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
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Summary
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Role of OECD and ACN in fighting corruption
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Corruption in the region and role of civil society
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Framework for anti-corruption monitoring,
including in selected risk areas
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OECD Fights Corruption
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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)
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OECD Anti-Bribery Convention and
Working Group on Bribery
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Standard setting
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Monitoring of implementation
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Analytical work, e.g. mid-term study,
typologies
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Cooperation with non-members through
regional programmes, such as the ACN
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Anti-Corruption Network
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Established in 1998, for some 23 countries, including
Balkan, Baltic, Eastern European, Caucasus and
Central Asian countries
General meetings (7th 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.)
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Istanbul Anti-Corruption Action Plan
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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
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Other International Partners in the Region
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Council of Europe and GRECO
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UN Convention Against Corruption, CoP and
UNODC
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Other OECD bodies, UN bodies, MDBs
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Civil society and business groups
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Corruption in “Transition” Economies
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Transformation of state-citizens relations,
discretion of public officials - and
administrative corruption
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Privatisation and public procurement - and
large scale corruption
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Growing democratic systems - and political
corruption, e.g. elections, independent
judiciary, free media and active civil society
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No One Magic Solution
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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
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Role of Civil Society
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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
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Framework for Monitoring
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Istanbul Anti-Corruption Action Plan
Broadly based on UNCAC standards
And other international best practice
Three main pillars:
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Anti-Corruption Policy
Criminalisation of Corruption
Prevention of Corruption
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Anti-corruption policies
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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
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Framework conditions, e.g. free press
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Any questions or comments on
anti-corruption policy?
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Criminalisation of corruption and law-enforcement
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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
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Any questions or comments on
criminalisation of corruption?
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Prevention of Corruption
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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
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Integrity in Public Service
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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
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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
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Reducing Discretion in Public Administration
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Anti-corruption screening of bills
Administrative procedures and complaints
Pilot projects in high-risk sectors
Tax administration
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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
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Case of customs administration in Turkey
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Any questions or comments on
integrity in public service
and
transparency/discretion in public
administration?
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Public Procurement (1)
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Sound legal framework (excluded sectors or cases,
e.g. military, emergency, etc.)
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Organisational system
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central procurement organisation and its functions
tendering units in line ministries
obligation to establish tendering committees and their
functions
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Public Procurement (2)
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Transparency of procedures
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publication of procurement plans, tenders, award
criteria and results
share of competitive procedures
Control, review and special anti-corruption measures
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external audit of procurement procedures
independent complaints mechanism
anti-corruption measures and sanctions such as anticorruption declarations and debarment for companies
with corrupt record
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Public Procurement (3)
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OECD work on integrity in public procurement:
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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
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Any questions or comments on
public procurement?
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Political Corruption (1)
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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
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Political Corruption (2)
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Transparency: accounting records, recording of all
contributions/donations; public access to information
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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
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Supervision: independent monitoring mechanism,
monitoring of party accounts and campaign expenditure,
and their publication
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Sanctions: effective/proportionate/dissuasive, for
violation of funding rules
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Political Corruption (3)
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Definition of public officials should be broad enough
to cover elected officials at all levels to enable the
use of other anti-corruption tools:
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Bribery through intermediary, trading in influence, etc.
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Lifting immunities for investigation of corruption
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Management of conflict of interest in parliaments, including
ethics commissions and asset declarations
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Other Prevention Areas (1)
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Public financial control and audit (external
audit, financial management and control, internal
audit and inspection)
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Access to information (transparency of state
decisions for the citizens, sanctions for failure to
provide access, defamation offence)
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Other Preventive Measures (2)
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Judiciary (independence,
recruitment/promotion/dismissal,
remuneration/conditions, case management,
transparency of court decisions,
integrity/codes/disciplinary sanctions)
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Business sector, including state owned
enterprises (awareness raising programmes,
accounting rules, external audit, corporate ethics,
internal company control)
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Any questions or comments on
political corruption
and
other preventive measures?
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Thank you for your attention!
For more information:
www.oecd.org
www.oecd.org/corruption
www.oecd.org/gov
www.sigmaweb.org
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