1. 1 Public Sector Corruption: from petty corruption to state capture Olga Savran Manager, Anti-Corruption Network for Eastern Europe and Central Asia (ACN), OECD The Role of Civil Society in Combating Corruption, P2P Study Visits 27 January 2009, Brussels, European Commission

2. 2 Summary Role of OECD and ACN in fighting corruption Corruption in the region and role of civil society Framework for anti-corruption monitoring, including in selected risk areas

3. 3 OECD Fights Corruption OECD, its membership and working methods Interdisciplinary approach to fighting corruption :  OECD anti-bribery convention (supply side of foreign bribery)  Export credits  Tax deductibility of bribers  Transparency and accountability in public service (integrity, public procurement)  Promoting responsible business conduct (MNE Guidelines)  Development assistance  Cooperation with non-OECD countries (ACN, SIGMA, Investment Compact, others)

4. 4 OECD Anti-Bribery Convention and Working Group on Bribery Standard setting Monitoring of implementation Analytical work, e.g. mid-term study, typologies Cooperation with non-members through regional programmes, such as the ACN

5. 5 Anti-Corruption Network Established in 1998, for some 23 countries, including Balkan, Baltic, Eastern European, Caucasus and Central Asian countries General meetings (7 th General Meeting in June 2008, Tbilisi, Georgia) Sub-regional programmes (Istanbul Anti-Corruption Action Plan for ex-soviet states) Thematic projects (glossary of international standards for criminal law, review of models of specialised institutions, etc.)

6. 6 Istanbul Anti-Corruption Action Plan Launched in 2003 (in Istanbul), based on the model of the OECD Working Group on Bribery For Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Ukraine (special case of Russia) Participation of other ACN and OECD countries, NGOs, IOs Peer reviews of anti-corruption legislation and institutions, and adoption of recommendations (completed 2003-2005) First round of recommendations (completed 2004-2007) Methodology for the second round of monitoring (scheduled for 2009-2010) – framework for this presentation

7. 7 Other International Partners in the Region Council of Europe and GRECO UN Convention Against Corruption, CoP and UNODC Other OECD bodies, UN bodies, MDBs Civil society and business groups

8. 8 Corruption in “Transition” Economies Transformation of state-citizens relations, discretion of public officials - and administrative corruption Privatisation and public procurement - and large scale corruption Growing democratic systems - and political corruption, e.g. elections, independent judiciary, free media and active civil society

9. 9 No One Magic Solution To respond to diverse forms of corruption – there is a need for a multi-disciplinary and equally diverse response Sticks and carrots: prevention, education and prosecution

10. 10 Role of Civil Society According to one “transition” politician “private sector will adapt to the conditions created by governments”  this does not exclude actions by the private sector, but indicates that the governments should take the lead in fighting corruption Civil society can and must have a more proactive role in democratic countries – creating demand for anti-corruption, assisting and development of anti-corruption policy, its implementation and monitoring

11. 11 Framework for Monitoring Istanbul Anti-Corruption Action Plan Broadly based on UNCAC standards And other international best practice Three main pillars:  Anti-Corruption Policy  Criminalisation of Corruption  Prevention of Corruption

12. 12 Anti-corruption policies Expressed political will Anti-corruption policy documents (strategies, action plans) Corruption surveys and research (TI, country/sector – to identify risk areas and to monitor progress) Public participation in policy development and monitoring Public education Corruption prevention and coordination bodies International conventions  Framework conditions, e.g. free press

13. 13 Any questions or comments on anti-corruption policy?

14. 14 Criminalisation of corruption and law-enforcement Offences and elements of offence (illicit enrichment) Definition of public official Sanctions Confiscation Immunities and statute of limitation International cooperation and MLA Application, interpretation and procedure Specialised anti-corruption law-enforcement bodies Statistical data on anti-corruption law-enforcement

15. 15 Any questions or comments on criminalisation of corruption?

16. 16 Prevention of Corruption Integrity of public service Transparency and discretion in public administration Public financial control and audit Public procurement Access to information Political corruption Judiciary Private sector

17. 17 Integrity in Public Service Sound legal framework Recruitment and promotion, remuneration Codes of ethics, rules on gifts, post-office employment Obligation to report crime and whistleblowers’ protection Conflict of interest Asset declarations  Categories of officials covered by the system  Content of the declarations  Regularity of submissions  Body which collects and verifies declarations  Disclosure of declarations  Sanctions for failure to submit or for false information

18. 18 Reducing Discretion in Public Administration Anti-corruption screening of bills Administrative procedures and complaints Pilot projects in high-risk sectors  Tax administration  OECD Bribery Awareness Handbook for Tax Examiners  Integrity in tax administration  Streamlining tax regulations, case of Georgia  Other risk areas: construction, inspections, customs, police, business permits, health, education  Case of customs administration in Turkey

19. 19 Any questions or comments on integrity in public service and transparency/discretion in public administration?

20. 20 Public Procurement (1) Sound legal framework (excluded sectors or cases, e.g. military, emergency, etc.) Organisational system  central procurement organisation and its functions  tendering units in line ministries  obligation to establish tendering committees and their functions

21. 21 Public Procurement (2) Transparency of procedures  publication of procurement plans, tenders, award criteria and results  share of competitive procedures Control, review and special anti-corruption measures  external audit of procurement procedures  independent complaints mechanism  anti-corruption measures and sanctions such as anti- corruption declarations and debarment for companies with corrupt record

22. 22 Public Procurement (3) OECD work on integrity in public procurement:  OECD Recommendation on Enhancing Integrity in Public Procurement (2008)  Enhancing Integrity in Public Procurement: a Checklist  Integrity in public procurement: Good practice from A to Z  Corruption in public procurement: actors, methods and preventive measures

23. 23 Any questions or comments on public procurement?

24. 24 Political Corruption (1) Political corruption or state capture (e.g. rigging of elections by corrupt clans, illegal lobbying of commercial interests, abuse of office by locally elected officials, abuse of immunities, etc.) Council of Europe recommendation on “Common rules against corruption in the funding of political parties and electoral campaigns” (2003) and UNCAC (article 7) Subject for 3 evaluation round of GRECO, launched in 2007, and for the second round under Istanbul Action Plan

25. 25 Political Corruption (2) Transparency: accounting records, recording of all contributions/donations; public access to information  Legal framework for parties and elections, proportion of private and state funding (including indirect); types of donations (in-kind, anonymous, cash); ceilings and prohibitions for donations Supervision: independent monitoring mechanism, monitoring of party accounts and campaign expenditure, and their publication Sanctions: effective/proportionate/dissuasive, for violation of funding rules

26. 26 Political Corruption (3) Definition of public officials should be broad enough to cover elected officials at all levels to enable the use of other anti-corruption tools:  Bribery through intermediary, trading in influence, etc.  Lifting immunities for investigation of corruption  Management of conflict of interest in parliaments, including ethics commissions and asset declarations

27. 27 Other Prevention Areas (1) Public financial control and audit (external audit, financial management and control, internal audit and inspection) Access to information (transparency of state decisions for the citizens, sanctions for failure to provide access, defamation offence)

28. 28 Other Preventive Measures (2) Judiciary (independence, recruitment/promotion/dismissal, remuneration/conditions, case management, transparency of court decisions, integrity/codes/disciplinary sanctions) Business sector, including state owned enterprises (awareness raising programmes, accounting rules, external audit, corporate ethics, internal company control)

29. 29 Any questions or comments on political corruption and other preventive measures?

30. 30 Thank you for your attention! For more information: www.oecd.org www.oecd.org/corruption www.oecd.org/gov www.sigmaweb.org www.oecd.org www.oecd.org/corruption www.oecd.org/gov www.sigmaweb.org