““Corruption Context Corruption Context in Myanmar & in Myanmar &

‘‘Heat MappingHeat Mapping’”’”

23 / 9 / 1423 / 9 / 14David Allan David Allan (djallan777@gmail.com)(djallan777@gmail.com)

MCRB – Spectrum – TI:Anti-Corruption Workshop

for Myanmar Business

Development for Who ??????

Overview

Background BTI Study of Context Change Overview of Progress Corruption & Bribery Overview Rule of Law, Legal System & Legal Profession Specific Tools - Heat Maps Survey and Results Mapping against NIS Temple Context issues and Pillar Gap Assessments Conclusions

2012 Corruption in Myanmar2012 Corruption in Myanmar

For the moment, as a route to improving For the moment, as a route to improving corruption it seems more productive, corruption it seems more productive, to be discussing ways forward on: to be discussing ways forward on: --

Focus on transparency and accountabilityFocus on transparency and accountability Enhancing the rule of lawEnhancing the rule of law Promoting a climate of National Integrity.Promoting a climate of National Integrity.

Building Integrity or Building Integrity or Countering Corruption?Countering Corruption?

The positive language The positive language of building integrity of building integrity rather than the negative rather than the negative of antiof anti--corruption has corruption has been useful in helping been useful in helping positively introduce positively introduce this field of work in this field of work in Myanmar.Myanmar.

Language is important!Language is important!

““What does budget transparency What does budget transparency say about corruption in say about corruption in ……??””

““What we know is that where What we know is that where there is not transparency, it there is not transparency, it favors an increase in favors an increase in corruption.corruption.

So it is worth focusing So it is worth focusing on improving transparency.on improving transparency.””

Simplified EITI ProcessSimplified EITI Process

Civil Society structure Civil Society structure -- key in key in the Multithe Multi--Stakeholder GroupStakeholder Group

14 State/Region groups of 15-20 each= 250 people

14 groups of 5 each= 70 people

9CSOMSG Reps

National

Regional

MSG

2013 CPI – Corruption Perception Index

Myanmar scored 21 / 100, improving to 157 of 177, from 172 of 176, and 180 of 182.

Dr Sai Dr Sai MaukMauk KhamKham…… 5 June 20135 June 2013

When asked at the WEF, at the “Aligning Actors for Inclusive Growth and Development” dinner, to comment on the Myanmar’s position in 2nd bottom place of the Transparency International Corruption Perception Index, Vice President Dr Sai Mauk Kham responded:

” I think its about right…We have a lot of work to do in every aspect of this area. ””

Anti-Corruption Work in Myanmar ??? Possible – 1st on news & front page

What areas of progress?What areas of progress?

MM ratified UNCAC Dec 2012MM ratified UNCAC Dec 2012 Delegation to the 5Delegation to the 5thth COSP for UNCACCOSP for UNCAC AntiAnti--bribery lawbribery law 80+ signed up for Global Compact80+ signed up for Global Compact Likely group formation of Global Org Likely group formation of Global Org

Parliamentarians Against CorruptionParliamentarians Against Corruption AntiAnti--Corruption Commission Corruption Commission

formation announcedformation announced ““UndiscussableUndiscussable”” becoming discussablebecoming discussable

-- but still very vague, nameless problems but still very vague, nameless problems New information and tools availableNew information and tools available……

• First‐ever national wide survey for business

• All sectors, sizes, legal structures, ownerships , nationalities  and States/Provinces

• Conducted by ESCAP/OECD/UMFCCI

• Donors: Japan, Germany, Switzerland, The Asia Foundation and UNIDO

• 3 months for data collection

OECD-UNESCAP-UMFCCI Survey on Businesses in Myanmar 2014

CORRUPTION, LACK OF SKILLED LABOUR AND OF TECHNOLOGY MAJOR BARRIERS FOR BUSINESSES

0%

5%

10%

15%

20%

25%

The percentage of respondents who see the constraint as a very severe obstacle

0%

5%

10%

15%

20%

25%

ICJ Report ICJ Report –– Dec13 Dec13 Rule of Law? Rule of Law?

“The adverse effects of corruption on the administration of justice in Myanmar cannot be overstated, and theindependence of the legal profession will be significantly compromised until and unless corruption at every level is addressed.””

Example:

“Nearly all of the 60 lawyers to whom the ICJ spoke identified corruption in the form of misuse of influence and monetary incentives for particular legal outcomes throughout the whole legal system as the most acute challenge to their independence as individual lawyers and to the legal profession overall.

They explained that corruption underlies and affects every aspect of a lawyer’s career, from completing law school, to retaining clients, accessing information, meeting with clients who are detained, securing meetings, submitting motions, presenting witnesses, winning cases, ensuring the enforcement of judgments, and retaining their licenses to practice law.

In words of one lawyer, “I will lose if my opponent has money”; according to another, corruption is “in every court, in every case.”

The consensus view of lawyers speaking to the ICJ was that while corruption varies in degree among individuals, police stations, and courts, it is never absent from the equation, or thus from lawyers’(and clients’) calculations vis-à-vis fees, forum, and overall strategy.

It is so deeply embedded into the legal system that it is essentially taken for granted; accepted if not embraced.””

ICJ Report ICJ Report –– Rule of Law? Rule of Law? …… Dec13Dec13

“Corruption within the legal system is worst at the lower rungs of the administrative system, at the district and township level administrative authorities—“decentralized”in the words of one lawyer.

While one lawyer from Bago told the ICJ “there is so much corruption, you cannot fight it”, a small group of lawyers in Pyayhave organized themselves and refuse to accept or solicit bribes, demonstrating how the problem can and must be confronted.

Individuals—lawyers, clients, authorities—on both the give and the take, must stop and protest, while the authorities empowered to change the legal system must take steps toward eradicating it. It must be prevented and punished robustly.””

ICJ Report ICJ Report –– Rule of Law? Rule of Law? …… Dec13Dec13

Corruption Level by East African Country and Sector, 2012

Respondents in the five countries were asked to assess the degree of corruption in a number of public agencies.

Transparency International’s National Integrity System ‘Greek Temple’Jeremy Pope (ed), TI Sourcebook 2000, p.35

Survey Methodology Survey Methodology undertaken in Myanmarundertaken in Myanmar

To overcome some of the cultural To overcome some of the cultural difficulties, surveyed 3 specific focus difficulties, surveyed 3 specific focus groups of people particularly interested groups of people particularly interested in transparency and accountability:in transparency and accountability:

AseanAsean Business and Corruption seminarBusiness and Corruption seminar Civil Society Forum for Peace event Civil Society Forum for Peace event

focused on resource revenue focused on resource revenue and budget transparency topicsand budget transparency topics

Myanmar Coalition for TransparencyMyanmar Coalition for Transparency-- regional representatives meeting.regional representatives meeting.

122 valid responses.122 valid responses.

Police

JudiciaryLand Records Department

TaxationDept.

“Heat Mapping” - % of SampleOverall Perception of Corruption

MM “Heat Mapping” - % of SampleOverall Perception of Corruption

National Integrity Systems Temple

“The NIS exercise does not allow us to understand what causes a sound

corruption control framework. The NIS approach starts from the

assumption that it is the harmony of the inter-pillar dynamics … …

What level of performance, what combination of elements, in what

context, result in a sound corruption control framework?” TI Portugal.

Police

JudiciaryLand Records Department

TaxationDept.

MM “Heat Mapping” - % of SampleOverall Perception of Corruption

Military Military –– given their institutional role given their institutional role and role in independence of the legislatureand role in independence of the legislature

Consideration of the basic rights associated Consideration of the basic rights associated with ownership and property lawwith ownership and property law

Inadequate constitutional recognition of ethnic Inadequate constitutional recognition of ethnic groups or validity of ethnic formed governmentsgroups or validity of ethnic formed governments

Rights of citizenship Rights of citizenship and representation by all public groups and representation by all public groups

Role of State Owned Enterprises (Role of State Owned Enterprises (SOEsSOEs)) High centralization rather than deHigh centralization rather than de--centralisationcentralisation Inadequate public financial management systemInadequate public financial management system Poverty status Poverty status

(poverty will drive corruption and also prevent (poverty will drive corruption and also prevent those with little power to be able to resist)those with little power to be able to resist)

Missing Pillars?Missing Pillars?From MM context factorsFrom MM context factors

Missing Pillars?Missing Pillars?From MM context factorsFrom MM context factors Social Welfare system status Social Welfare system status ““Access to informationAccess to information”” legislation or institutionslegislation or institutions Availability of finance by institutional routes Availability of finance by institutional routes Criminal activity and drugs Criminal activity and drugs

as a major income activityas a major income activity Transitional factors related to the Transitional factors related to the

absence of peace and stabilityabsence of peace and stability Transitional factors related to post war Transitional factors related to post war

reconstruction where large inflows may reconstruction where large inflows may commence without corruption controlcommence without corruption control

Specific resource extraction transparency Specific resource extraction transparency regimes to prevent grand corruption regimes to prevent grand corruption ((EgEg. EITI, mandatory reporting, contract . EITI, mandatory reporting, contract transparency etc.)transparency etc.)

Missing Pillars?Missing Pillars?Related to Peace transitionRelated to Peace transition Presence of Presence of ‘‘conflict entrepreneursconflict entrepreneurs’’ who seek to who seek to

monopolisemonopolise the reconstruction economy or the reconstruction economy or resource capture opportunitiesresource capture opportunities

Foreign Direct Investment inflows (FDI) being Foreign Direct Investment inflows (FDI) being for a type of project that favor large for a type of project that favor large multinationals rather than affected communities multinationals rather than affected communities

Issues associated with the consistency of Issues associated with the consistency of application of antiapplication of anti--corruption proceedings corruption proceedings

Rapid influx of aid and extractive incomeRapid influx of aid and extractive income Funds inflows for disarmament and reintegration Funds inflows for disarmament and reintegration

of combatants as a necessary part of peace of combatants as a necessary part of peace processes and additional issues this createsprocesses and additional issues this creates

Absence of conflict sensitive, Do No Harm Absence of conflict sensitive, Do No Harm approaches, and delivery needs for quick impacts approaches, and delivery needs for quick impacts /spend targets without note of corruption risks. /spend targets without note of corruption risks.

No corruption cases sent to Anti-Corruption Commission: Supreme Court Judge

The Lower House hears that the Anti-Corruption Commission has not received any case, which observers say may be due to the fact that eye witnesses are required for proof.—mna

NLM 1/8/2014

NLM 5/8/2014

NLM 8/8/2014

NLM 18/8/2014

Some web based articles:

18/9/2014 Corruption watchdog needs to use its teeth, MP says

The Anti-Corruption Commission must be completely independent and start doing what it was set up to do – uncover corruption and take action against anyone involved in corruption, no matter who they are, Upper House MP Hla Swe said.

22/9/2014 Question to be raised about lack of work done by Anti- Corruption Commission

A question will be raised in parliament regarding the lack of work done by the Anti-Corruption Commission, Lower House MP Thein Nyunt said on Saturday. “The commission said in its report that it has received 533 complaints within 6 months

and only three of them have been investigated and necessary action taken.

21/9/2014 Speaking on Behalf of U Khin Aung Myint…

….“When these budgets, money from tax-payers, are reused for the public's education and health sectors, unsatisfying situations have arisen such as a building not being able to meet its standard, a school being built with boards instead of bricks as it was originally stated, or a school built with half the budget although a gigantic amount was shown on the paper as the total cost of the building.”….

“on September 16, Khin Aung Myint was able to point out how the budgets for the health and education sectors have been wasted by people pocketing the money for themselves even though the government has increased the budgets for many-fold.

…"It's like a tray of plums being dropped at a fair. After it was dropped, one person takes a handful of plums and another person takes another handful of plums so only half of them are left. The budget issue is like this.“….

...“in the article “Auctions as Usual” published in 7 Day journal, it is described that a construction business person said “Although tender haven’t not called for, the business person was already let know.”

Conclusions for MyanmarConclusions for Myanmar

Reform activity and progress already Reform activity and progress already underway underway –– how effective?how effective?

Heat Mapping shows some key needs Heat Mapping shows some key needs in important areas for rule of lawin important areas for rule of law

Can focus on these nowCan focus on these now……Some can be Some can be considered more important than others considered more important than others

Press information becoming extremely Press information becoming extremely active in the corruption areaactive in the corruption area……

Myanmar is very complicated. Need Myanmar is very complicated. Need to include institutions, actors, issues in to include institutions, actors, issues in anything dealing with integrity systems. anything dealing with integrity systems.