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Third Review of the African Development Bank's Independent SAVANAS E ENSEADAS – LDA Development Strategy and Business Solutions Lisbon, Portugal Third Review of the African Development Bank’s Independent Review Mechanism December 2020 DRAFT REPORT Table of Contents ACKNOWLEDGEMENTS ................................................................................................................................. IV ACRONYMS/ABBREVIATIONS ....................................................................................................................... V EXECUTIVE SUMMARY ................................................................................................................................... 1 1. INTRODUCTION: .................................................................................................................................... 11 1.1 PURPOSE AND OBJECTIVES OF REVIEW: .................................................................................................. 11 1.2 APPROACH AND METHODOLOGY OF REVIEW: ........................................................................................ 12 1.2.1 Approach: .............................................................................................................................................. 12 1.2.2 Methodology: ........................................................................................................................................ 13 1.3 SUMMARY OF PREVIOUS REVIEWS, OUTCOMES AND LESSONS LEARNT ................................................ 15 1.4 CURRENT TRENDS IN INTERNATIONAL ACCOUNTABILITY: .................................................................... 16 1.5 THE THIRD IRM REVIEW AND CURRENT AFDB CONTEXT: ................................................................... 19 1.5.1 Scaling up Implementation of the Bank’s Ten-Year Strategy through the High5s: .......................... 19 1.5.2 Enhanced Decentralization and Bank’s Development and Business Delivery Model (DBDM) ........ 19 1.5.3 Integrated Safeguards Systems (ISS) ................................................................................................... 20 1.5.4 Private Sector Operations: .................................................................................................................... 20 1.5.5 Scope of Third Review .......................................................................................................................... 21 2. RESULTS OF THIRD REVIEW - BLOCK ONE: ........................................................................................ 22 RELATIONS BETWEEN IRM AND KEY STAKEHOLDERS IN IRM PROCESS ...................................... 22 2.1 RELATIONS BETWEEN IRM AND THE BOARDS OF DIRECTORS ............................................................... 22 2.1.1 Board Resolution: ................................................................................................................................. 23 2.1.2 Features of and Factors influencing the Relationship between IRM and the Boards: ...................... 24 2.1.3 Boards Perceptions of the Relationship with IRM: ............................................................................. 25 2.1.4 Comparison with other IAMs: .............................................................................................................. 26 2.2 RELATIONSHIP BETWEEN IRM AND MANAGEMENT: .............................................................................. 27 2.2.1 Management’s Role according to IORP (2015): ................................................................................. 28 2.2.2 Management Responses (MR) and Management Action Plans (MAP): ............................................ 29 2.2.3 Other Management Roles regarding IRM: .......................................................................................... 30 2.2.4 IRM’s place in the Bank’s ISS: ............................................................................................................ 31 2.2.5 Role of Country and Regional Offices: ................................................................................................ 32 2.2.6 NSO Operations and IRM: ................................................................................................................... 32 2.2.7 Summary of Main Features of the Relationship Between IRM and Management ............................ 33 2.2.8 BCRM and other Accountability units Reporting to the Boards of Directors: ................................... 33 2.2.9 Comparison with other IAMs: .............................................................................................................. 34 2.3 RELATIONS BETWEEN IRM AND COMPLAINANTS/CIVIL SOCIETY ......................................................... 36 2.3.1 Engagement with CSOs at AfDB: ........................................................................................................ 36 2.3.2 Access to IRM: ...................................................................................................................................... 37 2.3.3 Communications and Outreach: .......................................................................................................... 39 2.3.4 Outreach: .............................................................................................................................................. 40 2.3.5 Annual Report and Other Communication Tools: .............................................................................. 41 2.3.6 Measures of Anti-retaliation: ............................................................................................................... 44 2.3.7 Perception of IRM by Complainants/Civil Society: ............................................................................. 45 i SAVANAS E ENSEADAS – LDA 2.3.8 Comparing with other IAMs: ............................................................................................................... 47 3. RESULTS OF THIRD REVIEW - BLOCK TWO: ....................................................................................... 49 KNOWLEDGE MANAGEMENT, ADVISORY FUNCTION AND SPOT-CHECKS: ................................... 49 3.1 THE ADVISORY FUNCTION IN THE IORP AND GUIDELINES ON SPOT-CHECK ADVISORY REVIEWS OF PROJECT COMPLIANCE AND ADVISORY SERVICES (2015): .................................................................................. 50 3.2 ADVISORY NOTES:..................................................................................................................................... 50 3.3 SPOT-CHECKS: .......................................................................................................................................... 51 3.4 RT ANALYSIS OF ADVISORY NOTES AND SPOT-CHECKS: ....................................................................... 52 3.5 COMPARING WITH OTHER IAMS: ............................................................................................................. 56 4. RESULTS OF THIRD REVIEW - BLOCK THREE: ................................................................................... 57 EFFECTIVENESS OF BCRM AS AN ADMINISTRATIVE UNIT FOR THE IRM: ..................................... 57 4.1 CURRENT STRUCTURE OF IRM: ............................................................................................................... 57 4.2 DIRECTOR OF BCRM: .............................................................................................................................. 57 4.3 RESPONSIBILITIES OF THE DIRECTOR ...................................................................................................... 58 4.4 ROSTER OF EXPERTS AND ITS ROLE: ....................................................................................................... 58 4.5 RT ANALYSIS OF COMPLAINTS PROCESSING, ROLES AND STRUCTURE OF IRM/BCRM: .................... 59 4.6 STAFFING: .................................................................................................................................................. 62 4.7 BUDGET AND WORK PROGRAM:............................................................................................................... 64 4.8 IRM FUNCTIONS: ...................................................................................................................................... 65 4.8.1 Problem-Solving: .................................................................................................................................. 65 4.8.2 Analysis of Problem-Solving Function: ............................................................................................... 66 4.8.3 Compliance Review:.............................................................................................................................. 68 4.8.4 Analysis of the Compliance Review Function: .................................................................................... 69 4.9 MALI M3 COMPLIANCE REVIEW .............................................................................................................. 70 4.10 COMPARISON WITH OTHER IAMS: .......................................................................................................... 73 4.10.1 IAM Structure: ................................................................................................................................. 73 4.10.2 IAM Budget: ..................................................................................................................................... 73 4.10.3 IAM
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