GRECO evaluations on political financing and recommendations follow-up Zurab Sanikidze Head of the Analytical Department of the Ministry of Justice of Georgia Secretary of the Anti-Corruption Council

Group of States against Corruption (GRECO) GRECO monitoring comprises: a “horizontal” evaluation procedure a compliance procedure I evaluation round independence, specialization and means of national bodies engaged in the prevention and fight against corruption; extent and scope of immunities II evaluation round II evaluation round identification, seizure and confiscation of corruption proceeds, the prevention and detection of corruption in public administration and the prevention of legal persons (corporations, etc.) from being used as shields for corruption III evaluation round III evaluation round the incriminations provided for in the Criminal Law Convention on Corruption and (b) the transparency of political party funding IV evaluation round IV evaluation round Prevention of corruption in respect of members of parliament, judges and prosecutors

3 Third Round Situation Report on Georgia I Third Round Evaluation Report on Georgia Third evaluation round of Georgia Third Round Compliance Report on Georgia Third Round Situation Report on Georgia II The report was adopted in 2011 and was covering 15 recommendations in two themes: incriminations (Theme I) and transparency of party funding (Theme II). In 2013, Georgian authorities prepared the Situation Report on the implementation progress of the recommendations The Government of Georgia reported on the progress of implementation of the recommendations in February 2015 Based on the report, in 2013 GRECO adopted the Compliance Report assessing the measures taken by the Georgian authorities Third Round Compliance Report on Georgia II GRECO updated the status of the recommendations and Georgia does not have a recommendation with the status ‘not implemented’.

Fully implemented recommendations All five recommendations in part I (incriminations) are fully implemented Unambiguously cover bribery of foreign arbitrators and foreign jurors and ratify the additional protocol to the Criminal Law Convention on Corruption Ensure that offence of bribery unambiguously cover instances where the advantage is not intended for a third party Ensure that offence of bribery unambiguously cover instances where the advantage is not intended for a third party Ensure that the offence of active trading in influence unambiguously covers instances where the advantage is intended for a third party Ensure that the offence of active trading in influence unambiguously covers instances where the advantage is intended for a third party abolish the dual criminality requirement for the bribery and trading in influence offences in ‘less serious’ cases and establish jurisdiction over acts of corruption committed abroad by non-nationals, involving Georgian officials abolish the dual criminality requirement for the bribery and trading in influence offences in ‘less serious’ cases and establish jurisdiction over acts of corruption committed abroad by non-nationals, involving Georgian officials Unambiguously cover bribery of foreign arbitrators and foreign jurors and ratify the additional protocol to the Criminal Law Convention on Corruption

Recommendations on Political Party Financing There are 10 recommendations in the Theme II (transparency of party funding). Georgia has no recommendation of GRECO with the status of ‘not implemented’; 3 out of 10 recommendations in the Theme II are implemented in a satisfactory manner, while the rest of 7 recommendations are considered as partly implemented.

Fully implemented recommendations Three recommendations and parts of two recommendations in part II (political party financing) are fully implemented Rec. iii. assess whether there is a need to take measures to ensure that all financial transactions of the fund are adequately reflected in the final reports on the use of the election campaign fund. Rec. viii. (i) ensure that an independent mechanism is in place for the monitoring of the funding of political parties and election campaigns. Rec. v. ensure that all financial documentation relating to the funding of political parties and election campaigns is kept for an appropriate period of time. Rec. ii. (ii) ensure that information contained in the annual financial declaration (including donations above a certain threshold) is made public in a way which provides for easy access by the public. Rec. vii. (i) apply, in consultation with the competent bodies, appropriate auditing standards to party and election campaign financing and (ii) to ensure adequate standards are in place as regards the independence of auditors entrusted with the verification of party accounts and campaign funds.

Partly implemented recommendations Rec. iv. Take appropriate measures to ensure that (i) in-kind donations, including loans (whenever their terms or conditions deviate from customary market conditions or they are cancelled) and other goods and services (other than voluntary work by non-professionals) provided at a discount, are properly identified and accounted for and (ii) membership fees are not used to circumvent the rules on donations. Rec.i. Revise existing legislation in the area of political finance, with a view to establishing a more uniform legal framework, notably by aligning the (new) Election Code with the Law on Political Unions of Citizens (and vice versa). Rec.ii.(i) stablish a standardized format for the annual financial declarations to be submitted by political parties, seeing to it that financial information (on parties’ income, expenditure, assets and debts) is disclosed in an appropriate amount of detail. Rec. viii. (ii) provide this mechanism with the mandate, the authority, as well as adequate resources to effectively supervise the funding of political parties and election campaigns, to investigate alleged infringements of political financing regulations and, as appropriate, to impose sanctions. Rec. ix. (i) to apply, in consultation with the competent bodies, appropriate auditing standards to party and election campaign financing and (ii) to ensure adequate standards are in place as regards the independence of auditors entrusted with the verification of party accounts and campaign funds. Rec. vi. Take further measures to prevent the misuse of all types of administrative resources in election campaigns. increase the limitation period for administrative violations of party and campaign funding regulations. There are seven recommendations considered as partly implemented

Not implemented recommendations There are no recommendations considered as ‘not implemented’

Thank You! 9