Financial Crime World

Fraud Reporting and Investigation Policy

Introduction

The Government of Tuvalu is committed to maintaining the highest standards of integrity and transparency in its operations. This policy aims to establish a framework for preventing and investigating fraud within the Government, emphasizing accountability and adherence to legal procedures.

Reporting Suspected Fraud

  • Any public officer who suspects fraud must report it directly to their senior officer, the Secretary for Finance and Economic Development (SFED), or internally through a confidential channel.
  • Reports of suspected fraud should be made in writing and include as much detail as possible about the alleged incident.

Investigation Process

Investigation by Internal Audit Unit

  • The SFED instructs the Internal Audit Unit (IAU) to investigate unless the IAU is suspected.
  • If the IAU is suspected, the SFED requests that the Auditor-General performs the investigation.

Additional Investigations

  • The Auditor-General and Ombudsman may perform their own investigations if dissatisfied with progress or if required by their legislation.

Consequences of Fraud

  • Possible criminal behavior identified during an investigation must be immediately reported to the Police Department and Attorney-General.
  • The Police Department and Attorney-General will prosecute the person(s) who committed the fraud to the maximum extent of the law.
  • The report from the IAU also includes recommendations for addressing any shortages or failures in internal controls.

Authorization

  • The Internal Audit Unit has unrestricted access to Government records and premises for investigations, as well as authority to examine, copy, or remove contents without prior knowledge or consent of individuals who might use them.
  • This authority is granted under the Public Service Act and is essential for effective investigation and audit.

Termination and Disciplinary Actions

  • Recommendations for terminating an individual are reviewed by designated representatives from the Public Service Commission and Attorney-General’s Office before any action is taken.
  • Termination or disciplinary actions will be taken in accordance with the Public Service Act and other relevant legislation.

Personal and Financial Responsibilities

  • All public officers are personally responsible for performing their duties honestly, and they may be held financially accountable if fraud or misuse of funds occurs under their responsibility.
  • This includes ensuring that all financial transactions are accurately recorded, authorized, and accounted for.

Monitoring and Collection of Funds

  • The Treasury Department is responsible for recording amounts owing to the Government and monitoring and collecting funds as they fall due.
  • Any discrepancies or irregularities in fund collections will be investigated and addressed promptly.

Administration and Review

  • This policy is administered by the Secretary for Finance and Economic Development, reviewed annually, and revised as necessary.
  • Recommendations for changes to this policy should be submitted to the SFED for consideration.

Process Summary

  1. Suspected fraud is noted.
  2. Reported to senior officer and SFED.
  3. IAU commences investigation within 48 hours.
  4. Report of findings and recommendations are provided.
  5. Recommendations are taken up by SFED.
  6. Disciplinary actions, criminal prosecution, or civil cases may be pursued based on the outcome.

By following this policy, we aim to create a culture of transparency, accountability, and integrity within the Government of Tuvalu, ensuring that our operations are conducted in accordance with the highest ethical standards.