1. Slides for a seminar session and discussion © Denis Osborne, 2007 1 REDUCING CORRUPTION: CONFRONTATION GET TOUGH! DETER! Increase the risks and reduce the gains from corrupt activities

2. Slides for a seminar session and discussion © Denis Osborne, 2007 2 WHAT OBJECTIVES for deterrence? 1. People who might act corruptly … don’t 2. Those who have acted corruptly … stop 3. All get fast, fair justice; less cases in court 4. Government trusted, society wins respect

3. Slides for a seminar session and discussion © Denis Osborne, 2007 3 FIVE MEASURES to deter? 1. Clarify laws, regulations, codes 2. Chase the money 3. Sting the corrupt 4. Test integrity 5. Speed work of courts

4. Ethics and Good Governance 4 A WARNING! Implementation could damage your reputation! BE WARNED Some are radical ideas intended for consideration, not for immediate application without due care. They may represent trends, especially if technology increases the dangers from corruption, fraud and their risks to society and its security

5. Ethics and Good Governance 5 GET SIMPLE LAWS F Dangers from corruption may lead many countries to consider revising laws F Frustration with court delays may also encourage law reform F Success with such reform would be shown by: –A higher percentage of convictions –Judges would understand cases better –Prosecutors avoid less certain cases –Cases take less time in court –Criminals deterred by risk of conviction

6. Ethics and Good Governance 6 CHASE THE MONEY Investigate excessive riches Require those who may receive bribes to F Declare: require a declaration of assets –Then we need to verify: but how? (costly process) –Use ‘spot checks’ –Punish through courts those ‘caught’ –Often an effective deterrent OR F Publish: let public see declarations –Then press / media will ‘verify’!

7. Ethics and Good Governance 7 CHASE THE MONEY FURTHER F Explain life-style or holding of assets greater than known salary would justify –Used in HK: ‘found’ compatible with Human Rights –Raises bigger issues: is Privacy a Right? –Little privacy in village society except dangerous ‘secret societies’ –In ‘developed’ countries in practice a privilege of the rich … F Use ‘forfeiture’ –with ‘automatic’ loss of assets

8. Ethics and Good Governance 8 CATCH THOSE WHO TAKE RETRIEVE STOLEN ASSETS What does law allow? After criminal conviction for corruption F assets gained from corrupt acts should be forfeit –... and all property in excess of ‘reasonable’ or ‘explicable’ wealth? F If criminal conviction difficult –State should be able to take civil case against suspect, in which conviction depends on ‘balance of probabilities’ not ‘beyond reasonable doubt’

9. Ethics and Good Governance 9 CATCH THOSE WHO PAY F Get evidence against companies for the State or corporation to retrieve losses in civil courts F Judgement then on basis of probability, not on proof ‘beyond reasonable doubt’ –In US companies are presumed to have gained a benefit of three times the value of a bribe. F Offer immunity if officials tell and give full evidence against those who pay? –Profitable for state, hits source of bribes

10. Ethics and Good Governance 10 USE STINGS F AGAINST THOSE WHO PAY F STINGS are operations to catch someone when they are expected to act corruptly F A business representative is expected to offer a bribe. What might be done? F What evidence is allowed in court? –If stings are not allowed, consider using stings to find who acts corruptly –Then ‘watch and catch’ in ‘real life’

11. Ethics and Good Governance 11 USE STINGS AGAINST THOSE WHO DEMAND, EXTORT F A government official or company employee is expected to ask for a bribe. Use a sting? F Seek co-operation of companies who complain about ‘culture of corruption’ and ‘having to pay’ –Seek help from Chambers of Commerce, foreign governments –Make a condition for acceptability to bid for Government contracts?

12. Ethics and Good Governance 12 TEST INTEGRITY F Examples of ‘Integrity Testing’ in the New York City Police F Results gained (1%, 25%, 300%; low costs) –random tests justified when corruption VHF? F Use of ‘Quality Assurance’ in London –targeted tests appropriate where corruption LF F For us –what evidence allowed in court? –use tests, even if not for prosecution?

13. Ethics and Good Governance 13 TEST INTEGRITY F Privatised integrity tests? F The example of India F Telling of this may win staff support for tests! F USE manager-staff equivalents? –If ‘agents’ actually offer bribes beware challenges about ‘human rights’ or criminal prosecution of agents –But quality assurance acceptable?

14. Ethics and Good Governance 14 SPEED COURTS. GO SOFT! F Use courts only if conviction virtually certain F This may mean dropping old cases –But try to avoid statutes of compulsory time limitation F If possible have priority allowed for some new cases as best way to get fast and fair justice –That may deter people more than expecting trial ten years from now –and concentrate resources more on present investigations than trying to retrieve ‘dead’ evidence

15. Ethics and Good Governance 15 OFFER IMMUNITY? Corrupt acts are secret crimes, evidence is hard to get F Consider offers of immunity insofar as law allows F As for EU and US against ‘cartels’ –Where changed law was reported to bring company directors running to report colleagues in corrupt syndicates F Consider use of ‘plea bargains’

16. Ethics and Good Governance 16 CONSIDER AMNESTY Priority for anti-corruption efforts; Retrieval of past losses? Protection for the future? Let’s debate use of an amnesty later … But consider briefly the ‘management equivalent’

17. Ethics and Good Governance 17 GIVE WARNINGS F Warn for first and not-too-large corrupt offences don’t prosecute. Cost effective! –saves costs and time of courts –evidence that many staff then go straight –and work as loyal members of team F Avoid prosecution where possible! –It costs much money –It uses vast resources –It causes delays –The results are not guaranteed

18. Ethics and Good Governance 18 BE DETERMINED The acid test … is not so much the measures that have been formulated, but the sincerity and determination in enforcing them Chinese proverb, quoted by Chua Cher Yak, (then) Director of the Corrupt Practices Investigation Bureau, Singapore Success depends on us doing the job well more than on our choice of strategies, systems, tools… We need to know the ‘broader picture’, have clear objectives, choose priorities, keep simple, select and change targets