UNDP investigation of the law and order trust fund for Afghanistan

11 Jun 2012

Statement regarding the ongoing Office of Audit and Investigation (OAI) work into various aspects of the Law and Order Trust Fund for Afghanistan (LOTFA) ’s operation:

1.            UNDP is committed to preventing, identifying and addressing all acts of fraud that involve UNDP funds or programmes. UNDP has zero tolerance for fraud and allegations of fraud are investigated in accordance with established investigation guidelines and UNDP’s organization-wide Anti-Fraud Policy.  As has been previously stated, there is currently a team in Afghanistan from OAI investigating various aspects of LOTFA’s operation.  This investigation commenced some weeks before allegations of fraud first appeared in the media last month.   

2.            One of the first actions taken by investigators was to safeguard relevant evidence.  Based on recommendations provided by OAI, the UNDP Afghanistan  Office in line with organization-wide rules and regulations has terminated with immediate effect the contracts of three UNDP service contractors who were previously working for LOTFA.  UNDP is unable to comment further on the names or details of those whose contracts have been terminated.

3.            The OAI investigation is continuing.  OAI conducts its work confidentially in order to preserve the integrity of the investigation process and to protect the rights of all parties concerned.  In order to preserve the integrity of this ongoing process no further specific details can be released.

4.                            We have not received any notification from the EU regarding ``freezing of funds’’ for LOTFA.

 5.           UNDP and its team in Afghanistan remain committed, in the midst of huge security challenges, to working transparently, constructively and collaboratively with all partners, including anti-corruption bodies, tofurther enhance the oversight and quality of programmes in the collective effort to improve the lives of the men, women and children of Afghanistan. Because of these huge challenges, it is not possible for UNDP to eliminate all risks associated with running its programmes in Afghanistan, however UNDP constantly endeavours to mitigate or enhance its risk management associatedwith our country operations.