· global corruption report (gcr), whose first edition is to be published in october 2001, is...

TRANSPARENCYINTERNATIONAL

the coalition against corruption

A N N U A L R E P O R T 2 0 0 1

www.transparency.org

Corruption is one of the greatest challenges facing thecontemporary world. It undermines good government, distortspublic policy, leads to the misallocation of resources and harmsthe private sector and private sector development. But, most ofall, corruption hurts those who can afford it least. Containingcorruption is only possible with the co-operation of all thosewho have a stake in the integrity and transparency of theirinstitutions. By joining forces, international institutions, thestate, concerned citizens and the private sector can defeatcorruption. Stamping out corruption is about improving thelives of men and women everywhere. Transparency International recognises that the responsibility forcorruption is a shared one and its emphasis is on reformingsystems, not exposing individuals. TI is the only internationalorganisation exclusively devoted to curbing corruption. It hasbecome a major force in the fight for transparency and goodgovernment, with a network of national chapters implementingits mission in some 80 countries around the world.

TI ANNUAL REPORT 2001 1

From the outset, we atTransparency International,have believed that the fightagainst corruption should beabove party politics and one

in which all those who have theircountry’s future at heart should join. We are also convinced that progress can only be achieved through dialogueand engagement, not exposure and confrontation.

We call ourselves the coalitionagainst corruption, and we mean it. Weseek out the involvement of government,civil society and the private sector bothat the national and international level.And this we do because we do not viewcorruption as a problem resting solelywith any one of these three groups.Corruption is not just the problem ofgovernments and public servants on thetake. The private sector is also responsiblefor fuelling corruption by resorting tobribes to secure business. Citizens, too,can be part of the problem when theyagree to pay bribes, or acquiesce toconduct they should denounce. Tacklingcorruption is very much a task we allhave to take on with each other, ratherthan against each other, and this is whywe are so deeply convinced of thepotential strength of our coalition.

Looking back on the past year’s

work, we take pride in the fact that thecoalition we began to build eight yearsago continues to grow and is becomingstronger. Increasingly, our nationalchapters are called upon by governments– some of which might well havehesitated until only recently – to providehelp and insights in developingmeaningful anti-corruption reforms. Weare actively developing our collaborationwith the private sector to help businesslive up to its obligations under recentinternational agreements and to enhancethe integrity of companies. As a civilsociety organisation, we are heartened bythe fact that our involvement as anindependent participant in reform effortsis now more often than not seen as adistinct asset.

We believe it is the role of amodern NGO to join in the search forsolutions and not to be content merelywith identifying problems and calling forchange. We have entered the morechallenging area of creative dialogue andassistance in the search for appropriateresponses. Looking at the work the TImovement has accomplished over thepast year, we feel confident that TI is wellon its way to living up to this model.

Peter EigenChairman of the Board

Looking across the world, weare encouraged by the factthat combating corruptionnow claims a prominentplace in policy agendas. The

challenge to corruption is truly universal.Corrupt regimes in dictatorships such asIndonesia and Nigeria or in evolvingdemocracies such as Peru and thePhilippines have been replaced. In Europe,prominent political leaders have beenprosecuted for corruption and nationalmeasures have been adopted toimplement the OECD Convention onCombating Bribery of Foreign PublicOfficials in most of its member countries.These developments should lay to rest thecynical belief that nothing meaningfulcould be done about corruption.

But formidable barriers to reformhave yet to be overcome. Nationalmeasures to implement the OECDConvention have not been uniformlystringent. Promising proposals forelectoral reform to regulate campaignspending in the United States have been,at least for the present, obstructed.International financial institutions andcorporations and their homegovernments, despite their declaredcommitment to transparency ininternational business dealings, are seento condone contracts and projects which

do not meet mandated requirements oftransparency and competitiveprocurement. A hard lesson, yet to belearnt, is that condoning such practiceson the ground of promoting foreigninvestment, proves to be counter-productive. Such projects are renderedinherently unstable, resulting in claims forre-negotiation and review, often leadingto expensive and contentious litigation.An even greater negative consequence isthat the environment for sound andsustainable foreign investment is eroded.In the new democracies, electedgovernments succumb to the very corruptpractices which they had pledged toremove. Powerful groups from the oldorder survive and induce newgovernments to defer reforms and insteadresort to arbitrary procedures whichactively promote corruption.

TI’s achievements to date areformidable. But they also demonstrate theneed to further intensify our movement’sefforts to strengthen coalitions againstcorruption, to step up interaction withglobal institutions and increase globalconsultation and policy dialogue. In thisway we can ensure the long-term successof anti-corruption initiatives.

Kamal HossainChairman, Advisory Council

Our mission

10th IACC is taking place in Prague, Czech Republic,on 7-11 October 2001. This year’s conferenceemphasises workshops and panel discussions as ameans of taking stock of successes and failures in thefight against corruption. Over 1,000 anti-corruptionpractitioners and advocates from all parts of theworld are expected to participate. For moreinformation see www.10iacc.org.

TI’s new Global Corruption Report (GCR),whose first edition is to be published in October 2001, is intended to provide a prime advocacy tool for theglobal anti-corruption movement. The GCR providesan overview of the “state of corruption” around theglobe during the period of July 2000 to June 2001.

The book contains 12 regional reports writtenby journalists from around the world. It also includesin-depth pieces on three global topics – political partyfunding, money laundering and corruption in theinternational diamond trade – by leading experts onthese timely issues.

The GCR includes news and analysis on anti-corruption efforts worldwide. The reporthighlights international and regional trends, andprovides examples of significant reform efforts. It also points to the links between global, regional and national developments from the perspective of an independent NGO.

The report’s final data and research sectiondelivers unique surveys of the contemporary researchterrain, with contributions from internationalgovernmental organisations, non-governmentalorganisations, the private sector, and academics. Italso contains TI’s well-known Corruption PerceptionsIndex. The Global Corruption Report promises to be a “must have” publication for policy-makers, businesspeople, lawyers, journalists, academics, and anti-corruption activists the world over.

Fighting corruption is not only about signinginternational agreements and strengthening integritysystems. It is also about the daily struggle of ordinarycitizens who face major obstacles and sometimes evenrisk their lives to expose wrongdoing and bring aboutchange. To recognise the courage and determinationof these individuals and groups, TI has instituted theTI Integrity Awards. The Awards were presented forthe first time in September 2000 at a specialceremony held during the TI annual general meetingin Ottawa, Canada. The award winners were selected

“We believe it

is the role of a

modern NGO to

join in the

search for

solutions and

not to be

content merely

with identifying

problems”

Peter Eigen

No one can dispute the fact that theawareness of corruption and itscorrosive effects is much higher nowthan it was just a decade ago. But inmany countries there is still little

recognition of the extent of the problem and thepressing need to act. This is why many of our nationalchapters continue to focus on raising awareness ofcorruption in environments where the tolerance forcorrupt practices and the lack of accountability arestill high. In addition to general awareness raising, TI continues to deepen its message and tailor itsmessage to its various audiences. TI is all too aware of the fact that worthy issues have vanished from theinternational agenda in the past and n order to avoidthis, we deploy consistent efforts to keep corruption relevant.

The biennial International Anti-CorruptionConference plays an important role in deepening theawareness of corruption and fostering concretedialogue on a vast array of related issues. TI continuesto be closely associated with this important event byserving as secretariat to the IACC Council. For the firsttime in its history, this international gathering will beheld in a transition country of Central Europe. The

Raising Awareness

2 TI ANNUAL REPORT 2001

NepalTo raise mass awareness of the need to fight corruption, TINepal has gone directly to the airwaves. Under an agreementwith Radio Nepal and Nepal Television, public interest messagesprepared by TI Nepal were aired six to eight times a month onprime time. Two episodes of a television serial focusing on theimportance of upholding the rule of law were broadcast onNepal Television. The chapter also continued its work in supportof investigative journalism by organising a training workshop forjournalists and presenting an award for investigative journalism

to a group of senior reporters.

Papua New GuineaTI PNG took an active role in promoting the adoption of the country’snew Integrity and Political Parties and Candidates Act. The chapterworked publicly and behind the scenes to highlight the merits of thislegislation which will regulate political parties and put an end topoliticians constantly changing their party allegiance and destabilisinggovernment. TI PNG will continue to actively raise public awareness ofthe ramifications of the new law and the impact it will have on theelectoral system. TI PNG has also received its largest grant ever topromote reform of the electoral system, which is currently modelledon the Australian parliamentary system. This encourages voting alongtribal lines, thereby exacerbating divisions within a society where theconcept of national government has been slow to take root. TI PNG’swork will involve pressing for change that will ensure majority supportfor the winning candidate. Workshops and seminars as well as a publiccampaign will be launched to explain the benefits of the new systemand encourage civic participation.

MauritiusThe TI chapter in Mauritius seized the opportunity of national electionsin September 2000 to publicly highlight the need to eliminatecorruption from public life. This campaign was launched just before thedissolution of the National Assembly in reaction to the resignation oftwo Cabinet ministers after allegations of fraud and gross corruption.Transparency Mauritius called upon all citizens to actively participate inthe fight against corruption by making them aware of their ownpersonal responsibility in upholding ethical standards in public life andrefusing to offer any gifts or favours to public servants. The chapteralso called upon the electoral candidates to commit themselves to anumber of transparency pledges, such as an annual declaration ofassets and a promise to abstain from any fraudulent electoral practices.Transparency Mauritius called on the incoming government to deliverseveral campaign promises and make corruption a top priority of theAdministration. These promises included the adoption of a Freedom ofInformation Act, passage of a code of ethics for civil servants,protection of whistleblowers and the institution of an IndependentCommission against Corruption. Soon after the election, the newgovernment established a Select Committee on Fraud and Corruption,a move welcomed by TI Mauritius.

from an inspiring group of nominees by a special juryof leading TI activists and Board members. Thewinners included an NGO from a remote region of thePhilippines which monitors public works projects; aMoroccan Air Force captain who is serving a prisonsentence for having blown the whistle on corruptionby his superiors; a Sri Lankan journalist who hasdenounced corruption in spite of retaliation andthreats of violence; and finally, an Argentine

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Fighting corruption is not only about signing international

agreements. It is also about the daily struggle of ordinary

citizens who face major obstacles to expose wrongdoing

and bring about change.

government investigator who was murdered momentsbefore he was to go public with findings of financialirregularities in the social security administration.Thanks to its success in highlighting the human faceof the fight against corruption, the awardsprogramme has become a yearly event. Recipients ofthe 2001 awards will be announced on the openingnight of the 10th International Anti-CorruptionConference in Prague.


4 TI ANNUAL REPORT 20014 TI ANNUAL REPORT 2001

Fighting

corruption is

not about

idealism. It’s

about being in

the right place

at the right

time and

developing a

very precise

approach.

TI made important strides in broadeningthe acceptance of anti-briberyprovisions attached to export credit andexport credit insurance granted bygovernment agencies. We reported last

year that, at TI’s behest, the governments of Belgiumand Germany had agreed to introduce changes in therules to require an affidavit by applicants ensuringthat a contract was not and would not be securedthrough a criminal act, in particular bribery. Untruestatements would lead to denial of coverage or denialof claims. They pressed for the introduction of similarchanges in all other OECD export credit agencies. In the latter part of 2000, TI was invited to present itsrecommendations regarding bribery prevention inexport credit insurance to the OECD Working Groupon export credit agencies. These were initially receivedwith considerable scepticism but with the strongsupport of the German delegation, the working groupagreed to encourage all member export creditagencies to adopt rules similar to those adopted bythe German Export Credit Agency.

In 2000, TI undertook a study of the NationalIntegrity System (NIS) on behalf of the Dutchgovernment for presentation to the Global forum on

Building C


H ow does one go about trying to make adifference in a country where pettycorruption is almost a way of life? That is

part of the challenge facing Elena Panfilova, TIRussia’s determined 33-year old executive director.“Any driver always has a fifty rouble bill inside hislicence, just in case. And one always has somethingin the bag to treat the doctor or the teacher whengoing to school or hospital.” But more daunting stillis the opportunity for corruption on a grand scalethat was created by the rapid privatisation of theRussian economy without a clear legal frameworkand a strong governance system. A graduate in history and foreign affairs, ElenaPanfilova was working in Paris at the OECD onanti-corruption initiatives for countries in transitionbefore she took the helm of the TI chapter in Russiain January 2000. For the past year, Elena has made it a priority toestablish a coalition of like-minded Russian NGOsdoing substantive work that can further the

objectives of the chapter. “It’s a very randomcollection but it’s still growing,” says Elena. It’s notalways been easy to separate the wheat from thechaff, she admits. The difficulty, according to Elena,is that in Russia issues come and go. “First it washuman rights, then the environment. Then, anti-corruption became flavour-of-the month for a whileand now it’s trafficking.” But Elena is in this battlefor the long run. She knows that earlier enthusiasmfor anti-corruption led to a lot of scepticism and sheis determined that whatever work the chapterundertakes must be sustainable if it is to be credible. Why has TI Russia chosen to focus mainly on NGOsrather than the usual TI coalition that also includesthe public and private sectors? Elena says TI Russiais not keen on taking on the public sector as apartner yet. Not because she does not believe in theapproach in principle but because of the Russiancontext. “The government is not yet ready to be anequal partner. Here, there is no clear differencebetween private and public. There are absolutely nolines between the two and big problems of conflict

of interest. Oneday someone is apublic servant andthe next day he isa businessman.We are trying tofind those whoaren’t like thatand work withthem but it maytake a generationbefore the publicsector can be areliable partner ingeneral.” As shelooks back on thepast year’s efforts,Elena has becomeconvinced that TI Russia must target freedom ofinformation as a priority. “Everything we doinvolves the need for information. Now, we have torely on good friends because there is no normalprocedure for access to information in this country.” There was an attempt at passing an access toinformation law in 1997, but after the first hearingand “consultation” with several agencies, it wasmysteriously and quickly turned down. So ratherthan concentrate on the federal level where pastefforts have failed, TI Russia is working on projectson the local and regional levels where they willsensitise citizens to the importance of access toinformation. When asked where she finds hermotivation for this work, Elena responds that shehas to do it for the sake of her children’s future.“It’s not a place now for my children to live,” shesays. “It will take 10 or 15 years but we do see littlesigns that are visible. Coalitions were not possibleeven two years ago and there has been no traditionof internal financing of civil society but somesupport networks are emerging.” But no one shouldmistake Elena’s level-headed optimism aboutchange for anything loftier. “It’s not aboutidealism,” she claims. “It’s about being in the rightplace at the right time and developing a veryprecise approach. This country has never been easybut now is our chance to live a normal life.”

P R O F I L E

TI Russia’s Elena Panfilova

In the right place at the right time


Fighting Corruption and Safeguarding Integrity II anti-corruption conference in The Hague. The NISCountry Studies were carried out by Professor AlanDoig of the United Kingdom. The project identifiedthe pillars of the integrity systems in 18 countries onfive continents that were chosen to represent a mixof regions and developmental paths. It also assessedthe effectiveness and credibility of national integritysystems in combating corruption. The projectdemonstrated that most countries have nearly all thecomponents necessary for an operating NIS but inmany countries, politicians need to implementexisting regulations and procedures. Another keyfinding was that the drive for democratisation wasnot always synonymous with a rise in integrity inpublic life. Democratically-elected politicians wereoften prepared to use public resources to secure theirown political support while party funding was ageneral problem. Decentralisation was not alwaysmatched by the devolution of oversight agencies suchas state audit. These agencies were themselves notalways resourced or co-ordinated to respond tochanging causes, patterns and levels of corruption.The key lesson from the project was that trends,weaknesses and opportunities for reform wereidentifiable and assessable through an evaluation of

g Coalitions

Global Campaign for GoodUrban GovernanceTransparency International is playing anactive role in the United Nations Centre forHuman Settlements’ (Habitat) GlobalCampaign for Good Urban Governance. As a member of the Campaign’s SteeringCommittee, TI will provide best practiceemanating from its chapters working at localgovernment level. The Campaign’s draftnorms of good urban governance includesustainability, decentralisation, equity,efficiency, transparency and accountability,civic engagement and safety. On signing an

agreement of co-operation with Habitat, TI’sChairman, Peter Eigen, reiterated that“transparency and accountability are the lynchpinsof good governance in local government, wherecorruption undermines the social fabric anddeepens urban poverty. It is essential to build upan ethos of professional public service among bothelected and appointed local officials.”

Regional co-operation in Latin AmericaOne of the flagship projects of TI LAC, TI’s LatinAmerican network of chapters, is the developmentof a collection of documented initiatives in theregion known as the TI Tool Kits. The Tool Kitshave been designed to provide other TI chaptersand other civil society organisations with concretedetailed anti-corruption strategies which can beused as models elsewhere. They include initiativeson the monitoring of public procurement andelection campaign spending and the use of publichearings. In the year under review, the TI LACchapters have consolidated their regional basis ofco-operation by launching the first truly regionalinitiative focusing on public procurement. The“Programme for transparent public contracting“led by Transparência Brasil will initially operate asan online exercise to develop a risk map of themost vulnerable areas of public procurementprocesses in the region. The risk map will bedevised on the basis of concrete experiences fromparticipating countries and will form thefoundation for a longer-term project that isexpected to help improve the region’s legalframework, develop tools for monitoring publicprocurement and foster other measures tostrengthen transparency.

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A key finding

was that the

drive for

democratisation

was not always

synonymous

with a rise in

integrity in

public life.


the National Integrity System and that TI NationalChapters were well placed to undertake this work.

Our national chapter in the UK continued itspioneering work on the issue of corruption and theofficial arms trade. A conference organised by TI UKand hosted by the Swedish government examined theways in which corruption distorts the internationalmarket for arms, often placing an unjustifiable burdenon low income countries and adding to politicalinstability. TI chapter representatives from India andNigeria joined about 50 experts from industry,government, NGOs and academia from Europe, Asia,Africa and North America. The conference dealt withissues such as the rise of defence expenditures indeveloping countries, the adverse impact ofcompetition among arms suppliers and the need tostrengthen the ethical practices of suppliers. TheSwedish Ministry of Foreign Affairs agreed to explorefurther the recommendation to implement IntegrityPacts on large-scale defence contracts.

Engagement with the private sector is one ofthe cornerstones of TI’s efforts to fight corruption.During the year under review, TI continued its workon a feasibility study for the Development ofBusiness Principles for Countering Bribery.

Building Coalitions

The feasibility study was started in late 1999 in co-operation with Social Accountability International, a US-based NGO responsible for initiating the SA8000 workplace standard. The feasibility study isbeing overseen by a broad-based internationalSteering Committee comprising a majority of largeinternationally active companies as well as academics,trade unions, and ethics specialists. The draftPrinciples were issued in August 2001 forconsultation. The Principles will be accompanied by aGuidance Document that will flesh out the elementsof the anti-corruption programme set out in thePrinciples. A field test planned to test the practicalityof the Principles is to take place in late 2001.

Like their larger counterparts, small andmedium-sized enterprises (SME) that are activeabroad must comply with international laws andguidelines. In order to do so, SMEs should havecompliance programmes for their employees andbusiness partners to prevent and detect offenceswhich may occur. Recognising that small andmedium-sized enterprises often do not have the legalor human resources at their disposal to develop theirown codes of conduct, TI USA has developed an Anti-Bribery Compliance “Tool Kit” for SMEs.

Engagement with the private

sector is one of the cornerstones

of TI’s efforts to fight corruption.

A Hand to the Clean in PolandWhen businessmen Jacub Bierzinsky and Richard Lucas decided thatthey wanted to clean up business practices in Poland, they approachedAntoni Kaminski, who was then the head of the TI chapter in Poland.Bierzinsky, a 34-year-old advertising executive, was motivated to actwhen two foreign clients demanded kickbacks from his media planningcompany in exchange for their accounts. Bierzinsky’s idea was to createa voluntary no-bribes “club” for clean companies that was namedManus Puris, which means literally a “hand to the clean”. After somesoul-searching, the group finally opted for an ISO-type qualitycertification which provides assurance that member companies adhere

to a number of anti-bribery requirements. Any company can join theprogramme. “We are not interested in their past, we are interested in theirpresent and in their future,” explains Kaminski. Firms participating in ManusPuris are required to amend their work statutes to forbid bribery in all its forms,to provide an annual report and to give whistleblower protection to employeeswho report bribery incidents. The companies inform their clients and suppliersthey are taking part in the scheme and hang the Manus Puris logo on theirpremises. The symbol represents an outstretched hand and also includes thehotline telephone number for reporting incidents of corruption. A few dozencompanies have signed up to Manus Puris and Kaminski is positive about itsmoderate success. He admits, however, that although the scheme has attracteda lot of interest from the press and from many foreign companies, many stillremain hesitant to join. But Kaminski says they are now making moresystematic approaches to highly visible companies and hope to turnmembership in Manus Puris into a mark of prestige.

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A task force of small and medium-sized businesses aswell as accounting and legal experts gathered samplepolicies and training materials and designed a webpage with checklists, risk assessment guidance andresource materials for SMEs to use as the basis for acompliance program. The task force will launch theweb page on the TI USA web site shortly.


ColombiaThe TI chapter in Colombia, which was recently relaunched asTransparencia por Colombia, has expanded and strengthenedits corporate base of support. All corporate members haveagreed to sign an ethics declaration committing them toimplementing accountability and ethical standards within theircompanies. TI’s chapter in Germany has implemented a similarapproach with its corporate members who must sign anintegrity pledge when joining the national chapter. As part ofits emphasis on the private sector, Transparencia por Colombiais developing ethics programmes for small and medium-sizedenterprises. As a pilot exercise, Transparencia is working inHermagú with a spare parts importing business with 35employees to develop a code of ethics, which will be tested in50 other enterprises. The chapter is also collaborating with

bigger companies. With the support of the Washington-based EthicsResource Center, Transparencia presented proposals for theimplementation of ethics programmes at CREDIBANCO, thebanking group that hold the VISA franchise in Colombia, and atLocería Colombiana, a ceramic dinnerware manufacturer with about1000 employees. Transparencia is also looking into developing ethicsprogrammes for four NGOS in Colombia.

Local governmentThree billion people live in cities today, accounting for almost everysecond person on earth. Urbanisation, particularly in the developingworld, is growing at a rapid pace, making urban systems ofgovernance increasingly important for the wellbeing of a largesegment of the world’s population. This is why TI is committed toworking at local government level to improve transparency andgood governance. There are now over 40 TI chapter initiatives atlocal government level. Whether they involve the introduction ofno-bribery pacts in municipal tender offers, initiatives to improvetransparency and secure access to information at city level oreducating local public servants, these efforts have provided a fertilelearning ground for our chapters. For many, working at the locallevel can provide more immediate results and, in time, set theground for broader reforms at the national level.

Sierra LeoneLocal government was abolished in Sierra Leone in 1975, leading toover-centralisation of power, which has fuelled inefficiency andcorruption. The ensuing fiscal chaos has resulted in the collapse oflocal infrastructures such as schools, health clinics and roads. This situation has been exaggerated by the civil war raging in thecountry for the past ten years but nevertheless, Campaign for GoodGovernance, TI’s national contact in Sierra Leone, has tried to raiseawareness of the link between devolution of power and sustainabledevelopment. Training workshops involving civil society andcommunity leaders of districts in the southern and eastern provincesfocused on the causes and effects of corruption on the development

of the country and the importance of re-establishing localgovernment to rebuild services and reducethe opportunities for corruption.

SerbiaBarely four weeks after the Milosevic regimewas toppled in Yugoslavia, TransparencyInternational’s chapter in Serbia launched ananti-corruption programme in the cities ofNis, Kikinda and Cukarica. The project’smain objective was to increase thetransparency of budgeting and publicprocurement in local government. As part ofthis programme, TI Serbia wanted toimprove the quality of service andadministration in these three municipalities.Analysis showed that lack of communicationwith the public and a shortage of information were majorshortcomings. As part of its campaign to improve services, TI Serbiaput up posters in municipal offices with basic information on theservices available including employees’ names, office locations, areasof responsibility and working hours. TI Serbia also launched acompetition to identify the best civil servant in each municipality.Citizens were polled, using questionnaires distributed at municipaloffices and winners were selected based on how their performancewas judged by citizens. The winner in each city received acertificate, a token cash award and extensive local media coverage.The winner’s name was also displayed publicly in the lobby of cityhall. In the town of Cukarica, no fewer than 2,805 questionnaireswere completed, demonstrating the success of the programme withthe public.

BulgariaIn December 2000, Transparency International in Bulgaria was askedby the Bulgarian government to help monitor the public auction of aGSM mobile phone licence, which raised USD 135 million. Theauction was said to have been the most transparent bidding processin Eastern Europe. The team convened by TI Bulgaria includedfifteen experts in the areas of telecommunications, finance, law andeconomics who were involved in evaluating the auction and givingassurance that the process was taking place in accordance with legalrequirements. TI Bulgaria has gained considerable experience andrecognition in the area of pubic assets sales monitoring. In 1999, theprivatisation process of the Bulgarian Telecommunication Companyworth USD 600 million was postponed as a result of the negativereport of the TI Bulgaria monitoring team. The chapter is currentlyparticipating as an independent observer of an open bidding auctionfor the granting of an individual licence for the construction,maintenance and utilisation of the first digital TV in Bulgaria. Thechapter was formally invited to monitor all bidding activities of theGovernment’s Telecommunications Agency.

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Three billion people live in cities

today. Urbanisation, particularly

in the developing world, is

growing at a very rapid pace,

making urban systems of

governance increasingly

important for the wellbeing

of a large segment of the

world’s population.


Source Book has become a reference manual for anti-corruption practitioners and guardians of goodpractice in government and, increasingly, in theprivate sector.

Looking ahead, TI intends to further developthe work begun with the TI Source Book bysystematically identifying and including fresh materialon the TI web site. TI is convinced that it has animportant role to play in the area of best practicecollection and dissemination. Civil society, journalists,researchers and reformers all need access to this bestpractice to inform public debate and develop legalframeworks best suited to the needs of their ownsocieties but informed by experience gained elsewherewww.transparency.org/sourcebook.

To meet the challenge of the informationrevolution, the TI Library has embraced the growth ofthe Internet and its potential for sharing informationacross the globe. The Corruption Online Researchand Information System (Coris) is a bibliographicaldatabase which provides anti-corruption practitioners,governments, the private sector, researchers,journalists and civil society organisations with accessto information and documentation on corruption andanti-corruption measures. CORIS, which is evolving

into an information portal, includes a fully searchabledatabase offering more than 6,000 bibliographicalreferences and more than 1,000 documents availableas full-text versions in several languages. The focus ofthe database is on documents that are unpublished ordifficult to locate. The database also contains best-practice documentation, such as codes of conduct,model legislation, case studies, a selection of relevantliterature and news and key events. Links toinstitutions and resource centres provide additionalinformation on fighting corruptionwww.transparency.org/coris.

In the past year, the international web site ofTI, www.transparency.org, has taken on a new look.It now uses a navigation system that makes it mucheasier for both new visitors and regular users to findtheir way around the site. There is also a range of newfeatures, accessible directly from the home page.

The poll of the month is a new interactiveelement, surveying visitors on corruption-relatedtopics. Fact sheets are also available on selected topicand related issues. Another development is thestrengthening of the Daily Corruption NewsFeature which is now a full-text searchable archiveof news stories from the world press. As well as thelaunch of the CORIS Corruption Online Research andInformation System, the TI web site also features theonline version of the TI Source Book. The onlineversion is a living work, regularly updated withextensive best practice documentation from all overthe world. In addition, the TI web site is host to agrowing Tool Kits section, comprising accounts andanalysis of anti-corruption initiatives across the globe – from monitoring political campaign spending to the implementation of Integrity Pacts in municipal tenders.

With a sharp new design enhanced by the useof photos, while preserving a quick loading time, thehome page has a much more comprehensive menu. Weare continuing to work to improve the search functionson the TI web site, and a new section “Buildingcoalitions” is being developed, as a resource for NGOs,the private sector and intergovernmental institutions.

TI directs many of its efforts at developing ameaningful role for civil society in promoting anagenda for reform. To succeed in this role, civil societyorganisations must strengthen their structures andsharpen their skills in a process of capacity building.

Developing Tools

T he first edition of the TransparencyInternational Source Book has nowbeen translated into more than 20languages and adapted to the bestpractice in the local context. To register

changes and developments in anti-corruption policyand practice, a revised and expanded edition of theTI Source Book was completed during the year2000. This new edition of TI’s prime publication isnow available in print and electronic format. In the364-page volume, TI’s Executive Director, JeremyPope, has built on the innovative concept of thenational integrity system and its accountability“pillars” which form the basis of a country’saccountability and transparency mechanisms.Released five years after the original edition, the TISource Book 2000 offers new perspectives oncontaining corruption and ponders some of thelessons learnt so far.

From the pros and cons of asset-freezingwhen dictators loot their national coffers and take themoney abroad to auditing standards in transitioneconomies and strategies to fight customs fraud, thenew edition of the Transparency International SourceBook offers an in-depth guide to the subject. The TI

TRANSPARENCYINTERNATIONAL

TI Source Book 2000

Confronting Corruption: The Elements of a National Integrity System

Jeremy Pope

The TI Source Book developsthe concept of “integritysystems” which rest on “pillarsof integrity”. It is a society’sunderlying values and publicawareness to ethical questionsthat underpin the pillars of acountry’s integrity system andgive the structure its strength.From the executive, legislatureand judiciary, through to theprivate sector and watchdogagencies and to an independentmedia and civil societyorganisations, each pillar, and itsrelationships to the others, is crucial to maintaining theequilibrium of the system. If oneor more pillars are built on sand,the burden imposed on theother pillars becomesprogressively out of balanceuntil the whole edifice begins to topple, or even collapse.


TI does not give grants to its national chapters but doesprovide them with support in developing the skills theyrequire to ensure sustainability.

Over the past year, planning exercises werecarried out with seven Latin American TI chapters by aprofessional trainer. Fundraising was the topic of atraining workshop carried out for South Asian andSoutheast Asian chapters. Avoiding donor dependencyis a challenge for all NGOs, hence the need todiversify the resource base available to chapters.

Nascent TI chapters often find themselves in asituation where they cannot develop programmes anda profile because of lack of staff and proper facilities.The TI Secretariat acknowledges this constraint andattempts to support chapters during the start of theiroperations. TI Kenya was able to maintain a minimaladministrative structure during half a year thanks to aTI seed grant. This allowed TI Kenya to raise the fundsit needed to become viable.

To assist in the growth of civil societyinvolvement in anti-corruption initiatives, TI has aprogramme for capacity building which includesgrants for training, seed money and the provision ofexpertise on demand. The recent creation of thePartnership for Transparency Fund (PTF) willfurther assist civil society by funding the participationof experts in the design and delivery of anti-corruption programmes. The fundamental premise forsetting up the PTF is that civil society can be moreeffective in this role if it is financially independentfrom government or aid agency grants. The PTF wasset up in June 2000 as an independent NGO whosepurpose is to help civil society play an independentrole in the design, implementation and monitoring ofnational anti-corruption programmes. The PTF hasprovided the centre for independent experts whoassist chapters through short-term assignments.

Since its creation, The PTF has provided theCentre for Social Development in Cambodia assistance inthe review of legislation to establish an independentAnti-Corruption Commission. TI Pakistan-Karachireceived support with the implementation of an IntegrityPact in a project carried out by the Karachi Water andSewerage Board. In Bulgaria, the PTF supported the costsof experts who assisted the TI chapter in monitoring thepublic auction of a mobile phone license. The PTFoperates with funding from the United NationsDevelopment Programme and private donations.

TI directs many

of its efforts at

developing a

meaningful role

for civil society

in promoting

an agenda

for reform.

”It’s an old concern of mine. I’ve always beenindignant about corruption and have tried tocombat it whenever I could. Moral

indignation is my primary stimulation.” This is howCláudio Weber Abramo, General Secretary ofTransparência Brasil, explains why he got involved inanti-corruption work. With 30 years’ experience as ajournalist and communications professional, 54 year-old Cláudio has had ample opportunity to assess theproblem in his country and develop the moraloutrage that motivates him. Corrupt politicians whocarry on with impunity. The pervasiveness ofcorruption in many parts of the public sector and aprivate sector that sometimes refuses even toacknowledge that there may be a problem. “It’s anenvironment where corruption can be seen almostas a matter of course. Ordinary citizens begin tobehave in a corrupt manner. It doesn’t necessarilymean that they are stealing from the public but theirpersonal behaviour becomes objectionable,” Cláudioexplains. Although Transparência Brasil has onlybeen in existence since early 2000, it has alreadybeen involved in a number of high-profile initiatives,including a major public awareness raising campaignin the run-up to the 2000 municipal elections in SãoPaulo. It was TBrasil that first interested the WorldBank Institute and then São Paulo’s new mayor inlaunching an anti-corruption programme in thismetropolis of 15 million people. After massivecorruption in the southern city of Londrina led tothe impeachment of the mayor, TBrasil helpedlaunch a similar programme initiated by the new mayor.TBrasil receives its funding from foundations andsmall individual and corporate donations. On thewhole, however, he points out that the corporatesector in Brazil has not faced up to the issue ofcorruption. “When it comes to donating money,businessmen often prefer not to get involved.” Butthis is not stopping TBrasil from pressing the issuewith the private sector. In partnership with Kroll, theworld-renowned fraud prevention firm, TBrasil ispreparing a survey involving 1,800 Brazilian firms ofall sizes, including a number which are heavilyinvolved in government tenders. The questionnaire

is designed to uncover the sectors that are mostvulnerable to corruption, the government agenciesmost at risk, the amounts involved, the briberymechanisms and the impact of corruption on theindividual sectors. “I think that this has not beendone anywhere else in the world.” The survey willfocus on the main industrial regions of Brazil. Despite its ambitious programmes and the energy ofits leaders, TBrasil still faces major challenges.

Achieving financial self-sufficiency remains a constant struggle as does establishing theorganisation as a permanent player in the process of Brazilian institutional and managerial reform.“Right now we appear and then disappear,” admits Cláudio.Asked how he would characterise TBrasil, Cláudioacknowledges that the chapter can’t be depicted asone with a strong grassroots base. “It has a markedintellectual slant,” he explains. There is no betterillustration of this than Cláudio himself. Hisacademic background was in mathematics and thephilosophy of science, but he was also for a time aprofessional musician. Now, when he is not busycrusading for transparency in public life or writinghis fortnightly column for Observatorio da Imprensa,a web-based media watchers’ publication, Cláudioindulges his literary interest in 19th-century writerMachado de Assis, acclaimed as the greatestBrazilian author of all times. Is it any wonder thatCláudio calls himself “the last universalist”?

P R O F I L E

TBrasil’s Cláudio Weber Abramo

The last universalist


for inspection where there is reasonable cause tosuspect illegal activity. They also sought mandatoryliquidation and repatriation of illegally acquiredassets. The Nyanga declaration called upon theOrganisation of African Unity to take a leadership rolein ensuring the return of Africa’s stolen wealthwherever it may be found. The Nyanga declarationwas signed by TI chapter representatives fromBotswana, Cameroon, Ethiopia, Ghana, Kenya, Malawi,Nigeria, South Africa, Uganda, Zambia and Zimbabwe.

Not many would disagree that it iseverybody’s fundamental right to expect judges to becompetent, independent and impartial. Unfortunately,this is not always the case. According to JusticeMichael Kirby of the High Court of Australia, “in manycountries, especially in the lower judiciary, corruptionis sadly a way of life. Insidiously it has invaded thejudicial seat. It has intruded into court registries.Without a ‘tip’, a file may be lost and will never make

T I has long been aware of the need toprevent not only acts of corruption butalso the laundering of the proceeds ofcorruption stashed away by corruptpoliticians, public officials and business

representatives. This is why TI helped convene aninitiative involving eleven of the world’s largest banksto develop and agree to a set of global anti money-laundering guidelines for international private banks.The Wolfsberg Principles were made public inNovember 2000, after a year-long process. Theparticipating banks shared their policies and practicesin an effort to develop principles that would make itmore difficult for the proceeds of corruption to findtheir way into the world’s banking system. TI providedexpert advice throughout the process. The Principlescommit senior bank management to the enforcementof the anti-money laundering principles. This was afirst-time effort by a broad range of banks to fine-tune the “know your customer” rule which forcesbanks to thoroughly check the identity of a depositor.

Following up on the anti-money launderingWolfsberg Principles, a group of TI representativesfrom 11 African countries met in Nyanga, Zimbabweto call for banks to be required to open their books

Setting Standards

TI helped convene an initiative involving eleven of

the world’s largest banks to develop and agree to a

set of global anti-money laundering guidelines for

international private banks.

Integrity PactsThe TI no bribery Integrity Pact (IP) which has been implemented in countries asdiverse as Colombia, Italy and Nepal is now being adopted for the first time inPakistan. Guided by the TI Pakistan Karachi Chapter, the Karachi Water andSewerage Board has approved a comprehensive IP covering all consulting,construction and procurement of materials by the water authority for a majorproject estimated to cost nearly USD 1billion. A monitoring committee including aTI Pakistan representative will oversee the implementation of the IP and a specialoffice has been created to investigate reports of alleged bribery or extortion. A website provided by TI Pakistan will allow citizens to access all important activities anddecisions of the water board, including the bid evaluation reports and the reasonsfor awarding the contracts to the respective winners. This latest implementation ofthe IP concept is part of a concerted effort by TI to spread the use of one of itsmost promising anti-corruption tools. The Integrity Pact is a no-bribery agreementsigned by a government department and all bidders for a public sector contractwhich includes the disclosure of all commissions and sanctions for any violations.The IP allows companies to abstain from bribing with the knowledge that theircompetitors are bound by the same rules and that the tendering public institution iscommitted to preventing bribery and corruption. The IP also allows governmentsand their agencies to reduce the high cost of corruption on procurement,privatisation and licensing. The development of the IP concept was the focus of aworkshop in Bogota, Colombia where it was further adapted in the light of theexperience gathered by TI national chapters in its implementation. The IP hasshown itself to be adaptable to many legal settings and flexible in its application.Experience so far has shown that government willingness to make use of the IP ismore prevalent at the municipal level than at regional or national level. However, the IP received significant backing when the World Commission on Dams recommended its application particularly where procurement legislation isdeficient, in its final report issued in November 2000.


Forum Civil’s Mame Adama Gueye

Giving back to Senegal

its way to a hearing. Without a bribe, a favourabledecision may not be assured.” To address this problem,TI took the lead in convening a high-level judicialgroup including senior judges from Australia,Bangladesh, Canada, India, Nepal, Nigeria, SouthAfrica, Sri Lanka, Tanzania and Uganda. The groupmet for the first time in mid-2000 and has nowdrafted an international code of judicial conduct.The draft code draws on existing codes from manyparts of the world. Work will continue to develop aglobal code for adoption by the UN and to urgecountries which have not yet adopted such a code todo so. Those who already have codes will hopefullybring their provisions into line with the internationalcode of judicial conduct. The Code is now beingadapted to the civil law tradition, broadening itsusefulness to non-Common Law judicial systems. Thedraft of the International Code of Judicial Conductcan be seen at www.hcourt.gov.au.

Not many

would disagree

that it is

everybody’s

fundamental

right to expect

judges to be

competent,

independent

and impartial.

W hen you ask him about corruption in hisnative Senegal, Adama Gueye describes itas omnipresent. As the author of two

reports on corruption in Senegal, published recentlyby UNDP and Transparency International, he is in aposition to know. But Adama is even more familiarwith the fight against corruption. When, as a young lawyer, Adama decided with asmall group of friends to launch Forum Civil inDakar in 1992, the idea of a civil societyorganisation was still relatively new. “I wanted to dosomething for my country, but I have never hadambitions of joining a political party,” he saysresolutely. Forum Civil’s mandate, its president says,is a wide one, and it aims to break the monopolythat the major parties have on political dialogue.While the country already enjoys a high degree offreedom of the press, Adama insists that generaldemocratic standards are still too low. “The Northviews Africa with too much pessimism,” Adamaremarks, “and has extremely low standards ofdemocracy for the continent. As long as we haveregular elections, observers are satisfied,” he adds.But Adama has greater hopes for Senegal.Today Forum Civil has some 300 members, and is afully-fledged national chapter of TransparencyInternational. Made up almost entirely ofvolunteers, the chapter has undertaken ambitiousprojects. In January 2001, Forum Civil launched anational coalition against corruption includingNGOs, private sector employees, peasants, youthand women’s associations. “We aim to informcitizens of their rights, and to mobilise them intodemanding transparency,” Adama says. Since 1998,Forum Civil has organised pre-electoral debates withcandidates and local citizens, including youth, theelderly, religious and women’s groups, and unions. The aim, Adama explains, is to encourage theelectorate to vote, and to vote in an informedmanner. Forum Civil recently scored a major successwith the adoption of the new SenegaleseConstitution. For the first time in Senegal’s history,the Constitution (adopted by referendum in January2001) refers in its preamble to the principles of“transparency in the management of public affairs

and good governance”. This was the direct result ofa proposal by Forum Civil and a televised debateorganised by the group with the president, whichregistered more than 12,000 callers in just two days.“The impact was extraordinary,” Adama notes. “Itwas the first referendum since 1962 and the timewas ripe for public debate.” When asked about the

challenges that lie ahead for Forum Civil, Adamahas clear ideas about badly needed reforms.“Senegalese law already requires public officeholders to declare their assets,” he says, “butsanctions for failing to do so are also needed.” Andwhile the Auditor General plays an important role inscrutinising government expenditures, the presidentstill exerts too much control over this body,according to Adama, and suspicious findings arerarely followed up. Forum Civil wants to promotegood governance and participation in thegovernment’s decision-making process. It isremarkable that Adama, an associate in a small lawfirm in Dakar, finds any time to devote to anti-corruption work. But he says that he is motivated bythe response that Forum Civil has been getting inSenegal. “I also see it as an obligation,” he saysmodestly. “Thanks to the efforts of my community, Ihave had the privilege of receiving a fancyeducation abroad. Now I want to use what I havelearned to help my society.”

P R O F I L E

b

s

quarter of the laws were found to be seriouslydeficient, including those of two of the world’s largesttrading nations: Japan and the United Kingdom. The Japanese Diet has recently passed amendmentsaddressing some of the major concerns raised by theOECD. The TI chapter in the UK continues to campaignfor strengthening UK laws to meet OECD requirements.

Phase 2 will begin monitoring theenforcement of anti-bribery laws, an ambitious five-year effort. There are still widespread doubts whethernational governments will effectively enforceprohibitions against foreign bribery. Phase 2 will becrucial to ensure that the Convention will in factchange how international business is conducted. TI andits national chapters plan to present their assessmentsof national enforcement programmes. Finland, the USand Germany are expected to be among the firstcountries reviewed.

A TI presentation to the OECD Working Groupstressed the need to strengthen accounting andauditing practices to ensure the success of theConvention. A TI-sponsored study by the “Big Five”accounting firms highlighted notable deficienciesrelated to accounting requirements in many OECDcountries. TI recommended that Phase 2 reviewsaddress these deficiencies.

In October 2000, TI sponsored a high-levelmeeting of individuals from nine OECD countries todiscuss the bribery of foreign political parties and partyofficials. In TI’s view, failure to adequately cover suchbribery represents a serious loophole in the OECDConvention. The meeting agreed on a number ofrecommendations which were presented to an OECDWorking Group. TI urged that action be taken to clearlyprohibit bribery both of foreign political parties andparty officials; to require political parties in OECDstates to make prompt disclosure of contributions andexpenditures; and to require corporations based inOECD member states to report publicly foreign politicalcontributions. While assuring effective enforcement ofthe convention remains a top priority, TI believes thatin the next two years several steps should be taken toamend or otherwise strengthen the Convention. Inaddition to covering political party bribery such stepsshould include coverage of bribery of corporateofficials. In an increasingly global economy, this formof bribery has taken on international dimensions.

TI urged that

action be taken

to clearly

prohibit bribery

both of foreign

political parties

and party

officials.

T he TI Corruption Perceptions Index(CPI), TI’s league table of countriesranked according to perceived levels ofcorruption among public officials, hasbecome the best known and most widely

cited index of corruption. The CPI has been publishedannually since 1995 and has been reported on inhundreds of newspapers articles in scores of countries,on all continents. It is among the most widely used socio-economic indicators published by anyindependent NGO and is used by governments andinternational organisations as well as the media andpressure groups.

The TI Gallup International Bribe PayersIndex, released for the first time at the end of 1999,highlighted the propensity of leading exporters to paybribes when doing business abroad. The BPI isexpected to be published every two years with thenext edition due in 2002. The BPI measures the levelsof the perceptions of bribery in leading exportingcountries in 14 emerging markets. It has proven to bea valuable tool in building support for effectiveenforcement of the new national laws implementingthe OECD anti-bribery convention.

Over the next few years, TI plans to focus onusing empirical data to support and monitor anti-corruption efforts. Extending the coverage of the CPIand a new edition of the BPI will be part of thisfocus. At the moment, there is no internationalindicator providing credible insight into changinglevels of corruption. To fill that gap, TI is also lookinginto developing a Global Corruption Barometer totrack the impact of anti-corruption policies inindividual countries.

Monitoring of the landmark 1997 OECD Convention on Combating Bribery ofForeign Public Officials in International BusinessTransactions continued unabated in the past year. Atthe time of publication of this report, 33 out of the34 signatory countries had ratified the Conventionand 30 had enacted implementing legislation.

Phase 1 of the monitoring process of theOECD Working Group on Bribery reviewing theimplementing legislation is now largely complete. TIand its national chapters played an active part in thesereviews: submitting TI’s evaluations of national law tothe OECD. The laws passed by 29 countries have beenreviewed with half found to be satisfactory. About a

Monitoring


Rank Country Score Surveys Standard Used Deviation

1 Finland 9.9 7 0.62 Denmark 9.5 7 0.73 New Zealand 9.4 7 0.64 Iceland 9.2 6 1.1

Singapore 9.2 12 0.56 Sweden 9.0 8 0.57 Canada 8.9 8 0.58 Netherlands 8.8 7 0.39 Luxembourg 8.7 6 0.5

10 Norway 8.6 7 0.811 Australia 8.5 9 0.912 Switzerland 8.4 7 0.513 United Kingdom 8.3 9 0.514 Hong Kong 7.9 11 0.515 Austria 7.8 7 0.516 Israel 7.6 8 0.3

USA 7.6 11 0.718 Chile 7.5 9 0.6

Ireland 7.5 7 0.320 Germany 7.4 8 0.821 Japan 7.1 11 0.922 Spain 7.0 8 0.723 France 6.7 8 0.824 Belgium 6.6 7 0.725 Portugal 6.3 8 0.826 Botswana 6.0 3 0.527 Taiwan 5.9 11 1.028 Estonia 5.6 5 0.329 Italy 5.5 9 1.030 Namibia 5.4 3 1.431 Hungary 5.3 10 0.8

Trinidad & Tobago 5.3 3 1.5Tunisia 5.3 3 1.3

34 Slovenia 5.2 7 1.035 Uruguay 5.1 4 0.736 Malaysia 5.0 11 0.737 Jordan 4.9 4 0.8


38 Lithuania 4.8 5 1.5South Africa 4.8 10 0.7

40 Costa Rica 4.5 5 0.7Mauritius 4.5 5 0.7

42 Greece 4.2 8 0.6South Korea 4.2 11 0.7

44 Peru 4.1 6 1.1Poland 4.1 10 0.9

46 Brazil 4.0 9 0.347 Bulgaria 3.9 6 0.6

Croatia 3.9 3 0.6Czech Republic 3.9 10 0.9

50 Colombia 3.8 9 0.651 Mexico 3.7 9 0.6

Panama 3.7 3 0.4Slovak Republic 3.7 7 0.9

54 Egypt 3.6 7 1.5El Salvador 3.6 5 0.9Turkey 3.6 9 0.8

57 Argentina 3.5 9 0.6China 3.5 10 0.4

59 Ghana 3.4 3 0.5Latvia 3.4 3 1.2

61 Malawi 3.2 3 1.0Thailand 3.2 12 0.9

63 Dominican Rep 3.1 3 0.9Moldova 3.1 3 0.9

65 Guatemala 2.9 4 0.9Philippines 2.9 11 0.9Senegal 2.9 3 0.8Zimbabwe 2.9 6 1.1

69 Romania 2.8 5 0.5Venezuela 2.8 9 0.4

71 Honduras 2.7 3 1.1India 2.7 12 0.5Kazakhstan 2.7 3 1.3Uzbekistan 2.7 3 1.1


75 Vietnam 2.6 7 0.7Zambia 2.6 3 0.5

77 Cote d´Ivoire 2.4 3 1.0Nicaragua 2.4 3 0.8

79 Ecuador 2.3 6 0.3Pakistan 2.3 3 1.7Russia 2.3 10 1.2

82 Tanzania 2.2 3 0.683 Ukraine 2.1 6 1.184 Azerbaijan 2.0 3 0.2

Bolivia 2.0 5 0.6Cameroon 2.0 3 0.8Kenya 2.0 4 0.7

88 Indonesia 1.9 12 0.8Uganda 1.9 3 0.6

90 Nigeria 1.0 4 0.991 Bangladesh 0.4 3 2.9

The TI 2001 Corruption Perceptions Index

The Corruption Perceptions Index is

among the most widely used socio-

economic indicators published by any

independent NGO and is used by

governments and international

organisations as well as the media

and pressure groups.



Action should also be taken to apply anti-money-laundering prohibitions to foreign bribery. Sincesubterfuge is essential to foreign bribery, anti-money-laundering prohibitions can play an important role incurbing such bribery. The Convention currently requiresthe application of money-laundering laws to foreignbribery only if anti-money-laundering laws apply todomestic bribery. This is inappropriate because money-laundering is much more likely to occur inconnection with foreign bribery.

The US has joined 25 Council of Europemembers, including France, Germany, Poland andHungary, in the GRECO (Group of States againstCorruption) monitoring process. In the first phase,experts are evaluating laws and practices andconducting in-country reviews of compliance with the Twenty Guiding Principles. To date, the expertshave focused on the independence and strength ofanti-corruption bodies, immunity for officials andlegislators; and expertise and training of the personsin charge of fighting corruption. The countriesreviewed so far include Belgium, Cyprus, Finland,Georgia, Luxembourg, Slovenia, Slovakia, Spain andSweden. Country Reports are available on the web at:www.greco.coe.int.

TI chapters in the Americas achieved asuccessful outcome to their efforts when the OASsignatories to the Inter-American Conventionagainst Corruption agreed to create a follow-upmechanism. Such mechanisms have proved essentialto ensure that conventions are enforced and have a practical impact. The Convention sets out acomprehensive blueprint for reducing corruption in

Francophone AfricaIn francophone Africa, one thrust of activities in 2000 focused on thedevelopment and delivery of national integrity surveys in Senegal,Madagascar and Morocco. The purpose of these integrity surveys is toprovide hard data on the manifestations and the incidence of corruptionin those countries. The programme included a household survey ofindividuals, the private sector and a qualitative study based on focusgroup discussions with key players.

ArgentinaThe city of Morón in the Argentinian province of Buenos Aires hadbecome synonymous with corruption and administrative chaos.One of the most important local management issues in Morón was the

contracting of domestic and industrial waste collection and street cleaning.Suspicions of conflict of interest in the previous awarding of this contract hadundermined public confidence in the local administration. In order to promote transparency and civic participation, the newly electedmayor of Morón enlisted the help of Poder Ciudadano, TI’s chapter inArgentina, to implement the country’s first-ever “programme for transparent contracting”. The programme involved public hearings where citizens, business people,experts and members of the Opposition were convened to express their viewsand make suggestions on the proposed terms of the contract. The programmealso included the signing of an integrity pact, a no-bribery pledge between thelocal government and all bidders for the waste collection contract.

More than 500 people attended a public meeting where bidding documentswere discussed in anticipation of the tender. Civil society organisations wereinvolved in the monitoring of the bidding process and the contract award. Thissuccessful model programme led to savings of 35% on the USD 32 millionvalue of the contract and contributed to building trust between themunicipality, contractors and citizens. The success of the Morón experimenthas resulted in a number of other municipalities approaching Poder Ciudadanofor assistance in replicating the programme.

On t

he

Gro

und

the public sector by criminalising a wide range ofcorrupt acts, stepping up enforcement, enhancingjudicial co-operation and strengthening preventivemeasures, such as codes of conduct, assets disclosureand whistleblower protection. At the June 2001 OASGeneral Assembly, parties agreed to create acommittee of experts to evaluate implementation ofthe Convention provisions. To promote an effectiveprocess, TI chapters in the Americas have called foradequate funding from the multilateral developmentbanks, bilateral donors and parties, and urgedmeaningful civil society participation, a timely start tothe follow-up process and the annual publication of aprogress report.

At the Americas Business Forum in BuenosAires, the private sector made transparency a priorityissue for the Free Trade Area of the Americas(FTAA). In addition to calls for transparency in theFTAA negotiating process, the private sectorparticipants in the ABF workshops on procurement,investment and services also called for moretransparent laws, rules and processes. TI chapters inLatin America submitted an extensive set ofrecommendations for procurement transparency. Therecommendations stress the importance of extensiveand timely publication of information and theimplementation of procurement transparencymeasures as soon as possible. As a result of the broadinput, the trade ministers agreed to take severalimportant steps to increase transparency, startingwith the publication of the draft negotiating text.


Thanks to our partners

Public InstitutionsAustralian Agency for

International Development(AusAID)

Canadian InternationalDevelopment Agency (CIDA)

Royal Danish Ministry of ForeignAffairs

Department for InternationalDevelopment (DfID), UK

Netherlands Ministry of ForeignAffairs

European CommissionMinistry for Foreign Affairs of

FinlandGerman Agency for Technical

Cooperation (GTZ)German Development Service

(DED)The Mayor’s Office of the City of

Seoul, Goh Kun, Korea (South)Norwegian Agency for

Development Cooperation(NORAD)

Swedish InternationalDevelopment CooperationAgency (SIDA)

Swiss Agency for Developmentand Cooperation (SDC)

US Agency for InternationalDevelopment (USAID)

FoundationsAvina Group, SwitzerlandThe Ford Foundation, USAJohn D. and Catherine T.

MacArthur Foundation, USAOpen Society Institute, HungaryThe Tinker Foundation Inc., USAVolkart Foundation, Switzerland

National ChaptersTI-AustraliaTI-Germany

IndividualsFrank Vogl, USA

Special ProjectsABN Amro, NLHSBC, UK JP Morgan, USANorsk Hydro, NorwayPricewaterhouseCoopers, UK Richter Gedeon, HungaryRio Tinto plc, UK Shell International, UKUBS, Switzerland

We extend to each and every one of these donors our heartfelt thanks.

In the year 2000, TI funding continued to be assured by contributions from the publicsector, foundations and the private sector.

Donations to the work of the TI Secretariat in 2000 in excess of Euro 1000.

TI CanadaAlcanCanadian NationalNexen Inc.GE CanadaThe Globe and MailHydro OneIBMKroll Lindquist AveyMark NathansonMcCarthy TétraultNortel NetworksPlacer Dome

TI AustraliaShearwater Cape Schanck

ResortTelstra Corporation

TI BangladeshSHELL Bangladesh

TI GermanyABB AG, MannheimBDO Deutsche

Warentreuhand AG,Hamburg

Consulting Services ChristianStadter GmbH, Dortmund

DaimlerChrysler AG, StuttgartDeutsche Bahn AG, BerlinDEG (Deutsche Investitions-

und Entwicklungs-gesellschaft mbH), Köln

Deutsche Lufthansa AG,Frankfurt am Main

GFA holding AG, HamburgGOPA-Consultants, Bad

HomburgHessische

Landesapothekenkammer,Frankfurt am Main

Hochtief AG, EssenPhilipp Holzmann AG,

Frankfurt am MainRobert Bosch GmbH,

StuttgartRODECO Consulting GmbH,

Bad HomburgSchering AG, BerlinSiemens AG, München

TI ItalyNuovo Pignone SpACom.Int SpAShell Italia SpA

TI PanamaLa PrensaEl Universal

TI PolandOptimum Media Direction

(OMD)

TI UKCrown Agents

TI USAAmerican International

GroupArthur Andersen & CompanyBP Amoco CorporationBank of AmericaBechtel CorporationThe Boeing CompanyBristol-Myers Squibb

CompanyCMS Energy CorporationEnron CorporationExxonMobil CorporationFord Motor CompanyGeneral Electric CompanyGeneral Motors CorporationHoneywell IncorporatedJM Huber CorporationLockheed Martin CorporationMerck and Company,

IncorporateMotorola IncorporatedPharmaceutical Research and

Manufacturers of America(PhRMA)

PricewaterhouseCoopersPrudential Insurance

Company of America

Raytheon CompanyTravelers Insurance CompanyTroutman Sanders LLPUnocal CorporationUnited Technologies

CorporationWeil, Gotshal & Manges

Contributions to TI national chaptersTI chapters have notified us of the following corporate donations in the year 2000


Income US$ 000’s

Governmental Institutions 1 593of which Project Funding 867

Foundations 1 594of which Project Funding 948

Private Sector 88Special Projects 143

of which 9th IACC (Oct. 1999) 88Other Income 112Deficit– drawn from Reserves 239

Total Income 3 769

Expenditure US$ 000’s

Regional SupportAfrica 610Latin America 523Central and Eastern Europe/FSU 367Asia 247Western Europe/N America 95Middle East/Northern Africa 82 1 924

Knowledge Management 659Information & Publications 310Issues Management 195Other Projects 64Administration & Governance 617

Total Expenditure 3 769

Income statement 2000

0

1

2

3

4

1997 1999 2000

Special Projects

Private Sector/Others

Foundations

Government

Mill

ion

US

$

01998 1999 2000

1

2

3

4 Special Projects

Issues Management

Information/Publications

Mill

ion

US

$

Knowledge Management

Administration & Governance

Regional Support

Africa

Latin America

Western Europe/N America

Middle East/Northern Africa

Asia

Central & Eastern Europe/FSU

Where the money goesWhere the money comes from

Full audited accounts are available on the TI web site.

9th International Anti-Corruption Conference in Durban, South Africa, 5-10 October 1999.Accounts for the 9th IACC could only be compiled and audited in the year 2000.

Audited Financial Statements (in US$ 000’s1) US$

Income:Fees and costs paid by participants 841Funding for participants from

government agencies & private foundations2 557Sponsorship towards general conference costsThe World Bank 245Swiss Development Co-operation 202GTZ (Germany) 39Department for International Development (UK) 17South African private sector3 78 581Other income 8Total income 1 987

Expenses:Conference costs of event organiser 1 280Costs of the secretariat (TI-S) 420Costs of Transparency-South Africa 172Reserve for future IACCs 46Total expenditures 1 918

Net surplus of 9th IACC4 69of which US$ 88 was recognised in the year 2000 income statement of TI-S.

1 Foreign currency amounts are translated into US dollars at ratesapplicable in October, 1999.

2 Australian Agency for International Development, Royal Danish Ministryof Foreign Affairs (SA Embassy), GTZ (Germany), NORAD (Norway), SGS (Switzerland), Avina Foundation (CH), Volkart Foundation (CH).

3 Royal Dutch Shell SA, Eskom, Anglo-American, MTN, IndependentNewspaper. Indirect Donations also received by SABC and Technicon SA.

4 Depending on grant conditions, some donor agencies may reclaim a share of the IACC surplus.


Algeria �Association Algérienne de Lutte Contre la Corruption, Algere-mail [email protected]

Argentina �Poder CiudadanoMr Luis Moreno Ocampo Presidente TILACMr Christian Gruenberg Secretario EjecutivoRodriguez Peña 6812ºPiso, Of. 41020 Buenos Airesphone +54 11 4375 4925/26fax +54 11 4375 0398e-mail [email protected]@mocampo.com.archris@poderciudadano.org.arwebwww.poderciudadano.org.ar/

Armenia �Ms Amalia KostanyanMs Arevik Saribekyanc/o Center for RegionalDevelopmentAygedzor Street 69, #34Yerevan 375019phone +3741 226295mobile +37 49406898fax +1 702 [email protected]@yahoo.com

Australia �Ms Isabel Blackett Chief ExecutiveTransparency International -AustraliaPO Box 41Blackburn South VIC 3130phone +61 3 9890 0503fax +61 3 9890 [email protected] www.transparency.org.au

Austria �LAbg. Wolfgang AlkierChairmanTransparenz ÖsterreichLindengasse 10, 1070 Wienphone +43 664 335 9339fax +43 1 523 92 65 e-mail [email protected]

Azerbaijan �Rena Safaralieva Executive DirectorSabit Bagirov ConvenorEntrepeneurship DevelopmentFoundationR. Behbudov St. 3Baku 370 000phone +994 12 930964fax +994 12 931438e-mail [email protected]@monitor.baku.az

Bahrain �Jasim Al-Ajmi Ph.DPO Box 30174, [email protected]

Bangladesh �Mr Manzoor HasanTransparency International -Bangladesh121/C Gulshan Avenue (3rd Floor)Gulshan, Dhaka-1212phone +880 2 988 4811fax +880 2 988 4811e-mail [email protected] www.ti-bangladesh.org

Belgium �Baron Jean Godeaux PresidentTransparency InternationalBrussels, 39, Square Vergote1030 Brusselsphone +32 2 735 6558fax +32 2 732 9026

Bénin �Mr François KedowideMr Roger GbegnonviTransparency International -Bénin02 BP 1454, Cotonouphone +229 30 80 38/39/40e-mail [email protected]

Bolivia �Contact information throughthe TI International Secretariat

Bosnia & Herzegovina �TI Bosna i HercegovinaBoris Divjak PresidentAlekse Santica 4a51000 Banja Luka, RSphone/fax +387 51 306 456e-mail [email protected] www.ti-bih.org

Botswana �H.C.L. (Quill) HermansHermans Associates (Pty) Ltd.PO Box 60945, Gaboronephone +267 306 818fax +267 306 811e-mail [email protected]

Brazil �Transparencia BrasilEduardo Capobianco PresidentCláudio Weber Abramo Executive Secretaryphone +55 11 3017-8000

ext. 105 or 106e-mail [email protected] [email protected] www.transparencia.org.br

Bulgaria �Transparency International -BulgariaDr Ognyan Minchev ChairmanMs Katya Hristova Executive Director3 Bistriza Str., 4 floorSofia 1000phone +359 2 986 34 11

+359 2 986 79 20fax +359 2 986 78 34e-mail [email protected] www.transparency-bg.org

Burkina FasoContact information throughthe TI International Secretariat

Cambodia �Center for Social DevelopmentMs Chea Vannath PresidentPO Box 1346, nº 91, Street 95Sk. Beoung TrabekChamkar Mon, Phnom Penhphone +855 23364 735

or +855 15831 905fax +855 23364 736e-mail [email protected] www.bigpond.com.kh/users/csd

Cameroon �Maître Akere T. Muna PresidentCameroon Bar AssociationBP 307, Yaoundephone +237 23 55 74fax +237 266 85e-mail [email protected]

Canada �Transparency InternationalCanadaWes Cragg Chair/PresidentBronwyn Best NationalCoordinatorc/o Business Ethics OfficeRoom 200F, SSBYork University, 4700 Keele StreetToronto, Ontario M3J 1P3phone +1 416 488 3939fax +1 416 483 5128e-mail [email protected] www.transparency.ca

Chile �Mr Luis Bates Hidalgo Executive DirectorMr Sebastián Cox Executive SecretaryAndrea Fernandez Co-ordinatorCalle del Arzobispo 0625ProvidenciaSantiago de Chilephone +56 2 366 1657e-mail [email protected] www.tichi.cl

Colombia �Mr Juan Lozano ChairpersonRosa Ines Ospina General SecretaryTransparencia por ColombiaCalle 92 No. 16-30, Oficina502, Santa Fé de Bogotáphone +57 1 635 1761

+57 1 622 6562+57 1 257 4806

fax +57 1 531 [email protected] www.transparenciacolombia.org.co

Costa Rica �Transparencia Costa RicaMs Roxana SalazarCarretera a San Pedrode la Pulperia la Luz 100metros sur y cien oesteApartamentos La CaliforniaNumero 8aphone +506 253 5027fax +506 296 1986e-mail [email protected]

Croatia �Prof. Josip KregarTI Croatia (TI Hrvatska)c/o Croatian Law CentreHebrangova 21/IV10000 Zagreb, Croatiaphone +385 1 4802422fax +385 1 4856445e-mail [email protected] www.transparency.hr

Czech Republic �Mr Michal Burian Executive DirectorTransparency InternationalCzech Republic (TIC)Klimentská 30 110 15 Praha 1phone +420 2 2161 713 7

+420 2 2161 713 8+420 2 2161 713 9

fax +420 2 231 42 84e-mail [email protected] www.transparency.cz

Denmark �Mr Torben Ishoy ChairmanTransparency InternationalDanmarkElmevaebgen 102880 Bagsvairdphone +45 44 44 05 07fax +45 44 44 05 07e-mail [email protected] www.transparency.dk

Dominican RepublicContact information through the TI International Secretariat.

Ecuador �Corporación Latinoamericanapara el Desarrollo (CLD)Ms Valeria Merino DiraniManaging DirectorTransparencia EcuadorPO Box 17-12-00609, Quitophone +593 2 468 227

+593 2 259 031+593 2-441 655

fax +593 2 468 229e-mail [email protected]

EgyptContact information through the TI International Secretariat

El SalvadorContact information through the TI International Secretariat

Estonia �Mr Agu Laius ChairmanJaan Tõnisson InstituteEndla 4, EE-0001 Tallinnphone +372 262 31 60fax +372 626 31 52e-mail [email protected], [email protected] www.ngonet.ee/jti/

Ethiopia �Attorney-at-Law TeshomeGabre-Mariam BokanPO Box 101485, Addis Ababaphone +251 1 518 484fax +251 1 513 500e-mail [email protected]

Fiji �Mr Ikbal JannifTI Fiji, PO Box 8, Suvaphone +679 313211fax +679 301925e-mail [email protected]

FinlandContact Information through the TI International Secretariat

France �Mr Daniel Dommel PrésidentTransparence-InternationalFrance12 rue de Penthièvre75008 Parisphone +33 1 5377 3787fax +33 1 5377 3507e-mail [email protected]

The Gambia �Mr Jay SaidyThe Point NewspaperPO Box 2135, Fajaraphone +220 497 937fax +220 224 851e-mail [email protected]

Georgia �TI-GeorgiaIrakli Okruashvili ChairmanGia Kiknadze Director32, Dzm. Zubalashvilebis st.,380010, Tbilisi, Georgiaphone +995 32 92 1835fax +995 32 92 1836e-mail [email protected]

Germany �TI DeutschlandBelfortstr. 3, 81667 MünchenDr Michael Wiehen ChairmanDr Ute Bartels Executive Directorphone +49 89 3236 2820 Dr. Wiehenfax +49 89 3236 2822 Dr. Wiehenphone +49 89 4895 4440fax +49 89 4895 [email protected]@ti-deutschland.deweb www.ti-deutschland.de

Ghana �Dr Gyimah BoadiCenter for Democracy & DevelopmentPO Box 404, Legon, Ghanaphone +233 21 7761-42

+233 21 7630-29fax +233 21 7630-28e-mail [email protected]

Greece �Mrs Virginia TsouderosTI Greece5-7, Efroniou Str.11634 Athensphone +30 1 722 4940fax +30 1 722 [email protected]

Guatemala �Acción Ciudadana Mr Manfredo MarroquínAvenida La Reforma 12-01Zona 10Edificio Reforma MontúfarNivel 17Ciudad de Guatemala C.A.01010phone +502 331 7566fax +502 331 [email protected] www.quik.guate.com/acciongt/

National Chapter � National Chapter in formation � National Contact �

National chapters


Haiti �Mrs Marilyn AllienPresident & Executive DirectorLa Fondation Heritage PourHaitic/o Lynx AirPO Box 407139Fort Lauderdale, Fl. 33340phone +509 257 5804fax +509 223 2930e-mail [email protected]

HondurasContact information through the TI International Secretariat

Hungary �Ádám Terták ChairmanTI Hungaryc/o Ernst & Young Ltd.Váci ut. 20H-1132 Budapestphone +36 1 451 8266fax +36 1 451 [email protected] www.c3.hu/~tihun/

India �Admiral R.H. Tahiliani ChairmanMr S.D. Sharma Vice ChairmanLok Sevak SanghLajpat Bhawan, Lajpat NagarNew Delhi 110 024phone +91 11 622 4711

+91 11 646 0825fax +91 11 463 8899e-mail [email protected] www.ti-bangladesh.org/ti-india/

Indonesia �Agus PurnomoTI-Indonesia, c/o World WideFund for NaturePO Box 5020, JKTM 12700phone +62 21 576 1070fax +62 21 576 1080e-mail [email protected]

Ireland �Gerard P. Mc Hugh 12 Rockfield Square, Maynooth, Co. Kildare, Irelandphone +353 86 6050595 fax +353 1 6283536 e-mail [email protected]

Israel �Shkifut BeinLe’umit (SHVIL)-IsraelProf Dove Izraeli ChairmanTel Aviv UniversityFaculty of ManagementRamat Aviv, 69978 Tel Avivphone +972 3 640 6321fax +972 3 641 4215e-mail [email protected] www.ti-israel.org

Italy �Mrs Maria Teresa BrassioloTransparency InternationalItalia, Via Zamagna 1920148 Milanophone +39 02 4009 3560fax +39 02 406829e-mail [email protected] www.transparency.it/

Ivory CoastContact Information through the TI International Secretariat

Jamaica �Ms Beth AubTI Jamaica, c/o Dr Martin AubDepartment of Mathematics, UWI Mona, Kingston 7phone +1 876 944 8219e-mail [email protected]

Japan �Iatsuro Kuroda Director GeneralJouhou Koukai Shimin Center(Freedom of InformationCitizen Center)Hashizume Bdg 2F10-1 Sanei-cho,Shinjuku-ku, Tokyo 160-0008 phone 81-3-5368-1520fax 81-3-5368-1521e-mail [email protected]

Jordan �Saeda KilaniArab Archives InstitutePO Box 815454, Ammanphone +962 6 465 6682fax +962 6 465 6694e-mail [email protected]

Kazakhstan �TI KazakhstanSergey Zlotnikov DirectorPresident - Civic Foundation“Interlegal”Abaya Prospekt52, kom. 58 480008 AlmatyJanar Jandosova Deputy DirectorVitaly Voronov Chairmanphone/fax +7 3272 42 55 [email protected] www.transparencykazakhstan.org

Kenya �Transparency International-KenyaJohn Githongo Executive DirectorPO Box 23111Lower Kabete, Nairobiphone 254 2 727763/5fax 254 2 729530e-mail [email protected] www.tikenya.org

Korea (South) �Bishop Kim, Seong-SooChairperson, Board of DirectorsReverend Kim, Geo-SungSecretary GeneralTransparency International -Korea (South)Suite 508, Korean EcumenicalBldg., Yonji-Dong, Chongno-Ku, Seoul, 100-740phone +82 2 708 5858fax +82 2 708 5859e-mail [email protected] ti.or.kr/

Kyrgyz Republic �Tolekan Ismailova Executive DirectorCoalition of NGOs ForDemocracy and Civil Society73 Moskovskaya Apt. 64Bishkek Kyrgyz Republic720040phone +996 312 661073fax +996 312 680572e-mail [email protected]

Latvia – Delna �TI Latvia – DelnaMs Inese Voika ChairpersonMs Ildze Slanke Office ManagerGertrudes Street 34-5, Riga 1011phone +371 7 506 454fax +371 7 506 455e-mail [email protected]@delna.lvweb www.delna.lv

Lebanon �Mr Charles DeGaulle AdwanThe Lebanese TransparencyAssociationTayyar Center, Box 55215Sin al Fil, Beirutphone +961 1 490561fax +961 1 601787e-mail [email protected][email protected]

Lithuania �Mr Alexandras DobryninasChairman of the BoardMs Laima ZilinskieneExecutive DirectorTi-Lithuania, Jaksto 92600 Vilnius, Lithuaniaphone 370 2 22 69 51fax 370 2 22 16 87e-mail [email protected]@transparency.ltweb www.TILS.lt

Macedonia �TI Macedoniac/o Forum, Bul. Ilinden1000 SkopjeMr Zoran Jacev PresidentMs Slagjana Taseva Executive Directorphone +389 2 121 100fax +389 2 121 [email protected]

Madagascar �Mrs Yveline Rakotondramboa157 Route CirculaireAntananarivophone +261 20 22 696 61fax +261 20 22 254 [email protected]

Malawi �Rt Rev J.P. BvumbweTI MalawiPO Box 30440, Lilongwe 3phone +265 757 516fax +265 757 [email protected]

Malaysia �Tunku Abdul Aziz ChairmanTI Malaysia, 2-2-49 WismaRampai, Jalan 34/26Taman Sri Rampai, Setapak53300 Kuala Lumpurphone +603 48 19 9131fax +603 41 43 [email protected] transparency.org.my

Mali �Dr Cheibane Coulibaly DirecteurN’Tominkorobougou Rue 659 Porte 632, BP 3041 Bamakophone/fax +223 225 999e-mail [email protected]

Mauritania �Irabiha Mint Abdel WedoudBP 199, Nouakchottphone +222 25 32 25fax +222 25 32 25web [email protected]

Mauritius �Mr Jacques Dinan General Secretary4 Avenue Florence NightingaleRose-Hill, Mauritiusphone +230 464 1070e-mail [email protected]

Mexico �Transparencia MexicanaFederico Reyes HerolesPresidenteEduardo A Bohórquez Secretario EjecutivoDulce Olivia 71, Colonia VillaCoyoacán, DF, 04000phone +52 5 668 0955fax +52 5 659 8360

+52 5 658 2326e-mail [email protected] www.transparenciamexicana.org.mx

Moldova �Mihail Buruiana ChairmanLilia Carascuic Executive DirectorCenter for Strategic Studiesand ReformsUNDP, str. Sfatul Tarii 27Chisinau, Moldovaphone 373 2 23 72 04fax 373 2 22 71 04e-mail [email protected]

Mongolia �Mr Tumur-Ochir ErdenebilegMember of the State Great Hural(Parliament) State HousePO Box 1085, Ulaanbaatar 13Ms Oyun SanjaasurenginMember of the MongolianParliamentGovernment House – 424Ulaanbaatar – 12phone +976 1 321 345fax +976 1 322 866e-mail [email protected]/fax +976 1 323 [email protected]

Morocco �Transparency MarocMr Bachir Rachdi Secretary General24 et 26 Bd de KhouribgaCasablanca 20 000phone +212 22 542 699fax +212 22 306 615e-mail [email protected]

MozambiqueContact Information throughthe TI International Secretariat

Namibia �Mr Hartmut RuppelPO Box 20732, Windhoekphone +264 61 242 739fax +264 61 241 617e-mail [email protected]

Nepal �Dr Devendra Raj PandayPresidentTransparency InternationalNepalPO Box 11486New Plaza PutalisadakKathmanduphone +977 1 436 462fax +977 1 420 412e-mail [email protected] www.tinepal.org/

The Netherlands �Professor Edward Kimmande Boelelaan 1105kammer 2E-031081 HV Amsterdamphone +31 20 444 6107/050fax +31 20 444 6005e-mail [email protected] www.transparencyinternational.nl

New Zealand �Mr Murray Petrie CoordinatorShane Cave Media RelationsManager34 Harbour View Rd.Wellingtonphone +64 4 475 6109fax +64 4 475 6108e-mail [email protected]@ihug.co.nz

Niger �Mme Aissata Fall BagnaQuartier Poudrière,Villa 3086BP 10326 [email protected]

Nigeria �Gen. RO Ishola WilliamsTransparency In Nigeria2nd Floor, 302 Iju Water Works RoadIju-IshagaAgegeLagosphone +234 1 492 5535

or +234 1 492 4280 x 22fax +234 1 492 5535e-mail [email protected]

Norway �Jannik LindbaekPO Box 1811Vika 0123 Oslophone +47 22 40 30 60fax +47 22 40 30 61e-mail [email protected]


National chapters


Pakistan �In Karachi:Mr Shaukat Omari Managing DirectorHI-aqua, 83-Q, Khalid Bin Waleed Road,Block-II P.E.C.H.S., KarachiIn Lahore:Mr Yusaf Saeed, Yusaf Saeed& Co. Charterd Accountants6-A, Block S, Gulberg IILahorephone +92 21 454 4400fax +92 21 455 [email protected] +92 42 576 4717fax +92 42 576 [email protected]

Panama �Fernando BerguidoAngélica Maytín Equipo EjecutivoFundación para el Desarrollode las Libertad CiudadanaApartado 810-266, Zona 10phone +507 229-4207

or +507 229-4213fax +507 229 [email protected]

Papua New Guinea �Hon. Anthony SiaguruChairmanTI Papua New GuineaPO Box 591, Port Moresbyphone +675 320 2188fax +675 321 7223e-mail [email protected]

Paraguay �Mr José Antonio BerguesPresidenteTransparencia ParaguayDefensa Nacional 849 c/Padre Cardozo, 1er. Piso, Ofic. 1, Asunción, ParaguayMs Patricia MarchewkaDirectora Ejecutivaphone +595 21 228 194fax +595 21 228 [email protected]@uninet.com.pywebwww.transparenciapy.org.py

Peru �Contact information throughthe TI International Secretariat

Philippines �Dolores Español ChairpersonTI Philippines 2nd Floor, UPWILOCI Bldg. Manila LionsRd, Arroceros St., Manila 1000phone +63 2 527 0573fax +63 2 871 9752e-mail [email protected]

Poland �Anna Modelska Office ManagerTI-Polandul. Ordynacka 9, lok. 3300-364 Warsawphone +48 22 828 9244fax +48 22 828 9243e-mail [email protected]@transparency.plweb www.transparency.pl

Portugal �Dr Artur VictoriaAv. Marechal Gomes da Costa822, 4150 Portophone +351 22 617 6178

+351 93 330 4213fax +351 22 782 [email protected]

Puerto RicoContact information through the TI International Secretariat

Romania �Marian Popa ChairpersonAdrian Baboi Stroe Executive DirectorRomanian Association forTransparency - ART14, Bvd. Nicolae Titulescu, bl. 21, 1st floor, apart. 3Bucharest, 1st sectorphone +40 1 659 3371fax +40 1 659 3371e-mail [email protected] www.transparency.ro

Russia �Elena Panfilova DirectorBoris Demidov Office Manager1, Nikoloyamskaya st.109189 Moscow, Russiaphone/fax +7 095 915 0019e-mail [email protected]

Senegal �MaÍtre Mame Adama GueyeForum Civil, BP 2805, Dakarphone +221 822 3836fax +221 822 3972e-mail [email protected]

Sierra Leone �Mrs Zainab BanguraCampaign for GoodGovernance, 29 Liverpool StP.O. Box 1437, Freetownphone +232 22 238 454fax +232 22 228 896e-mail [email protected]

SingaporeContact Information through the TI International Secretariat

Slovak Republic �Eugen Jurzyca Chairmanc/o Centre for EconomicDevelopment (CPHR)Bajkalská 25, 82718 BratislavaMs Emilia SicakovaPresident, TI-Slovak Republicphone +421 7 5341 1020fax +421 7 5823 3487e-mail [email protected] www.cphr.sk

SloveniaContact Information through the TI International Secretariat

South Africa �Stiaan van der Merwe Executive OfficerBridgette Oliphant AssistantTransparency South Africa7th Floor (West Wing)Auckland House, 185 Smit St,Johannesburg 2001phone 27 11 339 7253fax 27 11 403 4332e-mail [email protected] www.tisa.org.za

Spain �Antonio Garrigues Acting PresidentTransparencia Internacional en España Departamento de Gobierno yAdministración Pública delInstituto Universitario Ortegay Gasset, Calle Fortuny nº. 53 28010-Madrid phone +34 91 7004100

Sri Lanka �Mr Arittha WikramanayakeCentre for Policy Alternatives27 Deal PlaceColombo 3, Sri Lankaphone +94 74 712 625fax +94 74 712 628e-mail [email protected]

Sweden �Mr Peter GisleKammakargatan 9 a 2tr.11140 Stockholmphone +46 8 240 050fax +46 8 211 [email protected]

Switzerland �Philippe Lévy ChairmanTransparency SwitzerlandZora Ledergerber Programme OfficerSchwarztorstr. 20Postfach 8509, 3001 Bernphone +41 31 382 3550fax +41 31 382 3550e-mail [email protected] www.transparency.ch

Tanzania �Mr Ibrahim SeushiTI Tanzaniac/o Price Waterhouse CoopersInternational HousePO Box 10953, Dar es Salaamphone +255 51 133 100fax +255 51 133 200e-mail [email protected] www.transparency.org/organisation/chapters/tanzania/

Thailand �Dr Juree Vichit-VadakanDirector, Center forPhilanthropy and Civil SocietyNational Institute ofDevelopment AdministrationBangkapiBangkok 10240phone +662 377 7206fax +662 374 7399e-mail [email protected] tithailand.nida.ac.th/index.html

Togo �M. Kokou Eklou-AliPO Box 20065, LoméorMaitre Djovi Gally17, Av. du 24 JanvierB.P. 14040, Loméphone +228 220 226fax +228 224 956e-mail [email protected] +228 217 685

+228 210 330fax +228 210 331e-mail [email protected]

Trinidad & Tobago �The Trinidad & TobagoTransparency InstituteJustice George CollymoreChairmanc/o Mary King & AssociatesLtd, Building 11Valpark Shopping PlazaValsayn SouthSt. JosephTrinidad & Tobago, W.I.phone +1 868 663 6751fax +1 868 663 4252e-mail [email protected]

Turkey �Mr Ercis Kurtulus ChairmanTransparency InternationalTurkeyc/o Vega Audit and Consultancy Inc.Aytar Caddesi 28/141. Levent Istanbulphone +90 212 281 94 96fax +90 212 279 05 [email protected] www.saydamlik.org

Uganda �Transparency Ugandac/o Wafula OguttuPlot 29-39. 8th StreetIndustrial AreaPO Box 12141Kampala, Ugandaphone +256 41 231 541fax +256 41 232 [email protected]

Ukraine �TI Ukraine“clean hands”Saksaganskogo 41252033 KievLarysa DenyssenkoProgramme DirectorUkrainian Legal Foundationphone +380 44 227 22 07fax +380 44 227 22 20e-mail [email protected]

United Kingdom �Mr Laurence CockcroftChairmanTransparency International UKSt Nicholas HouseSt Nicholas RoadSutton, Surrey SM 1 ELphone +44 20 8643 9288fax +44 20 8710 [email protected]

Uruguay �Uruguay TransparenteJacinta BalbelaJosé Scosería 2915Montevideophone +598 2 710 8411fax +598 2 710 [email protected]

USA �Mr Fritz Heimann ChairmanMrs Nancy Zucker Boswell Managing DirectorTransparency International-USA1112 16th Street, NWSuite 500,Washington, DC 20036phone +1 202 296 7730fax +1 202 296 8125e-mail [email protected] www.transparency-usa.org

Vanuatu �Ms Marie-Noelle Ferrieux-Pattersonphone +678 23 441fax +678 25 [email protected]

VenezuelaContact information throughthe TI International Secretariat

Yemen �Mr Jamal Adimi PresidentTransparency YemenForum for Civil SocietyPO Box 19458Hadda TowersBuilding No. 8, Flat No. 5Sanaa, Yemenphone +967 1 421 482fax +967 1 421 484e-mail [email protected] www.transparencyyemen.org.ye

Yugoslavia/Serbia �Dr.Predrag Jovanovic PresidentTI Serbia c/o European Movement in SerbiaDure Jaksica 511000 Beograd, Yugoslaviaphone +381 11 630281fax +381 11 630281e-mail [email protected]@eunet.yu

Zambia �Dr Alfred Chanda PresidentFoundation for DemocraticProcessPO Box 32387, Lusakaphone +260 1 236281

+260 1 290733e-mail [email protected]

Zimbabwe �Dr John MW MakumbeChairmanMr Andrew Nongogo Executive Director96 Central AvenueHarare, Zimbabwephone +263 4 734 894fax +263 4 721 172e-mail [email protected] [email protected]


National chapters

Peter EigenChairman, Germany Dr Peter Eigen is a lawyer by training. He has worked in economic developmentfor 25 years, mainly as a World Bankmanager of programmes in Africa andLatin America. Under Ford Foundationsponsorship, he provided legal andtechnical assistance to the governmentsof Botswana and Namibia, and taughtlaw at the universities of Frankfurt andGeorgetown. From1988 to 1991 he wasthe Director of the Regional Mission forEastern Africa of the World Bank.

Tunku Abdul AzizVice-Chairman, MalaysiaTunku Abdul Aziz has held seniormanagement positions in large privatesector concerns in Malaysia and overseas.He has served on the ASEAN-US andASEAN-EEC Business Councils and wasChairman for two years of the ASEAN CCICommittee responsible for makingrecommendations for developing a motorindustry in ASEAN. He held the positionof advisor at the Malaysian Central Bankbefore returning to private industry. Hislast appointment was as Director ofAdministration at the CommonwealthSecretariat in London.

Frank Vogl Vice-Chairman, USA Frank Vogl is President of VoglCommunications inc., a strategicmanagement consulting firm based inWashington D.C. Mr. Vogl is a co-founderof Transparency International. After acareer in journalism spanning close tofifteen years, he became Director ofPublic Affairs at the World Bank in 1981 and held this position until 1990.Mr Vogl is a frequent contributor topublications on the topic of businessethics and has also co-authored a bookon insights for creating wealth in the21st century. He acts as an advisor to theEthics Resource Center of the UnitedStates and is a member of the BrookingInstitution Council and a trustee of theArthur W. Page Society.

Ibrahim Seushi TanzaniaIbrahim Seushi is an economist with over 20 years' experience in management consulting. He is a directorin PricewaterhouseCoopers ConsultantsLimited, Africa Central, which includesTanzania, Kenya, Uganda, Zambia, Ghana,Nigeria and Mauritius. He has advisedgovernments in Africa on public sectorreforms including governance. He hasorganised public-civil society partnershipsto raise the profile of corruption inTanzania through national integrityworkshops. He is also the Chairman ofTransparency International Tanzania.

Maria Eugenia EstenssoroArgentinaMs Estenssoro is a graduate from theColumbia School of Journalism. As aprofessional journalist she worked as afreelance reporter for the Wall StreetJournal and Time Magazine. She wasManaging Editor of Mercado, a leadingbusiness publication in Argentina. Ms.Estenssoro also headed the economicsand business sections of Noticias, theleading weekly Argentine news magazine.In 1995, Ms. Estenssoro founded Mujeres& Compana, the first Argentinemultimedia company for working women.Ms. Estenssoro is currently ManagingDirector of the Argentine branch ofEndeavour, a US non-profit organisationpromoting entrepreneurship in emergingcountries. She is also a member of theBoard of Directors of Poder Ciudadano.

Fritz F. Heimann USAFritz F. Heimann has been a lawyer withGeneral Electric for more than fourdecades. He served as Associate GeneralCounsel for 20 years and is nowCounsellor to the General Counsel. He is one of the founders of TransparencyInternational and the Chairman of TI USA.Mr Heimann chairs the Working Group onBribery and Corruption of the US Councilfor International Business and is amember of the International Chamber ofCommerce Committee on Extortion andBribery. He has been actively involved inthe work on the OECD Convention onCombating Bribery of Foreign PublicOfficials and on the ICC’s Rules ofConduct to Combat Extortion and Bribery.

John Githongo KenyaMr. John Githongo is a political analystand journalist. He has served since 1996as Director of the African StrategicResearch Institute (ASRI), a Nairobi-basedconsulting firm specialised in the analysisof regional economic and social trends.He has also served as Director ofIntermedia Ltd., a regional consulting andtraining firm specialising in socialdevelopment issues. He has beenconsultant to agencies such as the UNDP,USAID. As a journalist he has worked invarious capacities for a number ofregional and national publicationsincluding the East African and theExecutive and has contributed to a largerange of publications including theFinancial Times of London.

Peter Rooke Australia Peter Rooke is a business lawyer byprofession and for over 30 years advisedon international trade and investment. He was chairman of the International Bar Association’s Middle East RegionalForum and has served as chairman orboard member of other companies andNGOs. Mr. Rooke helped set up theAustralian National Chapter in 1995 andis now its chief executive. He participatesin TI work throughout Asia and thePacific. He has been an Active Member of TI since 1996.

Adam Terták HungaryAdam Terták is an economist specialisedin the field of planning and informationsystems with considerable expertise inthe field of privatisation. He has been themanaging partner of Ernst & YoungHungary since January 1991. Since theestablishment of the Ernst & Youngpractice in 1989, Mr Terták has assistedwith the foundation and operation ofseveral joint ventures. He is chairman ofTI Hungary. He is a member of theInternational Chamber of commerce inHungary and sits on the board of severalorganisations such as the HungarianManagement Institute and the UnitedWay Budapest.

Michael Wiehen GermanyMichael Wiehen studied law in Germanyand at Harvard. He served for more than30 years at the World Bank, first in thelegal department and then in variousmanagement positions, among them asCountry Director for South EasternEurope, South East Asia and for Easternand Southern Africa. Mr. Wiehen wasinstrumental in developing co-operationbetween the World Bank and the globalNGO community. Since his retirement in1995, he has, on a volunteer basis,devoted a large part of his time to TIactivities on the international scene andwithin Germany. Mr. Wiehen is a memberof the Bar in Munich and serves as aTrustee of the Mountain Institute, whichis devoted to preserving and advancingmountain environments and cultures.

Rosa Inés Ospina RobledoColombiaRosa Inés Ospina holds a degree in AppliedSocial Work of the Universidad Externadode Colombia and worked as a College andUniversity professor. She has been anadvisor to a number of public institutionson issues such as rural and socialdevelopment and gender and socialdevelopment. Ms Ospina has supported thedevelopment of a number of NGOs activein these areas and has worked as aconsultant to several national andinternational organisations. She is a co-founder of Transparencia Colombia, the TINational Chapter in her country where sheholds the position of Executive Director.

Devendra Raj Panday NepalDr. Panday has played a high-profile rolein Nepal’s democratisation anddevelopment process. He has held high-level positions in the government aswell as in the non-governmental sector ofhis country. He contributed to theinstallation of the democratic regime inhis country in various capacities includingas Vice-President of the Human Rightsorganisation of Nepal. He was brieflyimprisoned by the then authoritarianregime. In the aftermath of the successfuldemocratisation in Nepal, Dr. Pandayserved as Finance minister in the interimcabinet responsible for framing the newdemocratic constitution and holdingparliamentary elections. He remains veryactive in promoting transparency andaccountability, democratic developmentand regional co-operation in South Asiavia his involvement in a number oforganisations. He is the author ofnumerous publications and currentlyserves as President of Transparency Nepal.


Board of Directors


Kamal HossainChairman, BangladeshFormer Minister of Lawand Foreign Affairs

Ahmedou Ould-Abdallah Co-Chairman,MauritaniaFormer Minister ofForeign Affairs,Executive, Secretary ofthe Global Coalition forAfrica

Abdulatif Y. Al-HamadKuwaitDirector General/Chairman of the Boardof Directors Arab Fundfor Economic and SocialDevelopment

Oscar AriasSánchezCosta RicaFormer President, NobelPeace Prize Laureate,President of the AriasFoundation for Peaceand Human Progress

Paul Batchelor United KingdomPWC, GlobalGeographies

Peter Berry United KingdomExecutive Director ofthe Crown Agents

John Brademas USAPresident Emeritus ofNew York University,Chairman of theNational Endowmentfor Democracy

Jimmy Carter USAFormer President

Ugo Draetta ItalyVice President andSenior Counsel ofGeneral Electric

Dolores L. EspanõlPhilippinesPresiding Judge ofRegional Trial Court

Dieter Frisch GermanyFormer Director Generalfor Development of theCommission of theEuropean Communities

Johan Galtung NorwayPeace Researcher,Alternative Nobel PeacePrize Laureate

Ekaterina GenievaRussiaDirector General ofState Library for ForeignLiterature

Frene Ginwala South AfricaSpeaker of Parliament

Huguette LabelleCanadaFormer President,Canadian InternationalDevelopment Agency

Ronald MacLean AbaroaBoliviaMayor of La Paz, FormerMinister of ForeignAffairs

Hans MatthöferGermanyFormer Minister ofFinance, CEO,Beteiligungsgesellschaftfür Gemeinwirtschaft

Ira Millstein USAPartner of Weil, Gotshal & Manges

Festus Mogae BotswanaPresident

George Moody-StuartUnited KingdomRtd. Manager, FormerChair Worldaware

Luis MorenoOcampoArgentinaFormer PublicProsecutor and DistrictAttorney Buenos Aires, Co-founder of PoderCiudadano

Néstor HumbertoMartinez NeiraColombiaFormer Minister ofJustice

Miklós Németh HungaryFormer Prime Minister,Former Vice President ofthe EBRD

John Noonan USAJudge of the US FederalCourt of Appeals

OlusegunObasanjoNigeriaPresident

AbdullahMohamed OmarSouth AfricaMinister of Transport

Wiktor OsiatynskiPolandOpen Society Institute

Khun AnandPanyarachunThailandFormer Prime Minister,Chairman of Saha-Union Public Co. Ltd.

Jean-Claude Paye FranceFormer SecretaryGeneral of the OECD,Special Adviser to theGovernment

John Prescott AustraliaFormer CEO of BHP

Hartmut RuppelNamibiaFormer Attorney-General, Partner ofLorenz & Bone

AugustineRuzindanaUgandaChairman, PublicAccounts Committee of Parliament

Soli J. Sorabjee IndiaAttorney-General, Senior AdvocateSupreme Court of India

Amadou ToumaniTouré MaliFormer Head of State

Virginia TsouderosGreeceFormer Deputy Ministerof Foreign Affairs

Jessica TuchmannMathews USAPresident, CarnegieEndowment forInternational Peace

Joe Wanjui KenyaChairman, Bawan Roses Ltd

Richard vonWeizsäcker Germany, FormerPresident

InternationalSecretariatBerlin

Peter EigenChairmanGermany

HansjoergElshorstManaging DirectorGermany

ExecutiveDirectors

Jermyn BrooksUnited Kingdom

Margit van HamGermany

Roslyn HeesCanada

Miklos MarschallHungary

Gustavo RayoChile

Miguel SchlossChile

PublicRelations

Jana KotalikCanada/CzechRepublic

Jeff Lovitt United Kingdom(Head of PR)

KnowledgeInformationService Unit

ShadrachBasheerhamadIndia(Head of KISU)

Lene MøllerJensenDenmark

Kristina SpaarSwitzerland

Administrationand IT

Leticia AndreuChile/Italy

HanneloreDeimlingGermany

Sylvia FiebigGermany

AnkeGoldammerGermany

Andrew KellyUSA

Nüket KılıclıGermany/Turkey

L. Vanesa Kohl-SalazarPeruDean RogersUnited Kingdom

Renate TrowersGermany

London Jeremy Pope Executive DirectorNew Zealand

Programmes Susan Côté-Freeman Canada

Fredrik Galtung Norway(Head of Research)

Carolin Schlippe Germany

Programmes Jessie BanfieldUnited Kingdom

Jessica BernsUSA

Sergei Chereikin Russia

Marie Chêne France

StiaanChristensenNorway

Stanislas Cutzach France

Gillian Dell USA

Nina GoetteGermany

Arwa Hassan United Kingdom/Egypt

Robin Hodess USA

Karen HussmanGermany (based in Chile)

Ran LiaoNorway

Bettina Meier Germany

Sara Morante Italy

Gladwell Otieno Kenya

Sandra Pabón Colombia (based in Chile)

Silke Pfeiffer Germany

Lisa PrevenslikTakedaUSA

JohannesSeyboldAustria

Hennie VanVuuren South Africa

FolkardWohlgemuth Germany

Toby WolfeUnited Kingdom

Marie WolkersFrance

SecretariatAdvisory Council

A N N U A L R E P O R T 2 0 0 1

Transparency International Annual Report 2001

Editor Susan Côté-Freeman Contributing editor Jana Kotalik

ISSN 1027-7986ISBN 3 93 57 11-01-8

Published byTransparency International Otto-Suhr-Allee 97/99 10585 Berlin Germanytel 49 (0) 30 34 38 20 0fax 49 (0) 30 34 70 39 12email [email protected] www.transparency.org

Designed by Czeslaw DoniewskiPrinted by Yeomans Press United Kingdom

Photo credits Jeremy Horner/Panos Pictures cover, page 4, 12, back page; Alain le Garsmeur/Panos Pictures cover, page 14; Diana Pope cover, page 10; Jeremy Hartley/Panos Pictures cover, page 3; DJ Clark/Panos Pictures cover, page 5,10; Jean-Léo Dugast/Panos Pictures pages 1, 20; Manja Elsässer page 11; Panos Pictures page 2, back cover; Sean Sprague/Panos Pictures page 6, back page; Trevor Speid page 11, Yevgeni Kondakov page 4.

The publication of the TI Annual Reports 2000 and 2001 was made possible thanks tofunding from the Norwegian Agency for Development Co-operation (NORAD)

Transparency International/BerlinOtto-Suhr-Allee 97/99D-10585 BerlinGermanytel 49 (0) 30 34 38 20 0fax 49 (0) 30 34 70 39 12email [email protected]

Transparency International/LondonUnit 1, the Quadrangle49 Atalanta Street London SW6 6TUUnited Kingdomtel 44 (0) 20 7610 1400fax 44 (0) 20 7610 1550email [email protected]

· global corruption report (gcr), whose first edition is to be published in october 2001, is...

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