) for IDPs and XOF 25,000 (USD $38.63) for host community members who were registered and benefited as IDPs. According to the reporter, for those who refused to pay, their foodstuff and NFI were divided or confiscated. The allegation was partially substantiated.
Mozambique
Fraud in Fuel Management – Case Number 00008414
At the beginning of 2023, vehicle refueling in one area office was conducted at two fueling stations with whom NRC had framework agreements. When business operations at these fueling stations ceased, NRC’s procurement team had to quickly identify a new partner to maintain an operational vehicle fleet. Although there was negligence, data breach and failure to follow the NRC policy on procurement procedures, there was no fraud proven, nor was there any financial loss to NRC.
Fraud – Case Number 00009164
An NRC employee falsified an NRC Fuel Requisition Form to administer 15.36 litres of fuel into the private vehicle of another NRC employee. The private vehicle was used to conduct office-related errands as no other vehicle was available. The allegation was proven of use of private vehicle without prior approval, and disciplinary action recommended. The total loss to NRC was USD $28.00.
Nigeria
Procurement fraud – Case Number 00008073
A supplier reported an allegation that during the procurement process, the bid submission dates were extended by NRC staff to use the prices from suppliers who submitted earlier, to share and obtain lower quotations from preferred suppliers. The allegation was unfounded.
Somalia
Extortion of Implementing Partner by NRC Staff Member – Case Number 00008099
A complaint was made against an NRC staff member alleging that they were blackmailing an implementing partner (IP) organisation and several payments had been made via mobile money transfer. It transpired that the staff member was previously a classmate of the director of the IP, as well as his neighbour and had not declared the conflict of interest. The allegations were found to be true and the investigation recommended that a disciplinary procedure be initiated against the NRC staff member.
Extortion – Case Number 00008334
NRC staff received a report that an NRC beneficiary had paid USD $5.00 to a Village Relief Committee (VRC) member for registration, for unconditional cash transfer (UCT) activity. The allegation was reported by implementing partner (IP) staff who was conducting a baseline data collection exercise. 249 beneficiaries on this project were interviewed to ascertain the magnitude of the allegation. 9 out of the 249 beneficiaries confirmed that they paid some money for registration, describing it as voluntary contribution for constructing latrines, a water harvesting system, community centre and a school in their camps. Even though 9 recipients stated that they paid for registration, they were unable to corroborate this by giving evidence of the transfers. The investigation determined that there is a likelihood that the breach happened, but adequate evidence to fully confirm this was not obtained. There was no financial loss to NRC.
South Sudan
Fraud – Case Number 00008360
An NRC worker claimed to have been authorized by the beneficiaries to receive entitlement on their behalf as the vulnerable beneficiaries were disabled and unable to physically collect their entitlement from the distribution point. The NRC worker presented five electronic cards belonging to other beneficiaries to the financial service provider. The financial service provider became suspicious and reported the incident. The NRC worker was found to have committed fraud and disciplinary action was taken. The total loss was USD $1933.
Syria
Bribery - Case Number 00008033
On January 9th, 2023, NRC's Community Feedback Mechanism received a complaint that an NRC worker in Syria demanded USD $500 from a community member for registration on a beneficiary list. The investigation found no evidence supporting the bribery allegation. Additionally, a second allegation of undisclosed employment with another organisation was also found to be unsubstantiated. The case was closed with no disciplinary action recommended, resulting in no financial loss to NRC.
Tanzania
Theft of Fuel – Case Number 00008234
An allegation was received that an NRC employee stealing and siphoning off generator fuel inside a camp. The allegation came to light as there was a concern that after solarization, there were no savings being registered in fuel, yet the water boreholes were also running for hours using solar energy. Because of the recording system in place at the time, it was not clear what quantity and value of fuel had been siphoned off and stolen. The NRC employee suspected of being responsible left the organisation prior to the theft being discovered. Additional measures have since been put in place to track and properly manage fuel use inside the camp.
Theft of Construction Materials – Case Number 00009151
A quantity of bricks meant for the construction of a hospital were stolen. The bricks were purchased by NRC in 2020 to build isolation centres during virus outbreaks but the activity was later suspended. Upon closer inspection, the total number of bricks lost was 2,345. Two NRC casual staff members confessed to have stolen and sold the bricks to refugees within the camp who use them to build their houses. Disciplinary action was recommended and the total loss to NRC was USD $188.00.
Uganda
Theft of a Projector – Case Number 00008137
An NRC employee reported the theft of the office projector worth USD $958.00. According to the reporter, the projector was handed to an NRC casual worker for safekeeping. However, three days later when the projector was needed, it was missing. The investigation revealed multiple possible ways the projector could have been stolen, leading to an inconclusive result. Consequently, no disciplinary action was recommended. Additional measures have since been put in place on storage & tracking of assets & office equipment.
Ukraine
Attempted Extortion – Case Number 00009084
While contacting project participants to arrange site visits a project participant reportedly claimed that they were instructed to pay an NRC staff member for shelter rehabilitation works. The report was unsubstantiated.
Aid Diversion – Case Number 00008097
NRC received reports that kits with NRC’s logo were being distributed by parties unknown to NRC. The investigation revealed that the party was in fact a sub-partner of one of NRC’s implementing partners.
Conflict of Interest and Financial Irregularities by Implementing Partner – Case Number 00008640
A review of partner financial supporting documentation revealed irregularities related to contractor hourly rates and a sublease for office space from a company owned by one of partner’s senior staff, thus posing a conflict of interest. The investigation concluded that the irregularities were a miscommunication between NRC and the partner and substantiated the suspicion of conflict of interest. The costs of the office space were disallowed.
Corruption – Case Number 0008742
An allegation was made that a consultant was using their position for personal gain by advising direct procurement of consultants with whom they had business relations without declaring conflict of interest. The allegation was unsubstantiated.
Yemen
Fraud - Case Number 00008513
During a routine check in Yemen, it was found that 28 additional households were entered into internal systems without corresponding registration forms. An NRC staff member was identified as the source of the additional names. However, the investigation could not substantiate the allegations due to conflicting statements and inconclusive evidence. The case was closed with no financial loss to NRC and no disciplinary action recommended.
Corruption - Case Number 00009241
Allegations of irregularities in procurement and financial practices involving a local implementing partner (IP) led to an investigation. Key findings included collusive bidding with identical figures in purchase requests and quotations, financial irregularities with fractioned invoice numbers, and unauthorized IP staff receiving suppliers' financial dues. The total disallowed costs amounted to USD $3,655.46. The investigation concluded that while there was a pattern of irregularities suggesting potential collusion and an untransparent procurement process, definitive proof of fraudulent intent was not established. NRC terminated the grant agreement with the partner and is expected to recover USD $17,692.94. The case was closed with NRC reinforcing procurement and financial control measures to prevent future irregularities.
During 2023, a total of 41 cases of alleged financial corruption/misconduct were investigated and concluded. These were allegations to which a substantive, possible or attempted financial loss can be attributed, or where the nature of the allegation is explicitly impactive financially (i.e. fraud, extortion, bribery etc.). The cases detailed below are closed (i.e. the investigation is concluded). All cases were detected because of NRC’s internal control measures or through whistleblowing. Affected donors have been informed and where money has been lost, NRC has sought to recover the amount or cover it. Proper prevention measures were applied accordingly, and appropriate disciplinary action taken in line with NRC policy and local law.
From cases which were allocated for investigation and closed, 23 cases were found to be either groundless, not substantiated or related to negligence, procedural impropriety and/or bad performance as opposed to corrupt acts or fraudulent activity.
Afghanistan
Procurement Fraud – Case Number 00008028
Concerns were raised by an NRC staff member about the procurement process for education kits, noting similarities in supplier phone numbers and handwriting on quotations. The case was substantiated, revealing collusion among suppliers. Financial loss was USD $270.
Procurement Fraud – Case Number 00008531
Following a report on Facebook about the distribution of low-quality hygiene kits in schools, receiving 675 reactions, 44 comments, and 29 shares, an investigation was opened and showed elements of procurement mismanagement. The case was substantiated, resulting in a financial loss of USD $13,942.
Procurement Fraud– Case Number 00009014
An NRC staff member found inconsistencies in the contract for the construction of pipe schemes. A review showed significant unauthorized increases in the final cost and suspicious item price hikes. The case was substantiated.
Kickbacks– Case Number 00009038
A staff member alleged that 12 out of 16 project participants employed by an NRC supplier were relatives of the owner, who had bribed NRC staff with AFN 500,000 (USD $7,100) for future project allocations. The bribed staff allegedly threatened other NRC staff with retaliation involving the authorities. The case was not substantiated.
Aid Diversion – Case Number 00009039
An assessment was conducted without female staff, and local authorities interfered in the selection process. 30 out of 62 families receiving emergency cash were recommended by a senior authority member. The case was partially substantiated with a proven financial loss of USD $1,185.
Bribery – Case Number 00009119
It was alleged that a senior NRC staff had an inappropriate relationship with a subordinate, who falsely claimed mahram costs totaling USD $20. Additionally, the NRC staff member was accused of mistreating other staff and preventing them from reporting, and that they solicited gifts from project participants for inclusion in assistance lists. The case was substantiated, and disciplinary action recommended.
Aid Diversion – Case Number 00009218
After the distribution of deadstock items in Jalalabad, an NRC staff member took home several items meant for auxiliary staff. The case was substantiated, and disciplinary action was recommended.
Bangladesh
Theft -Case Number 00008543
In June 2023, it was discovered that a safe box containing 161,020 BDT (USD $1370.29) and two chequebooks was left unlocked overnight. An NRC staff member had failed to secure it the previous evening, and their supervisor discovered the oversight the following morning. There was found to be no loss to NRC, although disciplinary action was recommended for a breach of security procedures.
Corruption of Staff – Case Number 00009032
An anonymous letter reported corruption and nepotism within a local NRC project area. Allegations included relatives being hired, staff taking bribes to appoint contractors, and a project engineer working for two NGOs simultaneously. The NRC staff member concerned was also accused of unethical behaviour in previous roles. The case was substantiated, and disciplinary action recommended.
Cameroon
Fuel misappropriation – Case Number 00008153
During a routine review of vehicle fuel consumption reports in February 2023, irregularities were noted in the fuel consumption records of one of the vehicles. Further investigations revealed falsified records and fuel diversion. Disciplinary action was recommended against one NRC staff member, but they had already been dismissed for other unrelated violations of the code of conduct.
Aid diversion – Case Number 00008362
After the distribution of hygiene kits to women by a local partner, a project participant reported to NRC through the CFM reporting mechanism stating that a ‘profiler’ collected their kit.
The investigation revealed that the profilers were adding fake project participants to the distribution list and paid someone to go to collect the kits and then claim the kits later. The Investigation team recovered the kit of the complainant’s and 5 other kits that had been diverted. The local partner suspended the community workers (profilers) involved in this activity.
Aid diversion – Case Number 00008363
In April 2023, during an evaluation of shelter activities conducted by a consultant, the community leaders declared that project participants were asked to sign the distribution lists, but the villagers did not receive the kits. The village leaders explained that they were told that the distribution partner would come later to distribute kits but that was not done. The allegation was not substantiated as project participants confirmed to have received their kits. The distribution was carried out in a neighboring location due to inaccessibility in the former location.
Material diversion – Case Number 00007553
An anonymous reporter made an allegation stating that NRC staff had stolen construction material (cement bags). A second allegation was received stating that some tarpaulins meant for non-food item distribution and kits for emergency distribution were allegedly diverted by NRC team members. The two incidents, given that they arrived at the same time, and involved the same teams, were treated as one investigation. The allegation was partially substantiated and disciplinary measures recommended against the staff.
Forgery – Case Number 00008532
During a review of payment documents, it was noticed that the signature of the authorizing NRC staff member was forged in fuel issue documents to extract 245 litres of fuel in the month of April 2023. The signature forgery was confirmed after the staff members’ contract had ended.
Central Africa Republic
Cash Misappropriation – Case Number 00008835
The closing of the accounts for the month of July 2023 revealed a negative balance of XAF 1,500,000 (USD $3,000) in an area sub-office cash account. An NRC staff member had initially submitted a cash count showing a zero balance. Upon review of documents, it was discovered that the signature of the authorizing NRC manager was forged, and the NRC staff member concerned acknowledged the discrepancy in cash. A new cash count showing a difference of XAF 1,500,000 (USD $3,000) was submitted. Disciplinary actions were taken against the staff.
Colombia
Fraud – Case Number 00008401
It was alleged that a large tender for educational products in Colombia had been manipulated to the benefit of a particular supplier. Following an investigation, NRC staff in Colombia were found not to have followed correct procedures – no evidence of corruption or financial gain was found.
Fraud – Case Number 00008961
Following payment of a fee to a caterer at an event, a member of NRC staff was found to have cancelled the event, and to have arranged for the refund from the caterer to be made directly to themselves, thereby fraudulently obtaining USD $125. The allegation of fraud was substantiated, and the staff member sanctioned.
Corruption – Case Number 00009088
It was alleged that NRC staff were complicit in attempts to extort cash from potential project participants using a WhatsApp group managed by community leaders. Whilst it was found that NRC staff had breached several procedures in relation to data protection and the formation of formal agreements with community leaders, there was no evidence of personal financial gain or corruption in this matter. The allegation of corrupt practices was therefore unsubstantiated.
Democratic Republic of Congo
Fraudulent registration of Project Participants – Case Number 00008290
In March 2023, community members made a complaint of fraudulent registration of project participants through the NRC Complaint Feedback Mechanism (CFM) reporting channel. The allegations stated that some ‘traders’ and other people with good livelihood had paid enumerators to be registered as displaced persons to benefit from assistance. It also mentioned that NRC refused to register households that met the vulnerability criteria. The allegation was unfounded.
Ecuador
Corruption/Aid Diversion – Case Number 00008061
It was alleged that beneficiaries had signed up for cash assistance which was not delivered by NRC staff. An investigation found that the beneficiaries had misunderstood the nature of the document which they had signed (which was not for receipt of cash as they thought), and that there was no corruption or aid diversion on the part of the NRC staff. Documents for beneficiaries were reworded to be clearer and more precise. The allegation was unsubstantiated.
Iran
Recruitment Collusion– Case Number 00009177
A candidate did not take a required test, with indications that an NRC staff member from the same unit took the test on their behalf. There was no evidence of financial gain on the part of the NRC staff member, although a breach of procedure was proven, and the case was substantiated with disciplinary action recommended.
Jordan
Corruption - Case Number 00008913
On August 23rd, allegations were raised about a direct procurement by an NRC staff member for ancillary supplies. The investigation found that the purchased items, costing 20 JOD (USD $28.21) each, were significantly overpriced compared to the market rate of 3-5 JOD (USD $4.23 – USD $7.05). Additionally, the supplier documented in the purchase records did not sell those specific items. Despite the staff members resignation from NRC, the investigation confirmed both allegations, resulting in an estimated loss of 100 JOD (USD $141.04). The case was closed with no further action possible.
Kenya
Corruption and Nepotism – Case Number 00008549
Whistleblowing report alleging corruption and nepotism in the selection of local partners. A review was conducted of the selection process and no instances were identified of NRC staff not following the required procedure as per the NRC Partnership Handbook or of staff influencing the decision of the local partners selected. The allegation was not true and there was no financial loss to NRC.
Mali
Bribery and Corruption – Case Number 00008772
A supplier made an allegation stating that NRC staff incessantly asked them to always consider providing a commission on each Purchase Order (PO) extended to them. This was a practice they refused to honor, and they believed they were no longer receiving purchase orders because of that. The allegation was partially substantiated, and an NRC staff member was sanctioned.
Extortion of Project Participant – Case Number 00008916
In September 2023, a report was received through the CFM reporting platform alleging that after the distribution of Non-Food Items (NFIs) and food items to IDPs, the community authorities went round to collect money from project participants, namely XOF 10,000 (USD $16.09) for IDPs and XOF 25,000 (USD $38.63) for host community members who were registered and benefited as IDPs. According to the reporter, for those who refused to pay, their foodstuff and NFI were divided or confiscated. The allegation was partially substantiated.
Mozambique
Fraud in Fuel Management – Case Number 00008414
At the beginning of 2023, vehicle refueling in one area office was conducted at two fueling stations with whom NRC had framework agreements. When business operations at these fueling stations ceased, NRC’s procurement team had to quickly identify a new partner to maintain an operational vehicle fleet. Although there was negligence, data breach and failure to follow the NRC policy on procurement procedures, there was no fraud proven, nor was there any financial loss to NRC.
Fraud – Case Number 00009164
An NRC employee falsified an NRC Fuel Requisition Form to administer 15.36 litres of fuel into the private vehicle of another NRC employee. The private vehicle was used to conduct office-related errands as no other vehicle was available. The allegation was proven of use of private vehicle without prior approval, and disciplinary action recommended. The total loss to NRC was USD $28.00.
Nigeria
Procurement fraud – Case Number 00008073
A supplier reported an allegation that during the procurement process, the bid submission dates were extended by NRC staff to use the prices from suppliers who submitted earlier, to share and obtain lower quotations from preferred suppliers. The allegation was unfounded.
Somalia
Extortion of Implementing Partner by NRC Staff Member – Case Number 00008099
A complaint was made against an NRC staff member alleging that they were blackmailing an implementing partner (IP) organisation and several payments had been made via mobile money transfer. It transpired that the staff member was previously a classmate of the director of the IP, as well as his neighbour and had not declared the conflict of interest. The allegations were found to be true and the investigation recommended that a disciplinary procedure be initiated against the NRC staff member.
Extortion – Case Number 00008334
NRC staff received a report that an NRC beneficiary had paid USD $5.00 to a Village Relief Committee (VRC) member for registration, for unconditional cash transfer (UCT) activity. The allegation was reported by implementing partner (IP) staff who was conducting a baseline data collection exercise. 249 beneficiaries on this project were interviewed to ascertain the magnitude of the allegation. 9 out of the 249 beneficiaries confirmed that they paid some money for registration, describing it as voluntary contribution for constructing latrines, a water harvesting system, community centre and a school in their camps. Even though 9 recipients stated that they paid for registration, they were unable to corroborate this by giving evidence of the transfers. The investigation determined that there is a likelihood that the breach happened, but adequate evidence to fully confirm this was not obtained. There was no financial loss to NRC.
South Sudan
Fraud – Case Number 00008360
An NRC worker claimed to have been authorized by the beneficiaries to receive entitlement on their behalf as the vulnerable beneficiaries were disabled and unable to physically collect their entitlement from the distribution point. The NRC worker presented five electronic cards belonging to other beneficiaries to the financial service provider. The financial service provider became suspicious and reported the incident. The NRC worker was found to have committed fraud and disciplinary action was taken. The total loss was USD $1933.
Syria
Bribery - Case Number 00008033
On January 9th, 2023, NRC's Community Feedback Mechanism received a complaint that an NRC worker in Syria demanded USD $500 from a community member for registration on a beneficiary list. The investigation found no evidence supporting the bribery allegation. Additionally, a second allegation of undisclosed employment with another organisation was also found to be unsubstantiated. The case was closed with no disciplinary action recommended, resulting in no financial loss to NRC.
Tanzania
Theft of Fuel – Case Number 00008234
An allegation was received that an NRC employee stealing and siphoning off generator fuel inside a camp. The allegation came to light as there was a concern that after solarization, there were no savings being registered in fuel, yet the water boreholes were also running for hours using solar energy. Because of the recording system in place at the time, it was not clear what quantity and value of fuel had been siphoned off and stolen. The NRC employee suspected of being responsible left the organisation prior to the theft being discovered. Additional measures have since been put in place to track and properly manage fuel use inside the camp.
Theft of Construction Materials – Case Number 00009151
A quantity of bricks meant for the construction of a hospital were stolen. The bricks were purchased by NRC in 2020 to build isolation centres during virus outbreaks but the activity was later suspended. Upon closer inspection, the total number of bricks lost was 2,345. Two NRC casual staff members confessed to have stolen and sold the bricks to refugees within the camp who use them to build their houses. Disciplinary action was recommended and the total loss to NRC was USD $188.00.
Uganda
Theft of a Projector – Case Number 00008137
An NRC employee reported the theft of the office projector worth USD $958.00. According to the reporter, the projector was handed to an NRC casual worker for safekeeping. However, three days later when the projector was needed, it was missing. The investigation revealed multiple possible ways the projector could have been stolen, leading to an inconclusive result. Consequently, no disciplinary action was recommended. Additional measures have since been put in place on storage & tracking of assets & office equipment.
Ukraine
Attempted Extortion – Case Number 00009084
While contacting project participants to arrange site visits a project participant reportedly claimed that they were instructed to pay an NRC staff member for shelter rehabilitation works. The report was unsubstantiated.
Aid Diversion – Case Number 00008097
NRC received reports that kits with NRC’s logo were being distributed by parties unknown to NRC. The investigation revealed that the party was in fact a sub-partner of one of NRC’s implementing partners.
Conflict of Interest and Financial Irregularities by Implementing Partner – Case Number 00008640
A review of partner financial supporting documentation revealed irregularities related to contractor hourly rates and a sublease for office space from a company owned by one of partner’s senior staff, thus posing a conflict of interest. The investigation concluded that the irregularities were a miscommunication between NRC and the partner and substantiated the suspicion of conflict of interest. The costs of the office space were disallowed.
Corruption – Case Number 0008742
An allegation was made that a consultant was using their position for personal gain by advising direct procurement of consultants with whom they had business relations without declaring conflict of interest. The allegation was unsubstantiated.
Yemen
Fraud - Case Number 00008513
During a routine check in Yemen, it was found that 28 additional households were entered into internal systems without corresponding registration forms. An NRC staff member was identified as the source of the additional names. However, the investigation could not substantiate the allegations due to conflicting statements and inconclusive evidence. The case was closed with no financial loss to NRC and no disciplinary action recommended.
Corruption - Case Number 00009241
Allegations of irregularities in procurement and financial practices involving a local implementing partner (IP) led to an investigation. Key findings included collusive bidding with identical figures in purchase requests and quotations, financial irregularities with fractioned invoice numbers, and unauthorized IP staff receiving suppliers' financial dues. The total disallowed costs amounted to USD $3,655.46. The investigation concluded that while there was a pattern of irregularities suggesting potential collusion and an untransparent procurement process, definitive proof of fraudulent intent was not established. NRC terminated the grant agreement with the partner and is expected to recover USD $17,692.94. The case was closed with NRC reinforcing procurement and financial control measures to prevent future irregularities.