What Went Wrong & What Can be done Now

Tony Kwok, SBS, IDS Adjunct Professor & Course Director, HKU UNODC Anti-corruption Expert Group Visiting Lecturer, International Anti Corruption Academy Visiting Expert UNAFEI Regional Coordinator, IAACA Visiting Professor, PRC National Prosecutors College Anti-corruption Advisor to Mongolia Former Deputy Commissioner, ICAC HK

Definition & Types of Corruption

Bribery

Misuse of Conflict of Power interest for Private gain

Embezzlement

Fraud

Definition of A Bribe
Gift, loan, fee, commission, reward consisting of money or valuable or property Office, employment, contract Payment or discharge of liability Service or favour

Where do we find Corruption ?

Offer bribe Campaign Financing

Private Sector

Agents Corrupt Civil servants

Offer bribe

$
International & National Private Sector

Legislative Executive
Corrupt Magistrates

$
International & National Private Sector

Police Corruption

Judiciary $

True or False
Corruption is so serious in this country that it will take a decade to eradicate it? If we can identify all the opportunities for corruption, and plug them all, corruption will be eradicated? We can rely on the dedicated anti corruption agency to eradicate corruption? Government should focus on public sector corruption, and leave business sector alone

Public Protest on Corruption in 70

Public Housing Scandal

Hong Kong Success

Eradicated most overt corruption in 3 years Enforced private sector corruption, enables level playing field for business Clean election Efficient & accountable government Change the public attitude no longer tolerating corruption as a way of life willing to report corruption non anonymously Enhance economic growth

Anti Corruption Agencies in Asia

Singapore Corrupt Practices Investigation Bureau 1967 Malaysia Anti Corruption Agency 1967 Hong Kong ICAC 1974 Brunei Anti Corruption Bureau 1982 Philippines Ombudsman - 1987 Pakistan National Accountability Bureau 1999 Thailand National Counter Corruption Bureau 1999 Macau Commission Against Corruption 1999 South Korea KICAC 2002 Indonesia Corruption Eradication Commission 2003 Bangladesh Anti Corruption Commission 2004 Mongolia Independent Authority Against Corruption 2006 Cambodia Anti Corruption Commission - 2010

Why ACA fail

Lack of resources Lack of independence Wrong strategy Inadequate law Inadequate jurisdiction private sector, election Lack of public credibility & support Lack of coalition Corrupt judiciary Lack of professional staff Lack of public accountability & internal control Lack of POLITICAL WILL

What are the Key Success Factors in Combating Corruption?

Three Important Understanding

1. There is no single solution in fighting corruption 2. You cant rely on single agency to fight corruption 3. Zero tolerance

Three pronged approach

Education Prevention Deterrence

ICAC Organization Chart

Commissioner
Deputy Commissioner Community Relations Operations Corruption Prevention

Why Enforcement is important?

Demonstrate political will Encourage public support Driving force for system review Provide basis for public education Recovery of corrupt proceeds Deter the most corrupt!

Effective Deterrence
Zero tolerance policy Effective complaint system to encourage public report Protection of whistle blower Quick response Proactive approach Professional investigation and prosecution Publicity on successful convictions

Professionalism & Integrity

Professional investigators
Intelligence experts IT experts Accountants Lawyers Management/technical experts PR, education, ethic experts Sense of mission Whiter than white

Effective Corruption Prevention

Management system control Vulnerability areas control

Key System Control

Procurement Management Financial Management Human Resources Management Complaint Management

Vulnerability Areas Control

Public procurement & service contracts Public work

Revenue collection

Law enforcement
Licensing

Public service delivery

Ministries Anti Corruption Action Plan

Philippines, Mongolia, Serbia Prime Ministers Workshop agreed common action based on 4 pillars Tailor made ministries action plan ACU to coordinate training needs Quarterly progress report to ACU, then to the Cabinet Review annually

Ministry Anti Corruption Action Plan

PILLAR I Ethical Leadership PILLAR II Individual Integrity PILLAR III Systems Integrity PILLAR IV

Monitoring & Deterrence

Internal factors affecting the government agencies fight against corruption

No or ineffective anti-corruption strategy and action plan Lack of clear ethical standard for staff Lack of enforcement of ethical conduct Human resource policy/management Bureaucracy not conducive to efficiency & transparency Lack of effective mechanisms for accountability Outdated regulations and poor enforcement Conflicts of interest are common Lack of adequate procurement procedures Weak internal audit and monitoring systems

Corruption Prevention - targets

Poor System Control

Poor Staff Integrity

Corruption Opportunity and System Control

System Control
Efficiency, transparency & Accountability Procedural Guidelines Supervisory Checks and Control

Corruption Opportunity

Public complaint & Independent Audit Professional CP Studies

Staff Integrity and Corruption Risk

Issue Code of Ethic
Declare Conflict of Interest/asset

Staff Integrity

Integrity vetting
Commit to zero tolerance strategy

Set role model by senior officers

Corruption Risk

Code of Ethic
Leadership by example Acceptance of entertainment, gifts, loans & discount Declaration of conflict of interest Abuse of authority Leakage of confidential information Outside work Declaration of investment Life style gambling, indebtedness etc Sunshine Test

Effective Public Education

Public Education & Communication Programme

Objective
Change the public attitude Enlist the public support Encourage public report Promote the deterrent effect Promote a clean society Promote the corporate image of anti-corruption agency Force political will!

Public Education Methods

Media publicity Media commercials TV/radio drama series Face to Face Community activities exhibition, competition Ethic campaign Conference, seminar School moral education Training in public & business sector

Adequate Law
Offences :
Gifts

Illicit enrichment Conflict of interest Private sector corruption Unauthorized disclosure of investigation

Adequate Law
Investigative Power :
Bank enquiry Demand for information Arrest & detain Search Restrain property Surrender travel document Surveillance Undercover Telephone interception

Check & Balance

Independent Complaint Committee Operations Review Committee

The Monitoring Role of the Operation Review Committee

Report Centre Assessed by Directorate daily Corruption Involved Non-pursuable Pursuable Investigation Appropriate Authority (with Consent of Complainant) Unsubstantiated Substantiated Report to S. for J. Fiat Prosecution Operation Review Committee NA Appropriate Autority Informed Police & other law enforcement agencies
Letter Phone Call Person E-mail Referral - ICAC RO, Other Govt. Dept.

Corruption Not Involved No Allegation of Criminal Offence Allegation of Criminal Offence

Equal Emphasis on public & private sector corruption

Double standard Identical to deception and theft Protect investment Level Playing field Consumer interest Financial Market stability Public safety Catalyst to organized crime & crime

Partnership
Government agency Action Plan Business community Professional bodies Civil society organizations Educational institutions Mass media Public International networking

Adequate Resources
ICAC Annual Budget US$89M HK population:7M US$13 per capita Your countrys Population: ? ? x US$13 = ICAC Budget = 0.38% of HKG budget Your countrys Govt budget : ? 0.38% of Govt budget = ? ICAC-900 investigators:180,000 civil servants (1: 200) Your country ? civil servant : ? investigators?

Top Political Will Independence

Top Political Will can be measured by :

Resource support for Anticorruption Agency Push for anti corruption friendly law No political interference Zero tolerance policy

Key Success Factors

Effective 3 pronged approach Start off with effective enforcement Professional & incorruptible staff Adequate law Adequate resources Partnership Equal emphasis public & private sector Public support Independence Top political will

Key Issues
What are the key corruption problems at the national level? What are the key corruption problems at the ministries level? What should be the national anti-corruption strategy? What is the role of the government ministries in combating corruption? What additional anti corruption law should be introduced? Questions on the national anti-corruption agency: To ensure the independence of the ACA The Jurisdiction of the ACA in relation to public and private sector corruption, election and related offences How much investigative power should be given How much manpower and resources should be given to ACA How to ensure the ACA staff is professional and of high integrity How to ensure the public accountability of ACA The role of other accountability institutions The role of the judiciary The role of the civil societies

Some Initial suggestions

Revised anti corruption law based on UNCAC Set aside 0.3% of budget for KPK Build up an accountability system for the KPK watchdog committee Presidential Anti Corruption Workshop on Government agencies annual action plan Certified Institutional Integrity Manager in every government agencies & public listed company Government/Business Sector partnership on Business Integrity

How can the donors help?

Ministries anti-corruption action plan workshop Capacity building for individual ministries in implementation of action plan Training courses for certified institutional integrity manager Launch Business integrity initiative

Thank You
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