Management of conflict of interests in the public sector Aivars Rapša Representative of The Corruption Prevention and Combating Bureau 29.11.2018.

Legal framework of the Corruption Prevention and Combating Bureau 16 years In accordance with the Law On Corruption Prevention and Combating Bureau The Corruption Prevention and Combating Bureau (KNAB) is the leading specialized anti-corruption authority of Latvia. Its aim is to fight corruption in a coordinated and comprehensive way through prevention, investigation and education.

Eternal engine of anti-corruption Education and awareness rising Combating corruption Corruption prevention

The law “On Prevention of Conflict of Interests in Activities of Public Officials” (1) The law “On Prevention of Conflict of Interests in Activities of Public Officials”1 (adopted in 2002). Purpose of the law is: to ensure that the actions of public officials are in the public interest, to prevent the influence of a personal or financial interest of any public official, his/her relatives or business partners upon the actions of the public official; to promote openness regarding the actions of the public officials and their liability to the society; to promote confidence of the society regarding the actions of public officials. 1 The Law in is available: https://likumi.lv/ta/en/en/id/61913-on-prevention-of-conflict-of-interest-in-activities-of-public-officials

prevention of conflict of interest in actions of public officials The law “On Prevention of Conflict of Interests in Activities of Public Officials” (2) The law determines: declarations of assets of public officials and a mechanism for the verification of these declarations prevention of conflict of interest in actions of public officials different restrictions and prohibitions in activities of public officials

The law “On Prevention of Conflict of Interests in Activities of Public Officials” (3) Restrictions To advertise To accept gifts and donations To do commercial activities To combine positions (offices) To obtain incomes To act with property of state or local government To issue administrative acts, perform supervision, control, inquiry or punitive functions and sign contracts Prohibitions To influence issue of administrative acts, performance of supervision, control, inquiry and punitive functions To be a representative To receive supplementary payments To use information

Asset declarations for public officials A public official is obliged to specify following information: relatives; other positions that the public official holds in addition to the position as a public official; the immovable property; commercial companies whose shareholder, stockholder or partner he/she is; transport registered and owned by the public official; all kinds of income earned during the reporting period; cash or non-cash savings if their amount exceeds twenty minimum monthly wages (20 x 430 EUR = 8600 EUR); transactions performed by the public official if their amount exceeds twenty minimum monthly wages; the amount of debt of the public official which exceeds twenty minimum monthly wages; loans granted (total sum) if the total amount of such loans exceeds twenty minimum monthly wages; if the public official is a beneficial owner of an object or a part of it, capital shares, stocks and other financial instruments owned by another person.

Online access to database of assets declarations of public officials Detailed information on public officials Possibility to detect situations of conflict of interests Possibility to analyze and compare declarations from previous years Possibility to detect other administrative violations

Administrative liability Verbal warning Administrative fine (70-350 EUR) Forfeit of the right to hold office position of the public official

Informing society about violations After the administrative decision regarding a violation has entered into force the following information are posted on the Bureau’s website: the given name, surname and position held by a public official; the legal norms of the Law which has been violated; the essence of the violation and time of commitment thereof; the decision taken; the date entering into force of a decision and of execution thereof. Information are available on the website for one year from the day when the decision has been executed.

New challenges According the guidelines for the corruption prevention and combating Y2015–Y2020 and Operational Strategy of the Corruption Prevention and Combating Bureau Y2018–Y2019, Bureau has already done and will continue to transfer the prevention of conflict of interest of public officials and control of restrictions and prohibitions imposed on public officials from external control to institutional internal control.

Institutional internal control Regulations of Cabinet of Ministers No.630 Recommendations how to implement regulations No.630 17.10.2017. 31.01.2018.

What do we expect?

Purpose of the corruption risk management to create a controlling environment, that decreases or prevents violations of norms of the law “On prevention of conflict of interest in the activities of public officials”; to identify possible risks of corruption, which may result in damage to the institution; to implement appropriate measures to reduce (or prevent) corruption risks; revise the identified corruption risks and evaluate the effectiveness and usefulness of the measures to reduce (or eliminate) identified corruption risks; reduce (or eliminate) possible risks of corruption and promote the proper use of personnel, financial and material resources; monitor the implementation of a specified measure to reduce (or eliminate) corruption risks.

How to start? Confirm the ethical principles Evaluate professional duties, limits of power, procedures of decision-making, responsibilities Determine the procedure how to report about irregularities Determine the procedure how public officials announce their possible conflict of interests Determine the procedure of requesting permission to combine positions (written permissions) Identify, analyze and evaluate corruption risks

1. Identify and evaluate functions (tasks), areas or processes which may have major corruption risks: perform supervisory, control, inquiry or punitive functions operate with state or local government property organize public procurements operate with cash make or take part in making decisions regarding other persons perform investigative functions operate with state or commercial secrets operate with personal data

To identify corruption risks use: 2. Apply existing control mechanisms, identify the risks of corruption, evaluate the probability and impact on occurrence, and resulting consequences: To identify corruption risks use: internal normative acts; internal audit reports; detected workplace violations; citizens complaints, surveys; given information by employees; State audit office reports; analysis of disciplinary cases; external information – in the media; etc. To analyze corruption risks and to evaluate probability of such risks use: character of duties (regularity, required skills, how many employees are involved); real incidents; complaints (employees, clients); information in the media; internal factors (lack of knowledge, motivation and skills); control mechanisms; other institutions criteria To evaluate the impact on occurrence and resulting consequences of corruption risks consider: impact on achieving strategic goals; impact on doing an individual tasks; financial losses; damage to the reputation of the institution; loss of public trust; other institutions criteria

3. Identify positions exposed to corruption risks: employee works alone and makes decisions alone employees activities are not restricted by normative acts employees activities are not documented there is no regular follow-up control of making decisions there is no “four-eye” principle no responsibility for workplace violations citizens complaints regarding such positions (public officials) corruption cases against particular public officials

4. Define and implement anti-corruption (corruption risk) measures: implementation and actualization of internal normative acts regular follow-up controls sharing responsibility or functions trainings on anti-corruption and prevention of conflicts of interests “Four-eye” principle; registration of irregularities; rotations physical control (audio, video monitoring) action plan, secure reporting mechanism motivation of employees information for employees about most common irregularities

Thank you for your attention! Corruption Prevention and Combating Bureau Citadeles Str. 1, Riga, LV-1010, Latvia Phone: + 371 67356161 www.knab.gov.lv/en e-mail: knab@knab.gov.lv