AFD - 2019 Universal registration document

STATEMENT OF NON-FINANCIAL PERFORMANCE 2 Fair practices

2.6.3 Support for project management and the building of capacities AFD supports its project management by fostering a participative and/or joint construction methodological approach throughout the appraisal cycle. In 2019, in order to guarantee sustainable development results, AFD improved its system for supporting operations and monitoring-assessment of projects. It adopted a differentiated approach in order to increase the impact of its operations (in the Sahelian area particularly) and strengthened its assistance capacities by focusing on capacity building (approach focused on participants and institutional support). In addition AFD is strengthening the operational culture of its project teams, through capitalisation, promotion of learning between peers, plus knowledge production and dissemination. Since 2013, AFD has adopted a cross-business capacity building strategy (1) that aims to increase the developmental impact of its activities and to support the ramp-up of its partners. In particular, these activities must enable the project owner to better coordinate and manage the funding, and ensure the activities and/or works are performed properly. They contribute

to reducing the risk that project managers may fail to comply with contractual procedures or clauses. AFD Group’s two main support procedures consist in sharing its knowledge (sector-specific expertise and institutional project set-up) and the funding of external expertise (training, coordinating communities of practice, sharing experiences, and technical support). In addition to its own capacity building activity for projects (via loans and/or grants), AFD has specific tools to build the capacity of its project managers, such as: - the Project start-up, preparation and monitoring facility (FAPS), - the Technical expertise and experience exchange fund (FEXTE), - the French local authority financing facility (FICOL), and - the Crisis recovery expertise and studies fund (FEESC). In 2019, these different tools represented €134.6M in commitment approvals. AFD can also mobilise EU delegated credits to gain access to technical expertise. In 2021, the integration of Expertise France will provide the AFD Group with additional and complementary leverage to reach its goals set with partners. prevention and fight against corruption and influence peddling in performing their duties. The Group adopted a professional whistle-blowing system open to internal employees and external or temporary service providers working for the Group. It also mapped the risks of corruption and influence peddling, integrated into the mapping of operational risks. In addition to the pre-existing evaluation procedure of counter parties, in 2020 the Group will adopt a procedure to evaluate the situation of its first-tier suppliers with respect to potential risks of corruption and influence peddling. The tightening of checks verifying the merits of transactions (such as the absence of accounting records likely to conceal acts of corruption or influence peddling) started in 2019 and will be completed in 2020. E-learning modules dedicated to prevention of corruption and influence peddling were designed in 2019 and will be made available in 2020 to all AFD Group employees. This anti-corruption and influence peddling compliance programme applies to AFD as an industrial and commercial State public undertaking, and also to Sogefom, Fisea and Proparco, along with the subsidiary TR Propasia.

2.7 Fair practices

2.7.1 Initiatives for preventing corruption, fraud, money

laundering, terrorist fi nancing and b tax evasion

Corruption, fraud and any form of misappropriation of public and private aid will cause long-term damage to the AFD Group’s mission of acting to protect the most vulnerable populations. The same applies to any funding which, unknown to AFD and Proparco, would lead to money laundering or the financing of terrorism. In order not to unwittingly participate in any of these violations, the AFD Group has adopted a general policy (2) implemented through operational procedures describing the checks to be carried out by its employees at the different stages of a project’s life cycle. In addition, the AFD Group implements a program to prevent and combat corruption and influence peddling within its organisation, in conformity with the new “Sapin Ǿ II” Act, which became applicable in December Ǿ 2016. The Group adopted an anti-corruption (3) code of conduct clarifying the expected and prohibited behaviour of Group employees regarding the

(1) This strategy adopted by the AFD Board of Directors in 2013 is published on its website: https://www.afd.fr/sites/afd/files/2017-12/cadre- intervention-transversal-renforcement-des-capacites.pdf. (2) The AFD policy against corruption is public and available on its website: https://www.afd.fr/fr/lutte-contre-la-corruption-politique-generale-de-lafd-et-de-Proparco-2013. (3) https://www.afd.fr/en/ressources/afd-group-anti-corruption-code-conduct.

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UNIVERSAL REGISTRATION DOCUMENT 2019

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