Despite the risks the issue of corruption in humanitarian aid is a delicate and little discussed matter, as many aid agencies worry that reports of corruption could weaken public support and thus vital funding for their operations. However, when corruption is known to have prevented vital aid and services from reaching the people who need it most, then this reluctance to enter into public discussion on the extent and consequences of corruption ultimately undermines the very aims of humanitarian assistance.

Vulnerable to abuse

While humanitarian assistance is generally subject to the same corruption risks as development assistance, the conditions in which humanitarian assistance is delivered make it uniquely susceptible to abuse.

Following a major crisis there is great pressure on humanitarian agencies to be seen to respond quickly as lives may be at sake. However, it is not easy to do so as operations will often take place in unfamiliar environments or require existing development programmes to be rapidly scaled-up. Further complications can arise if local institutions and public services are adversely affected or even destroyed through a conflict or natural disaster. It is also worth noting that many of the countries in which a humanitarian crisis is likely to happen score lowly (are perceived as corrupt) in Transparency International’s 2007 Corruption Perceptions Index. In addition, the need for speed may necessitate a hurried recruitment drive where usual background checks are put off, while the nature of the job means there can be a comparatively high turn-over of supervisory staff resulting in few staff with a deep understanding of the situation and the accompanying corruption risks.

The combination of such an operating environment, a large influx of resources, and the urgency of delivering relief and reconstruction supplies unsurprisingly can lead to potentially high corruption risks.

Types of corruption

While the siphoning of funds is a clear danger, corruption risk in humanitarian assistance is by no means limited to financial resources. Food aid is particularly vulnerable as there are so many opportunities for its diversion and corruption – from the way it is allocated to how it is shipped and stored. Similarly, expensive and scarce drugs are attractive for those looking to make a profit. Meanwhile procurement processes can offer multiple opportunities for corruption, such as collusion and kick backs to delivering substandard goods.

'The abuse of entrusted power for private gain,' Transparency International’s (TI) definition of corruption, encompasses not only fraud, embezzlement and contract kickbacks, but also a range of non-financial forms of corruption. It can include the manipulation or diversion of humanitarian assistance resources to benefit individuals or groups in order to enhance the political, social or economic power of the corruptor; allocation of relief resources in exchange for sexual favours; preferential treatment in the registration of beneficiaries for family members or friends; or coercion and intimidation of staff or beneficiaries to turn a blind eye to or participate involuntarily in corruption.

Transparency International’s work

TI recognises that the staff of humanitarian agencies face immense challenges in carrying out their vital work and will continue to work in partnership with such organisations, along with other stakeholders from government agencies and civil society, to better understand corruption and corruption risks in the emergency context and establish measures to crackdown on it. If corruption is minimised, emergency aid will not only be delivered with greater transparency and accountability, but the actual quality and quantity of the aid will increase substantially. To further discussion and knowledge sharing on corruption in humanitarian assistance TI has launched a new ‘Preventing Corruption in Humanitarian Assistance’ section on its website. The web pages detail TI’s work on the issue, as well as highlighting national chapters' current and past projects. It also brings together all relevant TI publications and a comprehensive resources section.

As part of a programme to curb corruption in humanitarian operations TI released a report in July 2006 entitled: ‘Mapping the Risks of Corruption in Humanitarian Action,’ which sets out the various elements of the humanitarian assistance supply chain in tabular form to map where various types of corruption may occur. TI national chapters and the Overseas Development Institute – a British international development and humanitarian issues think tank – interviewed humanitarian practitioners, including local and international civil society organisations and government officials in ten countries that have experienced natural disasters or civil conflict to validate the Corruption Risk map framework.

The second phase of the programme involves TI working with a number of leading international humanitarian non-governmental organisations to discuss the corruption risks they face in their work, both at headquarter and field levels. The findings of the research will be highlighted in an upcoming report to be published in early May. Furthermore, the results of this dialogue will become a handbook of best practices for preventing corruption in humanitarian assistance, aimed at managers and staff of humanitarian assistance agencies, which is expected to be published in early 2009.

Following the devastating Indian Ocean tsunami that hit South and Southeast Asia in December 2004, TI organised a regional meeting in April 2005 on “Curbing Corruption in Tsunami Relief Operations” together with the Asian Development Bank and Organisation for Economic Co-operation and Development. Hosted by the Indonesian government, the meeting brought together representatives of the six worst-affected countries, from government and civil society as well as major aid organisations, to identify concrete measures to curb corruption in post-tsunami relief and reconstruction activities for the first time. For its part, TI Sri Lanka has undertaken several initiatives in the aftermath of the tsunami with the principal objectives being to prevent corruption in the reconstruction process and promote accountability and transparency. Most recently a hotline was established in early 2007 to receive complaints and public views from tsunami affected areas. Received complaints are forwarded to the relevant authorities and institutions for further investigations. Also, a number of field visits were conducted in the second half of 2007 to assess the ground situation three years after the tsunami.

Reconstruction in post-war Lebanon after the war of July 2006 gave birth to a new wave of efforts in rehabilitating the war-torn country. However, the reconstruction process has been riddled with corruption scandals that have not only discouraged foreign investors but have also had a pervasive effect on the national economy. In February 2007, the TI national chapter in Lebanon, the Lebanese Transparency Association (LTA), organised with the Organisation of Economic Cooperation and Development (OECD) the "Transparency in Reconstruction" conference. A series of recommendations were established at the conference, which was attended by all Lebanese stakeholders, as well as representatives of international organisations and donor countries. LTA launched its "Transparency and Integrity in Post-War Reconstruction and Compensations" campaign in August 2007 which included a petition, case study reports and various discussions with stakeholders. LTA’s latest research project in cooperation with TIRI and other partners, which is part of a multi-country study on corruption in post-war reconstruction countries, looks at the experiences of Afghanistan, Bosnia-Herzegovina, Kosovo, Lebanon, Mozambique, Palestine, Sierra Leone and Timor-Leste.

In February 2006, TI and TI-Pakistan arranged a two-day workshop in response to the earthquake in Pakistan in October 2005 to ensure the transparent use of earthquake reconstruction funds. Key government agencies, international donors and experts, as well as both national and international civil society organisations, attended to identify a framework of relevant good practice and stakeholder responsibilities.

Following Hurricane Stan in October 2005, the Guatemalan TI national chapter, Acción Ciudadana, initiated the signing of a “Government Commitment to Integrity and Access to Information in the Execution of the National Reconstruction Programme.” The project focused on the areas hardest hit by the hurricane, generally areas with high levels of poverty and underdevelopment. A range of methodological tools were developed during the programme, such as a ‘Citizen’s Guide to Social Auditing,’ and directed at civil society organisations; a public agent’s accountability guide; and a web portal providing detailed information on the reconstruction process.