Decision ID: 003307

In October 2002 the 1992 Fund Assembly noted the External Auditor’s thorough review of the allegations of fraud that had been made against the Erika Claims Handling Office and the 1992 Fund in connection with the Erika incident. It was noted that the Auditor had reviewed local payment and banking arrangements at the Claims Handling Office and that the Auditor had stated that he was satisfied that effective controls were in place to safeguard funds and to monitor payments from the Office’s account.It was also noted that the External Auditor had carried out a further review in relation to the allegations that the 1992 Fund’s maximum liabilty had not been correctly calculated in relation to the Erika incident, particularly in relation to the conversion of Special Drawing Rights to French francs, and that this review had led to the Auditor’s conclusion that the Director had acted on the instructions of the Executive Committee, using the date of conversion fixed by the Committee, which in turn had acted under the authority of the Assembly. The Assembly noted with particular satisfaction the Auditor’s assurance that the allegations were unfounded.

Date: 30.09.2002
Category: Application of the Conventions
Subject: Criticism of the Funds