annex to the minutes of the 9th steering group meeting 27 ... · annex to the draft minutes of the...

ADB/OECD Anti-Corruption Initiative for Asia and the Pacific

The Secretariat

Annex to the draft minutes of the 9th Steering Group meeting: Progress in anti-corruption reform

Kathleen Moktan, Director, Capacity Development and Governance Division, ADB [email protected] phone: +632 632 6404, fax: +632 636 2193

Frederic Wehrlé, Coordinator Asia-Pacific Anti-Corruption Division, OECD

[email protected] phone: +33 1 4524 1855, fax: +33 1 4430 6307

Annex to the Minutes of the 9th Steering Group Meeting 27-29 November 2006, Bangkok, Thailand

Summary of the roundtable on recent anti-corruption reform measures Contents: Member countries and economies .................................................................................................. 2

Australia.......................................................................................................................................................................... 2 Bangladesh..................................................................................................................................................................... 8 P.R. China .................................................................................................................................................................... 12 Cook Islands................................................................................................................................................................. 18 Fiji ................................................................................................................................................................................. 23 Hong Kong, China ........................................................................................................................................................ 27 Indonesia ...................................................................................................................................................................... 32 Japan............................................................................................................................................................................ 36 Kazakhstan................................................................................................................................................................... 39 Korea............................................................................................................................................................................ 43 Kyrgyz Republic............................................................................................................................................................ 47 Macao, China ............................................................................................................................................................... 53 Malaysia ....................................................................................................................................................................... 58 Mongolia ....................................................................................................................................................................... 63 Nepal ............................................................................................................................................................................ 67 Pakistan........................................................................................................................................................................ 72 Palau ............................................................................................................................................................................ 76 Papua New Guinea....................................................................................................................................................... 80 Philippines .................................................................................................................................................................... 84 Singapore ..................................................................................................................................................................... 92 Sri Lanka ...................................................................................................................................................................... 97 Thailand...................................................................................................................................................................... 101 Vietnam ...................................................................................................................................................................... 107

Advisory Group........................................................................................................................... 113 Asia-Pacific Group on Money Laundering (APG) ....................................................................................................... 113 AusAID ....................................................................................................................................................................... 114 Transparency International ......................................................................................................................................... 116 United Nations Development Program (UNDP).......................................................................................................... 118 World Bank ................................................................................................................................................................. 120

Observer organizations............................................................................................................... 122 APEC Anti-Corruption and Transparency Task Force (ACT)...................................................................................... 122 Pacific Islands Forum ................................................................................................................................................. 124 United Nations Asia and Far East Institute for the Prevention of Crime and the Treatment of Offenders (UNAFEI) .................................................................................................................................................................... 126

Support towards anti-corruption efforts provided by the Asian Development Bank...................... 127


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Australia

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Member countries and economies

Australia

Action Plan Standard Measures reported at the 8th Steering Group Meeting

Measures reported at the 9th Steering Group Meeting

PILLAR 1 – DEVELOPING EFFECTIVE AND TRANSPARENT SYSTEMS FOR PUBLIC SERVICE

A. Integrity in Public Service

1. Systems of hiring public officials:

• Systems for compensation

• Transparent hiring and promotion, independence of the civil service

• Oversight of discretionary decisions and personnel discretionary powers

• Personnel systems such as rotation of assignments

2. Ethical and administrative codes of conduct:

• Prohibitions or restrictions on conflicts of interest

• Disclosure and/or monitoring of, for example, personal assets and liabilities

• Systems regulating contacts between government officials and business services users, particularly in corruption-prone areas

• Promotion, training and supervision of officials viz. codes of conduct

The Law Enforcement Integrity Commissioner Bill 2006 was introduced into Parliament and is expected to be passed by June 2006. The legislation will establish an independent Australian Commission for Law Enforcement Integrity to investigate corruption issues in the agencies under its jurisdiction. Where the Commission finds evidence of corrupt conduct, it will refer the case to prosecuting authorities and officials responsible for disciplinary or administrative action. The Commission will initially have jurisdiction over the Australian Federal Police and the Australian Crime Commission.

The Law Enforcement Integrity Commissioner Act 2006 received royal assent on 30 June 2006. The recruitment process for the Commissioner’s position is being finalized. The entity is anticipated to be operational by December 2006.

• Promoting reporting by officials of corruption and whistleblower protection

The Australian Public Service Commissioner recently amended the APS Values and Code of Conduct in Practice: Guide to Official Conduct for APS Employees and Agency Heads to clarify the requirement for employees to report instances of bribery that they observe in the course of their employment, particularly when working overseas.



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B. Accountability and Transparency

Accountability of public service through effective legal frameworks, management practices and auditing procedures:

• Measures and systems to promote fiscal transparency

• International standards and practices to regulate and supervise financial institutions

• Auditing of the public administration and the public sector

• Public procurement procedures and adequate simplified administration procedures

• Institutions for public scrutiny and oversight

• Availability of information on the processing of applications, funding of political parties and electoral campaigns and expenditure

• Simplification of the business regulatory environment

PILLAR 2 – STRENGTHENING ANTI-BRIBERY ACTIONS AND PROMOTING INTEGRITY IN BUSINESS OPERATIONS

A. Effective Prevention, Investigation and Prosecution

Effective measures to actively combat bribery:

• Sanctions for bribery of public officials

In 2005, Australia underwent a mutual evaluation to assess its implementation of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The evaluation report, published in January 2006:

• acknowledges the Government’s strong commitment to combating foreign bribery.

• commends Australia for undertaking a campaign to raise awareness of the foreign bribery offence.

• makes a number of recommendations for improving Australia’s efforts to combat foreign bribery. The Government is considering these recommendations.

• Existence and enforcement of anti-money laundering legislation

• Rules concerning investigation and prosecution

The Australian Federal Police has recently amended its Case Categorisations



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of bribery Prioritisation Model (CCPM) to clearly classify corruption as a category of crime with a “high” impact.

On 11 September 2006, the Commonwealth Director of Public Prosecutions issued a direction to all prosecutors instructing them that, when deciding whether to prosecute a person for bribing an foreign public official under Division 70 of the Criminal Code, the Director of Public Prosecutions should not be influenced by:

• Considerations of Australia’s or any other country’s economic interest;

• The potential effect upon Australia’s relations with another country; or

• The identity of the persons involved (individuals and corporate entities).

This formal direction is not a public document but prosecutors are required to comply with it.

• Availability of bank, financial or commercial records and secret bank information

• Inter-agency co-operation

• Protection of persons who assist the authorities

• Training and resources

• International cooperation including exchange of information and evidence, extradition, and search, seizure, forfeiture and repatriation of assets

In July 2005, the Australian Government established a specialist Regional Legal Assistance Unit within the Attorney-General's Department to assist Southeast Asian countries develop legislation to implement international counter-terrorism instruments and to improve legal frameworks for international legal cooperation in the region.

In December 2005, Australia and Indonesia co-hosted a regional workshop at the Jakarta Centre for Law Enforcement Cooperation on the practical aspects of making and receiving requests for legal assistance using model documents in a scenario-based exercise. Australia sponsored nine developing countries to attend the workshop.

Australia’s Anti-Money Laundering Assistance Team – AMLAT – has assisted Pacific Island countries develop systems to counter money laundering and terrorist financing. A recent AMLAT awareness-raising workshop hosted by the Central Bank of the Solomon Islands included speakers from the Asia Pacific Group on Money Laundering, the Pacific Financial and Technical Assistance Centre and Westpac, and financial intelligence unit experts from the Cook Islands.

Australia’s Anti-Money Laundering Assistance Team – AMLAT – continued its efforts in assisting Pacific Islands countries in their efforts to curb money laundering:

In May 2006, AMLAT ran an AML/CFT awareness raising workshop in Tonga and provided advice on Fiji’s draft regulations and reporting guidelines. In June 2006, AMLAT hosted an FIU workshop for representatives from 14 Pacific Island Financial Intelligence Units. Mentoring visits were conducted with the FIU in the Solomon Islands in March, May, July and September 2006. In July 2006, AMLAT participated in an IMF mission to PNG to assess AML/CFT technical assistance requirements. AMLAT is currently working



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with PNG on a plan for implementing AML/CFT legislation. AMLAT advisers visited Nauru in July 2006 to assess Nauru’s AML/CFT needs and to develop a plan for AMLAT assistance. In October 2006, an AMLAT adviser visited the Cook Islands to provide guidance to the Cook Islands’ FIU and Police on a possible money laundering investigation.

In October 2006, Australia attended the first annual conference and general meeting of the International Association of Anti-Corruption Authorities.

B. Corporate Responsibility and Accountability

Promotion of corporate responsibility and accountability based on international standards:

• Corporate governance, internal company controls such as codes of conduct, establishing channels of communication, whistleblower protection and staff training

• Non tax-deductibility of bribes

The Australian Taxation Office 2006-07 Compliance Programme contains comments on foreign bribery and facilitation payments within the following areas:

• Large Market Segment;

• Small-Medium Enterprise Segment; and • The area that covers international tax

issues.

The Australian Taxation Office has also recently issued bribery awareness audit guidelines to its staff.

• Transparent company accounting and auditing, and penalties for false accounting

• Administrative sanctions for bribery of public officials, e.g. denial of licenses or procurement contracts

PILLAR 3 – SUPPORTING ACTIVE PUBLIC INVOLVEMENT

A. Public Discussion of Corruption

Encouraging public discussion of corruption through:

• Channels and forums to discuss corruption

• Public awareness campaigns

• Supporting of non-governmental organizations

• Education programs



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B. Access to Information

Ensuring the general public and the media can receive and impart public information, particularly information on corruption matters:

• Requirements for justice and other governmental agencies to disclose efforts to promote integrity and accountability and to combat corruption

• Measures to provide the public with meaningful access to information

C. Public Participation

Encouraging public participation in anti-corruption activities:

• Co-operative relationships with civil society groups

The Australian Government’s Attorney-General's Department has recently agreed to processes that enhance its relationship with Transparency International Australia.

• Protection of whistleblowers

• Involvement of NGOs in monitoring of public sector programs and activities

OTHER

Australia was one of the first industrialized countries to ratify the UN Convention against Corruption (UNCAC) on 7 December 2005. Australia’s assessment of its domestic legislation indicates that Australia meets all of the mandatory requirements in UNCAC and many of the optional provisions.

The Australian Federal Police and the Attorney-General’s Department are contributing expertise in regional anti-corruption investigation and enforcement in Papua New Guinea and the Solomon Islands. This has led to broader understanding across the Australian Government of the challenges of development, as well as raising the profile of the aid program’s existing work.

A recent AusAID review of its Pacific (excluding PNG) good governance efforts noted that 51% of AusAID’s programs and 61% of total Australian aid is focused on good governance activities.

In 2005, through the Pacific Legal Knowledge Program, the Pacific Islands Law Officers’ Meeting welcomed Australia’s proposal for a program of workshops on international criminal justice cooperation and legislative drafting for legal officers in Pacific Island

24 legal officers from 11 Pacific Island countries attended the first Pacific Legal Knowledge Program Legislative Drafting Workshop in Canberra in July 2006. The purpose of the Workshop was to address challenges facing the Pacific Island countries such as the lack of legal drafting resources,



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countries. The program is focused on improving the knowledge and skills of line officers and junior to mid-level practitioners within the law and justice agencies of Pacific Island countries. Legal officers from around the South Pacific attended the first workshop on international criminal justice cooperation in Vanuatu in December 2005. A follow-up workshop is planned for later this year, along with the first legislative drafting workshop in July 2006.

and the need for legislative action due to new international obligations in security, counter-terrorism, corruption and anti-money laundering. There was a high level of attendance at the workshop.

Follow-up workshops in international criminal justice cooperation and legislative drafting are planned for 2007.

Australia is currently the Vice-Chair of the Asia Pacific Economic Cooperation (APEC) Anti-Corruption and Transparency Experts Task Force (ACT). Australian representatives participated in a meeting of the Task Force held in Hanoi, Vietnam on 26 February 2006. An Attorney-General’s Department officer presented a paper on Australia’s anti-corruption strategies at the APEC Anti-Corruption and Transparency Workshop on the Denial of Safe Haven, Asset Recovery and Extradition in Shanghai in April 2006. The presentation focused on prosecuting corruption and strategies to deny safe haven.

In September 2006, Australia took part in an APEC ACT Public-Private Dialogue on Anti-Corruption and Ensuring Transparency in Business Transactions Workshop that looked at ways of working with the private sector to fight corruption.

Australia will chair the APEC Task Force in 2007.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Bangladesh

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Bangladesh








Bangladesh introduced performance and merit-based promotion for senior positions in government.








Bangladesh created a training and career development wing in the Ministry of Establishment to coordinate public sector training and human resources allocation.





A Tax Ombudsman Act has been adopted and promulgated. With the assistance of the World Bank, Bangladesh has undertaken efforts to create a more efficient tax administration.


A Committee has been formed to deal with loan defaults. A key priority is to strengthen the central bank’s supervision over monetary and exchange rate policy. Some laws were amended to strengthen the capacity of the central bank.



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Bangladesh



A new Public Procurement Act is being studied by a parliamentary sub-committee before being submitted to the National Assembly for discussion and adoption.


The Anti-Corruption Commission (ACC), inspected several departments, such as the Chittagong Custom House and the ZIA International Airport. It has held dialogs with bodies such as the National Board of Revenue, the Bangladesh Police etc.

Bangladesh aims to strengthen the capacity of the senior and middle management staff at the ACC. It also intends to improve the operational effectiveness of the ACC in specific sectors.

Bangladesh has created a Standing Committee for each Ministry. The Committees are empowered to review the work of Ministries that fall under their jurisdiction and to inquire or examine any irregularities and complaints. Ministers are directly answerable to the relevant Committee.



To reduce corruption in tax administration, a committee has begun working on introducing the uniform taxpayer identification (UTI) number for the large taxpayer units by March 2007. The UTI will integrate the existing tax identification and business identification numbers that are used for value added tax and custom duty. Preparatory steps have been completed.





Bangladesh has recently secured convictions against a former minister, a former president and a former prime minister.




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Bangladesh

• Rules concerning investigation and prosecution of bribery





















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Bangladesh





The Bangladesh government has declared Tuesdays as “Meeting Free Day”. All officers are accessible by citizens at their desks, while secretaries are encouraged to make field-visits. Thursdays are “visitor-less” days so that government employees can work without distraction.






OTHER


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform P.R. China

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P.R. China








The Law on Civil Servants came into force on 1 January 2006. Public servants will be recruited through public admission and examination; officials will be appointed and promoted by public selection and competition.

P.R. China is now reforming the wage system for civil servants. Salaries will be raised to reduce the temptation to engage in corruption.


Following the entry into force of the Law on Administrative Licensing in July 2004, central departments and local governments have repealed or adjusted one out of two administrative licenses and license procedures.











To accelerate reform of the financial management system, the government aims to speed up budgetary reform in state departments and pursues a system of centralized revenue and expenditure by the State Treasury.

• International standards and practices to regulate and



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P.R. China

supervise financial institutions



The Law on Government Procurement of June 2002 has improved specific operational procedures. In departments under the Central Government, 70% of official purchases are now made through government procurement. In the view of the Chinese authorities, implementation of the Law on Tendering and Bidding of 1998 has brought tangible improvements, especially in public construction projects.

Sponsored by the U.K., the Ministry of Supervision and Transparency International developed a new project called “Promoting Transparent Procurement and Enhancing Enterprises’ Social Accountability”.


P.R. China intends to strengthen capacity-building of anti-corruption institutions and personnel.

On 27 August 2006, the Law on the Supervision by Standing Committees of People’s Congresses at Various Levels was adopted. The law enters into force on 1 January 2007. It explicitly stipulates that the Standing Committees of the National People’s Congresses at various levels exercise supervision over governments, courts and the prosecuting agencies. The law is conducive to the improvement of supervision mechanism, and enhances the work of supervision and its effectiveness of the Standing Committees.

The first phase of the “Strengthening Integrity Project” was held in cooperation with UNDP. The project lasted for 3 years and was recently completed. The second phase of cooperation has begun.



To improve the government investment control system, the Central Government issued the Decisions on the Reform of the Investment System to improve the mechanism for making investment decisions. To improve its decision-making system, the government has introduced elements of public participation, expert consultation and collective decision-making. Superior hierarchies in the government must standardize the decision-making procedures, increase transparency, clarify responsibility, reduce mistakes and guard against abuse of power. The government has also tightened supervision over state-owned



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P.R. China

assets by improving related laws, regulations and management systems.





P.R. China has developed a program to build and strengthen a system for sanctioning and preventing corruption, which seeks to enhance education efforts; cultivate and raise a culture of ethics; raise consciousness among leading officials etc. The overall objective is to accomplish a basic framework for punishing and preventing corruption by 2010.

P.R. China intends to strengthen capacity-building of anti-corruption institutions and personnel.

Sanctions such as resignation and accountability for dereliction of duty have been widely applied against public officials.

In 2005, 146,000 cases were filed with the CPC’s discipline inspection organs and the supervisory departments at all levels of government. Of these cases, 144,000 were resolved, over 110,000 persons received Party discipline, 47,000 were disciplined administratively, and 1,300 cases were transferred to judicial organs for criminal charges.

Between January and June 2006, 54,668 cases were filed by the supervisory organs at various levels across the nation, 45,086 cases were closed, and 34,998 individuals disciplined under administrative regulations.

The public procuratorial organs have discovered and dealt with over 9,000 clues of bribery cases in business transactions. 4,367 of them are under investigation, 1,195 cases being prepared for prosecution, and 674 cases have been brought to court.

The Legislative Affairs Office of the State Council is studying a revision of the Anti-monopoly Law, Anti-unfair Competition Law, and Construction Law. It is also drafting rules to implement the Practicing Pharmacist Law, the Tender Invitation and Submission Law and the Government Procurement Law.


A Law on Anti-Money Laundering was recently submitted to the National People’s Congress for deliberation and approval.

The Law on Anti-money Laundering was endorsed on October 31st, 2006 and enters into force on 1 January 2007. The law aims to prevent and monitor money laundering. It also aims to curtail money laundering and related crimes (such as smuggling, drug trafficking, bribery and corruption) in order to maintain financial order and the economic security of the country. It includes four major systems: identification; record keeping; reporting of large and suspicious transactions; and internal supervision. For the first time, proceeds from financial crimes, bribery and corruption are clearly designated as targets of anti-money laundering supervision.

• Rules concerning investigation and prosecution



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P.R. China

of bribery






P.R. China has intensified cooperation with regional and international organizations such as ADB, AOA, APEC, OECD, TI, and UNDP.

• In 2006, it completed the “Capacity Building in Clean Government in China”, sponsored by UNDP.

• In April 2006, P.R. China and the United States co-sponsored the APEC ACT Workshop on “Denial of Safe Haven” in Shanghai.

• It has also established a mechanism for consultation and cooperation with the United States. Bilateral expert meetings were held in Washington, D.C. in June 2005 and in Beijing in February 2006. The parties have agreed to further develop anti-corruption cooperation, strengthen mutual cooperation to deny safe haven, repatriate suspects of corruption and assets, and lay a favorable foundation for cooperation.

On 22-26 October 2006, 1,000 participants from 137 countries/regions attended the First Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities. The conference focused on the implementation of UNCAC.

• Corruption prevention programs

The Ministry of Supervision and the Canadian International Development Agency (CIDA) are negotiating the launch of a Cooperation Project on Corruption Prevention.




P.R. China has begun a drive to tackle business bribery. The government has identified six priority areas: tangible construction projects; property right transactions; land transfer; sales promotion of medicine; resources development and marketing; and other areas, such as finance and credit, securities and futures, commercial insurance, publication and distribution, etc. Six measures are being taken: creating a sound and healthy business culture, and establishing a fair, just, honest and lawful competing environment; rectifying unfair trading practices; investigating and punishing business bribery cases; enhancing the role of supervision; making effective and comprehensive programs; and

The Chinese Government laid out a strategy to fight bribery in business transactions on 8 February 2006. To strengthen the leadership over this taskforce, the central government has set up a leading body under the Ministry of Supervision.



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P.R. China

improving legal systems.








Two new taskforces were created in 2006. One will evaluate government performance, while the other will deal with the administration of the taxi industry. One of the features of the taskforce is to rely on the citizenry to supervise the behavior of government.

• Public awareness campaigns P.R. China is establishing a new Corruption Prevention Bureau with sole responsibility for corruption prevention.







To promote transparency of government affairs, P.R. China established the Chinese Government Web site (http://www.gov.cn) in early 2006 so as to publish government affairs and provide online services. Local governments at various levels have their own Web sites. Enterprises and villages are also required to use various measures to publicize their affairs.



• Co-operative relationships



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P.R. China

with civil society groups



OTHER

P.R. China has ratified the UNCAC on 27 October 2005 and stepped up efforts to harmonize China’s legal system with the Convention’s provisions.

The Chinese Government has set up an inter-ministerial coordination mechanism to study and implement the UNCAC. The Ministry of Supervision leads the mechanism, which comprises 24 departments including the Standing Committee of the NPC (SCNPC), the central government, the Supreme People’s Court, and the Supreme People’s Procuratorate.

In June 2006, the Ministry of Supervision set out a plan to make the national legal system compatible with the UNCAC. The work includes adopting measures to prevent corruption, revising the Criminal Law and Criminal Procedure Law, and drafting Laws on Anti-Money Laundering Law and Legal Assistance and International Cooperation. In particular, the SCNPC is revising the Criminal Law to (1) make bribery and embezzlement predicate offences for money laundering, and (2) amend the definition of taking and accepting bribes, corruption and misappropriation.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Cook Islands

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Cook Islands






• Systems for compensation Remuneration bands for all positions in the public service were set as a result of a job sizing evaluation exercise in 2001 under the auspices of the Public Service Commission (PSC). The PSC is reviewing and updating the last report. This includes taking into account complaints received from the Crown Law Office, Ministry of Health and the Audit Office that the remuneration bands are insufficient for attracting experienced solicitors, doctors and auditors/accountants.


Developments in recruitment have focused on individual positions. As the last three appointments to the Public Service Commission were political appointees and hence the Cook Islands have concluded that there is a need to address the appointment process. The Ombudsman is expected to provide input to a draft of the government’s code of conduct which was prepared three years ago.

A new Public Service Commissioner with vast experience in the area of public service reform and development was appointed in July 2006. The Cook Islands thus expect the completion of the “legal institutional strengthening” project (see previous Cook Islands’ reports). This raft of legislation also includes provisions which provide for the transparent hiring of public officials by way of an independent National Appointments Committee.











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Cook Islands




The Cook Islands have taken various measures to review and oversee public expenditure. Parliament formed a Committee on Public Expenditure Review that has resumed operation since January 2006. The Committee reviewed the Ministry of Health and will being reviewing the Ministry of Education. The Remuneration Tribunal determined the remuneration of various Parliament officials, including that of the Prime Minister and the Speaker. The report is now in an Order-in-Council.

New members of the Public Expenditure Review Committee (PERC) focus on non-investigative responsibilities of PERC under the PERC Act, e.g. processes for managing public funds. The PERC may consider concentrating on these other responsibilities as opposed to investigations, given that complaints or allegations on the misuse of public funds are competently investigated by the Audit Office and the Ombudsman.



There has been ongoing reform of the state audit process with the objective of reducing the size of the public service.


Although the recommendations of the ADB/OECD procurement report have not yet been implemented by the Cook Islands, the Tender Committee has toughened procedures by ensuring that all Ministry of Finance and Economic Management instructions on tendering are strictly complied with. In the past, minor infractions were oftentimes excused.


In April 2006, a commission was set up to review whether the Ombudsman’s office should be abolished. The Committee came to the conclusion that the Office should not be abolished and recommended that the position of Ombudsman be advertised and that the office be monitored thereafter for 18 months. The Cabinet is now considering the proposal.

A new Ombudsman took office on 15 November 2006 after the position was publicly advertised for the first time in the Office’s history. The government had accepted the recommendations of the Ombudsman Committee, which was set up to consider the future of the Ombudsman’s office.

The Ombudsman faces many challenges to improve the Office’s profile, reputation, public confidence and credibility. Present initiatives include formulating the structure and parameters of the Office; studying the creation of Ombudsman offices in other Asia-Pacific jurisdictions; and submitting leadership codes of conduct to Cabinet for approval before tabling them in Parliament.





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Cook Islands





The Crown Law Office, the Audit Office and the Police of the Cook Islands prosecuted a former Minister of Police in November 2005.


The government has proposed new anti-money laundering legislation with increased sanctions.

Implementation of the Proceeds of Crime (POC) Act remains difficult mainly due to: a lack of understanding of the Act; a lack of experience and training; the need to change the traditional focus of seeking a conviction instead of forfeiture; failure of the police to advise prosecutors and administrators of the POC Act of cases in which proceeds could be confiscated.





• Training and resources New Zealand and other international partners have provided assistance in the form of forensic accounting.

Earlier this year, an independent committee headed by a former New Zealand Police Commissioner and comprising other New Zealand experts reviewed the police. Stakeholders expressed concerns over police performance. The Prime Minister’s Office received the committee’s report in October but has yet to release it. However, the Government has begun implementing the report’s recommendations relating to finance and budget management by recruiting a private accounting consultant who set up appropriate budget systems and trained finance personnel in the Ministry of Police.


The Cook Islands completed one extradition request to New Zealand. It received several mutual legal assistance requests, of which 4 are outstanding. The Cook Islands believe that there is a need to set up a process and training to speed up MLA request procedures.



• Corporate governance, internal company controls such as codes of conduct,



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Cook Islands

establishing channels of communication, whistleblower protection and staff training








• Public awareness campaigns An Official Information Bill has been drafted and is currently with the Prime Minister’s Office. After the review of the Official Information Bill has been finalized, the Ombudsman plans to raise awareness of the role of her office. The cost of the campaign has been budgeted.







An Official Information Bill has been drafted and is currently with the Prime Minister’s Office. The Ombudsman hopes the Bill will be passed in 2007.







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Cook Islands


OTHER


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Fiji Islands

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Fiji















A draft Leadership Code/Code of Conduct Bill has been completed and awaits consideration by the incoming government.

The Cabinet approved the Leadership Code/Code of Conduct Bill in November 2006. As a next step, the First Parliamentary Counsel and the Cabinet Sub-Committee on Legislation will scrutinize the bill before introducing it into the House of Representatives.









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Fiji



In November 2006, the Committee of Officials reported to Cabinet on anti-corruption laws and the establishment of the Anti-Corruption Authority. The Office of the First Parliamentary Counsel and the Cabinet Sub-Committee on legislation will scrutinize the proposals. Further steps will require the approval of the Attorney-General and the Minister of Justice.







Fiji is reviewing its Penal Code and Criminal Procedure Code, a project expected to be completed by end 2006.

The Fiji Law Reform Commission will soon complete the review of the Penal and Criminal Procedure Codes, which will result in proposals for the following new laws: Crimes Act; Criminal Procedure Act; Penalties and Sentencing Act; Police Powers Act; and Public Orders Act. The Commission will submit its report and recommendations to the Attorney-General and Minister for Justice by late December 2006 for final endorsement.

In early November 2006, the High Court sentenced a former Permanent Secretary of the Ministry of Agriculture, Fisheries and Forest to 4 years’ jail for abuse of office by mismanaging F$8 million of public funds.


In October 2005, Fiji hosted the annual APG Typologies Workshop. A World Bank assessment team on Anti-Money Laundering and Combating Terrorist Financing visited Fiji in February 2006. The team released its Report to the Government of Fiji in March 2006; the final report is expected to be available in July 2006.

The Attorney General issued the terms of reference to the Fiji Law Reform Commission for a holistic review of the Charitable Trust Act. NZAid is assessing and evaluating a project paper for the purpose of funding the review. The professional staff of the Fiji Law Reform Commission is conducting internal legal research on the project. A similar review is being conducted on the Religious

The review has not progressed further due to budget constraints. The Fiji Law Reform Commission has, however, completed a Discussion Paper which will be reviewed by an expert before it is circulated to stakeholders for further consultation.



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Fiji

Bodies Registration Act.










A bill to amend the Capital Markets Development Authority (CMDA) Act is intended to be tabled in Fiji’s new Parliament in November 2006 and is expected to be in force by January 2007. The bill will encompass extensive coverage and amendment to prohibited dealings including insider trading and market manipulation. It will give more powers to the CMDA to institute both civil and criminal offences. The bill is also expected to establish a principle of fostering a culture of good corporate governance and replace the present prescriptive laws and regulations.

The bill to amend the Capital Markets Development Authority (CMDA) Act has not been passed due to resource constraints within the office of the First Parliamentary Council.










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Fiji













OTHER

For financial reasons, Fiji has decided to put in place domestic administrative / legal measures in lieu of ratifying the UNCAC. To this end, Fiji has commenced implementing a Leadership Code and the Anti-Corruption Authority.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Hong Kong, China

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Hong Kong, China












To manage conflicts of interest, ICAC has assisted the civil service bureau to enhance respective guidelines. It has also commented on the review of the civil service concerning retirees who work in the private sector.

Service-wide guidelines on matters of conduct, such as declaration of investments by civil servants, acceptance of advantages and entertainment, and conflict of interest etc., are constantly reviewed to ensure that they remain clear and adequate.


The central guidelines require civil servants in designated posts, notably those at the upper echelons of the service, to regularly declare their private investments in and outside Hong Kong, China. In 2006, a review of the list of designated posts at the highest level was completed. A review of the central guidelines on declaration of investments by civil servants is in progress.


ICAC regularly reviews government procedures in areas such as law enforcement, government regulation and licensing. A total of 96 reviews on public sector systems and procedures were completed in 2005.

In the first nine months of 2006, 82 reviews on public sector systems and procedures were completed.

• Integrity Promotion for, training and supervision of officials viz. codes of conduct

The Independent Commission Against Corruption (ICAC) works with the Civil Service Bureau (CSB) and government departments to promote integrity management. Recent efforts include:

• New examples of acts of misconduct that staff are advised to avoid were uploaded to the electronic “Resource Centre on Civil Service Integrity Management” on the CSB intranet. The site provides a one-stop resource for reference materials on integrity management. More examples will be uploaded in 2006 and 2007.

• Outreach visits to departments are being conducted under a Civil Service Integrity Entrenchment Programme jointly launched by the CSB and ICAC to foster closer collaboration in promoting an ethical



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Hong Kong, China

culture in the civil service. As of August 2006, the outreach team has visited 34 departments. Two more visits to departments will be made in 2006/2007.

• CSB and ICAC are assisting the Works Branch of the Environment, Transport and Works Bureau to launch an enhanced integrity management program for the works group of departments, focusing on the risks in these departments’ contexts, so as to enhance staff awareness of corruption prevention and integrity issues.

• CSB is producing a booklet on the offence of misconduct in public office to enhance vigilance against the offence.

• A series of workshops on integrity management and core values in the Civil Service have been organized for staff on non-civil service contract terms as part of their induction program.

• In June 2005, ICAC and CSB jointly-organized a Leadership Forum for around 1,000 senior government officials; chairmen, CEOs and senior management of businesses and public bodies; heads of chambers of commerce, trade associations; and academics. The purpose was to examine ethical challenges to leaders and share views on building successes through ethical governance.

• Starting from July 2006, the Efficiency Unit and the CSB have jointly organized workshops and experience-sharing sessions for middle managers and frontline supervisors who are responsible for monitoring outsourced government non-works service contracts. The initiative focuses on measures in preventing and handling corruption and malpractice cases.


Public officials are required to immediately report to ICAC all instances of attempted bribery which they come across in their official or personal capacities. Breaches of this requirement may result in disciplinary action. In the first 9 months of 2006, 145 cases of suspected corruption were referred to ICAC by various government departments for investigation.







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Hong Kong, China



ICAC regularly reviews government procedures in areas such as public procurement, and public works.








In the first nine months of 2006, 33% of the corruption reports received concerned government departments and 7% related to public bodies. 28 public officials were charged and 101 public officials were recommended for disciplinary action.


Hong Kong, China is a member of the Typologies Working Group of the Asia/Pacific Group on Money Laundering (APG). The Working Group met in Paris in January and May 2006.


The Interception of Communications and Surveillance Ordinance was enacted in August 2006. ICAC has updated its procedures to ensure consistency with the legislation and the Code of Practice issued by the Secretary for Security.


The cases involving the private sector are generally rather complex and therefore there is a need for ICAC to further enhance its professional capability in areas such as forensic accounting.

In June 2006, ICAC established a Financial Investigation Section to augment and complement existing resources in the investigation of complex corruption-related financial frauds.



In the first 9 months of 2006, the Witness Protection and Firearms Section of ICAC’s Operations Department operated 10 Witness Protection Programs (WPP), some of which required 24-hour close protection measures. In June 2006, a barrister was convicted for attempting to disclose the identity of a participant in the WPP.

• Training and resources ICAC continues to send officers to courses and attachments with other agencies, including:



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Hong Kong, China

• The Metropolitan Police • Asset Recovery Agency • Royal Canadian Mounted Police

• Australian Federal Police • Hong Kong Police Force

In mid-2007, ICAC is moving its offices into a new building that is dedicated solely to the Commission.


ICAC held the third ICAC Symposium on Corporate Corruption, Integrity and Governance on 9-11 May 2006.

ICAC handled 29 and 72 incoming and outgoing requests for assistance in January-August 2006.




ICAC’s Advisory Service Group provides advice to private companies on promoting corporate governance and internal controls that safeguard against corruption and malpractice. Over 310 requests were received in the first 9 months of 2006. ICAC responded to all requests within two working days as pledged.

In the past year, ICAC and trade associations developed and promulgated two Best Practice Modules to help businesses in the hotel and tourism industries to establish sound management practices and control.

ICAC conducted a Business Ethics Promotion Program in 2004 and 2005. It visited over 700 listed companies to convince them to draft codes of conduct. Over 65% of companies listed in Hong Kong, China now have such codes. ICAC also spoke to over 35,000 employees in these companies about anti-corruption legislation and the need for ethical practices.

After the Business Ethics Promotion Program was concluded in 2005, ICAC continued to approach newly listed companies to provide maintenance services for supportive listed companies. So far, 66% have formulated/reviewed their staff codes of conduct and 27% have arranged talks by ICAC. Over 42,000 managerial and frontline staff of these companies have attended talks and educational activities on anti-bribery law and ethics management.



Pursuant to a July 2006 ordinance, Hong Kong, China is establishing the Financial Reporting Council (FRC) whose objective is to investigate auditors' irregularities and accounting non-compliances with respect to corporations and collective investment schemes listed in Hong Kong, China. This will upgrade the financial reporting framework of Hong Kong, China to international standards. The FRC is expected to begin operation in early 2007.




– 31 –

Hong Kong, China





ICAC has a regional office network to allow citizens to ask questions, make complaints and discuss corruption issues. The mass media is used to promote anti-corruption work.











The Hong Kong Ethics Development Centre (HKEDC) organized seminars in 2006 to assist new professional bodies (e.g. business valuation) to enhance their professional standards.

The HKEDC is developing a directors’ training module in collaboration with the relevant regulators and professional associations. A pilot forum in mid-2007 will aim to unite the stakeholders’ efforts to promote corporate governance through enhancement of ethical standards of company directors. Subsequent seminars/workshops will be held regularly.



OTHER


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Indonesia

– 32 –

Indonesia















Indonesia has drafted the Government Regulation concerning the Implementation of Internal Control System for Government Institution. The Regulation will oblige government officials to implement internal controls in daily operations.





It established the Government Regulations concerning Financial and Performance Report of Government Institutions. These Regulations are expected to enhance transparency by requiring government bodies to report decisions and resource allocations to supervisors and supervisory bodies.




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Indonesia




Indonesia plans to revise the Procurement Decree so as to provide e-procurement.

The Corruption Eradication Commission Indonesia (KPK) encourages the implementation of e-announcement as an initial phase of e-procurement in state/government institutions. This includes announcement of: procurement budget plan, pre-qualification and qualification, and winning bidders. As of mid-November 2006 10 central government/state institutions and 12 local governments are using the system through the national procurement Web site (www.pengadaannasional.depkominfo.go.id or www.pengadaannasional-bappenas.go.id).








Indonesia’s Corruption Eradication Commission (KPK) recently prosecuted high level officials and political persons, and searched the offices of one of the suspects.


During March-October 2006, the Money Laundering Unit of the Criminal Investigation Division of Indonesia National Police investigated 8 money laundering cases. 30 are under prosecution, 8 of which relate to corruption, 13 to bank fraud, and 9 standalone money laundering offences.

There have been 7 convictions for money laundering in Indonesia as of October 2006. Sentences were 6-8 years’ imprisonment and a total fine of Rp 500 million.






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Indonesia


Indonesia passed Law no. 13/2006 on Witness and Victim Protection. The law aims to encourage the public to denounce crimes by providing law and security protection to persons who report.

• Training and resources To build capacity in anti-corruption, the KPK and the Attorney General decided to share training and equipment facilities.












• Public awareness campaigns Indonesia has conducted publicity campaigns, including in schools, to raise public awareness of corruption.





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Indonesia





The budgets of most local governments and parliament are not publicized in Indonesia. However, the local parliament (DPRD) of Sumedang regency put up Local Budget Posters in strategic locations, includes the sub-district office (desa/kelurahan). The local parliament of Gorontalo City also recommended local governments to disseminate the approved local budget to government officials and society. From August-November 2006, KPK has promoted this idea in Aceh, West Java, and Bali province.






In August-November 2006, the KPK involved Indonesian Procurement Watch, an NGO, to raise awareness of anti-corruption in Aceh province. The campaign included explaining the pathology of corruption in procurement of public good and services. A Toolkit of Anti-Corruption was distributed to government officials in all regencies/cities of Aceh province.

OTHER

Indonesia ratified the UNCAC on 18 April 2006.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Japan

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Japan





















• Public procurement procedures and adequate simplified administration



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Japan

procedures








A revision to the Penal Code to sanction bribery of a Japanese official outside Japan is being submitted to the Diet.


Japan is submitting to the Diet a bill to revise the Law for Punishment of Organized Crimes, Control of Crime Proceeds and Other Matters.











• Transparent company



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Japan

accounting and auditing, and penalties for false accounting


















The Japan Overseas Enterprises Association held a seminar entitled “The Criteria of Bribes to Foreign Public Officials and Bribe Prevention from the Perspective of Corporate Social Responsibility”. The Director of the Foreign Ministry’s OECD Division described the OECD’s Phase 2bis examination of Japan and explained the government’s position and efforts to prevent bribery of foreign public officials.

OTHER

In June 2006, the Diet approved the ratification of the UNCAC. Legislation implementing the Convention is under consideration.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Kazakhstan

– 39 –

Kazakhstan






• Systems for compensation Kazakhstan has raised the salaries of public officials.


To reduce patronage and corruption, hiring and promotion within the civil service is now based on the professional skills of officials.






The Agency on Civil Service has developed a long-term program to strengthen governance. Government officials submit income statements annually and assume restrictions set by the Government.



Kazakhstan has adopted a Code of Honor for civil servants and the International Code of Conduct for Public Officials.









– 40 –

Kazakhstan



Kazakhstan has established the Financial Police Agency as a special body for fighting economic and corruption crimes. The Agency was recently given the status of a body that directly reports to the head of state.

On 14 April 2005, the President issued a “Decree on Measures to Strengthen the Fight against Corruption, Discipline and Order in the Performance of Government Bodies and Officials”. The decree creates Disciplinary Councils of the Agency of the Republic of Kazakhstan on Civil Service in all provinces (oblasts) and the cities of Astana and Almaty. The Councils aim to prevent corruption, develop proposals to strengthen discipline, and adjudicate allegations that civil servants have violated anti-corruption laws or the Code of Honor.



The second stage of the program for anti-corruption efforts for 2007-2010 was passed with the participation of the Republic, branch associations, NGOs and international organizations. Among its many objectives, it aims to create conditions to further improve the investment climate.





The punishment for corruption violations and crimes has been toughened.


The program for anti-corruption efforts for 2007-2010 stipulates the introduction of a system of anti-money laundering based on financial supervision and the creation of a uniform database. Information on suspicious financial transactions will be sent to law enforcement bodies.





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Kazakhstan





The second stage of the program for anti-corruption efforts for 2007-2010 gives particular attention to international cooperation, including: the exchange of information on business and individuals involved in corruption; the conclusion of agreements on MLA in criminal matters and extradition; and the training of law enforcement bodies.











Kazakhstan seeks to extend the dialog on corruption issues among government, political bodies, the business community and civil society by conducting various forums and roundtables.

• Public awareness campaigns The government attempts to involve the mass media in promoting anti-corruption. The planned activities will be financed by the state budget. It will involve representative bodies to develop similar programs to fighting corruption in the regions.




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Kazakhstan

• Education programs The government plans to increase involvement of non-governmental organizations in the implementation of anti-corruption education programs. The planned activities will be financed by the state budget.





The President of the Republic of Kazakhstan has created the Social Council on Mass Media to further improve interaction with mass media.




Increasing the activities of civil society in implementing anti-corruption policies is one of the objectives of the second stage of the program for anti-corruption efforts for 2007-2010.



OTHER

Kazakhstan is considering signing the UNCAC.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Korea

– 43 –

Korea












In November 2005, Korea revised the Public Service Ethics Act to introduce the Blind Trust System that aims to prevent conflicts of interest. The provisions apply to 5,800 officials, including the President, the Prime Minister, lawmakers and senior public officials. If these officials or their family members own shares worth more than KRW 30 million in a company that operates in their field of work, they must sell their shares or place them in blind trusts.











– 44 –

Korea





KICAC conducts an annual Integrity Survey to assess the level of integrity in more than 300 public organizations. The findings of the 2006 survey are expected to be published in mid-December.

KICAC is planning to extend the Integrity Pact Ombudsman system, which was introduced by the Seoul city government in July 2000, to public corporations.







The Korean government is drafting a bill on the confiscation and return of proceeds of corruption to implement the UNCAC.



The Korean government is drafting a bill on the confiscation and return of proceeds of corruption to implement the UNCAC.




The government will consider adopting special investigative techniques and advanced technologies for protecting victims and witnesses.





– 45 –

Korea






KICAC will set up a comprehensive plan for enhancing corporate accounting transparency by the end of 2006.















• Co-operative relationships The Korean government has supported the



– 46 –

Korea

with civil society groups implementation of K-PACT (Korean Pact on Anti-Corruption and Transparency) administratively and financially. Since May 2006, education and social welfare sectors and two metropolitan governments have signed the K-PACT.



OTHER

Korea has made efforts towards the ratification of the UNCAC. In February 2005, Korea created an interagency taskforce to expedite ratification. The government is now examining its domestic laws – particularly in the area of locating, confiscating and returning proceeds of corruption – with a view to amending or enacting relevant legislation in the near future.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Kyrgyz Republic

– 47 –

Kyrgyz Republic






• Systems for compensation Anti-corruption measures in customs and tax inspections have resulted in an increase to the pensions and salaries of certain categories of workers.

Government Resolution No. 552 of 3 December 2005 approved an Action Plan that envisages, among other things, reforming the civil service payment system in 2005-2006 to ensure more competitive salary levels that depend on the level of professionalism and qualifications. Proposals to reform civil service salaries in 2007 were submitted to the Prime Minister’s Office.


According to the data submitted by state bodies, 63.6% of the 1,878 persons who joined the civil service in 2005 did so without competition. During January-August 2006, the percentage of non-competitive recruitments decreased to 18.5% of 1,825 recruitments in total.

Addendums and amendments to the Civil Service Law and Regulations “On Competition for Filling a Vacant Administrative State Position within the Civil Service of the Kyrgyz Republic” relating to recruitment and promotion is pending approval by the President’s Office.


In May-October 2006, the observance of civil service recruitment legislation was monitored in five ministries/agencies. Recommendations were made to eliminate violations that were detected.


466 civil servants were rotated in the first half of 2006, of which 453 were rotated internally.

Draft Regulations “On Promotion of Civil Servants” and “On Rotation of Civil Servants Occupying Special Categories of State Positions of the Kyrgyz Republic” are being discussed.



Revised drafts of the Code “On Ethics of Civil Servants of the Kyrgyz Republic” and Regulations “On Civil Servants’ Ethics Commissions” were submitted to the President’s Office for review.


The new Law on “Amendments and Addendums to the Civil Service Law” adds persons occupying political and special state positions to a list of persons whose asset declarations are subject to publication in the media.

• Systems regulating contacts between government officials and business services users,

Independent research has shown that unofficial payments remain high in regulatory public bodies, health care and



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Kyrgyz Republic

particularly in corruption-prone areas

education. Causes of corruption include the large number of administrative barriers, lack of transparency in public funding and non-compliance with the law. Lack of funding and inexperience in developing legislation based on international best practices exacerbate the problem.


A training program for state-secretaries has been developed for 2006-2007. State secretaries are responsible for organizing a unified system of training and retraining for civil servants and ensuring civil servants observe professional ethics.







Internal audit standards for ministries and government agencies are being developed within the projects of the World Bank and DFID on structural adjustments in the public administration.



The National Agency of the Kyrgyz Republic for Preventing Corruption was created in October 2005. The decision to create this anti-corruption body was made after a feasibility study and the development of a set of documents by local and international experts to regulate the activity of the agency. The National Agency is responsible for developing and implementing measures to eliminate and prevent conditions that cause corruption. It coordinates monitors and evaluates the state’s anti-corruption policy, with an aim to create an atmosphere of intolerance against corruption in society.

The National Council for Combating Corruption was created at the same time as the National Agency. The Council is tasked with uniting the anti-corruption efforts of state and civil society institutions, and to exercise state and



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Kyrgyz Republic

public control over the National Agency. The President of the Kyrgyz Republic has appointed the Head of the Council. The members of the Council have been approved. They come from all branches of government and civil society; representatives of the civil society are in the majority on the council.



A draft Tax Code has been submitted to Parliament for review. The draft Code aims at simplifying business regulatory requirements.

Draft laws “On the Order of Conducting Audits in Business Structures” and “On Licensing” have been prepared.





The Kyrgyz Republic is bringing national legislation into conformity with the UNCAC:

• Special working groups have been created in the Office of the Public Prosecutor and the Ministry of Justice to prepare draft amendments and addendums to the Criminal and Criminal Procedure Codes.

• Parliament recently approved amendments to the Criminal Code. Accomplices in bribe giving or taking who voluntarily report the case to law enforcement agencies may be exempted from punishment.

Other legislative amendments being considered include transferring the power to impose punitive sanctions from prosecutors to judges.

The National Agency on Corruption Prevention has developed addendums and amendments to the Criminal Code. The aim is to bring the Code in line with the UNCAC. The draft Code will be submitted to Parliament soon.


In September 2005, the Kyrgyz Republic created the Financial Intelligence Service to strengthen the fight against money laundering and terrorist financing, to promote integrity and transparency in the financial system, and to curb the shadow economy.

The President created an Inter-Agency Commission on fighting terrorism financing and money laundering (Instruction no. 245 of 26 June 2006). The Commission aims to coordinate government ministries and agencies, improve enforcement and develop measures in these areas. The Financial Intelligence Service was designated as the executive body for the Commission and is responsible for organizing the work and meetings of the Commission.

Parliament is considering various amendments to the bill “On the Fight against Money Laundering and Financing Terrorism”; the bill’s first

On 31 July 2006, the President signed the Law “On the Fight against Financing Terrorism and Money Laundering”. The law creates a legal mechanism to fight terrorism financing and



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Kyrgyz Republic

reading took place in 2004. money laundering. It seeks to protect the integrity of the financial system from criminal infringements. The law came into force on 8 November 2006.



• Inter-agency co-operation Inter-agency cooperation is provided for under Government Resolution No. 132 of 28 February 2006 on the implementation of the Action Plan of the State Strategy on Fight against Corruption. The Action Plan calls for:

• An inter-agency working group to determine duplicate objectives and competencies among law enforcement bodies involved in anti-corruption.

• An inter-agency working group to harmonize Kyrgyz legislation with UNCAC.

• An inter-agency instruction that regulates accountability and control mechanisms that implement the Civil Service Law and the Law “On Declaration and Publishing of Information about Income, Liabilities and Property of Persons Occupying Political and Other Special State Posts as well as their Close Relatives”.

• An inter-agency working group to analyze the procedures and processes of state bodies, so as to determine corruption risks and develop solutions.

• An inter-agency normative document that regulates interactions between law enforcement and controlling bodies. Areas covered include the conduct of revisions and audits, allocation of specialists and information-sharing.

The National Agency on Corruption Prevention prepared a memorandum on interactions in preventing and fighting corruption. The Agency has signed the memorandum with several law enforcement and oversight agencies.


The Law “On Protection of Rights of Witnesses, Victims and Other Participants of Criminal Proceedings” was approved on 16 August 2006. The law introduces a system to protect witnesses, victims and other participants in criminal proceedings. The law provides security and social protection and specifies the basis for applying such measures.

• Training and resources The Kyrgyz Republic might receive financial support for its anti-corruption work amounting to USD 15million from the US-funded Millennium Challenge Account Program. Under this scheme, a Country Plan was developed which emphasizes anti-corruption in 2006-2007.



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Kyrgyz Republic

The Plan consists of three components: supremacy of law with an efficient judicial system; anti-corruption in law enforcement bodies; and increasing the effectiveness of criminal prosecution.

The budget of the National Agency of the Kyrgyz Republic for Preventing Corruption for 2006 has been approved, though the possibility of adding donor funding is being considered.














• Education programs In accordance with the National Strategy on the Fight against Corruption and its Action Plan, the National Agency on Corruption Prevention is developing training materials and education programs for schools and universities.



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Kyrgyz Republic




Legislation is being drafted to regulate the format and procedures of public policy, as directed by the President’s Decree as of 11 May 2006 “On Measures for Expansion, Normative Regulation and Practical Introduction of Interactions among State Bodies, Local Self-Governance Bodies and Civil Society of the Kyrgyz Republic”.


A revised Law “On Guarantees and Free Access to Information” has been submitted to the Parliament for review.




The Kyrgyz Parliamentarians against Corruption (KPAC), a public association, was created in late 2005 and is the Kyrgyz chapter of the Global Organization of Parliamentarians against Corruption (GOPAC). KPAC consists of ten deputies of Parliament who conducted a number of anti-corruption activities, such as a conference on anti-money laundering and anti-corruption training for deputies of local assemblies throughout the country.

The National Agency on Corruption Prevention developed a Memorandum on Cooperation with Civil Society on Fighting and Preventing Corruption. Representatives of mass media, NGOs and other public and civil society institutions have signed the Memorandum.

• Protection of whistleblowers The Law “On Protection of Rights of Witnesses, Victims and Other Participants of Criminal Proceedings” was approved on 16 August 2006.


The National Council for Combating Corruption was created at the same time as the National Agency. The Council is tasked with uniting the anti-corruption efforts of state and civil society institutions, and to exercise state and public control over the National Agency. The President of the Kyrgyz Republic has appointed the Head of the Council. The members of the Council have been approved. They come from all branches of government and civil society; representatives of the civil society are in the majority on the council.

Transparency International has been involved in:

• Researching and evaluating corruption risks in law enforcement, fiscal and judicial bodies, and public procurement;

• Developing a methodology to research, monitor and evaluate corruption in the Kyrgyz Republic, and implementing the methodology.

The Eurasia Foundation has monitored higher education institutions for corruption risks.

OTHER

The Kyrgyz Republic has ratified the UNCAC. It is also fighting corruption within the framework of the State Strategy for Combating Corruption in the Kyrgyz Republic for 2006-2007 approved by the government in February 2006.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Macao, China

– 53 –

Macao, China












To avoid conflicts of interest, the “Administrative Procedures Code” stipulates criteria for disqualification of an official from engaging in certain activities.




The Government has adopted the “General Regulations Governing the Staff of the Public Administration of Macao” which prescribes the general obligations of public servants.

The government has promoted the “Guidelines on the Professional Ethics and Conduct of Public Servants” and the “Recommendations on the Formulation of Code of Conduct for Public Services and Institutions”.

The CCAC continues to provide the public departments and institutions with free copies of the “Guidelines on the Professional Ethics and Conduct of Public Servants” and “Recommendations on the Formulation of Code of Conduct for Public Services and Institutions”.

The Commission Against Corruption (CCAC) plans to undertake measures to establish an integrity culture in public service by promoting internal codes of conduct.

The CCAC continues to promote the formulation of internal codes of conduct by public departments/institutions by providing technical assistance and recommendations. 49 of 55 public departments have formulated internal codes of conduct, including 15 small departments that have adopted the Commission’s “Guidelines on the Professional Ethics and Conduct of Public Servants”.

In October, the Commission organized a “Workshop of sharing experiences on integrity”. Over 240 department heads and senior management officers of public



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Macao, China

departments attended the workshop. Speakers from P.R. China, ICAC (Hong Kong, China) and the Macao, China government shared their experiences in building a culture of integrity in the public service, and in developing codes of conduct.








On the basis of the existing legal system, the “Guidelines for the Procurement and Acquisition of Public Goods and Services” provide practical suggestions on the operational procedures of public procurement to ensure fairness, transparency and efficiency.









The government has undertaken to implement the standards set by the law on “Prevention and Repression of Money Laundering”.

The government established the “Financial Information Office” (GIF) pursuant to an executive order published in August 2006. The major duties of the GIF are to:

• Pool, analyze and facilitate information related to money laundering and terrorist



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Macao, China

financing; • Inform the Public Prosecution of suspected

money laundering and terrorist financing operations;

• Support the activities of the police and judiciary in preventing and fighting money laundering and terrorist financing;

• Provide entities outside Macao, China with information on money laundering and terrorist financing, based on international or regional agreements;

• Launch campaigns to raise public awareness of money laundering and terrorist financing.

The Chief Executive has appointed the department head of the GIF. The Office is expected to begin operations by the end of 2006.

In 2006, the Monetary Authority of Macao promulgated “Indicators of Suspicious Transactions of Money Laundering in Insurance and Specific Cases and Examples of Money Laundering Involving Insurance”. It also updated the “Guidelines on Prevention and Combating of Money Laundering and Financing of Terrorism in Insurance”.







In July, the government passed the law on “Mutual Judicial Assistance in Criminal Matters”. The law provides the legal basis for international judicial cooperation in criminal matters between Macao, China and other countries. It also specifies the forms of cooperation available.







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Macao, China









• Education programs Macao, China has regularly launched education and promotion programs to gain the support and participation of all sectors of society, including the general public, community-based organizations, civil servants and students of primary, secondary schools and universities. The CCAC plans to undertake measures to develop teenagers’ sense of antipathy to corruption.

The CCAC has launched the following programs to instill anti-corruption values to teenagers:

• Renewing the “New Generation of Integrity” education program by introducing new topics like “clean election” ,“responsibility” and “views on money”, in order to help students build a positive value system;

• Supplementing the “Honesty and Integrity” textbooks and teaching kit with story cardboard designed to assist primary school teachers in ethics education;

• Organizing “Integrity Week” for secondary school students. Over 2,600 students attended the activities in Sept./Oct. 2006;

• Organizing a two-day camping activity called “Joint Efforts to Build Integrity”. During the activity, an investigator of the CCAC shared his experiences in fighting corruption;

• Co-organizing a calligraphy contest with civil associations that uses integrity as the theme. About 2,400 students participated.

The CCAC has organized the following activities to enhance public awareness of integrity:

• 65 seminars for approximately 3,300 public servants on anti-corruption, declaration of property and incomes, public procurement and public servants’ codes of conducts;

• 37 seminars for approximately 1,400 members of various civil associations on topics such as anti-corruption and the Ombudsman;

• 31 seminars on enhancing integrity awareness for more than 1,900 employees of gaming enterprises, public utilities and banks.



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Macao, China










OTHER

P.R. China has declared that the UNCAC applies to Macao, China. The Macao, China government has undertaken to implement the standards set by the UNCAC.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Malaysia

– 58 –

Malaysia



















The Department of Local Government established an Inspection and Monitoring Division to ensure the government’s funds allocated to local councils are used appropriately.





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Malaysia



The Parliament of Malaysia established the Special Select Committee on Integrity on 8 December 2005. The Committee consists of 12 members from both the ruling and opposition parties and is headed by a Minister. The purpose of the Committee is to examine and discuss issues on ethics and integrity among the public; plan and implement an integrity action plan so as to achieve the five targets of the National Integrity Plan (NIP); recommend improvements to the NIP implementation programs; study and examine existing laws and regulations to strengthen values, ethics and integrity, and to discuss the views and recommendation of the public; submit proposals to Parliament on policy changes, and legislative reviews and amendments; and examine and implement the strategies and integrity agenda outlined in the NIP. Since its inception in early 2006, the Committee met the public four times to receive complaints and to obtain views on ethics and integrity issues.


• Simplification of the regulatory environment

On 15 March 2006, the government approved a one-stop center in the Port Klang Free Trade Zone to process applications from investors. The Department of Local Government has also created a one-stop center to process applications for incorporation, so as to reduce red tape and opportunities for corruption.

In Malaysia, new buildings in municipal areas must receive certificates of fitness (CFs) before occupancy. This has traditionally caused delay. The Ministry of Housing has proposed replacing the CFs with Certificates of Completion and Compliance in 2007. The new certificates will be issued by the private sector.





The Attorney-General’s Chambers have prepared a bill to outlaw corrupt practices involving foreign public officials and officials of international organizations.

Malaysia expects to table a bill to Parliament in March 2007 that will:

• Implement article 16 of the UNCAC (bribery of foreign public officials and officials of international organizations). by adding the offence to the Anti-corruption Act. Malaysia believes that this is the only article of the UNCAC that remains unimplemented;

• Expand whistleblower protection; and



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Malaysia

• Allow attendance of proceedings via videolink






Malaysia is taking legislative measures to ensure that it will meet the standards in the UNCAC upon ratification of the Convention. One of the remaining reforms is a law on witness protection that has been drafted by the Attorney-General’s Chambers. The bill is expected to be tabled in Parliament in June 2006.

• Training and resources The Malaysia Anti-corruption Academy commenced operations in December 2005:

• On 15-20 January 2006, in conjunction with the Crown Agents, a UK-based international development company, the Academy conducted a course on Intelligence-Based Investigations that was attended by 26 local and foreign participants.

• On 28-30 March 2006, the Academy hosted the ADB/OECD Initiative’s 4th Master Training Seminar on: Denying Safe Haven to Corruption and Its Assets: Enhancing Asia-Pacific Cooperation on Mutual Legal Assistance, Extradition and the Recovery and Return of the Proceeds on Corruption.

• On 30-31 May 2006, the Academy and the American Bar Association/Asia Law Initiative will organize a seminar on Combating Corruption in Criminal Justice Systems for 40 local and foreign participants.

• The second phase of the construction of the Academy will continue during the 9th Malaysia Plan with a budget of MYR 80 million (USD 21 million). This will include the construction of accommodation for participants, staff quarters, an auditorium and a multi-purpose hall.




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Malaysia




The Companies Commission of Malaysia introduced the Corporate Directors Training Program in 2005. Conducted at its own training center, the Program promotes good ethics among company directors and consists of modules in six areas: the roles and responsibilities of company directors; law and practices for company meetings; common offences committed by directors; commercial crime; corruption offences and their prevention; and understanding and applying good corporate governance.








On 10 March 2006, the Police Complaint Bureau launched the Public Polling System as proposed by the Prime Minister. The initiative aims to provide the public with an opportunity to voice their opinions and suggestions on government projects.

The Ministry of Finance has allocated almost MYR 900,000 (USD 236,000) to the Anti-Corruption Agency for a corruption perception survey to be undertaken in 2006. This is in accordance with the government’s directive to conduct such nationwide surveys every five years. Researchers from the National University of Malaysia have been appointed to conduct the survey. The survey will sample 8,000 respondents in the public and private sectors, agencies exposed to anti-corruption campaigns, members of the public and students. A concept paper has been presented to the Chief Secretary of the government. A pilot study to test the survey will be carried out in June 2006. The actual survey is expected to be completed in August 2006.

The government expects to complete the corruption perception survey by May 2007 and produce a report by July 2007. The survey will:

• Measure public perception of corruption • Measure public involvement in fighting

corruption • Develop benchmarks for corruption

The survey will cover corruption in both the public and private sectors.



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Malaysia

• Public awareness campaigns On 26 October 2005, the Royal Malaysian Police Force launched a nationwide anti-corruption campaign in which the Inspector-General of the Police directed all police personnel (except undercover officers) to wear a badge that states “I am against corruption”. Anti-corruption posters were printed and distributed to all state police headquarters, districts and police stations. Police vehicles and petrol cars also carried stickers with the same message.












OTHER

At the Prime Minister’s direction, a Monitoring Committee was set up in April 2006 to ensure effective implementation of the 9th Malaysian Development Plan 2006-2010.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Mongolia

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Mongolia












Parliament recently rejected proposed amendments to the Law on Public Service that would have prohibited civil servants from being a member of a political party.


The new Law on Anti-Corruption was adopted by the Parliament in July 2006 and entered into force in November 2006. The Law obliges public servants to declare their assets on a regular basis.



The public service oath requires public servants to refrain from corrupt practices.

The new Law on Anti-Corruption obliges public organizations to maintain codes of conduct.


The new Law on Anti-Corruption promotes reporting by officials and provides certain protection.





• Auditing of the public administration and the public

A regulatory and practice reform on internal auditing is in progress. It is supported by ADB



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Mongolia

sector and the Ministry of Finance.


Mongolia has ratified the UNCAC in November 2005 and is now amending its laws to meet the requirements and standards of the Convention. The process will likely concern the Law on Procurement; a new Law on Procurement has been in force since February 2006.


In its spring session, Parliament will discuss amendments to the Law on Anti-corruption that is expected to create an anti-corruption body.

An independent Anti-Corruption body will be created under the new Law on Anti-Corruption.


Recent changes to the Election Law limit the financing of political parties and ensure transparency of a candidate’s bank account.






Mongolia has ratified the UNCAC in November 2005 and is now amending its laws to meet the requirements and standards of the Convention. The process will likely concern the Criminal Law and the Criminal Procedure Law.

Changes to the Criminal Law and the Criminal Procedure Law will be discussed by the Parliament in autumn 2006.


In its spring session, Parliament will discuss the Anti-money Laundering Law.

The Anti-Money Laundering and Terrorist financing Law came into force in July 2006.


The new Law on Anti-Corruption defines rules for investigation of bribery that are in line with the Criminal Procedure Code.


The Law on Anti-money Laundering and Terrorist Financing enables authorities to access bank and commercial records.







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Mongolia




The new Law on Anti-Corruption obliges corporate organizations to maintain codes of conduct.










The new Law on Anti-Corruption establishes a public council within the Anti-corruption Agency to monitor the Agency.





The new Law on Anti-Corruption requires justice and other governmental agencies to disclose and combat corruption.


A draft Law on Freedom of Information is being discussed in the Parliament.



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Mongolia






The new Law on Anti-Corruption establishes a public council within the Anti-corruption Agency to monitor the Agency.

OTHER


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Nepal

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Nepal













All officers of the Nepal Civil Service must disclose their personal assets within the first 60 days of each fiscal year. The National Vigilance Centre monitors the assets.


Nepal has formulated and implemented departmental working procedures.


Nepal has produced working guidelines for departments and created the National Vigilance Centre to monitor the operation of the guidelines. The Citizens’ Charter is given wide publicity.







Since September 2005, continuous efforts have been made in the area of corruption prevention, including technical audits of major projects.



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The Public Procurement Act was passed in September 2005. Nepal has created Procurement Offices at different levels. Penalties are imposed for wrongdoers. The Act also emphasizes transparent and competitive procurement.


The Supreme Court dismantled the Royal Commission for Corruption Control that operated in parallel to the Commission for the Investigation of Abuse of Authority (CIAA).



Nepal expects to improve the regulatory regime in the context of UNCAC.







To ensure effective investigation of corruption cases, Nepal has prepared checklists and guidelines for investigations of varying nature.


• Inter-agency co-operation To improve the effectiveness of prosecutions, the CIAA has increased interaction with courts, government attorneys and other stakeholders.

There is interaction with the Secretaries of all Ministries to enhance cooperation and coordination in controlling corruption.


• Training and resources Training was provided to officers from districts, regional, and national Vigilance Centers and special courts.

CIAA has established a training section, produced basic and advanced training modules and organized training on investigation techniques.

In addition to an Intelligence Unit at the CIAA, it has established special groups to investigate corruption-prone areas. CIAA field officials have been appointed at the regional and district levels.



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Nepal

The CIAA provided training and support services for prosecutors and monitored the performance of attorneys in court. Prosecution manuals are being prepared.

The CIAA has now moved into its 75,000 square foot secure building that is equipped with conference and training facilities, separate interrogation and detention rooms and a 25,000 square foot residence and guest house.

The construction of CIAA's new building was completed. The Prime Minister inaugurated the building on 12 October 2006. amid a grand ceremony. CIAA has moved its offices to the new premises.

The CIAA has signed a MoU with the National Planning Commission for assistance from the World Bank for economic reforms for the next three years. Support areas include consultant services on legal, financial, media and management information system (MIS) issues; training; and the establishment of MIS.

Nepal expects to undertake the following training and capacity-building activities: training in various fields of activities; strengthening the CIAA’s MIS; establishing a capable intelligence section; and providing institutional and logistical support.





The Nepalese business community has formulated a code of conduct. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has produced a film related to anti-corruption and business ethics.






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Nepal





Nepal has installed complaint boxes at public places and offices.

Nepal expects to undertake several activities to encourage public discussion of corruption, including conducting research and soliciting feedback; and establishing outreach offices

CIAA signed a Memorandum of Understanding in a USAID project to assess the effectiveness of CIAA in curbing corruption in Nepal.

• Public awareness campaigns Nepal produces various publications, which included special court verdicts on six major corruption cases.

CIAA has produced and distributed calendars, posters and pamphlets with anti-corruption messages.

Short films with anti-corruption messages were produced and shown in theatres and cinemas throughout the country.

Folk songs with anti-corruption message were produced by engaging well-known artists.


Transparency International Nepal has organized various talks with anti-corruption themes.

Pro-Public, an NGO, has formed the Good Governance Club in around 50 districts with 50,000 members to empower the community in governance, anti-corruption and human right issues.

TI Nepal, Pro-Public, and Re-MAC organized workshops to highlight the need to ratify the UNCAC. Ministers, Members of Parliament, high level officials, and representatives of civil society participated.

SWATI, a women's organization in the area of good governance and anti-corruption, has organized talks in colleges. Co-Act organized a song competition among women groups during Teej, the Hindu women's festival, so as to raise awareness against corruption.

• Education programs CIAA has recommended adding Anti-corruption courses to the syllabi of schools and colleges.

CIAA commissioners and staff conduct frequent field visits.

CIAA has organized essay and speech competition among college students and provided awards to the best journalists on corruption issues.

CIAA has organized training workshops in different districts to disseminate anti-corruption training for 300 field-level government officers and 500 business persons.



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Nepal





Access to information has been improved with a new MIS system for the CIAA and the hiring of an MIS specialist.

Nepal has updated the Web sites of its ministries and departments.

Nepal has improved access to information by sensitizing the media and holding periodic press conferences, particularly when special issues emerge. It has launched a webpage that is periodically updated with charge sheets of major corruption cases. It has produced a weekly radio program on corruption.




A society of investigative journalists has been established. There are training programs for investigative journalism.

Nepal expects to undertake several activities, including forming an alliance with the media and working with civil society.



Nepal has operated outreach programs and formed anti-corruption coordination committees at the district level with the assistance of NGOs.

Nepal encourages civil society groups to monitor public sector programs and activities. It organized regional seminars to enhance participation and launched an anti-corruption action plan of civil society organization. Women organizations have been formed for anti-corruption activities. Anti-corruption coordination committees have been established at field level with the leadership of NGOs. The CIAA also has outreach programs at the district level.

OTHER

The House of the Representatives recently passed a resolution directing the government to ratify UNCAC.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Pakistan

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Pakistan














The Islamabad Capital Territory traffic Police has been revamped following the experiment of the motorway police.

The administrative system and the local government system are both being reformed.

The Central Board of Revenue has established Self Assessment systems for filing income tax returns and an automated customs clearance system.


A draft code of conduct for politicians and parliamentarians that includes penal measures has been prepared. Rules of Business for the civil service have been reviewed to make it more result oriented.

The Establishment Division of the Civil Services Reform Unit is pursuing a professional development program to improve the capacity of civil servants and the functioning of the Federal Public Service Commission. The World Bank is assisting the program.

The newly constituted National Commission for Government Reforms is pursuing a civil services reform program.

Pakistan will prepare a good governance and anti-corruption handbook for civil servants, and review the Government Servants Conduct Rules that had been

The good governance and anti-corruption handbook for civil servants has been prepared and posted on the official government Web site.



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Pakistan

last revised in 1964.

• Promoting reporting by officials of corruption and whistle blowing protection

A law on whistleblower protection is being drafted and will be forwarded to the Government for enactment.




Pakistan has taken steps to prevent corruption in the reconstruction activities in earthquake-devastated areas. The Auditor General of Pakistan has formed a dedicated directorate to enhance fiscal propriety in relief efforts.


The State Bank of Pakistan has prepared a draft Banking Act 2006 to further strengthen regulation of financial institutions. The draft is available at www.sbp.org.pk



The National Accountability Bureau (NAB) and the Public Procurement Regulatory Authority are reviewing the procurement regime. Integrity pacts have been introduced into defense procurements. The provinces have been encouraged to adopt the federal Public Procurement Rules 2004. Pakistan will continue with reform activities in procurement.

NAB is encouraging the provincial Governments to adopt the Procurement Rules as early as possible. The Governments of Sindh and Balochistan Provinces have already initiated the process.


The NAB has been restructured to make it more focused and result-oriented. Emphasis was placed in the areas of organization, operational methodology, decentralization, job descriptions etc.

The Project for Financial Information and Reporting (PIFRA) is meant to enhance the efficiency of the Auditor General of Pakistan and the Controller General of Accounts. The project is being implemented with the financial and technical assistance of the World Bank.









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Pakistan


The Pakistani cabinet has approved an anti-money laundering bill which is now being studied by the Standing Committee of the National Assembly. The draft law criminalizes money laundering and creates an institutional infrastructure for monitoring and tracking suspicious transactions.

The anti-money laundering bill is still under the review of the Standing Committee of the National Assembly.


Pakistan has emphasized enforcement in its anti-corruption efforts. This resulted in bureaucrats remonstrating to the Prime Minister that their decision-making has been hindered, and a solution is being devised.




• Training and resources Pakistan will upgrade the NAB’s information management system.


The NAB and the Pakistan chapter of Transparency International held an international conference on “Transparent Utilization of Earthquake Rehabilitation and Reconstruction Funds”. Stakeholders who attended the conference suggested some very valuable measures for implementation by NGOs and the public and private sectors.



• Corporate governance, internal company controls such as codes of conduct, establishing channels of communication, whistle blowing protection and staff training






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Pakistan





• Public awareness campaigns Pakistan has increased its awareness-raising activities by targeting the young through art, essay and declamation contests. Awareness-raising activities on public governance have been stepped up since the ethics retreat of the federal cabinet organized by the National Accountability Bureau last year.

Pakistan hopes to further enhance the scope of anti-corruption awareness-raising and prevention activities in general. It will increase interaction with various sectors, such as health, education and housing, so as to improve the quality of life in Pakistan.

The creation of a full-fledged Awareness and Prevention (A&P) Division has been envisaged as an outcome of NAB’s reorganization. The present A&P structure is being strengthened gradually.










• Protection of whistleblowers Legislation is being contemplated.


OTHER

Ratification of the UNCAC is in progress.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Palau

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Palau








To curb patronage, nepotism and favoritism in the hiring and promotion of employees, the Congress will likely pass new laws to provide more independence in the administration of the public service system. The government hopes to establish a Civil Service Commission that will (1) review hiring decisions for elements of nepotism, favoritism or political patronage and (2) review existing jobs to eliminate phantom jobs created as a result of political patronage or nepotism.

The Congress discussed the issue and decided to assign the matter to a committee for further review. It ordered the committee to provide a more comprehensive report and recommendations on whether to re-instate a civil service commission or to continue with the current Public Service System. There is indication that the Congress understands and supports measures to prevent potential corruption schemes in the public service system.















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Palau



Palau hopes to raise awareness of corruption by amending the Public Auditing Act to provide copies of the annual report of the Public Auditor to local media and relevant NGOs.

The Office of the Public Auditor provides copies of its audit reports to the local media. The reports have been published on numerous occasions. It is hoped that this publicity will raise awareness of corruption.


Palau plans to increase transparency in the procurement process. Procurement Officers will work with Congress to address deficiencies in the Procurement Act and to simplify procedures and guidelines for the procurement process. The Procurement Officers will initiate awareness programs to ensure all agencies comply with procurement rules and regulations.

Congress is discussing possible amendments to the Procurement Law, including debarment proceedings for dishonest vendors and inclusion of major procurement specifications in Requests for Proposals (which will be used as criteria for evaluating proposals).

The partnership between the Office of the Public Auditor and Chamber of Commerce will focus on corruption in procurement.









Palau hopes to pass new anti-money laundering (AML) legislation. The Asia Pacific Group on Money Laundering (APG) found the Financial Institutions Act of 2001 and the Anti-Money Laundering and Proceeds of Crime Act of 2001 (AMLPCA) to be non-compliant with the 40 Recommendations and the 8 Special Recommendations of the Financial Action Task Force (FATF). To address these shortcomings and the FATF’s new Special Recommendation 9, Palau has drafted revisions to the AMLPCA. Additionally, the government drafted a Cash Courier Disclosure Act (CCDA) to curb corruption and money laundering through cross-border cash movement. Enactment of the legislation has experienced significant difficulty. The Senate finally passed the CCDA and the AMLPCA after one and two years

Plans to educate the National Congress and to conduct an awareness campaign have progressed. The FIU, Financial Institutions Commission (FIC) and the Australian AMLAT team have planned a joint three-day public awareness campaign in December 2006 on these issues. This campaign will include meetings between AMLAT and the National Congress on the importance of a robust regime for anti-money laundering / combating the financing of terrorism (AML/CFT) and such a regime’s positive effects on corruption. It will also include meetings with officials of the Executive Branch to improve coordination in AML/CFT and anti-corruption efforts. The campaign will be capped off with a half-day seminar for the judiciary, the local bar and local financial institutions on financial crimes, red flag indicators for financial institutions and professionals, and the use of AML systems to deter corruption.



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Palau

respectively. Furthermore, it appears that the legislation may again face similar problems in the House of Delegates. The government therefore plans to educate the National Congress on the importance of these laws in the global fight against corruption. The government will also seek assistance from international organizations in this regard.


Palau is considering legislative changes to abolish the special prosecutor’s office.






On 22-26 October 2006, Palau attended the First Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities in Beijing, P.R. China. The conference focused on the implementation of UNCAC.













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Palau













The Office of the Public Auditor, the Office of the Attorney General, Government Procurement Officers and the Public Service System plan to partner local NGOs (i.e. Palau Chamber of Commerce) to educate them on Government Procurement Rules and Regulations, Code of Ethics Act, Civil Service System and other policies that deal with corruption issues. To this end, Palau will need technical assistance from ADB/OECD or other member countries that have implemented similar programs. Palau also needs financial assistance as start-up capital to set up the system and to implement the first program initiative.

The Office of the Public Auditor has initiated discussions with the Palau Chamber of Commerce to devise a working partnership for curbing corruption. The partnership will lead off this initiative by first addressing and combating issues in government procurement. Palau will request technical assistance to develop guidelines for operating and directing this initiative. Thereafter, the partnership will consider inviting other NGOs to deal with other corruption issues that affect the government’s operation.

OTHER

Palau expects to sign the UNCAC in December 2006.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Papua New Guinea

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Papua New Guinea






• Systems for compensation Under the 2007 National Budget that is pending Parliament’s approval, public servants at lower wage levels will pay less tax. Employees in the law and justice sector will receive a greater tax cut than those in other sectors.









In May 2006, the national government approved and directed the development of a National Anti-corruption and Governance Improvement Program.

The on-going public sector reform now focuses on the capacities of provincial and local governments. The efforts focus on agencies that are considered vulnerable to corruption.





The government has set up two Commissions of Inquiry. One will look at the operation and accounts of the Finance and Treasury



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Papua New Guinea

Departments. The other will investigate the accounts of the Investment Cooperation Fund.



A bill to give the Public Accounts Committee more power to refer cases for prosecution was in its first reading.



A Parliamentary Committee is expected to examine proposals to create an anti-corruption agency.

The Director of the National Anti-corruption Alliance (NACA) has been appointed. Some funding was secured through the Law and Justice Program. In 2007, it will receive an allocation from the government’s budget.







NACA is investigating a number of serious corruption allegations. It is currently engaged in the Southern Highlands province.


The new Proceeds of Crime legislation came into force in March 2006. Four constables have been sent for training in the area.


In February 2006, a law was enacted to reduce the discretion of the Attorney General and the Solicitor General to settle cases; this law requires the approval of the Ministry of Finance or Treasury for such decisions.

Parliament amended the Organic Law on the Ombudsman Commission to require the Commission to follow stricter rules of evidence when conducting an investigation under the Leadership Code.





• International cooperation including exchange of information and evidence,



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Papua New Guinea

extradition, and search, seizure, forfeiture and repatriation of assets











• Public awareness campaigns Papua New Guinea is conducting an ongoing campaign of Public Awareness and Education on Corruption, with support from the Media Council, Chamber of Business, Transparency International and churches. The program hopes to have a positive impact on corruption during the general elections in July 2007.








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Papua New Guinea







Cabinet is considering an Initiative for Partnership with Civil Society.

OTHER

Papua New Guinea hopes to hold a seminar on the United Nations Convention against Corruption to reduce the lack of understanding of the Convention that is currently preventing its ratification.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Philippines

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Philippines






• Systems for compensation The Civil Service Commission (CSC), in coordination with the Department of Budget Management, is leading the implementation of the Compensation and Total Rewards Management Project to review the government’s compensation system. The new system will feature more performance-based incentives by drawing a clear line between longevity and merit increases.








The Ombudsman (OMB), the European Commission and the Development Academy of the Philippines (DAP) are partners in the Institutionalization of the Integrity Development Review (IDR) which covers the Bureau of Customs, Bureau of Internal Revenue, Department of Public Works and Highways, Land Transportation Office and Philippine National Police. The IDR identifies areas vulnerable to corruption and determines whether safeguards are present.

The Integrity Development Review (IDR) Project was completed in August 2006. The IDR recommended conducting corruption resistance reviews and corruption vulnerability assessments. Integrity Development Committees are establishing the Bureau of Customs, Bureau of Internal Revenue, Department of Public Works and Highways, Land Transportation Office and Philippine National Police to monitor the implementation of the IDR’s recommendations.

The OMB intends to carry out integrity development reviews of 11 additional executive agencies by next year.



The OMB has prescribed rules on internal whistleblowing and reporting.



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Philippines




115 government entities (36% of the relevant entities) have installed the Electronic-New Government Accounting System. 63 others (19%) are installing the System. The System is expected to be implemented nationwide by 2008.



The Commission on Audit is implementing a risk-based audit to determine weaknesses in risk management processes and internal controls. The audit will focus on weaknesses that have high impact, are likely to occur, and will likely result in misstatements in financial statements and reports.


The Government Procurement Reform Act 2003 has resulted in a simplification of the procurement process; establishment of an electronic procurement system and non-discretionary selection criteria; observance of bidding processes by civil society organizations; presence of clearly defined protest mechanisms; and the availability of sanctions for law enforcement. The Government Procurement Policy Board instituted a national training program which covered 16% of national government agencies and 83% of Local Government Units (LGU). There are also customized manuals in nine agencies that account for 60-70% of government procurement.

With the support of The Asia Foundation and USAID, there are now operational guidelines for the Bids and Awards Committee (BAC) to provide feedback to the OMB and the Resident Ombudsmen. The mechanism will enable the OMB to fix procurement practices of agencies in accordance with the law and/or file appropriate charges against officials for procurement fraud.

There is also a mechanism for third parties to observe the government’s priority procurements.

Capacity building/training and information dissemination are underway.






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The Philippines has filed 50 “big fish” cases before the Sandiganbayan, including cases against military officers. The conviction rate at the Sandiganbayan for cases that went to trial rose from 13% in 2003 to 34% in 2005. Convicted officials in 2005 include a former health secretary, a governor, 11 mayors and directors of national offices. Administrative penalties for high-ranking officials in 2005 include 19 dismissals and 31 suspensions from office. Despite repeated challenges, the Supreme Court has upheld the OMB’s power to impose administrative sanctions.

From 10 May to 8 September 2006, the Philippines filed 98 cases against high ranking government officials in the Sandiganbayan. The majority of these cases involve bribery and malversation of public funds.

Officials who have been convicted in 2006 include: 3 mayors, a provincial prosecutor, an assistant city prosecutor, a commander of the National Police Commission, and directors of national offices.

Administrative penalties for high-ranking officials in 2006 include:

• Dismissal of 74 officials, including a customs deputy commissioner, a revenue officer, mayors, employees and special prosecutors of the Ombudsman’s Office, and the heads of the following bodies: book development authority, lung center, Office of Muslim Affairs, Philpost and Zamboanga state university

• 24 suspensions, including the Cebu port general manager, a mayor and the Director of the Department of Agrarian Regional Reform

The Department of Finance has created the Revenue Integrity Protection Service and filed nine Run After Tax Evaders cases with the OMB. The Run After The Smugglers program of the Bureau of Customs has resulted in the indictment of a major general in the Armed Forces for tax evasion.

In 2006, the Department of Finance Revenue Integrity Protection Service has filed 14 cases with the OMB.

The Philippines has pending legislation to improve anti-corruption law enforcement, including the forfeiture of assets to the OMB and the criminalization of ill-gotten wealth.

The legislation remains pending.


The OMB participated in and submitted a written contribution to the Informal Seminar on the Return of Illicit Assets of Politically Exposed Persons (PEP) in Lausanne, Switzerland on 1-3 October 2006. Experts from justice, finance, and foreign ministries of different countries conducted brainstorming sessions on issues including prevention, search, seizure and restitution of illicit assets of PEPs.


The Philippines has pending legislation to improve anti-corruption law enforcement, including requiring private lawyers to assist in corruption prosecution.




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Philippines


The Philippines has pending legislation to improve anti-corruption law enforcement, including the provision of access to bank documents for financial investigations.


• Inter-agency co-operation The OMB and the Department of Education (DepEd) have signed a Memorandum of Agreement to cooperate in investigating corruption involving DepEd officers. The OMB has created the Sama-samang Paglaban sa Katiwalian (SAPAK) para sa Kabataan, a task force that will investigate such complaints and file charges if there is sufficient evidence.

With USAID’s support, the OMB, Anti-Money Laundering Council, Bureau of Internal Revenue, Department of Justice and Office of the Solicitor General discussed options for joint investigations to recover proceeds of corruption using anti-money laundering and tax evasion laws.


The Philippines has pending legislation to improve anti-corruption law enforcement, including protecting and rewarding whistleblowers.


• Training and resources The Philippines made an unprecedented increase in the budget of the OMB. The 2006 budget includes PHP 936 million (approximately USD 17.5million) and 2,341 staff, an increase from PHP 480 million (USD 9million) and 1,088 staff in 2003. Various training programs have been designed to train the new staff.

The House of Representatives increased the OMB’s proposed budget for 2007 from Php 974 million to Php 1.524 billion. The Senate’s Finance Committee will hear the proposal by early November.

To accomplish legislative reform, the Philippines received donor assistance from ADB, UNDP, USAID/ROLE, World Bank, the European Commission, the Philippines-Australia Human Resource Development Facility (PAHRDF), USAID through the Asia Foundation (USAID/TAF), Japan International Cooperation Agency (JICA) and the British Embassy.

There is pending legislation to strengthen the fiscal autonomy of the OMB by exempting the Office from the Salary Standardization Law.

The OMB launched the following anti-corruption resources with USAID’s support:

• The Ombudsman Legal Resource for Public Accountability, a digital database of anti-corruption laws, jurisprudence and legal analyses with research functions.

• The CD Lecture Series on Prosecuting Corruption - training materials for new investigators and prosecutors on bribery, malversation, contracts disadvantageous to government, and causing undue injury to government.

The World Bank is supporting the development of case flow management software for the Office of the Special Prosecutor and the development of a database



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Philippines

of the statements of assets and liabilities. The Bank has also supported an Advanced Field Investigator’s Course.

The OMB was granted Millennium Challenge Account Funding for the following activities:

• Expanding the OMB training program for new hires and providing advanced courses for present employees;

• Improving information management by connecting the six existing OMB offices to local area and wide area networks;

• Providing training and acquiring equipment for investigation and surveillance;

• Training teachers to provide an anti-corruption module in public school curriculums;

• Establishing a mediation system to unclog the investigation-prosecution process.

The Japan International Cooperation Agency granted scholarships (such as masters degrees) in public administration to select employees of the OMB.

With USAID-ROLE funding, select OMB employees took a post graduate certificate course in corruption studies in the Hong Kong Academy. The course included a discussion of the anti-corruption strategies of Independent Commission Against Corruption in Hong Kong, China.

The US State Department sponsored a Specialized Course on Integrity Assurance and Corruption Investigation and a Supervisory Criminal Investigator’s Course. These were conducted by the International Law Enforcement Academy.

Integrity Development and Public Accountability Seminars were conducted for captains of two Barangays (the smallest unit of local government).


The OMB attended the 2nd Multilateral Cooperation for Preventing and Combating Corruption Meeting in Brunei Darussalam. The group is expected to be a forum for anti-corruption agencies within ASEAN. The OMB intends to join the Group by the Group’s next meeting in 2007.

There is pending legislation to improve and expedite the extradition process.



• Corporate governance, internal company controls such as codes of conduct, establishing channels of communication,



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Philippines

whistleblower protection and staff training




The Government Procurement and Policy Board has issued Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants for certain offenses, including “Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.” The guidelines define blacklisting as: “An administrative penalty disqualifying a person or an entity from participating in any government procurement for a given period.”





At the invitation of government agencies, the OMB conducted twelve series of Public Accountability Seminars in May-September 2006 to enhance public awareness and appreciation of the government’s anti-corruption reforms and initiatives.

A 24-hour hotline has been installed to receive requests to the OMB for assistance.

On 22 August 2006, the OMB, through the Public Assistance Bureau, launched the “Meet with the Ombudsman” project to allow the public to air their problems with the OMB herself. The meetings will be held once monthly.

A 24-hour hotline has been installed to receive requests to the OMB for assistance.

• Public awareness campaigns With EU support, the OMB has prepared a communications plan to:

• Inform the public about the OMB’s role in fighting corruption;

• Enable the public to be involved in the fight against corruption;

• Enlighten the private sector and the international business community about the stability of the Philippines’ investment climate given its stance on corruption.

In May-September 2006, three issues of the Integrity Newsletter were published and distributed to other government agencies, Local Government Units, Civil Society Organization and others.




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Philippines

• Education programs 37 “Ehem! Aha!” seminars were conducted in May-September 2006. This is a program of the Philippine Province Society of Jesus and the OMB that integrates cultural sensitivity and understanding as part of the educational, investigative and prosecutorial functions of the OMB.

The program “Enhancement of Integrity Education in School Curriculum (Graft and Corruption Education Teaching Exemplars)” is designed to raise awareness of corruption issues among students, teachers, parents and guardians.

Briefing political science students of Palawan State University and Lyceum University, Manila on the OMB.





The annual OMB Journal was released in May and describes the accomplishments and activities of the various OMB offices.

Copies of the OMB Annual Report were distributed to the Office of the President, Vice President, Senate President and House Speaker. The report compiles the accomplishment reports of the different OMB offices.




• Protection of whistleblowers The OMB published “Aha! A Citizen’s Primer on Whistleblowing” in June 2006.


The Philippines has created the National Anti-Corruption Program of Action (NACPA). This is a multi-sector, high-level coordinating mechanism that involves the executive, legislative and judicial branches of government, Constitutional Commissions, local government units and civil society. A Covenant of Commitment was signed on 17 March 2006 and the Plan will provide consultation and coordination in fighting corruption. The OMB is attempting to establish the NACPA to convince public officials and employees, private citizens

The OMB secretariat for NACPA is now fully operational. Capacity building / training for the NACPA Secretariat on procurement and project management has been conducted.



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and civil society organizations to not just complain or criticize the government, but to also take part in anti-corruption initiatives and programs. The Philippines seeks the cooperation and support of the international donor community to make the goals of the NACPA become reality.

Internal Control Training is slated to be conducted within the year.

The Multi-Sectoral Anti-Corruption Council of the NACPA will be launched in February 2007 along with the Medium Term NACPA.

OTHER

The Philippines has pending legislation to improve anti-corruption law enforcement, including the ratification of the UNCAC.

In August 2006, the OMB, in coordination with the United Nations Development Program (UNDP) and the Transparency and Accountability Network, conducted the Forum and Trainer’s Training on the UNCAC to promote ratification of UNCAC by the Senate.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Singapore

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Singapore














The Corrupt Practices Investigation Bureau (CPIB) conducts reviews of ministries and departments to identify procedural vulnerabilities to corruption. The CPIB recently produced a review paper with the Ministry of Home Affairs and Immigration Authority which identified such vulnerabilities in immigration procedures.

CPIB is undertaking review papers on the abuse of marriage registration as well as control of procedures within Singapore prisons.


The CPIB is partnering the national Civil Service College in the education of Singapore’s civil servants. The partnership includes training new administrative officers – a Senior Executive Programme for director-level officials and a Manager Leadership Programme for middle management. The CPIB participates by providing anti-corruption training modules. In addition, the CPIB takes part in ethics seminars organized by ministries and departments, including the annual Ethics Seminar of the Police Force.

CPIB has conducted 2 runs of the Senior Executive Programme and 5 runs of the Manager Leadership Programme in 2006.

CPIB has conducted a Forum that reached out to Heads of Departments and participated in talks on ethics for a police division. It also gave talks to new recruits of the Ministry of Home Affairs. Speakers included officers from the Central Narcotics Bureau, Immigration Department, Prisons Department, Singapore Civil Defence Force and Singapore Police Force.

• Promoting reporting by officials of corruption and



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whistleblower protection



















• Training and resources The CPIB has expanded its efforts in building its forensic computer capability and its staff’s skills in financial

CPIB is developing an internal expert directory to strengthen financial investigations.



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investigation. Many of CPIB’s cases nowadays involve computer materials and electronic evidence, and CPIB had to resort to electronic evidence in several cases. The CPIB has also built other investigation expertise, especially in financial investigation, since corrupt offenders use increasingly sophisticated methods.

CPIB organized the ACE (Anti-Corruption Expertise) Workshop, an international training workshop with the theme of Excellence in Investigation. More than 40 participants from 20 countries took part. Speakers came from Singapore; Malaysia; Hong Kong, China; Korea; Australia; UK; France; and USA. There was favorable feedback from participants. This workshop will henceforth be held every 2 years with different themes.


The CPIB is partnering the national Civil Service College in the education of civil servants. The College has an international wing that provides training for foreign participants in governance and public administration. The CPIB participates by providing anti-corruption training modules.

The partnership is on-going.

The CPIB hosted numerous visits, study trips and attachment programs. CPIB’s officers in turn attended seminars and conferences overseas to learn from the experiences of their foreign colleagues. CPIB is an active member of the MoU amongst ASEAN anti-corruption agencies that meet annually.

Various government officials from Asia, the Middle East, Africa, the Pacific Islands and others have made study visits to CPIB.




The CPIB has increased its outreach activities with the private sector. Awareness of corruption in the private sector has increased, as evidenced by an increase in the number of requests by private companies and organizations to the CPIB for talks and visits on corruption prevention. In November 2005, the CPIB joined the Corporate Governance Conference organized by the Commercial Affairs Department. The conference was attended by public and private sector participants. The CPIB gave a presentation on corporate governance and corruption, and how corrupt practices can be curbed in the private sector. The papers presented at the conference, including that of the CPIB, were compiled and published as a book.

In August 2006, the Director of CPIB gave a presentation to various international and local



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participants in a conference organized by the Harvard Project for Asian and International Relations held at a local university








The CPIB has increased its outreach to Citizens Consultative Committees. These are grass-root volunteer community groups in local constituencies aimed at fostering community spirit and helping their constituents to solve problems. The CPIB talks to these groups to spread the anti-corruption message.

The partnership is on-going and brochures to educate the public on CPIB and corruption will be distributed to community centers throughout Singapore.

With the increased outreach, the CPIB has found a need to review the materials and resources for education and prevention. For example, the CPIB is considering acquiring mobile exhibition materials for use in off-site talks and visits. It is revamping its Web site to make it a tool for outreach to the public and an education and prevention resource. The Web site is also used to provide electronic services to the public, such as allowing the public to book talks and permitting defense lawyers to procure documents from the CPIB.

The CPIB Web site was recently re-launched and allows the public to submit complaints by creating a personal account for them. The mobile exhibition project is currently underway.



• Education programs Undergraduates from Stanford University and National University of Singapore recently visited CPIB to learn about corruption.



• Requirements for justice and other governmental agencies to disclose efforts to promote integrity and accountability

CPIB is looking into generating publicity for government officers who turn down bribes.



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and to combat corruption







OTHER

Singapore signed the UNCAC in November 2005. An interagency government group is examining ratification of the Convention.

Singapore recently joined the APEC Anti-Corruption and Transparency Task Force (ACT) and attended the Task Force’s meeting in Hanoi in February 2006.

CPIB attended the APEC ACT meeting in Vietnam in September 2006. CPIB made a presentation during the seminar on “Public–Private Partnership in Fighting Corruption”. At the request of the organizers, CPIB invited a KPMG expert consultant to share his experience on the subject.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Sri Lanka

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Sri Lanka








The Public Service Commission (PSC) ensures accountability and transparency in recruitment to the public sector. The PSC’s decisions can be challenged in the Administrative Appeals Tribunal.






The Commission to Investigate Allegations of Bribery or Corruption (CIABC) is studying the need to introduce amendments to the Declaration of Asset and Liabilities Law.

The Commission to Investigate Allegations of Bribery or Corruption (CIABC) is continuing its study of the need to amend the Declaration of Asset and Liabilities Law.



The CIABC has conducted programs to raise the awareness of corruption among the police and local government officials.

The CIABC continued to conduct its programs to raise the awareness of corruption among the police and local government officials.

The CIABC recently worked with the Legal Aid Commission to curb corruption in tsunami relief operations by monitoring those efforts.


The CIABC has completed a study on the need to enact legislation relating to whistleblower protection.

Draft legislation relating to whistleblower protection has been prepared and submitted to the Law Commission.




• International standards and practices to regulate and supervise financial



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institutions



The National Procurement Agency is mandated to revise and adopt procurement procedures. Cabinet recently approved the Government Procurement Guidelines 2006 which replaced the previous rules and enhanced transparency.


The two previous CIABCs experienced long periods with vacant positions after the resignation and death of Commissioners. The present CIABC has also experienced difficulties with financial independence since it depends on the Treasury for funds and its staff, and officers are loaned from other government departments.







Sri Lanka signed and ratified the UNCAC in March 2004. It believes that it meets the obligations under the Convention to criminalize direct and indirect bribery of public officials and to prevent corruption in the public sector.

The CIABC is studying the need to introduce amendments to the Bribery Law.

The CIABC is continuing its study of the need to amend the Bribery Law.


The Prevention of Money Laundering Act and the Financial Transactions Reporting Act were recently enacted. These statutes deal with the collection of data relating to suspicious transactions and provide for prevention, detection, investigation and prosecution of money laundering and terrorist financing. Sri Lanka is a member of the Asia Pacific Group on Money Laundering (AMLPG).


• Availability of bank, financial or commercial records and



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secret bank information



The Law Commission is considering draft legislation on the rights of victims of crime and witness protection.

• Training and resources In August 2005, the then Prime Minister launched a program to build the capacity of the CIABC. The UNDP provided some funds to support the project.

USAID has commenced a program to train legal officers of the CIABC.





The CIABC has completed a study on the need to enact legislation relating to whistleblower protection.








• Public awareness campaigns The CIABC has conducted programs to raise the awareness of corruption among farmer organizations and local groups. More recent activities include working with the Legal Aid Commission to curb corruption in tsunami relief operations by raising awareness among the civil society organizations involved.

Public awareness programs continue to be conducted on a regular basis among public servants in the provinces.



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The public is being encouraged to communicate instances of bribery or corruption and the accumulation of illegal assets to the CIABC.



The Organizations of Professional Association, Transparency International and the Centre for Policy Alternatives are working with the CIABC to organize seminars and discussions.

OTHER


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Thailand

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Thailand






• Systems for compensation There are proposed amendments to the Civil Service Act, including revising the basic salary scale.

The Civil Service Act is still in the process of being amended.


There are proposed amendments to the Civil Service Act, including establishing a “Merit Protection Board”.

The Civil Service Act is still in the process of being amended.





The Conflict of Interest Act will be passed soon. In addition, the Council of Ministers stated on 3 November 2006 that the government intends to draft an Act on Wrongdoing related to Conflicts of Interest Committed by Political and Government Officials.

Systems regulating contacts between government officials and business services users, particularly in corruption-prone areas have been prescribed under the Audit Guide to Conduct.



Such systems have been prescribed under the Audit Guide to Conduct.


Thailand has:

• Revised the codes of conduct for government officials that were promulgated in 1994.

• Trained key persons of government units to take charge of setting up their own standards of conduct.

• Conducted training programs for officials of the Office of the Auditor General of Thailand.


Thailand has arranged seminars to help local administrators set up transparency systems, including channels for reporting and whistleblowing.



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Thailand




Thailand created the “Government Fiscal Management Information System” (GFMIS) to serve as the back office of the administration. GFMIS is designed to ensure efficiency, accountability and transparency through on-line real time surveillance of the Government’s entire financial process.

Thailand is improving its fiscal transparency based on the Manual on Fiscal Transparency and Code of Good Practices on Fiscal Transparency by the International Monetary Fund.


Thailand has implemented international standards and practices for regulation and supervision of financial institutions.

Thailand is undergoing a review under the Financial Sector Assessment Program of the World Bank and International Monetary Fund.



Thailand has amended the Government Procurement Act and Regulations, including modernizing rules and regulations on government procurement according to the principles espoused by the United Nations Commission on International Trade Law (UNCITRAL).

Thailand participated in the APEC Seminar on “Transparency in Procurement and E-Procurement” in Hanoi, Vietnam (5-6 September 2006).

Thailand participated in the 10th Session of the UNCITRAL Working Group I (Procurement) on “Possible Revisions to the UNCITRAL Model Law on Procurement of Goods, Construction and Services” in Vienna, Austria (25–29 September 2006).

NCCC organized a seminar on “Conflict of Interest and Public Procurement” for 4,000 participants from 14 provinces.


The Constitution and the Organic Act on Counter Corruption created independent bodies such as the Ombudsmen, the National Counter Corruption Commission (NCCC), the State Audit Commission, the Criminal Division for Persons Holding Political Positions of the Supreme Court of Justice and the NCCC, the Department of Special Investigation (DSI) and the Anti-Money Laundering Office (AMLO).

Thailand has drafted legislation to establish the Office of Counter Corruption in Public Sector under the Ministry of Justice. The Office will be responsible for allegations against government officials, particularly those in the mid-level of government.

The plan to set up the Office of Counter Corruption in Public Sector is now under review to ensure that the plan is in line with Government policy.

• Availability of information on the processing of applications, funding of political parties and electoral



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campaigns and expenditure






The Criminal Code defines corruption as a criminal offence. The Organic Act on Counter Corruption and the Anti-Money Laundering Act prescribe provisions on freeze, seize and forfeit assets involved in corruption.

In the framework of a newly-established committee comprising relevant agencies, independent organizations and academics, the requirements of the UNCAC are being considered with the objective of issuing recommendations that will address the need for legislative amendments and enactments. Some provisions of the UNCAC need further consideration, including bribery of foreign public officials and officials of public international organizations, concealment, statute of limitations, whistleblower protection, and asset recovery.


The Anti-Money Laundering Act became effective on 19 August 1999. The Act criminalizes the act of money laundering and related conspiracy, creates, establishes a civil forfeiture system for confiscating assets identified as having been acquired with the proceeds of specific predicate criminal offences and creates an Office of Anti-Money Laundering.



The Anti-Money Laundering Act requires banks and financial institutions to file a report of transaction involving cash in an amount equal to or exceeding 2,000,000 Baht (52,000 USD) and transaction involving an asset equal to or exceeding 5,000,000 Baht (130,000 USD) or any suspicious transaction with the Anti-Money Laundering Office (AMLO). Responsible official is empowered to have access to financial information during the course of his or her investigation of a corruption.

• Inter-agency co-operation AMLO signed MOU on the exchange of information with NCCC.


The Witness Protection Act for protecting any witness in criminal offence had been enacted and has come into effect.

• Training and resources Thailand and the UNODC organized a “High-Level Seminar for the Asia-Pacific Region to Promote the Ratification and Implementation of the UNCAC” in early 2006.

NCCC and the United Nations Asia and Far East Institute for the Prevention of Crime and the Treatment of Offenders organized a project on “Training Anti-Corruption Officers” in November 2006.



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Proposed amendments to the Extradition Act will improve and speed up the extradition process.

Thailand is part of the World Bank / IMF Reports on the Observance of Standards and Codes (ROSC) program, which will include an assessment of Thailand in the area of international standards and practices for regulation and supervision of financial institutions in corporate governance. Part of the assessment will look at compliance with the OECD Principles of Corporate Governance.

The assessment program is scheduled to take place in January-February 2007.

Thailand is applying the Financial Sector Assessment Program (FSAP) as part of the ROSCs and the FATF’s 40+9 Recommendations.

On 22-26 October 2006, Thailand attended the First Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities in Beijing, P.R. China. The conference focused on the implementation of UNCAC.











• Public awareness campaigns To raise awareness, Thailand has • In accordance with the Strategic Plan for



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launched the “I AM READY” campaign to promote honest, active, moral, relevant, efficient, accountable and democratic government. The Foundation for a Clean and Transparent Thailand was set up to cultivate morality and ethics of all Thai people, to urge the suppression of corruption and to promote transparency. “Jai Thai Sai Sa-ard” was launched to widen awareness and to urge Thais to fight corruption for a better Thai society. “Raising Awareness and Building up a Wide and Strong Network Countrywide” has been proposed as a priority area and reform project.

Thai Public Sector Development (2003–2007), the Office of Public Sector Development Commission (OPDC) is setting up a model to change mindsets, work culture and values to identify “model” government agencies with the “I AM READY” character. The OPDC will then adopt such effective models for other government agencies.

• In June 2006, Thailand requested cooperation on the project ”Raising Awareness and Building up a Wide and Strong Network Countrywide” from all relevant Ministries and independent organizations. 14 organizations have provided their plans and progress as of 1 November 2006.

The Office of the Civil Service Commission will soon introduce a “Transparency Index” as a benchmark to assess the government’s actions and performance.

The Office of the Civil Service Commission is setting up the Public Agency Transparency Index.

The Office of the Auditor General of Thailand prescribes the 28 Key Performance Indicators to assess work performance annually.

NCCC and UNDP will launch two television campaigns on ”Anti-Corruption Vanishing” and produce 10,000 DVDs to raise awareness. Other measures include publishing 15,000 copies of the magazine “Sujarit” every quarter, 30,000 copies of a brochure on anti-corruption, posters and stickers. A booth will be set up with the Constitutional Court, the Office of Ombudsman and Thammasart University to raise public awareness.










The Foundation for a Clean and Transparent Thailand is arranging its network of 84



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Thailand

organizations for a monthly discussion of corruption.

• Protection of whistleblowers The NCCC is considering providing protection to whistleblowers.


OTHER

Thailand signed the UNCAC in December 2003 and the ratification process is underway. Based on preliminary findings, Thailand believes that its legal and regulatory regimes comply with key principles and commitments of the UNCAC, though some areas require further consideration.

Thailand has formed a committee comprising relevant agencies, independent organizations and academics to consider the requirements of the UNCAC and to recommend necessary legislative action. The committee’s recent activities include (1) approving an official translation of the UNCAC into Thai, (2), obtaining the views of all authorities on the requirements of the UNCAC, particularly in terms of legislative amendments and enactments; and (3) reviewing the UNCAC concepts with the objective of incorporating them into domestic law.

Thailand has joined the APEC Anti-Corruption and Transparency (ACT) Experts Task Force, and has participated in several activities of the APEC ACT.

Thailand has participated in the following activities relating to APEC:

• Thailand participated in the 3rd APEC Senior Officials’ Meeting and Related Meetings in Hanoi, Vietnam (8–9 September 2006).

• Thailand participated in the APEC Public-Private Dialogue on Anti-Corruption and Ensuring Transparency in Business Transactions in Vietnam (9–10 September 2006).

• Thailand attended the 3rd Meeting of the APEC Anti-Corruption and Transparency (ACT) Experts Task Force during the 3rd APEC SOM III in Vietnam (12–13 September 2006).

• The ACT accepted a proposal by the Office of the National Counter Corruption Commission for a capacity-building workshop on “Combating Corruption Related to Money Laundering” in 2007.

On 3 November 2006, the Council of Ministers stated that the government intends to strengthen measures to prevent and suppress corruption in the political and public spheres at the local and national levels. The government intends to encourage independent agencies and the public to monitor corruption and malfeasance.

On 7 November 2006, the Council of Ministers approved recommendations related to anti-corruption, including:

• Legislative reform, e.g. taking the necessary steps to ratify UNCAC

• Creating a Code of Ethics/Conduct for the Council of Ministers

• Strengthening moral and ethics in the business and government sectors through various forms of media.


Annex to the draft minutes of the 9th Steering Group meeting: – Progress in anti-corruption reform Vietnam

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Vietnam










The Anti-corruption Law was adopted on 28 November 2005 and will enter into force on 1 June 2006. The Law includes provisions dealing with: rotation of positions among civil servants.




The new Anti-corruption Law includes provisions dealing with publication and transparency of assets, property and incomes.


The Government and the Prime Minister issued the “Master Programme on State Reform from 2001-2010” and the “Decision on the Programme to Build and Improve the Quality of Public Servants Period I (2003-2005)”. In its annual resolutions for administrative reform, the government aims to establish a culture of leadership and management. This is reflected in the responsibilities and behavior of public servants in handling citizens’ affairs. Vietnam has also engaged in administrative reform on the handling of affairs among agencies, and between state agencies and citizens so as to reduce bureaucracy.

Vietnam will undertake the Master Program on Building Capacity of the Inspectorate System 2006-2010. The Program aims to build a strong, honest and professional inspectorate system that can discharge its responsibilities in inspection, and handle complaints and the new responsibilities under the Anti-Corruption Law. The inception phase, which lasts one year from 1 October 2006, aims to ensure the effectiveness and efficiency of the subsequent steps of the Program. On 6 October 2006, the Inspector General of the Government Inspectorate of Vietnam signed 5 bilateral Joint-Financing Agreements with Sweden, Canada, Denmark, Norway and Netherlands. The Agreements will commit financial support of international donors to the inception phase of the Master Program.

The Prime Minister issued Direction No. 32 to strengthen administrative disciplinary powers concerning contacts between officials and citizens and enterprises.

The government has directed efforts to receive and investigate complaints towards anti-corruption and anti-wastefulness. Focus was placed on corruption-prone areas such as construction, land use management, implementation of projects and finance.

• Promotion, training and The Government Inspectorate of On 1 August 2006, the Prime Minister issued



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Vietnam

supervision of officials viz. codes of conduct

Vietnam has established the “Course of Action of the Government Inspectorate to Implement the Anti-corruption Law and the Law on Thrift Practice and Anti-Wastefulness”. The Plan’s objectives are to raise awareness among the Inspectorate’s staff and to develop a sense of thrift. The Plan will also encourage inspection organization to devise their own action plans to implement the Anti-corruption Law and the Law on Thrift Practice and Anti-Wastefulness. The Plan includes the following components:

1. Preparing a detailed regulatory and instruction document on the Anti-corruption Law;

2. Enhancing the dissemination of the Anti-corruption Law and the Law on Thrift Practice and Anti-Wastefulness;

3. Closely coordinating with the media and the Vietnam Fatherland Front (including its affiliates) to implement the Course of Action; and

4. Conducting social-economic inspections and handling complaints.

Direction No. 26 which strictly prohibits the use of public funds for illegal gift offering and guest reception.







The new Anti-corruption Law includes provisions dealing with the organization and coordination of measures among state agencies responsible for inspection, audit, investigation, prosecution and adjudication.



The new Anti-corruption Law includes provisions to create inspecting and examining agencies and organizations.

The new Central Steering Committee on Anti-corruption conducted its first meeting on 4 October 2006 in Hanoi, 5 days prior to the Conference on Enhancing the Party’s Leadership against Corruption and Wastefulness. The Committee is headed by the Prime Minister and includes a deputy Prime Minister, the Inspector General, Minister of Public Security, Vice Minister of National



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Vietnam

Defence, Director General of the Supreme People’s Procuracy, Tribunal President of the Supreme People’s Court, Vice Chairman of the Party’s Central Control Committee, Vice Chairman of the Central Committee for Internal Affairs, and Minister of Culture and Information.

The Committee has the power to:

(1) request competent agencies, organizations and individuals to report on the corruption situation;

(2) implement anti-corruption measures; and (3) judge the responsibilities of the heads of

agencies.

As the Head of the Committee, the Prime Minister can temporarily suspend the following officials who are suspected of corruption or who obstruct anti-corruption activities: deputy ministers; the chairman, vice-chairmen and standing members of the People’s Councils; the chairman, vice- chairmen and other members of the provincial People’s Committees; and persons appointed and removable by the Prime Minister.

At the end of 2006, the Steering Committee will implement the Resolution of the 3rd Central Meeting and the Anti-corruption Law to establish anti-corruption agencies.







The new Anti-corruption Law includes general provisions defining corrupt behavior; procedures for dealing with corrupt behavior and other violations through disciplinary and criminal proceedings; the responsibility of legal persons; and the treatment of assets of corruption.

Major corruption cases have been exposed and sanctioned recently with a view to deter and prevent corruption. Reports from 47 provinces and cities and 20 ministries showed that 8,851 corruption cases involving 12,438 persons were dealt with. These crimes resulted in damage of VND 2,422 billion (USD 6.9 million), 4,865 hectares of land and many other valuable assets.



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The new Anti-corruption Law includes provisions dealing with measures for inspection, investigation and prosecution; and handling of corruption complaints.




On 20 October 2006, the Government issued Decree No. 120, which guides the implementation of some provisions of the new Anti-Corruption Law. The Decree regulates in detail the protection of persons who report corrupt acts.



The new Anti-corruption Law includes provisions dealing with international cooperation, including general principles and responsibilities for implementing international cooperation.

The Ministry of Justice has prepared a draft Law on Extradition and has submitted the draft to the National Assembly Standing Committee for discussion and approval.









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Vietnam





One of the tasks of the National Assembly and People’s Councils of all levels is to respond to questions from citizens.







The new Anti-corruption Law includes provisions dealing with regulations on publicity and transparency in the operations and activities of agencies and organizations.





The new Anti-corruption Law includes provisions dealing with the responsibility of the mass media, authorized agencies, organizations and individuals.

The mass media has actively exposed many corruption cases, which has helped government agencies to investigate cases.



The new Anti-corruption Law includes provisions dealing with the role and responsibility in preventing and fighting corruption of the society at large and of the following bodies: the Vietnam Fatherland Front and its affiliates, the mass media, the business community, the people’s inspection boards and the general citizenry.

OTHER

To implement the Anti-corruption Law, the government has devised the “Course of Action of the Government



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Vietnam

Implementing the Anti-corruption Law”. The plan’s main objectives include minimizing and reducing corruption in all aspects of social and economic life, raising awareness among all parties of anti-corruption, and providing guidance to all agencies to implement the Plan. The Plan identifies five main issues:

1. Issuing legal documents to provide guidance on implementing the Anti-corruption Law;

2. Reviewing, amending and replacing institutions and policies;

3. Disseminating the Anti-corruption Law;

4. Involving the citizenry, such as by closely coordinating with the mass media and the Vietnam Fatherland Front and its affiliates; and

5. Enhancing the inspection, examination, investigation of bad practices and corruption cases.

Vietnam has assumed the Chair of the APEC Anti-corruption Task Force (ACT) and hosted the APEC ACT’s second meeting on 26 February 2006.

Vietnam, as the Chair of the APEC ACT in 2006, organized the “Public-Private Dialogue on Anti-corruption and Transparency in Business Transaction” on 9-10 September 2006 and hosted the APEC ACT Meeting on 12-13 September 2006.

Vietnam organized the APEC-funded “Public-Private Dialogue on Anti-corruption and Transparency in Business Transaction” on 9-10 September 2006.

From 8-9 August 2006, the Government Inspectorate and the Embassy of Denmark organized a workshop entitled “Vietnam and the Preparation for the Ratification of the UNCAC”. This workshop aimed to consolidate the ideas of related ministries and branches of government on the UNCAC’s ratification before they are submitted to the Government for consideration.


Annex to the draft minutes of the 9th Steering Group meeting: – Support to anti-corruption reform: Asia-Pacific Group (APG)

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Advisory Group

Asia-Pacific Group on Money Laundering (APG)

REGION-WIDE ACTIVITIES

Activities reported at the 8th Steering Group Meeting Activities reported at the 9th Steering Group Meeting

In October 2005, the Asia Pacific Group on Money Laundering (APG) and the Financial Action Task Force (FATF) decided to investigate the links between corruption and money laundering. This includes not only the money laundering of the proceeds of corruption, but also how corruption affects the effectiveness of AML regimes.

The two bodies decided to establish a project group consisting of 6 members each from the FATF and the APG. Several FATF-style Regional Bodies also expressed interest, including the Eurasia Group, the Eastern and Southern Africa Anti-Money Laundering Group and the Middle East and North Africa Financial Action Task Force.

The project group formally assembled in the FATF’s October plenary. In February 2006, it suggested three major areas for further work: (1) to take into account anti-corruption in mutual evaluations by changing the methodology, i.e. assess the anti-corruption activities of a country under evaluation, e.g. in the context of Article 14 of the UNCAC; (2) to conduct a survey of members (comprising of 120 jurisdictions) of ethical standards for investigation and judicial authorities (though the FATF may not be involved in this area of work); (3) to produce a study on corruption and money laundering (e.g. by examining issues such as politically-exposed persons and international cooperation).

The APG has also prepared a paper entitled “The Common Goals of Anti-corruption and AML/CFT Efforts” which examines the overlap in AML and anti-corruption. The paper stresses the need for more cooperation and coordination in the efforts of these two areas. The APG therefore looks forward to strengthening cooperation with the ADB/OECD Initiative.

The FATF and the APG had established a Project Group on anti-corruption and anti-money laundering/combating the financing of terrorism (AML/CFT) issues. The Group consists of 12 jurisdictions (including five members of the Initiative) and international organizations such as the OECD and the World Bank. The FATF and the APG have adopted three projects that had been proposed by the Project Group

1. Changing the methodology under which the FATF and the APG evaluate the AML/CFT measures of their member jurisdictions. The revised methodology will incorporate more references to corruption, thus empowering an evaluator to refer to the anti-corruption strategies of the assessed jurisdiction in the overall evaluation.

2. Supporting an FATF Working Group that is examining the effective implementation of AML/CFT measures.

3. Developing a research paper on the links between money laundering and corruption, including how corruption can undermine an AML/CFT regime; and producing training and guidance modules on this issue.

Two academics from Sydney University have signed an agreement to complete the project, which will be funded by AusAID. Member jurisdictions of the Project Group have indicated subject areas in which they are interested and the researchers will liaise with these jurisdictions to obtain information and assistance.

The researchers’ main tasks include: • Taking stock of existing material to avoid duplication in the

project;

• Understanding vulnerabilities to corruption in AML/CFT institutions, including law enforcement, investigative, prosecutorial and judicial bodies;

• Considering issues related to politically-exposed persons (PEPs), including issues such as the definition of PEPs;

• Identifying best practices for international cooperation; • Examining corruption and the private sector, including

application of anti-corruption standards in an AML/CFT context; and

• Identifying training and resource gaps. The World Bank is also taking a comprehensive look into this matter. After informal discussions, the World Bank has agreed that it will use much of the information from the research paper to develop training and guidelines. There is also scope for cooperation with the Initiative on this subject.

The APG invites members of the Initiative to contribute to the research paper. More information on the project is available on the APG Web site (www.apgml.org).

The FATF is establishing a mechanism for cooperation to deal with matters that are not resolved through bilateral means. One area of particular concern is mutual legal assistance. The mechanism is not punitive in nature, but member jurisdictions are strongly encouraged to cooperate. FATF Style Regional Bodies like the APG will represent non-FATF members in the process. While this mechanism does not deal squarely with corruption, there are common issues and it is worthwhile for members of the Initiative to be aware of it.


Annex to the draft minutes of the 9th Steering Group meeting: – Support to anti-corruption reform: AusAID

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AusAID



The Australian Agency for International Development (AusAID) embeds anti-corruption work throughout Australia’s aid program. For example, a recent AusAID review of its Pacific (excluding PNG) good governance efforts noted that 51% of AusAID’s programs and 61% of total Australian aid is focused on good governance activities. AusAID also strongly supports the efforts of local reformers in partner countries, recognizing that positive change must come from within. The importance of the role of civil society, community organizations and NGOs cannot be overstated in this context.

Australia recently released the White Paper on the Australian Government’s Overseas Aid Program. The White Paper emphasizes Australia’s continuing involvement in regional anti-corruption initiatives and forums such as the ADB/OECD Initiative. It also outlines an increasingly whole-of-government approach to anti-corruption. In practice, Australia’s development aid program will link its anti-corruption efforts with the expertise in other Commonwealth Agencies, thereby increasing the reach and effectiveness of Australia’s anti-corruption assistance to its development partners. For example, the Australian Federal Police and the Attorney-General’s Department are contributing expertise in regional anti-corruption investigation and enforcement in Papua New Guinea and the Solomon Islands. This has led to broader understanding across the Australian Government of the challenges of development, as well as raising the profile of the aid program’s existing work. The whole-of-government emphasis is intended to sharpen, rather than dilute, Australian efforts to harmonize with donor partners. Most importantly, it seeks to provide coherent assistance to partner countries in driving their own anti-corruption agendas. The White Paper will direct the delivery of Australia’s aid over the next 10 years. It outlines how the Government will approach the projected doubling of Australia’s aid budget from its 2004 level to around AUD 4 billion (USD 2.95 billion) annually by 2010. This is to be subject to “the effectiveness of the application of additional resources” and “conditional on strengthened governance and reduced corruption in recipient countries”. Anti-corruption is one of four key strategies that Australia is adopting in order to ensure that additional resources are effectively spent. Another of the four key strategies is integrating with and broadening Australia’s engagement with the Asia-Pacific region.

In April 2006, Australia published a White Paper entitled “Australian Aid: Promoting Growth and Stability” (available at www.ausaid.gov.au). The paper gives an outlook on AusAID’s strategy for the following 10 years, including a doubling of its aid budget by 2010 to approximately AUD 4 billion. The doubling of aid is conditional on the effectiveness of the additional resources. It is also conditional on strengthened governance and reduced corruption in recipient countries. The White Paper outlines 4 main strategies for increasing the effectiveness of aid delivery:

1. Strengthening the performance orientation of the aid program;

2. Combating corruption; 3. Enhancing Australia’s engagement with the Asia-Pacific

region; and 4. Working in partnership with regional governments and other

donors.

AusAID is leading the development of an Anti-corruption for Development Policy (ACDP). Taking a whole-of-government approach, AusAID has received input from the Department of Treasury and Finance, the Attorney-General’s Department, Australian Federal Police, the Department of Foreign Affairs, and the Department of Prime Minister and Cabinet, on the project.

The ACDP has 3 mutually-reinforcing elements:

1. Building constituencies for anti-corruption reform; 2. Reducing opportunities for corruption; and 3. Changing incentives for corrupt behavior.

The ACDP also focuses on:

1. Strengthening dialog and partnerships with international financial institutions, multilateral and bilateral agencies, and harmonizing donor activities;

2. Increasing dialog with civil society and the private sector; 3. Corruption-proofing aid program monies; and 4. Implementing international conventions. The ACDP will be publicly released in early 2007.

AusAID has announced that it would provide financial support to the Extractive Industries Transparency Initiative (EITI).

AusAID is considering a joint study with the World Bank on connections between corruption and forestry in East Asia and the Pacific.

COUNTRY SPECIFIC ACTIVITIES


Several of AusAID’s country programs contain anti-corruption components:

• In Papua New Guinea, AusAID’s program includes a major program of support for good governance with a significant anti-corruption component.


Annex to the draft minutes of the 9th Steering Group meeting: – Support to anti-corruption reform: AusAID

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AusAID • AusAID is proposing a whole-of-government strategy of

assistance in the Philippines in which anti-corruption will be an important theme.

• AusAID’s program in East Timor has a strong focus on improving public financial management.

• Strengthening partner government systems to reduce corruption in procurement is a priority area in Indonesia, particularly in sectors such as infrastructure, health and education.

• AusAID has participated in the drafting of a multilateral memorandum of understanding on fraud and corruption with Indonesia. The memorandum aims to enhance efficiency and quality of loan assistance projects, and to prevent fraud and corruption.

• Australia’s program in the Solomon Islands is multi-faceted, focusing on a range of related areas including strengthening financial management, improving public accountability institutions and supporting the law and justice sector.


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Transparency International



In the area of humanitarian relief, TI followed up its work with the ADB/OECD Initiative on tsunami relief with a national workshop on earthquake relief in Islamabad, Pakistan in February 2006. The workshop was opened by Prime Minister Shaukat Aziz.

TI is developing a program to measure Anti-corruption Efforts and Progress towards the Strengthening of National Integrity Systems (NIS) in the Pacific, Southeast Asian and South Asian regions. The program will include quantitative and qualitative research, and consist of a general study complemented by audience-specific thematic country briefings. The study should include a gap analysis of the NIS towards UNCAC’s implementation and be updated quarterly to allow proper measurements of anti-corruption progress and efforts.

TI is planning a regional meeting on public procurement for 28-29 June 2006 in Bali followed by the production of a handbook.

In June 2006, TI organized a regional workshop in Bali, Indonesia to promote transparency and accountability of local government, and deter corruption in public contracting and procurement. 150 participants from local governments and civil society from 16 countries attended.

TI expects to release a handbook on procurement in local governments in the next few months.

TI is continuing its work on public procurement by focusing on good procurement, and anti-trust and anti-cartelism measures in the water construction sector. The water sector will be the theme of the TI 2008 Global Corruption Report.

TI hopes to do more at the national level and interact effectively with government anti-corruption agencies. In this vein, it has conducted regional meetings, such as the one in Delhi, India in December 2005 that was opened by the President of India, and the one for the Pacific Islands in March 2006 in Papua New Guinea in which the Chief Secretary of Government and the Foreign Minister took part.

In August 2006, TI organized a regional meeting on national integrity systems in Seoul, Korea. 40 participants attended to discuss new ways of measuring anti-corruption efforts and progress.

TI will be the Secretariat for the IACC Conference in Guatemala on 15-17 November 2006.

In November 2006, TI organised the 12th International Anticorruption Conference (IACC) in Guatemala which gathered close to 1,400 participants from more than 120 countries over four days in 51 plenary and workshop sessions. The level of participation confirmed the strong interest from practitioners and leaders from around the world to fight corruption. The conference featured speakers such as José Miguel Insulza (Secretary General of the Organization of American States), Oscar Berger (President of Guatemala), Oscar Arias (President of Costa Rica and Nobel Prize Winner), Luis Alberto Moreno (President of the Inter-American Development Bank) and numerous participants from Asia-Pacific. The Conference produced a large number of outputs, namely declarations, resolutions and reports. The Asia-Pacific Department of TI (TIAP) was heavily involved during the conference in workshops on public procurement and post-disaster reconstruction.

TI’s work to strengthen civil society and friends of the UNCAC will culminate in the Convention’s first Conference of States Parties in Jordan in December 2006. TI is advocating the ratification of the Convention and the monitoring of its implementation.

TIAP will organize a training workshop in Azerbaijan, to help civil society groups in Asia-Pacific adapt to their context TI’s existing model of Advocacy and Legal Advisory Centre (ALAC) already set up in Central Asia.


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Transparency International

In 2007, TI will pursue the development of a 2008-2009 Asia-Pacific Anti-Corruption Learning Programme which will target local civil society groups, including but not limited to TI National Chapters. The program aims to develop expert knowledge in selected thematic issues, and to strengthen internal organizational governance and management systems of civil society organizations involved in the promotion of transparency and the fight against corruption.

TI will seek to strengthen its presence in P.R. China and expand its reach in Vietnam and the Maldives, while establishing a Regional Experts Group to support its global advocacy work.

TI is also seeking funding for a new regional project to develop anti-corruption systems for the forestry sector in the Pacific and Southeast Asia.



TI had conducted National Integrity studies of over 60 countries, including some in South Asia and the Pacific Islands. These studies are conducted by independent researchers that use a common template but identify special features in the target country. TI is planning 10 studies in Southeast and East Asia including P.R. China; Hong Kong, China; and Singapore that should be completed in 2006. It also plans a workshop in late August 2006 to discuss the results of the studies. Once finalized, the studies will be published on CD ROM, on the internet and in print in English with summaries in the language of the examined country.

TI is continuing the preparation of 10 National Integrity Systems Studies in Asia, including Cambodia; P.R. China; Hong Kong, China; Singapore; and Vietnam. All studies will be released between December 2006 and February 2007.

TI participated in capacity-building workshops in public procurement in Pakistan in 2005 and in Indonesia and Malaysia in 2006. The focus was on local government procurement, particularly in major cities such as Karachi and Kuala Lumpur. TI is also working in P.R. China on procurement issues with the Ministry of Supervision.

TI has conducted the following additional country-specific activities:

• Establishing a committee of concerned citizens in Bangladesh;

• A project on voter education and democratic governance awareness in Papua New Guinea;

• A project on post-election commitment in Fiji; • Conducting a corruption perception survey in Pakistan;

• Creating a government integrity index in Chinese Taipei; and • Analysis of corruption within the police force in Sri Lanka.

TI has started a new project to promote anti-corruption systems in the construction sector in China. TI is working closely with the Ministry of Supervision of P.R. China on the project.


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United Nations Development Program (UNDP)



UNDP will launch an Asia-Pacific Community of Practitioners (CoP) on integrity, transparency and anti-corruption, an internal network of UNDP practitioners who seek to learn about new developments and good practices. The CoP seeks to assist in satisfying the demand for UNDP Country Office Services on anti-corruption issues, especially in light of the number of countries that wish to ratify the UNCAC. The Regional Centre in Bangkok (RCB) will hold a meeting in Lao PDR at the end of September 2006 to launch the CoP.

The UNDP Bangkok Regional Centre will hold a regional Community of Practice meeting on 24-26 January 2007. On the first two days of the meeting, UNDP staff, and UNDP partners in government and civil service organizations will discuss general issues. The third day of the meeting will be open only to UNDP country office personnel. The object of this session will be to help participants advance the Community over the following years.

The UNDP Regional Bureau for Asia-Pacific decided that the 2007 Regional Human Development Report for Asia-Pacific will be devoted to corruption. It will be produced jointly by the RCB and its sister center in Colombo. The report will address links between corruption and health and education as key human development indices; such a link between corruption and deteriorating health service is suggested by a Transparency International report. UNDP will also assess possible links between education and corruption and show the impact of corruption on the Millennium Development Goals (MDG). UNDP will consult the Steering Group and the Initiative’s Secretariat on the substance of this work.

Resident representatives of UNDP country offices have chosen corruption as the theme of the 2007 UNDP Regional Human Development Report for Asia-Pacific. UNDP has commissioned two background papers and conducted two stakeholder meetings in South-east Asia and the Pacific. A third one in South Asia is scheduled for the end of January 2007. UNDP will also commission a number of technical background papers. UNDP hopes that the report will be ready by the end of 2007.

Through its parliamentary support service line, the UNDP supported the Southeast Asian Parliamentarians Against Corruption (SEAPAC), a regional arm of the Global Organization of Parliamentarians Against Corruption (GOPAC). This regional initiative may grow, and a South Asian body of parliamentarians against corruption is in preparation.

The RCB will continue supporting the ADB/OECD Initiative’s activities by sponsoring participants from UNDP country offices or member governments, notably for the participation in the Initiative’s Training Seminars. It hopes to continue doing so in 2006 and be even more active in 2007.

The Millennium Declaration pledges countries to meet the eight Millennium Development Goals (MDGs). Recently, Mongolia approached the UNDP to seek assistance in its efforts to meet the ninth MDG on good governance by 2015. Over the next 12 months, UNDP will visit Mongolia to support the definition of the scope of MDG 9 and the establishment of indicators.

UNDP’s parliamentary support service line has begun researching codes of conduct for parliamentarians in Asia. UNDP hopes to report on its initial findings and recommendations at the Initiative’s next Steering Group meeting.

The RBC, Transparency International and BASE/GOV have requested funding from the UN Democracy Fund (UNDEF) to support a project to promote parliamentary oversight in Afghanistan, Cambodia, Mongolia, Nepal, and Vietnam.

UNDP has prepared two public service announcement videos with the help of an advertising agency. The videos are available to members of the Initiative who would like to show them in their countries. The videos are in English, but there are professional versions that can be dubbed into other languages. Interested governments should contact the UNDP office in Bangkok or a UNDP country office.


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United Nations Development Program (UNDP)

UNDP’s communication specialists are raising media awareness in the Asia-Pacific region. It held a training seminar this year for print and television journalists, focusing on reporting corruption. The UNDP intends to continue this activity at both the regional and national levels.


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World Bank



The World Bank’s new strategy on governance and anti-corruption builds on its experience in the area, including:

• The finding of a strong correlation between good governance and anti-corruption with stronger economic growth, lower income inequality, lower child mortality and illiteracy, improved competitiveness and investment climate, greater resilience of the financial sector, and better use of aid;

• The importance of using local knowledge, working with champions and government, and creating broad coalitions;

• The need to differentiate strategies according to the nature of corruption in a country, e.g. state capture (corruption in the formation of laws and policies) and administrative corruption (corruption in the implementation of laws and policies);

• Recognition that transparency, accountability, strong institutions, and strong public services are critical; and

• The importance of institutions beyond the executive government, such as parliaments, auditors general, local communities, media and civil society.

The new strategy will result in a more systematic approach to governance and anti-corruption in country assistance strategies. Country assistance strategies are set every three years in consultation with the country concerned. The strategies for each country will vary, depending on the strength of governance in the country and the government’s commitment to remedy weak governance.

The Bank has developed many diagnostics and surveys that it will continue to use to enhance the new strategy. The Bank is also paying more attention to measurable indicators on the impact of anti-corruption initiatives.

At the project level, the Bank will safeguard the use of the Bank’s and the country’s funds.

At the global level, the Bank will support initiatives such as the Extractive Industries Transparency Initiative, Publish What You Pay, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the UNCAC.

The Bank will increase cooperation with multilateral development banks and regional development banks on sanctions reform (e.g. blacklisting of firms).

The Bank will assist countries to strengthen their ability to track and confiscate proceeds of corruption. The Bank will also supply technical assistance for asset recovery.



In Papua New Guinea, the Bank hopes to respond to the government’s request to help with their new governance and anti-corruption strategy. The Bank is examining Papua New Guinea’s progress in implementing public expenditure and transparency reforms.

In Vietnam, the Bank is trying to help the government to strengthen governance throughout the country, particularly regarding planning processes, public financial management, public administration reform, legal reform, and access to information. The Bank will also support Vietnam’s effort to foster market competition and to develop foundational institutions for a market economy.


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World Bank

In Timor Leste, the Bank has supported the creation of the Ombudsman’s Office. The Office is unusual in that it combines the functions of a human rights commission, anti-corruption agency and traditional ombudsman. The Bank also supports the office of the Inspector General who investigates abuses of administrative processes and public funds.


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Observer organizations

APEC Anti-Corruption and Transparency Task Force (ACT)



The APEC ACT held its second meeting in Hanoi on 26 February 2006. The ACT developed a work plan for 2006 that reiterated its expectation to cooperate with regional and international organizations and initiatives including the ADB/OECD Anti-corruption Initiative for Asia and the Pacific, the World Bank, the Inter-American Convention against Corruption, Transparency International and the Global Forum on Fighting Corruption. The purpose is to avoid overlap and to create comprehensive anti-corruption efforts. In addition, the work plan covered eight key areas:

1. Implementation of the UNCAC and other anti-corruption initiatives by member economies;

2. Implementing domestic initiatives for denying safe haven to corrupt individuals and their assets;

3. Fostering public-private partnership on fighting corruption and poor governance by promoting integrity and implementing codes of conduct for public officials;

4. Reviewing members’ capacity-building efforts in anti-corruption and transparency, so as to share experiences;

5. Coordinating anti-corruption work across all relevant fora within APEC (e.g. CITI, GPEG, SCCP, IEGBM etc.) to promote synergy and to avoid duplication;

6. Developing means to enhance collaboration on APEC COA activities to strengthen regional cooperation on mutual legal assistance and denying safe haven to corrupt officials and embezzled assets;

7. Enhancing effective implementation of APEC anti-corruption commitments, and complying with UNCAC even before ratification; and

8. Raising public awareness and encouraging active involvement of people in Asia-Pacific in anti-corruption.

ACT has endorsed its 2006 key deliverables on prosecuting corruption, strengthening governance and promoting market integrity. The main components of the key deliverables are:

1. Preventing and prosecuting corruption: ACT members underscore their commitment to:

• Prosecute acts of high-level corruption and those who corrupt them by enforcing laws against bribery of foreign public officials;

• Develop domestic actions to deny safe haven to corrupt individuals and the proceeds of corruption;

• Enhance international cooperation to uncover and seize stolen assets and return them to their rightful owners;

• Highlight the importance of preventive measures and integrity systems; and

• Urge greater responsibility among public officials in adopting and implementing codes or norms of conduct and ethics that are aligned with the UNCAC.

2. Public-private partnerships: The APEC Public-Private Dialogue - Fighting Corruption and Ensuring Transparency was held in the margins of the SOM III meeting in Da Nang in September 2006. There is continued leadership of the APEC Business Advisory Council (ABAC) and the private sector in promoting good corporate governance practices and codes of conduct.

3. UNCAC and Financial Action Task Force (FATF): ACT urges its members to make ratification of the UNCAC a major priority. ACT also urges members to intensify regional cooperation and to implement measures on mutual legal assistance, extradition, asset recovery, and forfeiture of the proceeds of corruption. ACT members are committed to implementing the recommendations of the FATF. Finally, members encouraged ACT to develop a compendium of best practices and the necessary cooperative networks, mechanisms, and arrangements to enhance the effectiveness of international cooperation.

4. Cooperation with other multilateral partners: ACT notes the importance of strengthening its partnership with other international and regional organizations, particularly ADB, the Asia-Pacific Group on Money Laundering, INTERPOL, Organization of American States, OECD, UN, and World Bank. ACT will explore new synergies and partnerships with its multilateral partners, including jointly co-sponsoring regional conferences, studies, training workshops, and pragmatic toolkits.

ACT has developed a framework to take stock of completed, on-going and future anti-corruption activities in the APEC region. ACT members were encouraged to provide input to the matrix. The ACT will also take stock of all existing anti-corruption and criminal agreements of member economies, including international, regional and mutual legal assistance agreements. The revised matrix will be submitted to ACT’s next meeting in September 2006.


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APEC Anti-Corruption and Transparency Task Force (ACT)

ACT has agreed to fund two projects. First, Hong Kong, China will hold the Third ICAC International Anti-corruption Symposium in June 2006. The theme of the Symposium is on corporate corruption, integrity and governance. Second, Vietnam will hold the APEC Public-Private Dialog on Anti-corruption and Ensuring Transparency in Business Transactions in September 2006. This Dialog aims to exchange views and ideas of experts on best practices in promoting public-private partnership to reduce business transaction costs by fighting corruption; assist APEC developing economies to consolidate measures that enhance public-private partnership in the fight against corruption; and call for inputs from the private sector to define its future work program.


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Pacific Islands Forum



The Pacific Islands Forum is a regional intergovernmental organization comprising 16 members, 7 of which are members of the ADB/OECD Initiative members. The Forum also has 7 dialogue partners who are members of the Initiative. The Forum is not a donor organization, but it conducts a limited number of regional projects that are directed by members (Leaders). These are funded by member contributions and, where necessary, donor assistance.

A number of the Forum’s projects over the last several years have focused on practical measures to improve integrity in leadership and political systems, and thereby to reduce corruption. These measures focus particularly on public sector governance in member countries.

At their meeting in Cairns in July 1997, Forum Economic Ministers adopted the “Eight Principles of Accountability” which draw in part on the IMF Code of Principles and Good Practices on Fiscal Transparency. A stocktaking of the member countries’ progress on implementing the Principles is presented biennially to the Forum Economic Ministers’ Meeting. It serves as a tool for peer review of the standards of economic accountability observed by the members. The stocktaking also identifies capacity and resource issues that may impede the members’ implementation of the Principles. For example, the Forum found that its members have generally performed well in the establishment and empowerment of parliamentary expenditure or accounts committees. However, implementation of the principle of open, competitive and transparent public procurement requires priority attention.

In 2003, Forum Leaders promulgated the “Forum Principles of Good Leadership”. Based on these Principles, the Secretariat developed Leadership Code legislation which enshrines the Principles into law and creates a mechanism for investigating and sanctioning breaches of the Code. The Secretariat has assisted Tuvalu, Nauru and Kiribati with the preparation of Leadership Code legislation. Tonga and the Marshall Islands have approached the Secretariat for assistance.

In their 2004 Communiqué, Forum Leaders expressed their will to consider signing and ratifying the UNCAC to strengthen good governance in accordance with the spirit of the Biketawa Declaration. The Secretariat is in discussions with UNDP, UNODC, the University of the South Pacific, Transparency International and Papua New Guinea regarding the first of several subregional workshops on the ratification and implementation of the UNCAC. The first workshop is tentatively scheduled for March 2007 in Port Moresby.

The 2004 Leaders’ Declaration and the ensuing Pacific Plan for regional cooperation and integration have also raised the profile of anti-corruption work in the Forum. The Plan seeks to move Forum members to a higher level of regionalism in a range of areas grouped under four shared goals: economic growth, sustainable development, good governance, and security. With good governance as one of the “four pillars” of the Plan, anti-corruption initiatives – both direct and indirect – constitute a strong element of the Plan.

The Pacific Plan also specifies that strengthening anti-corruption institutions in the region is an immediate priority. In pursuit of this goal, the Secretariat in 2007 will commission a study of the pros and cons of a regional anti-corruption institution or other


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Pacific Islands Forum regional institutional support mechanisms.

The good governance pillar of the Pacific Plan provides a mandate for a range of initiatives that aim to enhance the quality and integrity of governance. These initiatives are related to reducing corruption in Forum members and include:

• Providing support to key governance institutions, including audit and ombudsman’s offices, departments of attorney-general and judiciaries;

• Several initiatives to promote professional and ethical leadership in elected office and public service;

• A priority initiative to upgrade and extend regional statistical information systems and databases across all sectors;

• Enhancing governance mechanisms for resource management;

• Investigating harmonization of traditional and modern governance values and structures;

• A commitment to enhancing freedom of information (as well as other human rights) within the region;

• Developing a strategy to support participatory democracy, including strengthening the participation of women in Pacific parliaments, and examining electoral systems and laws in Forum members;

• Developing common approaches to financial regulation, and strengthening treasury and finance functions; and

• Research by the Regional Governance Adviser on corruption and health.

Implementation of the Pacific Regional Security Technical Cooperation Strategy is a key priority under the Pacific Plan’s security pillar. Several activities within the Strategy are consistent with the security and good governance pillars, and are also directly related to combating corruption:

• Strengthening regional customs capacity and infrastructure. In particular, the Forum Secretariat’s Law Enforcement Unit is assisting Tonga in investigating alleged corruption in its customs administration;

• Updating the regional model legislation developed in the late 1990s on extradition, mutual assistance in criminal matters, and proceeds of crime. This will be followed by providing (upon request) assistance to member countries to enact and implement the legislation; and

• A dedicated mentoring program for Forum Countries to strengthen their institutions and capacity to combat money laundering. This is conducted through the Secretariat’s Pacific Anti-Money Laundering Program (PALP) and is funded by the United States through UNODC.


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United Nations Asia and Far East Institute for the Prevention of Crime and the Treatment of Offenders (UNAFEI)



UNAFEI is an UN-affiliated training institute that provides technical assistance to Asia-Pacific countries by organizing training seminars for criminal justice officials.

UNAFEI has organized annual 4-week training courses on corruption control for the last 9 years. 94 officials from 49 countries have attended these courses, including 64 officials from 27 Asia-Pacific countries. This year, UNAFEI invited 15 officials from 14 countries, including 9 officials from 8 Asia-Pacific countries. The course concluded on 17 November 2006.

In 2007, UNAFEI plans to hold a regional seminar on good governance in Bangkok with the participation of several Asian countries. The seminar will focus on practical measures to tackle corruption and general issues in realizing good governance. The seminar will have two major pillars: (1) measures in criminal investigation, prosecution and adjudication, including MLA and extradition; (2) administrative measures, such as accountability and transparency. UNAFEI calls for the cooperation of the members of the Initiative in this project.



Since 2003, UNAFEI has been running a project for the Office of National Counter Corruption Commission (ONCC) of Thailand to improve their ability to investigate corruption cases. The project included annual training courses in Thailand and Japan for officials involved in investigating corruption. Prior to the termination of the project at the end of 2006 UNAFEI staff assisted Thai officials to prepare an action plan during their visit to Bangkok in November 2006.


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Support towards anti-corruption efforts provided by the Asian Development Bank



ADB concluded a review of its governance and anti-corruption policies at the beginning of 2006. The review found that the policies were fine but that ADB does not have sufficient resources to cover all aspects of governance in every country. ADB has therefore developed a more focused governance and anti-corruption action plan. Specific governance initiatives requested by a country (e.g. the public resource management programs in Pakistan) will continue. However, the Bank needs to address governance and anti-corruption in each country program, and pay more attention to the subject during project implementation.

ADB has identified three core thematic priorities at the country level: (1) public financial management; (2) public procurement; and (3) anti-corruption. Henceforth, when ADB engages in a country strategy or program, it will determine the inherent risks in the country that could impact the forward strategy.

Another major change is that strategies will focus more on sectors. ADB will examine the government’s objectives in a sector over the following 5-10 years and assess the risk that those objectives will not be met. The focus is to make the country strategy more consistent with the government’s forward plan.

In implementing the action plan, the guiding principles are:

1. Country ownership, since strengthening governance is ultimately a country issue;

2. Harmonization and delegated cooperation with other international organizations, such as AusAID, TI, UN, and the World Bank, so as to avoid replication. In this regard, the ADB/OECD Anti-Corruption Initiative for Asia-Pacific has provided a great depth of knowledge through its stocktaking exercise and thematic reviews;

3. Flexibility and adaptability – Since every country is different, it is important to tailor a strategy to the country’s context; and

4. Professional judgment - By adopting a risk-based approach, ADB will not take a boiler-plate approach to every country.

ADB will perform risk or vulnerabilities assessments, but the success of such assessments will require the participation of the respective government as a partner.

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