FRAUD AWARENESS AND

PREVENTION WORKSHOP

14 JUL 2016
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 VISION, MISSION AND MANDATE

 AWARENESS & PREVENTION

 GOALS

 ROLE OF WHISTLE BLOWER IN FACILITATING

NAB
 WHISTLE BLOWERS AND THEIR PROTECTION

 IMPORTANCE OF RIGHT TO INFORMATION

 PERFORMANCE OF NAB
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To be a credible, effective, efficient, and
dynamic anti-corruption organization
creating an enabling environment for a
corruption free society.

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To eliminate corruption from Society through a
comprehensive and Holistic approach of

Awareness
Prevention; and
Enforcement

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 NAB derives legal mandate from National
Accountability Ordinance - 1999

Section 9 of NAO – 99 defines corruption and corrupt

practices

Section–33 of NAO empowers NAB to undertake

awareness and prevention campaign against
corruption besides enforcement
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 Primarily deals with:
Criminalization
Law Enforcement
International Cooperation
Asset recovery
and

Awareness & Prevention

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 Integration of Awareness, Prevention and Enforcement
Regimes to make a homogenized front against corruption

Character Building of Future Generation through Creation of

Character Building Societies in Universities, Colleges and
Schools of the Province/area of jurisdiction.

Character Building Societies of Notables at District, Tehsil and Union

Council Level

Building of Political Will to support Awareness and Prevention

Regime activities

Transforming the social attitude towards corruption from

indifference to zero-tolerance
 AWARENESS

Direct
Indirect

Legislature/ Civil
Politician Society Mass Other outdoor
Media Modules
Civil Private
Servants Sector

Print Electronic
Training
Students
Institutes

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 Anti-corruption Messages in Electronic / Print Media
 Essay Writing/ Posters and Painting Competition
/Declamation Contest
 Lectures/Presentation in Educational Institutions and
Public Service Training Institutions
 FM Radio Programs for raising Awareness
 Anti – Corruption Themes in National Curriculum
 Seminars on Corruption Related Issues
 International Anti-Corruption Week

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 Deterrence of persons from commissioning corruption and
corrupt practices

Securing a workable and effective legal regulation for Prevention

of corruption

Setting up of an adequate and effective mechanism of

organization, implementation, oversight and control for
prevention of corruption through legal, institutional, economic
and social measures

Promoting a culture of Transparency, Integrity and Accountability

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 NAB was mandated to accomplish Prevention Activities vide
section 33B and 33C of NAO 1999

Pre-Procurement Activities (Prevention through Conference

Mode )
Post Procurement Activities
Evaluation of Contracts above Rs 50 Million and
Tender Corrections
Reformation through Constitution of Prevention
Committees
Enforcement Driven Prevention
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Whistle Blowing- an early Warning System
“Can help in taking Timely and Preventive
Actions”
Lack of Genuine Whistle Blowers
“makes the task of elimination of corruption
difficult”

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 Whistleblower
 Reports
 Act as Prosecution Witness
 Helpful in the investigation Proceedings
 Genuine whistle blowers need to be protected
 Need to have access to information

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Need to promote a culture of transparency and
openness in governance

to keep a check on the executive and legislative

power and assess the efficiency of
government

ONLY WAY FOR PAKISTAN TO PROGRESS AND

DEVELOP
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 Most Common Violations
Notice Inviting Tenders

Inconsistency between Dates of Advertisement:

• Inconsistency between Dates of Advertisement,
Last date for submission of tenders and Date of
Opening of Bid (SPP Rule 41- Opening of bids)
• At times the date of opening of Bids is not the
same as the last date for submission of bids .
This creates room for Public Authorities to
influence the procurement process such as
additional bids may be added in the process ,
etc .
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 Most Common Violations
Notice Inviting Tenders

Non hoisting of Bid Evaluation Report (BER)

on website:
• SPP Rule 45 (Announcement of Evaluation
Reports) Procuring Agencies often donot
announce results of bid evaluation in the
form of reports giving reasons for
acceptance or rejection of bids and donot
hoist results on website of SPPRA / PPRA
which is a violation of Rules.

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 Most Common Violations
Notice Inviting Tenders

• Non Publishing of Tenders on PPRA /SPPRA website:

• At times , the tenders are not published on the
website of PPRA /SPPRA . This prevents the
general public from having a fair knowledge of
the tender being floated .
• Such violations are immediately referred to the
Procuring Agency who , in most cases , rectify it
and host the tender on website . If necessary ,
the PA may invite fresh tender and cancel the
previous one .
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 Most Common Violations
• Arbitrary Application of Emergency Clause:-
• In certain cases , such as Civil Works or
Petroleum Supply , Emergency clause is
invoked . As a Result , the tender is
awarded without due process of issuance
of NIT and other procedures involved such
as transparent opening of Bids .
• This is a serious violation and leads to
offence .
• Emergency clause , if invoked without
proper reasons recorded and approvals
required , leads to favoritism in the award
of tender .
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 Most Common Violations
• Improper Application of Stages and
Envelopes :-
– At times even more complex tenders ,
specially in civil works , single stage single
envelope method of procurement is used
where other method of procurement such
as two stage ,two envelope method should
have been used .
– Most common cases are seen in civil
works where works of complex nature are
incorrectly classified as those of simple
nature.
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 Most Common Violations
• Local Tenders issued in Foreign Currency:-
– It is not commonly done , however , there
are cases where local tenders which
should have been done in PKR are done in
USD . This is a serious violation as it
exposes the Procuring Agency to Market
Risk and Exchange Rate Risk, thus
causing loss to exchequer.

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 Most Common Violations
• Splitting of Tenders
– Tenders where supplies are to be made in
several Districts / or more than one
Divisions are split into more than one
tenders .
– This is done to provide an illegal favor to
bidders
– Irrespective of the volume of business
involved in the tender , splitting up of
tender is a serious violation

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 Most Common Violations

• Mention of Brands / Specifications:-

– In many cases , either an specification is
made or brand or country name is
mentioned . This reduces fair competition
and discourages local market
– Such cases are seen in Pharmaceutical
Industry, Import of engineering machines .
– This violation shall lead to cancellation of
tender

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 NAB NAB (K)
Complaints Received 30004 7614
Inquiries Authorized 1114 353

Investigation 402 121

Authorized
References Filed 286 101
Voluntary Return 4236.43 M 1015 M
Plea Bargain 2920.96 M 624.09 M

Indirect Recoveries 667.41 M

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 Achievements (Operational – Upto June, 2016)

Particulars NAB (Karachi

Bureau)
Complaints disposed off 4083
Inquiries Completed 50

Investigations Completed 45
References Filed 58
Arrests 85
Voluntary Return 604.519

Plea Bargain Amount 288.595

Indirect Recoveries 411.85

Total Recovery 1304.964

 Achievements (Operational – Upto June, 2016)

Particulars NAB (Karachi

Bureau)
Complaints disposed off 4083
Inquiries Completed 50

Investigations Completed 45
References Filed 58
Arrests 85
Voluntary Return 604.519

Plea Bargain Amount 288.595

Indirect Recoveries 411.85

Total Recovery 1304.964

 Land Recovered

250,000 Acres of Land cancelled for re-writing

of record at district Thatta. (2 Lac /Acre)

125,000 Acres of Land at Sakro cancelled for

re-writing of record (2 Lac /Acre)

Allotment of 25000 Acres of Land cancelled in

Karachi (2 Crore / Acre)
 CONCLUSIONS
• The biggest advantage of the common man’s right to
information is that it brings transparency in the functioning of
government and making the government functionaries
accountable for their deeds and misdeeds
• Electronic and print media investigative reporting must be
strengthened and encouraged to report corruption and
corrupt practices
• Our journalists particularly investigative reporters must be
protected and rewarded on unearthing financial scams
• Create strong institutional forums for whistle blowing
• Create whistle blowing support fund
• Discourage corruption and corrupt practices individually and
collectively

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