steps taken to implement the anti-corruption action …...amendments to the criminal code act 1995...

ADB/OECD Anti-Corruption Initiative

for Asia and the Pacific

Capacity Development and

Governance Division

Asian Development Bank

Anti-Corruption Division

Organisation for Economic

Co-operation and Development

www.oecd.org/corruption/asiapacific

Steps taken to implement the Anti-Corruption Action

Plan for Asia-Pacific

Reports to the Steering Group (8th – 11th Steering Group meeting)

Table of Contents

Australia ...................................................................................................................................................................................... 2

Bangladesh .............................................................................................................................................................................. 21

Bhutan ....................................................................................................................................................................................... 30

Cambodia ................................................................................................................................................................................ 36

P.R. China ................................................................................................................................................................................. 42

Cook Islands ............................................................................................................................................................................. 57

Fiji Islands ................................................................................................................................................................................... 64

Hong Kong, China ................................................................................................................................................................... 71

India ........................................................................................................................................................................................... 88

Indonesia ................................................................................................................................................................................ 109

Japan ...................................................................................................................................................................................... 128

Kazakhstan ............................................................................................................................................................................. 141

Korea ....................................................................................................................................................................................... 147

Kyrgyz Republic ..................................................................................................................................................................... 155

Macao, China ....................................................................................................................................................................... 179

Malaysia .................................................................................................................................................................................. 193

Mongolia ................................................................................................................................................................................. 202

Nepal ....................................................................................................................................................................................... 215

Pakistan ................................................................................................................................................................................... 225

Palau ........................................................................................................................................................................................ 235

Papua New Guinea .............................................................................................................................................................. 242

Philippines ............................................................................................................................................................................... 249

Samoa ..................................................................................................................................................................................... 269

Singapore ............................................................................................................................................................................... 276

Sri Lanka .................................................................................................................................................................................. 286

Thailand ................................................................................................................................................................................... 292

Vanuatu .................................................................................................................................................................................. 315

Vietnam .................................................................................................................................................................................. 320

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

Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Australia – 2 –

Australia

Action Plan Standard Measures reported at the 8th Steering Group meeting (May 2006)

Measures reported at the 9th Steering Group meeting (Nov. 2006)

Measures reported at the 10th Steering Group meeting (Sept. 2007)

Measures reported at the 11th Steering Group meeting (May 2008)

PILLAR 1 – DEVELOPING EFFECTIVE AND TRANSPARENT SYSTEMS FOR PUBLIC SERVICE

A. Integrity in Public Service

1. Systems of hiring public officials:

Systems for compensation

Transparent hiring and promotion, independence of the civil service

On 5 February 2008, the Australian Government announced new arrangements in the selection of most Commonwealth agency heads, except Departmental Secretaries, and other statutory office holders. All appointments subject to a merit-based assessment process are overseen by the departmental Secretary and the Australian Public Service Commissioner and relevant positions will be advertised under a common framework. The new arrangements and guidelines for their detailed operation are available at: <www.apsc.gov.au/publications08/meritandtransparency.htm>.

Oversight of discretionary decisions and personnel discretionary powers

Personnel systems such as rotation of assignments

2. Ethical and administrative codes of conduct:

Prohibitions or restrictions on conflicts of interest

The Australian Government is strengthening the role and responsibilities of the Australian Public Service Commission (the Commission),







particularly in providing guidance and advice on the ethical aspects of the APS Values and the APS Code of Conduct.

This will include a ‗Code for Contact With Lobbyists‘, applicable to Ministers, public servants and the Australian Defence Force (ADF). Relevant officers will only be able to deal with lobbyists who are registered and there will be restrictions on former senior public servants and ADF personnel who seek post-separation employment as lobbyists. Details on the Code and how it will apply to the APS will be publicly available by circular and the Commission‘s website.

In July 2007, the Commission issued updated Post Separation Employment: Policy Guidelines to provide guidance on possible conflicts of interest and other probity issues when employees leave the APS to take up employment in fields aligned to their APS responsibilities. The revised guidelines are on the Commission‘s website: <www.apsc.gov.au/circulars/circular073.htm>.

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

In June 2007, following a review of policies requiring senior APS staff to declare financial and other personal interests, the Commission issued revised Declarations of Personal Interest Guidelines requiring public sector decision-makers to maintain an appropriate level of transparency about their personal interests. The revised guidelines are on the Commission‘s website: <www.apsc.gov.au/circulars/circular071.htm>.

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







in corruption-prone areas

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

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

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

The Australian Commission for Law Enforcement Integrity (ACLEI) became operational on 30 December 2006. Mr. Phillip Moss was appointed the ACLEI Commissioner on 23 July 2007. An Acting Commissioner, Professor John McMillan, had handled ACLEI operations prior to this appointment.

In July 2006, the Australian Public Service Commissioner reviewed and amended the material in chapters 10 and 14 of the APS Values and Code of Conduct in practice: Guide to official conduct for APS employees and Agency heads (the Guide) to refer explicitly to the offence of foreign bribery and duties for APS employees to report suspected breaches of this offence. The Guide is included in training for all APS employees.

The Department of Foreign Affairs and Trade conducts pre-departure training for officers going on overseas posting, relating to foreign bribery, detailing the offence and obligation to report any instances of foreign bribery. DFAT has also conducted outreach to various overseas missions to provide information to DFAT, Austrade, DIAC, AusAID and other officers about the offence of foreign bribery and their obligations to report it.

In 2007, Australia chaired the APEC Anti-Corruption and Transparency Experts Task Force in the development of a Code of Conduct for Public Officials. Australia is working toward implementation of this Code.

Promoting reporting by officials of corruption and whistleblower protection

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







B. Accountability and Transparency

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

Measures and systems to promote fiscal transparency

The Australian Taxation Office has issued guidelines for tax auditors to provide instruction on identifying bribe payments in company records and other practical guidance on bribery matters.

International standards and practices to regulate and supervise financial institutions

Auditing of the public administration and the public sector

Public procurement procedures and adequate simplified administration procedures

Institutions for public scrutiny and oversight

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

The Australian Government is considering amendments to legal provisions governing donations to political parties, in order to increase transparency of donations and restrict the size and source of donations.

Simplification of the business regulatory environment







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

A. Effective Prevention, Investigation and Prosecution

Effective measures to actively combat bribery:

Sanctions for bribery of public officials

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

acknowledges the Government‘s strong commitment to combating foreign bribery.

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

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

The International Trade Integrity Bill 2007 was recently introduced in Parliament. The principal features of the Bill are:

Amendments to the Criminal Code Act 1995 to ensure the defence under section 70.3 to a charge of bribing a foreign public official is only available where the advantage paid to a foreign official is expressly permitted or required by written law, regardless of the results of payment or the alleged necessity of payment.

Amendments to the Charter of the

The International Trade Integrity Act 2007 received royal assent on 24 September 2007. The Act introduced the amendments discussed at the meeting in September 2007.

The penalties for the offence of foreign bribery are currently under review as part of a wider review of Commonwealth criminal law penalties.







United Nations Act 1945 to introduce new offences (against legal and natural persons) relating to contraventions of a UN sanction in force in Australia, and to grant investigative powers to the relevant agencies.

Amendments to the Customs Act 1901 to introduce new criminal offences for importing/exporting goods sanctioned by the United Nations without valid permission, and for providing false or misleading information when applying for permission to import/export such goods.

It is not possible to predict when the Bill will pass, but it is a priority for the Government.

Existence and enforcement of anti-money laundering legislation

In late 2006, Parliament passed the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The AML/CTF Act will come into force in stages. The legislation regulates certain providers of financial and other services. Consultation in relation to the proposed second tranche has commenced.

The AML/CTF Act contains regulatory obligations and civil penalties for their breaches. Criminal money laundering offences are in Division 400 of the Criminal Code.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) continues to implement the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Several sections of the Act came into effect in December 2007.

From 12 December 2007, all reporting entities are required to have in place an AML/CTF program, as well as customer identification and verification procedures.

Reporting entities were also required to submit a compliance report to AUSTRAC by 31 March 2008. The compliance reports provide AUSTRAC and the reporting entity with an indication of their progress in implementing their AML/CTF obligations. Reports covered the period from 13 December 2006 to 31 December 2007.

In December 2007, AUSTRAC released the following tools to assist reporting entities understand their obligations







under the AML/CTF Act.

a. AUSTRAC Online, an information portal to help entities lodge their compliance reports.

b. AUSTRAC Regulatory Guide, a guide to assist reporting entities understand their obligations under the law.

c. AUSTRAC Typologies and Case Studies Report 2007, which provides an inside perspective on current money-laundering and terrorism-financing methods and indicators.

d. Introduction to AML/CTF, the first course in AUSTRAC's AML/CTF e-learning program.

In April 2008, AUSTRAC released the Public Legal Interpretation series, which interprets the legislation underpinning Australia‘s AML/CTF reforms. This series complements the other resources developed for reporting entities by the agency.

Rules concerning investigation and prosecution of bribery

The Australian Federal Police has recently amended its Case Categorisations Prioritisation Model (CCPM) to clearly classify corruption as a category of crime with a ―high‖ impact.

The Australian Federal Police and Attorney-General‘s Department have recently committed to amending the Guidelines for Referring Politically Sensitive Matters to the AFP and the Commonwealth Fraud Control Guidelines. The amendments will clarify that a politically sensitive matter should be referred to the AFP at the same time the Minister is notified.

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

Considerations of Australia‘s or any other country‘s economic interest;







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

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

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

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

Inter-agency co-operation In December 2007, the Australian Government established an Anti-Corruption Interdepartmental Committee. The Anti-Corruption IDC provides coordinated advice to Government, and other bodies including the UN and OECD, on policy related to preventing, controlling and detecting corruption. The Anti-Corruption IDC assists the Australian Government to meet its international obligations in relation to corruption, with particular regard to the United Nations Convention against Corruption, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the APEC Anti-Corruption Taskforce.

Protection of persons who assist the authorities

Training and resources

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

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







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

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

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

In May 2006, AMLAT ran an AML/CFT awareness raising workshop in Tonga and provided advice on Fiji‘s draft regulations and reporting guidelines.

In June 2006, AMLAT hosted an FIU workshop for representatives from 14 Pacific Island Financial Intelligence Units. Mentoring visits were conducted with the FIU in the Solomon Islands in March, May, July and September 2006.

In July 2006, AMLAT participated in an IMF mission to PNG to assess AML/CFT technical assistance requirements. AMLAT is currently working with PNG on a plan for implementing AML/CFT legislation.

AMLAT advisers visited Nauru in July 2006 to assess Nauru‘s AML/CFT needs and to develop a plan for AMLAT assistance.

In October 2006, an AMLAT adviser visited the Cook Islands to provide guidance to the Cook Islands‘ FIU and Police on a possible money laundering investigation.

Australia's Anti-Money Laundering Assistance Team (AMLAT) has continued to assist Pacific Island countries to combat money laundering and terrorist financing:

In December 2006, AMLAT ran anti-money laundering (AML) seminars for the Federated States of Micronesia law enforcement and financial sectors, and conducted an awareness-raising workshop in Palau.

In February 2007, an AMLAT adviser conducted a mentoring visit to the Cook Islands to provide advice to the Financial Intelligence Unit (FIU).

In March 2007, FIU-establishment visits were made to Papua New Guinea and Nauru, with additional follow-up visits for both countries in May and June, respectively. Training for customs officials in AML/CFT was also delivered in the Solomon Islands.

An International Crime Cooperation Workshop was held in April 2007, bringing together prosecutors and law enforcement officers from 14 Pacific Island countries to discuss AML, mutual assistance, extradition and proceeds of crime issues.

In May 2007, a sub-regional judicial workshop was held in Palau on proceeds of crime matters in the

AMLAT

Australia's Anti-Money Laundering Assistance Team (AMLAT) has continued to assist Pacific Island countries to combat money laundering and terrorist financing:

In November 2007, AMLAT hosted a sub-regional judicial workshop in PNG for judicial officers from PNG, Solomon Islands and Vanuatu, focusing on the adjudication of proceeds of crime matters.

In December 2007, AMLAT developed and rolled out a joint pilot toolkit and training project with the Oceania Customs Organisation (OCO), Pacific Anti-Money-Laundering Program and the Fiji Financial Intelligence Unit (FIU) on border currency reporting.

AMLAT has continued to provide assistance to countries in the region to strengthen respective FIUs and implement border currency reporting measures, including mentoring visits to FSM in October 2007, Kiribati in December 2007 and Tuvalu and Nauru in April 2008.

In December 2007, an AMLAT adviser provided mentoring support to prosecutors in Nauru.

In April 2008, an AMLAT adviser visited the Solomon Islands to assist







region. At the Annual General Meeting of the Oceania Customs Organisation held in Honiara, an AMLAT adviser presented on trade-based money laundering (TBML) and border currency reporting (BCR) in the Pacific. TBML and BCR projects have commenced and will continue in 2007-08.

In June 2007, AMLAT co-hosted a workshop with the Australian Federal Police for FIUs and transnational crime units. Representatives from 14 Pacific Island countries attended. AMLAT also provided Pacific FIUs with access to World Check, a database on known fraudsters, politically-exposed persons, and stolen passports.

In July 2007, AMLAT hosted a regional Financial Investigation Workshop in Samoa, conducted financial investigation mentoring in the Cook Islands, conducted an FIU-establishment scoping visit to Kiribati, attended the Annual APG Meeting in Perth, and funded the attendance of Papua New Guinea representatives.

AMLAT has deployed an adviser and a coordinator to Suva to work in the region.

the Financial Intelligence Unit (FIU) and Customs Service on border currency reporting and trade-based money laundering projects.

In December 2007, an AMLAT adviser provided mentoring support to prosecutors in Nauru and visited Solomon Islands to assist the Financial Intelligence Unit (FIU) and Customs Service on border currency reporting and trade-based money laundering projects. AMLAT has continued to provide support to Papua New Guinea, including initial training for FIU staff in September 2007, involvement in an AUSTRAC IT needs assessment for the FIU in September 2007, and training for regional reporting entities across PNG in September 2007 and March 2008.

In February 2008, an AMLAT adviser completed a review of the draft Federated States of Micronesia Financial Transactions Reporting Bill against the FATF 40 + 9 recommendations.

An AMLAT Adviser has been providing ongoing training and mentoring support to the Fiji Police‘s Anti-Money Laundering Unit since February 2008.

In April 2008, AMLAT co-hosted a joint regional workshop with PALP, the Asia-Pacific Group on Money Laundering Secretariat and the International Monetary Fund on the regulation of Non-Profit Organisations in Fiji.

In April 2008, AMLAT hosted a regional International Crime Cooperation workshop in Brisbane for prosecutors, police and justice agency officials focusing on extradition, mutual assistance and







the proceeds of crime.

In April 2008, the second placement of an AMLAT sponsored, regional, ongoing proceeds of crime prosecution pairing program with the Commonwealth Director of Public Prosecutions began with a prosecutor from Vanuatu. A third placement is likely to begin in August 2008.

AUSTRAC

The AML/CTF Act enables the AUSTRAC CEO to exchange AUSTRAC information, including financial intelligence, with foreign counterpart agencies, subject to the provision of undertakings as to confidentiality and use of the information. These undertakings are incorporated in Exchange Instruments, such as Memoranda of Understanding (MOUs). AUSTRAC currently has 49 exchange instruments with foreign counterpart agencies and continues to exchange financial intelligence under these instruments. AUSTRAC has recently finalised a further four MOUs which will be signed in May 2008.

AUSTRAC is negotiating with a foreign counterpart regarding an MOU for the exchange of regulatory information.

AUSTRAC continues to conduct technical assistance and training (TA&T) programs in the South East Asian region under the South East Asia Counter Terrorism Program. AUSTRAC also provides IT assistance to various Pacific jurisdictions, funded through the Australian Agency for International Development (AusAID) Pacific Governance Support Program funding.

AUSTRAC‘s TA&T modules on customer due diligence focus specifically on Financial Action Task Force Recommendation 6, which







advises enhanced measures for politically exposed persons. In recognising that persons holding senior positions of public trust are more vulnerable to corruption and, subsequently, are at a higher money laundering risk, AUSTRAC‘s training is structured to build the capacity of FIUs and reporting institutions to detect and report any such instances.

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

B. Corporate Responsibility and Accountability

Promotion of corporate responsibility and accountability based on international standards:

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

Australia is working within the APEC Anti-Corruption and Transparency Experts Task Force on a Business Code of Conduct (to be announced soon). Australia is also leading a project within the Task Force for a trial implementation of the Code of Conduct.

In 2007, the Foreign Bribery Information and Awareness Pack was finalised and distributed, containing information about the foreign bribery offence, reporting foreign bribery and practical guidance on legitimate business practices and avoiding foreign bribery. The pack was distributed to over 900 Australian businesses, including the top 100 companies, over 800 small and medium enterprises and peak industry bodies such as Tourism Australia, the Group of 100 Inc and the Small Enterprise Association of Australia and New Zealand.

In 2007, Australia chaired the APEC Anti-Corruption and Transparency Experts Task Force in the development of a Code of Conduct for Business. Australia is also leading a project within the Task Force for a trial implementation of the Code of Conduct.







The Department of Foreign Affairs and Trade publicised the Foreign Bribery Information and Awareness Pack at meetings with industry representatives in all Australian State and Territory capitals.

Non tax-deductibility of bribes

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

Large Market Segment;

Small-Medium Enterprise Segment; and

The area that covers international tax issues.

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

The International Trade Integrity Bill 2007 was recently introduced in Parliament and includes amendments to the Income Tax Assessment Act 1997 to:

ensure that payments to foreign public officials are tax deductible only where the benefit paid is expressly required or permitted by written law, regardless of the results of payment or the alleged necessity of payment, and

align the definition of facilitation payment with that in the Criminal Code Act 1995.

Transparent company accounting and auditing, and penalties for false accounting

The Australian Tax Office, in consultation with key external stakeholders, has prepared ―Bribes and Facilitation Payments: A Guide to Managing Your Tax Obligations‖ to help businesses manage their tax obligations by providing practical guidance in the area of bribes and facilitation payments.







The guide strongly recommends that businesses:

have a code of conduct across the business relating to bribes

have a strong internal audit function and audit committee, and

act to rectify any relevant internal control weaknesses identified and reported to the board by external auditors.

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

Australia‘s procurement and license procedures adequately allow for refusal of applications or termination of existing grants or contracts for reason of criminal behaviour. Australia has elected not to create additional procedures specific to foreign bribery.

PILLAR 3 – SUPPORTING ACTIVE PUBLIC INVOLVEMENT

A. Public Discussion of Corruption

Encouraging public discussion of corruption through:

Channels and forums to discuss corruption

In October 2005, the Australian Government set up a public inquiry into the conduct of the Australian companies identified in the Volcker Report on corruption relating to the UN Oil-for-Food Programme. On 24 November 2006, the Hon. TRH Cole AO RFD QC, the Inquiry‘s Commissioner, presented his Report to the Governor-General. The Government is responding to the Inquiry‘s recommendations, e.g., the International Trade Integrity Bill 2007 that is before Parliament.

Public awareness campaigns

The Foreign Bribery Awareness Campaign involved developing an information pack on foreign bribery,

In addition to the distribution of the Foreign Bribery Information and Awareness pack by the Attorney-







including the impact of bribery on the economy of developing nations, the scope of the Commonwealth offence, and how to report suspected foreign bribery. The information pack will be sent to businesses around Australia.

General's Department, DFAT continues to promote awareness of foreign bribery and other forms of corruption as part of is ongoing awareness campaign about the International Trade Integrity Act 2007. DFAT maintains a website to provide public information about the implementation of the Act and about UN sanctions in force under Australian law.

Since September 2007, AUSTRAC has issued the following AUSTRAC Information Circulars (AICs) on its public website that address general issues relevant to regulated entities.

United Nations Security Council Resolution 1803 Regarding Iran's Nuclear Activities (AIC No. 57)

Financial Action Task Force (FATF) statement on Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome & Principe and the northern part of Cyprus. (AIC No. 56)

Reserve Bank of Australia Media Release Sanctions Against Burma (AIC No. 55)

Financial Action Task Force (FATF) Statement on Iran (AIC No. 54)

Reserve Bank of Australia Media Release - Update to Sanctions Against (the former) Yugoslavia (AIC No. 53)

Attorney-General's Department Media Release Three Terrorist Organisations Re-listed (AIC No. 52)

The Department of Foreign Affairs and Trade (DFAT) has incorporated foreign bribery into its program of domestic and international outreach activities to Australian businesses trading or operating overseas. DFAT is working with other Commonwealth agencies to broaden awareness of the scope of the offence among Australian overseas

http://www.austrac.gov.au/files/aic57_unscr1803_iran.pdf



http://www.austrac.gov.au/files/aic56_fatf_statement_feb2008.pdf





http://www.austrac.gov.au/files/aic55_rba_sac_burma.pdf



http://www.austrac.gov.au/files/aic54_faft_state_iran.pdf

http://www.austrac.gov.au/files/aic54_faft_state_iran.pdf

http://www.austrac.gov.au/files/aic53_up_senc.pdf



http://www.austrac.gov.au/files/aic52_agd_mr.pdf









officials.

Supporting of non-governmental organizations

A number of Commonwealth Government agencies have contributed to the ‗Whistling While They Work: Enhancing Theory and Practice of Internal Witness Management in Public Sector Organisations‘ project. The Project is a three-year collaborative national research project into the management and protection of internal witnesses, including whistleblowers, in the Australian public sector. Further information on the Project is available from: <http://www.griffith.edu.au/centre/slrc/whistleblowing/>.

Education programs

B. Access to Information

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

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

Measures to provide the public with meaningful access to information

DFAT continues to promote awareness of foreign bribery and other forms of corruption as part of is ongoing awareness campaign about the International Trade Integrity Act 2007. DFAT maintains a website to provide public information about the implementation of the Act and about UN sanctions in force under Australian law.

The Foreign Bribery Information and Awareness Pack is also available on the internet.







C. Public Participation

Encouraging public participation in anti-corruption activities:

Co-operative relationships with civil society groups

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

On 16 August 2007, Australia held its most recent meeting with senior representatives of Transparency International Australia.

The Attorney-General's Department continues to meet regularly with civil organizations including Transparency International and the Justice and International Mission of the Uniting Church in Australia.

Protection of whistleblowers The Australian Government has committed to broadening and strengthening public interest disclosure (‗whistleblowing‘) systems. Current whistleblower provisions (s16 of the Public Service Act 1999) apply only to APS employees who can make disclosures to their agency head, to the Public Service Commissioner or the Merit Protection Commissioner.

The Government considers that there needs to be a broader regime to deal with the handling and disclosure of information in the public interest, by people outside the public sector and to protect all public sector employees where appropriate. The Review will be informed by the outcome of a review—Whistling While They Work: Enhancing Theory and Practice of Internal Witness Management in Public Sector Organisations—of Commonwealth, State and Territory whistleblower schemes being conducted by Griffith University.

Involvement of NGOs in monitoring of public sector programs and activities

OTHER

Australia was one of the first industrialized countries to ratify the UN Convention against Corruption (UNCAC)







on 7 December 2005. Australia‘s assessment of its domestic legislation indicates that Australia meets all of the mandatory requirements in UNCAC and many of the optional provisions.

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

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

In 2005, through the Pacific Legal Knowledge Program, the Pacific Islands Law Officers‘ Meeting welcomed Australia‘s proposal for a program of workshops on international criminal justice cooperation and legislative drafting for legal officers in Pacific Island countries. The program is focused on improving the knowledge and skills of line officers and junior to mid-level practitioners within the law and justice agencies of Pacific Island countries. Legal officers from around the South Pacific attended the first workshop on international criminal justice cooperation in Vanuatu in December 2005. A follow-up workshop is planned for later this year, along with the first legislative drafting workshop in July 2006.

24 legal officers from 11 Pacific Island countries attended the first Pacific Legal Knowledge Program Legislative Drafting Workshop in Canberra in July 2006. The purpose of the Workshop was to address challenges facing the Pacific Island countries such as the lack of legal drafting resources, and the need for legislative action due to new international obligations in security, counter-terrorism, corruption and anti-money laundering. There was a high level of attendance at the workshop.

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

In March 2008, the Australian Public Service Commission (the Commission) hosted a Pacific HR Managers‘ conference and workshop focusing on workforce planning and providing sessions on ‗ethics, corruption and accountability‘.

Twenty Pacific HR managers from Nauru, Samoa, PNG, Cook Islands, Tonga, Solomon Islands, Vanuatu, Kiribati, Tuvalu and Niue attended the Conference held in Canberra.

The Conference and workshop is part of the AusAID Pacific Governance Support Programme (the Programme). The Commission‘s objective for participating in the Programme is to contribute to the development of more efficient and effective public services in Pacific Island countries particularly in areas of human resource management reform.







The purpose of the 2008 Conference and workshop was to provide an opportunity for the Pacific HR Network, amongst other things, to share strategic thinking about human resource management issues pertaining to workforce planning (including ethics, corruption and accountability) and to hear from Australian public sector subject matter experts on these issues.

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

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

Australia will chair the APEC Task Force in 2007.

Australia has chaired the APEC Anti-Corruption and Transparency Experts Task Force throughout 2007, hosting two meetings during the year.

Australia continues to host APEC 2007.

In February 2008, Australia took part in a meeting of the APEC Anti-Corruption and Transparency Experts Taskforce in Lima, Peru. Australia gave a presentation to the meeting on the Proposed Project to Implement the APEC Code of Conduct for Business

In 2007, an anti-corruption for development policy ‗Tackling Corruption for Growth and Development‘ was developed. This policy underpins high priority anti-corruption development activities in the Asia-Pacific region. In 2007-08, the Australian aid program is providing $16.7 million to anti-corruption assistance in the Asia-Pacific region, which includes support to targeted anti-corruption work in Indonesia, the Philippines, East Timor, Papua New Guinea, Solomon Islands and Vanuatu and contributions to key international and regional anti-corruption initiatives, plus research and analysis of the drivers and costs of corruption

The Australian Agency for International Development has amended its standard contractual forms to include an explicit prohibition against contractors or sub-contractors offering or giving any benefit that could be considered corrupt or illegal, as an inducement or reward in relation to execution of the contract.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Bangladesh – 21 –

Bangladesh

Action Plan Standard Measures reported at the 8th

Steering Group meeting (May 2006) Measures reported at the 9th

Steering Group meeting (Nov. 2006) Measures reported at the 10th

Steering Group meeting (Sept. 2007) Measures reported at the 11th

Steering Group meeting (May 2008)






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

The government reconstituted the Public Service Commission on 7 May 2007.

Public Service Commission has approved revised exams for civil servants to make their entry & promotion more transparent and merit based.





The Ministry of Law, Justice and Parliamentary Affairs (MoLJPA) amended the Anti-corruption Act 2004 to strengthen the investigative activities of the Anti-corruption Commission.

The Organogram of Anti Corruption Commission (ACC) has been restructured.

22 Regional Offices of ACC have been set up successfully in Bangladesh. The issue of capacity building of ACC is going on. In addition, ACC has emerged as an independent, impartial & self-governed entity on 22 November 2007 to enjoy full autonomy.


A circular dated 29 August 2007 required all officials to submit their annual statement of assets and wealth to the relevant heads of ministry or agency.

All government officials submitted their annual statement of assets & wealth by 28 February 2008. Along with this, all judges of subordinate courts are also subject to submission of annual statement of assets & wealth, which is








underway. Appropriate action is expected to be taken after scrutiny by the relevant heads of Ministry or Agency.

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

Citizen‘s charters have been created in some ministries and agencies and are being drafted in others.

Citizen‘s Charters have been actively developed in many ministries & agencies.

The government is committed that at least 50% of line Ministries would be able to establish easily accessible grievance-handling mechanisms by June 2008.

Moreover, the full-blown National Integrity Strategy

The government is developing a National Integrity Strategy with the assistance of ADB.

National Integrity Strategy is expected to come out by the last quarter of this year.


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

The government has commenced an initiative to create an Annual Confidential Report system to evaluate the performance of officials.

Work Improvement Team is created on 16 August 2007 under each Ministry/Division. The Work Improvement Team is expected to add substantial value in providing service delivery of the Ministry/Division.

Career development wing is functioning well under the Ministry of Establishment. The government has attempted to bring about some important reforms on ACR to evaluate performance of officials.

The Ministry of Establishment is developing a Policy for Career Development Planning.


The Ministry of Law, Justice and Parliamentary Affairs (MLJPA) has decided to publish the Whistleblowers Protection Act in the official Gazette by 2009.

The government has agreed in principle to set up a national ombudsman‘s office by the end of 2009.











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


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



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

In connection with Public Procurement Act 2006, the Public Procurement Rules 2008 have been prepared and both are effective from 31 January 2008.

Financial limits at different levels for public procurement have been readjusted in view of quick & efficient disposal of procurement proposals.


The Anti-Corruption Commission (ACC), inspected several departments, such as the Chittagong Custom House and the ZIA International Airport. It has








held dialogs with bodies such as the National Board of Revenue, the Bangladesh Police etc.

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

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

Regulatory Reforms Commission has been established on 30 October 2007 to exercise scrutiny and suggest necessary reforms of existing rules/regulations/acts, etc.


The Election Commission is actively considering the issues of application processing, and election funding and expenditure. Some important reforms are underway.

The Election Commission is effectively working on this issue.


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

Better Business Forum under the Chairmanship of Hon‘ble Chief Advisor (Head of the Government) has been formed on 25 November 2007. The Forum is actively working to make the business atmosphere of Bangladesh more attractive and congenial for all.

The Privatization Commission has introduced amendments to the Privatization Policy 2001 and finalized the Privatization Rules 2007.








To deal with the shadow economy, the government has set a deadline for the declaration of undeclared income and sales proceeds.

Up to 30 June 2007, a total of 42591 persons have declared their unclear income and sales proceeds. The amount recovered is approximately 8.9 billion Taka.





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


Corruption offenses have been included as offenses under the Money Laundering Prevention Act.

Anti Money Laundering Act and Anti Terrorism Act have been their final stages to get approval of the government. The government is actively planning to become a member of the EGMONT Group of Financial Intelligence Units, an informal international gathering of financial intelligence units (FIUs) as well.


The Anti-Corruption Commission Rules 2007 require corruption investigations to be completed within 45 days. The period may be extended by 15 days if the investigating officer explains the reasons for the delay.

The MLJPA amended the Criminal Law Amendment Act 1958 to introduce a 45-day limit for concluding trials of corruption offenses. If a trial cannot be completed within this period, the trial judge may extend the deadline by 15 days after filing written reasons for doing so.









Existing ACC rules allow access to bank, financial or commercial records and secret bank information.

Inter-agency co-operation The government has created the National Task Force for corruption investigations, consisting of the police, armed forces, intelligence agencies, and other government officials. The Task Force operates at the divisional and district levels to prevent and investigate corruption.

The initiative is ongoing.


Training and resources The government is finalizing a USD 170 million loan from ADB to improve the Anti-Corruption Commission‘s skills, expertise, and prosecution capacity.

The Good Governance Program has been implemented since November 2007. This program provides training facilities and procurement of resources for capacity building of different ministries/divisions, which are vulnerable to corruption.

The Anti-Corruption Commission‘s Organogram was amended on 19 August 2007 to increase staffing from 650 to 1273, and to improve logistical support.

Capacity building process of ACC tends to be more IT-oriented. The recruitment rule is also finalized for ACC.


In line with the UNCAC, the government intends to develop its capacity in asset recovery, anti-money laundering, and international cooperation. On 28 August 2007, an inter-ministerial committee was convened to prepare a work plan by February 2008 for this purpose.

The accession to the UNCAC by the government of Bangladesh in February 2007 has been a significant and symbolic step. In order to advance this process ―UNCAC: A Bangladesh Compliance & Gap Analysis‖ has been prepared in January 2008.



Corporate governance, internal company controls such as








codes of conduct, establishing channels of communication, whistleblower protection and staff training



The Security Exchange Commission is being streamlined to improve transparency in company accounting and auditing. Measures are also being undertaken for false accounting and other irregularities.

The process is ongoing.


This has been addressed in the new procurement rules 2008.





Electronic & Print Media are actively involved in the awareness building process of fighting against corruption and it is getting momentum day by day.

Public awareness campaigns The Anti-Corruption Commission, Transparency International Bangladesh and other private organizations are conducting awareness raising campaigns.

Ministry of Finance has allocated enhanced budgetary provision for development budget of ACC with sufficient funds to implement its decentralized set-up and its community outreach program. Moreover, ACC Chairman is visiting in the district level to make awareness building to halt corruption in the grass-roots level with all strata of society involved. ACC has also undertaking rally/film show programs at different important locations through involving multi-sectoral people to make them aware of the anticorruption initiatives.









Civil society, NGOs, like Transparency International Bangladesh, are coming up with all out support to fight against corruption.

Education programs The government is considering introducing a Code of Ethics and Values in national educational curriculum and in various training institutions.

The progress is underway.




Government Attorney Service and Law of Contempt of Court have been approved on 30 April 2008 to promote integrity and accountability in the legal system.


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

The ―Meeting Free Day‖ has been abolished.

The Ministry of Information is drafting a Media Act.

The government has agreed to publish the Right to Information Act in the official Gazette by 2008.

Ministry of Law, Justice & Parliamentary Affairs is expected to get approval of the Right to Information Act by June 2008



Co-operative relationships with








civil society groups

Protection of whistleblowers


OTHER


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Bhutan – 30 –

Bhutan

Action Plan Standard Measures reported at the 10th Steering Group meeting (Sept. 2007) Measures reported at the 11th Steering Group meeting (May 2008)




Systems for compensation A Position Classification System for the civil service has been implemented to promote professionalism, meritocracy, efficiency, fairness, transparency, and accountability. This system addresses issues such as high altitude allowance, difficulty allowance, and other allowances and benefits that are covered in the Civil Service Rules and Regulations.

Overtime payment system has been put in place for support staff (S5 category and below) on an hourly basis but not exceeding 3 hours on weekdays and 5 hours on holidays.


The Civil Service Commission (CSC) is a constitutional, independent and apolitical body. It promotes and motivates potential and competent civil servants through an open, competitive and merit-based promotion system.


The CSC ensures that all civil servants have recourse to justice through the Administrative Tribunal established under section 16 of Article 21 of the draft Constitution of the Kingdom of Bhutan. The public service administration and management are decentralized to ministries and agencies. The CSC administers management of senior public servants. It also submits Annual Reports on its policies and performance to the King and the Prime Minister.


A civil servant is transferred after 5 years of service in a particular post or organization.



The Civil Service Code of Conduct restricts conflicts of interest in discharging official duties. As a preventive strategy, the Anti-Corruption Commission (ACC) is developing a format to declare, manage and monitor conflicts of interest. It also aims to implement existing codes of conduct.

A system of declaration, management and monitoring of conflicts of interest is being developed.


A system of assets/liabilities/ income declaration has been in place since the 1980s, and has since been strengthened with the enactment of the Anti-Corruption Act. All public officials are required to file declarations annually and within three months of taking/leaving office. About 500 public officials file declarations with the ACC, while the remaining do so with the heads of their respective organizations.

Audit Authority conducts compliance auditing with their normal auditing. Database and online submission to the Anti-Corruption Commission (ACC) will be completed by September 2008.

Systems regulating contacts between government officials

The Private Trade and Employment clause of the Civil Service Rules and Regulations deals with contact between officials and business service users. The

Gifts Declaration Registers are maintained in public offices (Civil Service Commission, Foreign Affairs Ministry, ACC, etc).




and business services users, particularly in corruption-prone areas

head of an organization is responsible for monitoring the clause‘s implementation.


The head of organization and immediate supervisor are responsible for supervising their subordinates. The performance of civil servants is monitored in accordance with the Performance Management System in the Civil Service Rules and Regulations.

The 4th annual engineering conference adopted Engineers‘ code of conduct. Monitoring and evaluation system is under development.


Reporting by public officials is promoted in accordance with Administrative Discipline Procedure of the Civil Service Rules and Regulations. Sections 103 and 114 of the Anti-Corruption Act prohibits any person or entity from taking retaliatory action against an employee or person who reports corruption.

Operational Manual and Investigation Strategy address it.




Ministry of Finance reports on annual budget and economic achievements to Parliament, including macroeconomic performance, fiscal performance, resources, revenue, expenditure, public debt, trust funds, and projections for the following fiscal year. Annual reports of the Audit Authority and the ACC are submitted to Parliament and distributed to the public.

The budgeting, treasury and fund management lapses are highlighted in the annual financial and audit reports. The reports are deliberated at the parliament. The agencies and Audit Authority resolved all pending cases as of December 2007.


Financial Service Bill drafted wherein Financial Intelligence Unit is proposed.


The Audit Authority classifies bodies in the public administration into Categories A-C, depending on the size of the budget allocation. Category A agencies have the largest allocations and are audited annually. Category B bodies are audited every two years, while Category C bodies have the smallest allocation and are audited at least once every three years. Bhutan is a member of the International Organization of Supreme Audit Institutions (INTOSAI) and the Asian Organisation of Supreme Audit Institutions (ASOSAI).

A system of issuing Audit Clearance for promotion, training and resignation is in place. The Audit Authority certifies accounts of the agencies.


Procurement rules and regulations are updated regularly to promote economic growth and to ease the administration of public procurement.

Public Procurement and Policy Division has been created under the Finance Ministry.

E-procurement readiness study has been completed.

Capacity development courses, which are developed with assistance from the World




Bank, will be operational by January 2009..

Contract law is being drafted


The Audit Authority handled corruption and fraud through a Fraud Alert System until December 2005. In 2006, the ACC and three print media were established to promote transparency and accountability.


The Web site of the Election Commission provides voters with registration forms, election advisories, voter guidelines, postal ballot application forms, electoral guidelines, and election legislation (rules and regulations, public election fund, guidelines and handbooks). The district offices of the Election Commission provide training through advocacy programs to public, private and local leaders.

Political parties‘ accounts were audited and publicized in the media.


Micro-business was de-licensed following the 2005 Good Governance Plus recommendations. It was recognized that unnecessary paperwork, unclear and lengthy procedures, and conflicting rules hinder economic growth. These issues are addressed by adapting the Standard Cost Model and the One-Stop-Shop concept, and by applying information and communications technology to deliver services.

The International Standard Cost Model is adapted. Pilot assessment of administrative burden in transport was completed in January 2008. Baseline assessment in trade licensing is planned to be completed in May 2008. One of the indicators for the 10th Plan is measuring and reducing administrative burden of sectors that have the most citizen interface and dealings.





The Penal Code provides sanctions for bribery of public officials by any individual.


The Penal Code and the Royal Monetary Act contain anti-money laundering provisions.


The Civil and Criminal Procedure Codes govern the investigation and prosecution of bribery.


The Royal Monetary Act and the Prudential Regulations deal with these matters. The sharing of information between the ACC and other agencies are covered by the Cabinet Executive Order on Information Sharing and sections 70(b) and 95 of the Anti-Corruption Act.

Financial institutions publicise audited reports on balance sheet and profit and loss account annually and submit to the central bank within 14 days of auditing.

Inter-agency co-operation Bhutan is preparing various memoranda of understanding and guidelines for inter-agency cooperation among the police, public prosecutors, auditors, local leaders, and technical agencies. A framework for coordination exists between

The erstwhile Planning Commission has been reorganized as Gross National Happiness Commission (GNH Commission). Sectoral GNH Committee and Local Government GNH Committee has been established to act as a platform where




the Commission and local governments. crosscutting issues and policy are discussed and sorted out.


The Anti-Corruption Act contains provisions dealing with the protection of informers and witnesses.

Training and resources The ACC provides ad hoc training to its staff and other bodies such as the media, government internal audit bodies, attorney offices and financial institutions.

The ACC shares training slots to media, police, internal audits, prosecution office, financial institutions and other key stakeholders.


The ACC occasionally seeks expert opinions from the Corruption Practices Investigation Bureau of Singapore, the Independent Commission Against Corruption of Hong Kong, China, and the Central Bureau of Investigation of India.

The ACC shares information and experiences with India CBI, Malaysia Anti-Corruption Agency, and Korea Anti-Corruption and Civil Rights Commission.




These corporate governance matters are addressed under the Companies Act, Guidelines for Boards of Government Corporations and for Government-Appointed Board Directors, and Rules and Procedure for Election of Directors. The government has undertaken an exercise to strengthen corporate governance.

Druk Holding and Investment (DHI) has been established and incorporated under companies act in October 2007. It is mandated to manage existing and future investments of public and private sectors through development of a culture of innovation, creativity and enterprise that prevents the spread of corruption, and to rationalize privatization of public agencies. Power plants and public companies report to the DHI.

National Tourism Council has been established.



External chartered accountants audit all public companies in accordance with the Companies Act 2000. Reports are published in the print media.


Public officials are suspended if a bribery case is registered. Business firms are debarred for a certain period based on contract documents.








The ACC organizes public debates on corruption. The public may also report and discuss corruption through web-based interactive sessions and discussion forums.

Every 9 to 16 December is observed as National Corruption-Free Week. Open feedback session from the public is organized. Quarterly news bulletin has been launched starting April 2008.

Public awareness campaigns The ACC organizes public awareness programs organized for public servants, local leaders, youth, business community, and citizens. The programs emphasize a collective role and responsibility to fight corruption. The ACC also works closely with the media in this regard.

The ACC participated in 3 regional workshops for the private sector and developed a number of business codes of ethics. Monitoring and reporting systems are yet to be institutionalized.


The 2005 Good Governance Plus recommendations underscore the importance of civil society organizations. Consequently, the Civil Society Act was enacted in June 2007.

Education programs The Commission plans to promote public/private organizations and educational institutions as islands of integrity. Television and radio periodically air programs on values, ethics and culture.

TV spots, street shows and radio jingles on political corruption and citizens‘ role in vibrant democracy were well received by the public. Anti-corruption theme song was composed and is in the process of adding visuals.

Two public organizations (school and government agency) were selected to promote ethical values.




All service-providing agencies are encouraged to develop service. The standards spell out the agencies‘ commitment, promote obligations to customers, and explain how to redress grievances.

Cases are required to be resolved within 12 months (earlier it was 18 months). Preliminary hearing for criminal cases is 10 days and 108 days for civil cases. Decision of the court is posted in judiciary website. In July 2003 there were 1557 cases and in April 2007 there were 27 cases that were more than 18 months.

Public organizations have Legal Divisions.


A policy guideline on information sharing highlights the type, mechanism and potential benefits of information sharing. It also stresses the need to safeguard privacy, confidentiality and proprietary data.

The number of issues of print media increased from one issue to two issues in a week in national and English languages. The number of private radio stations increased from two to four radio stations as of February 2008.

The ACC holds monthly press conferences. The Anti-Corruption Act, draft rules and guidelines, important letters regarding systemic flaws to agencies and




current activities are posted on the ACC‘s website.




The Chamber of Commerce and Industries invites the Commission to its annual meeting and other important occasions.

The first International Anti-Corruption Day on 9 December 2006 was observed in collaboration with Vast Bhutan, a voluntary organization.

Protection of whistleblowers Whistleblower protection is provided under the Anti-Corruption Act of Bhutan. Operational Manual and system of protection of informers are in place.

Anonymous complaints can be lodged with the ACC in person or by post, telephone, email, or fax.


Civil society is viewed as a partner to complement government anti-corruption efforts. The Chamber of Commerce appointed anti-corruption focal persons to develop a Business Code of Conduct and to encourage business to incorporate an Integrity Pact in their operations. Debarment/blacklisting rules were drafted in consultation with the Chamber and the private sector.

OTHER

Bhutan signed the UNCAC in September 2005 and is considering ratifying the Convention.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Cambodia – 36 –

Cambodia

Cambodia was not represented at the 8th, 9th and 10th Steering Group meetings.

















The Royal Government of Cambodia (RGC) is strengthening the role and responsibilities of the Council for the Development of Cambodia (CDC). The efforts would allow the CDC to provide guidance and advice to investors, as well as to serve as a ―One Stop Service Entity‖ for investors to obtain the authorizations that are required for qualified investment projects under a concession contract.















The RGC has established the independent National Audit Authority to audit accounting records, management systems, operation controls and programs of the RGC‘s institutions. Legislation also provides for internal audits within each RGC Ministry, institution and state-owned enterprise.



The RGC restructured the Anti-Corruption Unit (ACU) on 22 August 2006. The ACU‘s mandate is to implement UNCAC by providing coordinated policy advice to the RGC and other bodies on preventing, detecting and controlling corruption. It is the RGC‘s representative for cooperation with regional and international anti-corruption bodies.

Availability of information on the The National Election Committee was








processing of applications, funding of political parties and electoral campaigns and expenditure

established as an independent, neutral and impartial body. The Committee seeks to ensure that all political parties have equal status, rights and opportunities during electoral campaigns.






Articles 37, 38 and 58 of the United Nations Transitional Authority in Cambodia Law sanctions various forms of corruption. Also applicable are the Law on Customs and Excise, Law on Taxation, Law on Land Traffic, Law on Forestry, Law on Fisheries, and Law on Land Management. The RGC hopes to adopt a new Anti-Corruption Law soon.

Administrative sanctions were imposed against 39 customs officers, police officers, and civil servants who were involved in issuing authorizations and illegally importing 184 vehicles with right-sided steering in November 2006.

One official and one private individual are being prosecuted for extorting money from a foreign company.











Inter-agency co-operation




Cambodia signed the Memorandum of Understanding on Preventing and Combating Corruption on 11 September 2007. Seven other ASEAN member countries are also signatories.


















The ACU held a Student Debate Forum on the importance and necessity of anti-corruption education and law enforcement.

Public awareness campaigns The ACU continuously promotes awareness of bribery and other forms of corruption through advertisement.

The ACU conducted anti-corruption awareness raising at different locations, including airports, sea ports and land border checkpoints.

The ACU distributed model letters for reporting corruption. Complainants may mail such letters free of charge.


Education programs




Measures to provide the public with meaningful access to

On 13 July 2007, the Ministry of National Assembly-Senate Relations and Inspections began drafting a paper








information entitled ―A Policy Framework for Cambodia‖. The paper will propose policies to increase the quantity and quality of information flowing between government institutions and citizens in the most cost-effective manner.






OTHER


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: P.R. China – 42 –

P.R. China









Systems for compensation The government is further promoting its work on standardizing allowance and subsidies. It has also begun to standardize allowance and subsidies in 40 central and state organs.

The government is carrying out the second phase of standardization of allowance and subsidies in central and state organs.


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

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


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

The Central Commission for Discipline Inspection of the Communist Party of China (CPC) and the Organization Department of the Central Committee of the CPC have established special inspection units. The units have completed inspections of 31 provinces and the Xinjiang Production and Construction Corps in the first round, as well as 15 provinces and the Corps again in the second round. Also inspected were 9 banks under the jurisdiction of the central government, 4 corporations administering national assets, 4 state-owned insurance

The Regulations on Inspection Tour of Communist Party of China are being drafted. The inspection tour has been extended from the provincial level to the county level. Pilot inspections of central and state organs, state-owned enterprises, schools and major projects are under way. More inspection teams have been set up and more efforts have been made to inspect financial agencies.








companies, 2 state-owned securities companies, and 5 important state-owned enterprises. Provincial (regional and municipal) inspection units have also completed their first round of inspections of the cities (localities, prefectures and leagues) within their jurisdiction, covering 293 departments, 1 218 counties (cities, districts and banners), 59 state-owned enterprises, and 26 higher-learning institutions.




On 30 May 2007, P.R. China promulgated and implemented certain regulations of the Central Commission for Discipline Inspection of the CPC on Strict Prohibition on the Use of One‘s Position to Gain Improper Interests. The provisions specify eight prohibitions and prescribe limits on economic and social communications of public servants.

To enhance probity and self-discipline, the leaders of state-owned enterprises are prohibited from:

1. Using their positions to obtain, through business transactions, improper benefits for themselves or persons with whom they have special relationships;

2. Providing benefits to other leaders of state-owned enterprises in the same field, or to their family members or persons of special relationships.

3. Obtaining personal gain during mergers or when strategic investors invest in the enterprise.

4. Serving as unauthorized mortgage, guarantee or commissioned financing persons.

5. Using internal information for themselves or leaking it to persons with whom they have special relationships, so as to benefit from the enterprises‘ initial public offering, merger, reorganization etc.

6. Ordering or forcing accountants in their enterprises to prepare false financial reports.








7. Approving salaries, allowances or subsidies that are contrary to laws or regulations.

On 8 July 2007, the Supreme People‘s Court and the Supreme People‘s Procuratorate jointly issued Opinions on Some Issues Concerning the Applicable Laws of Handling Criminal Bribery Cases. The Opinions are judicial interpretations of the previously-mentioned legislative provisions and solidify judicial opinions on the application of 10 new criminal bribery offenses.



In early 2007, the Ministry of Commerce publicized the Administration of Credit Information in Business Transactions. A system of credit information of enterprises was established on 1 October 2007, and contains detailed information on 518,000 enterprises.


The State Council has promulgated the Regulations on Administrative Sanctions for the Public Servants in State Administrative Organs and implemented the Regulations on 1 June 2007. The Regulations enhance the ability to investigate behavior that is harmful to the public interest. They also improved the self-reporting obligations of officials on important personal matters.

The Regulation on Senior Officials in State-owned Enterprises has been amended. The Integrity Education and Training Program for Public Officials has been promulgated.


The government revised the Regulations on Letters and Visits. The amendments established grassroots Reporting Centers, and explored the system of assigning responsibility for the first visit. They also improved systems for leaders to receive visits








and for cadres to visit people at the grassroots level to promptly resolve local conflicts.




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

In cooperation with the relevant departments, the Ministry of Supervision (MOS) has taken the following measures recently:

Deepening the work of departmental budgets;

Reforming government revenue and expenditure classifications;

Expanding the scope of the treasury‘s centralized receipt and payment system. In January-April 2007, the central departments added more than 200 local units for reforming the treasury‘s centralized receipt and payment system. The added units involve budgetary funds of more than CNY 140 billion and accumulated non-tax income of CHY 29.79 billion (an increase of 183.7% over the previous year);

Reforming the government‘s collection management methods for non-tax revenue.

International standards and practices to regulate and








supervise financial institutions


The National Audit Office carried out an ―audit storm‖ for all central government organs in 2007.


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

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

The MOS and Transparency International continue to implement the project ―Promoting Transparent Procurement and Enhancing Enterprises‘ Social Accountability‖.

By the end of 2007, management agencies for government procurement have been set up in the financial departments of governments at the county level and above. Centralized procurement agencies have also been established in 30 provinces and most of the cities in P.R. China.

P.R. China has implemented a mechanism to separate the management and operational aspects of government procurement. The two functions are assigned to different agencies. The aim is to provide mutual supervision and separate regulation of management and procurement agencies.

The MOS and other relevant departments have taken the following measures:

Organizing various regions to conduct special inspections on tendering and bidding in government-invested projects and selective examinations of major construction projects;








Improving the coordination mechanism between the supervisory agencies and the competent departments;

Investigating and prosecuted breaches of tendering and bidding laws and regulations;

Implementing a system to transfer prospecting and mining rights by tendering, auction and listing;

Promoting the construction of a system to monitor information on transactions involving state-owned property rights;

Expanding the scope and scale of government procurement.


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

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

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

The second phase of the ―Strengthening Integrity Project‖ held in cooperation with UNDP is continuing.

Availability of information on the processing of applications,








funding of political parties and electoral campaigns and expenditure


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

P.R. China is implementing the Decision on the Reform of the Investment System and to promote reform of the investment system. By the end of June 2007, about 80% of the enterprises in P.R. China have implemented a record-keeping system for investment projects.





P.R. China has developed a program to build and strengthen a system for sanctioning and preventing corruption, which seeks to enhance education








efforts; cultivate and raise a culture of ethics; raise consciousness among leading officials etc. The overall objective is to accomplish a basic framework for punishing and preventing corruption by 2010.

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

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

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

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

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

From January to June 2007, the national supervision organs filed 18 000 investigations and prosecutions, closed 15 000 cases, and imposed 15 000 administrative sanctions (including two against provincial ministerial level cadres).

Some time ago, the MOS investigated and seriously dealt with the case of Zheng Xiaoyu, the former head of the State Food and Drug Supervisory Administration. The case involved serious dereliction of duty, abuse of power, and endangerment of health and safety. Zheng Xiaoyu has since been executed.

In 2008, P.R. China will focus on investigating the following types of corruption: collusion between businessmen and officials; power-for-money deals; cases causing severe harm to the public interest; fake tendering and bidding for engineering and construction projects; illegal grants of land use rights; underselling state-owned land use rights; changing land use planning for gain; improper approval of prospecting and mining rights; illegal purchase of shares for the exploration of mineral resources; illegal granting and cancellation of loans and disposal of assets; concealing, possessing and shifting state-owned assets; severe violation of the Communist Party‘s organizational and personnel discipline; bribery in the judiciary; malpractices for selfish ends; and acting as ―umbrellas‖ for criminals.

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








Procurement Law.


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

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

In June 2007, P.R. China became a full member of the Financial Action Task Force.







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

In 2006, it completed the ―Capacity Building in Clean Government in China‖, sponsored by UNDP.

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

It has also established a mechanism for

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

In January 2007, a Chinese delegation attended the OECD Working Group on Bribery in Paris, France as an observer.








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

The 6th Sino-U.S. Joint Liaison Group (JLG) Meeting was held in Beijing in June 2007, followed by the third JLG Anti-corruption Expert Group Meeting in Washington D.C. in August 2007. During the meetings, the parties discussed how to improve bilateral anti-corruption cooperation generally and in specific cases.

P.R. China dispatched delegations to the International Anti-corruption Conference, the World Forum to Combat Corruption and Build a Clean Government, the World Forum to Government Reforms, the first session of the Conference of States Parties of the UNCAC, and APEC anti-corruption workshops.

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

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

The National Bureau of Corruption Prevention of was established in September 2007. It is the first national agency specializing in the prevention of corruption.

The Law on Corruption Prevention is being drafted.



Corporate governance, internal P.R. China has begun a drive to tackle The Chinese Government laid out a To control commercial bribery, the








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

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

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

government set up a Central Management of Commercial Bribery Leading Group Office in June 2006. By June 2007:

Public institutions and enterprises, and departments in charge of industry had recovered improper proceeds totaling CNY 1.193 billion, an increase of CNY 776 million in October 2006.

P.R. China had resolved 24 879 commercial bribery cases, involving CNY 6.156 billion. 5 523 (22.2%) of the cases involved civil servants, including 110 local-level cadres and 946 county-level cadres.

P.R. China had established a long-term mechanism to prevent commercial bribery.

P.R. China is considering revising implementation ordinances of the Anti-Unfair Competition Law, Construction Law, Administrative Supervision Law, and Audit Law. It is also considering the enactment of ordinances to implement the Tendering and Bidding law, investment regulations, and procurement law.

Promoted the construction of social credit system.

Improved the information system for the credit of enterprises.















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

A survey by the National Bureau of Statistics indicates that citizen satisfaction and recognition of the government‘s anti-corruption work is 64.4% and 87.4% in the first half of 2007. The figures represent increases of 12.5% and 10.9% respectively from 2003. The respondents‘ concern over corruption and building a clean government dropped to eighth from third in 2003.

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

The State Corruption Prevention Department will be set up in the second half of 2007. The Department will be directly answerable to the State Council and be responsible for the organization, coordination, planning, policy formulation, inspection and guidance of national corruption prevention. This includes responsibility for international cooperation in corruption prevention.

Since 2007, advertisements relating to commercial bribery have been played on China Central Television for over 1,000 times.


Education programs On 30 March 2007, the Opinions of the Ministry of Education on Conducting Comprehensive Integrity Education in Primary and Middle Schools and








Colleges was implemented.





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

In May 2007, the State Council promulgated the Regulations on Open Government Information. As a result:

55 departments of China's State Organs have established leadership and organizations responsible for administrative openness

36 departments have made regulations on publicity of governmental affairs

10 departments and units have set up administrative service halls

75 departments and units have established news release systems and Web sites

12 departments have prepared or are preparing publicity for

The Regulations on Disclosure of Government Information came into effect on 1 May 2008. The Regulations aim to safeguard the lawful access to government information by citizens, legal persons and other organizations; increase transparency of the government‘s work; and promote law-based administration.

Before the formal implementation of the regulations, pilot projects for government information disclosure have been carried out in 14 provinces and 16 large cities. Some detailed regulations have been laid down and which apply to government organs at every level.








government affairs.

More than 95% of the country‘s colleges and universities and over 90% of the primary and secondary schools have publicized their operations.






OTHER

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

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

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








definition of taking and accepting bribes, corruption and misappropriation.



Cook Islands








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

The job sizing review commission made recommendations to Cabinet on the salary levels for heads of ministries. A further review will cover other positions.


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

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


















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

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

International standards and practices to regulate and

The policies of the Financial Supervisory Commission are under







supervise financial institutions review to ensure conformance with the Basel Commission Papers.


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


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


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

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

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

The Ombudsman‘s office has started hiring new staff. It has also received assistance from New Zealand and Australia.







Parliament.







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


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

The first restraining and production orders have been filed under the Proceeds of Crime Act.

The financial intelligence unit and the Financial Services Commission have conducted on-site inspections to enforce regulations concerning customer due diligence and fitness of owners.


Availability of bank, financial or







commercial records and secret bank information



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

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

A former Inspector of the New Zealand Police has been appointed to head the Cook Islands Police. The police is expected to implement recommendations on staff performance.


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



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







staff training








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


Education programs



Requirements for justice and







other governmental agencies to disclose efforts to promote integrity and accountability and to combat corruption


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






OTHER


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Fiji Islands – 64 –

Fiji Islands








Systems for compensation Fiji is restructuring its personnel in the civil service, including at senior levels.









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

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

The First Parliamentary Counsel and the Cabinet Sub-Committee on Legislation is scrutinizing the Leadership Code/Code of Conduct Bill before introducing it into the House of Representatives. Cabinet had approved







it into the House of Representatives. the Bill in November 2006.









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

The Office of the First Parliamentary Counsel and the Cabinet Sub-Committee on Legislation is scrutinizing the proposals on anti-corruption laws. The Committee of Officials made these proposals in November 2006.

Fiji has established an Independent Commission Against Commission. The Commission‘s legality has been challenged in court, resulting in a temporary setback. Fiji seeks advice from members of the ADB/OECD Initiative on this matter.













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

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

The Fiji Law Reform Commission continues to review the Penal and Criminal Procedure Codes. The review aims to produce proposals for the following new laws: Crimes Act; Criminal Procedure Act; Penalties and Sentencing Act; Police Powers Act; and Public Orders Act. The Commission was expected to submit its report and recommendations to the Attorney-General and Minister for Justice by late December 2006 for final endorsement.

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







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


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

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

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

An expert continues to review a Discussion Paper by the Fiji Law Reform Commission on this topic. The Paper is expected to be circulated to stakeholders for further consultation.

Formation of the National Anti-Money Laundering Council under the Financial Transaction Reporting (FTR) Act



Implementation of Border Currency Reporting mechanism as required under the FTR Act

Memorandum of Agreement signed by Financial Intelligence Unit (FIU), Department of Immigration, Inland Revenue Service/Customs (FIRCA), and Fiji Police

Implementation of all international electronic fund transfer transaction reporting framework and $10,000







cash transaction reporting framework

Establishment of the Financial Intelligence Unit under the FTR Act of 2006

Implementation of the Financial Transaction Reporting Regulations





Review of Extradition Act with traditional partners (UK, Australia, New Zealand and the United States)




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

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
















Education programs
















OTHER

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


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Hong Kong, China – 71 –

Hong Kong, China















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

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

In February 2007, the Civil Service Bureau updated the circulars on accepting advantages by civil servants in their private and official capacity. The central guidelines on accepting sponsored visits are under review.

In November 2007, the Civil Service Bureau (CSB) updated the central circular on acceptance of sponsored visits to state, in explicit terms, that as a general principle, sponsored visits offered by entities under the regulation of a Bureau or Department or by private commercial organizations should be declined to avoid any actual, potential or perceived conflict of interest.


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

The central guideline on the declaration of investments by civil servants was revised in December 2006 to update and clarify its content.

Action completed.








guidelines on declaration of investments by civil servants is in progress.


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

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

In 2006, 96 reviews on public sector systems and procedures, particularly in corruption-prone areas, were completed. In the first six months of 2007, 48 reviews were completed.

In 2007, 92 reviews on public sector systems and procedures, particularly in corruption-prone areas, were completed. In the first three months of 2008, 21 reviews were completed.


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

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

As part of the ongoing efforts to enhance the content of the Resource Centre on Civil Service Integrity Management (RCIM), new examples of acts of misconduct were uploaded onto the RCIM in June 2007. The examples covered ―solicitation/acceptance of advantages without permission‖, ―acceptance of entertainment from persons with official dealings‖, ―unauthorised loan from persons with official dealings‖, ―supervisory responsibility‖, and ―misconduct in public office‖.

CSB is working on more sample cases for uploading onto the RCIM, which will cover such important areas as neglect of duty, illegal gambling, breach of housing benefit rules, etc.

Outreach visits to departments are being conducted under a Civil Service Integrity Entrenchment Programme jointly launched by the CSB and the ICAC to foster closer collaboration in promoting an ethical culture in the civil service. As of August 2006, the outreach team has visited 34 departments. Two more visits to departments will be made in 2006/2007.

Under the Civil Service Integrity Entrenchment Programme launched in 2004, the outreach team comprising directorate officers from CSB and the ICAC visited 34 bureaus and departments (with a total of 124 000 staff) to discuss practical issues relating to integrity management. Based on the experience and views shared, ICAC and CSB jointly launched the Ethical Leadership Programme in late 2006. The programme aims to establish a platform for sharing experience among departments on ethical governance and integrity management. Ethics Officers, who are senior directorate officers in bureaus or departments, will map out strategies and work plans of their organizations and be the focal point and coordinators of integrity-related

Under the Ethical Leadership Programme (Programme), an Ethics Officer (EOs), a senior directorate officer, has been appointed in each of the bureaus/departments (B/Ds) as the focal point for all integrity-related activities and is responsible for mapping out the strategy and work plan that suit the individual needs and priorities of his organisation. The EOs are assisted by Assistant Ethics Officers (AEOs), who are mostly departmental secretaries, in the day-to-day implementation of integrity management programmes within their organizations. A network of about 150 EOs and AEOs is now in place. To help CSB and ICAC better focus on the needs of B/Ds, EOs are also tasked to submit regular reports on their integrity management and








activities in the years to come. promotion efforts.

The inaugural meeting of the Ethical Leadership Programme was held in April 2007. At the meeting, each EO was provided with an Ethics Officer Manual, which is a management tool to facilitate his planning on integrity promotion and enhancement having regard to the circumstances of his B/D.

To support the work of EOs, CSB and ICAC organised two workshops on ―Administration of Staff Discipline for Ethics Officers‖ and ―Service Contract Management‖ in October 2007 and March 2008 respectively. The next workshop on investigative techniques on staff misconduct has been scheduled for June 2008. Thematic workshops will continue to be organised for EOs, AEOs and responsible staff in B/Ds on a regular basis.

To solicit greater support from senior management on integrity management in their organisations, CSB and ICAC have conducted joint visits and presentations to individual B/Ds under the Programme. In 2007, CSB and ICAC paid a joint visit to the senior management of the Lands Department and organised two presentations for its senior professional staff and directorate staff. Similar visits and presentations are being planned for other departments.

To further enhance communication between EO/AEOs, CSB and ICAC are developing a dedicated intranet website which will be commissioned by phases in 2008.

The EOs of bureaus and departments have drawn up work plans on enhancement of integrity and ethics for their staff and will implement the plans in 2008 with the assistance of ICAC.








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

The Development Bureau (formerly the Environment, Transport and Works Bureau) organized an enhanced integrity management program. Over 150 workshops were conducted for some 7 000 managers, professional staff and site supervisory staff from October 2006 to April 2007. The Development Bureau plans to produce a self-training CD ROM with ICAC to strengthen the message on integrity management.

The production of a self-learning CD ROM on integrity management as a tool to enhance staff integrity is underway. Upon its completion, the CD ROM will be distributed to the staff of works departments for raising their awareness of corruption risks.

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

The Civil Service Bureau is still drafting a booklet on the offence of misconduct in public office.

Drafting of the booklet on the offence of misconduct in public office is in progress.

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

The workshops on integrity management and core values have been extended to cover new recruits and staff on non-civil service contract terms. By July 2007, 6 workshops have been organized and 986 staff have attended.

The workshops on integrity management and core values have been extended to cover new recruits and staff on non-civil service contract terms. By May 2008, 8 workshops have been organized and 1,467 staff have attended.

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

By July 2007, 405 middle managers and frontline supervisors have attended the workshops and experience-sharing sessions organized by the Efficiency Unit and the CSB. Another series of similar workshops are scheduled to take place before the end of 2007.

By May 2008, 798 middle managers and frontline supervisors have attended the workshops and experience-sharing sessions organized by the Efficiency Unit and the CSB. Another series of similar workshops are scheduled to take place before the end of 2008.


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

In the first 6 months of 2007, 321 cases of suspected corruption were referred to the ICAC by various government departments for investigation.

During 2007, 149 cases (excluding 462 election related cases) were referred to the ICAC by various government departments for investigation.








government departments for investigation.




The annual budget is presented to and the relevant Appropriation Bill is scrutinized by the Legislative Council (LegCo) as required under the Public Finance Ordinance (Cap. 2) (a copy of the Ordinance is available at http://www.legislation.gov.hk/eng/home.htm). In addition, major changes to the annual Estimates of Expenditure, additional funding required for implementation of Government projects and programmes are subject to the approval of the Finance Committee of LegCo. LegCo Members are at liberty to query or offer suggestions on the spending of public monies. LegCo and its Finance Committee hold their meetings in public and their papers and records of proceedings are available to the public (see http://www.legco.gov.hk).


The financial regulators have been adhering to international standards and practices in regulating the financial market. They have promulgated guidelines and guidance notes on a large variety of issues including internal control and management of financial institutions.

The Mandatory Provident Fund (MPF) system is also regulated and supervised in accordance with international standards and best practices. The MPF Schemes Authority (MPFA) is an active contributor to the work of the

http://www.legislation.gov.hk/eng/home.htm


http://www.legco.gov.hk/








International Organisation of Pension Supervisors including its work on setting principles for private pension supervision and more recently the development of its working papers on risk based supervision. Through participation in such fora, the MPFA is able to effectively benchmark its practices against international colleagues.


Under the Basic Law of the Hong Kong Special Administrative Region (HKSAR) of China, the Audit Commission functions independently and is accountable to the Chief Executive of the HKSAR. The Audit Commission, as the external auditor of the Government accounts, conducts regularity audits and value for money (VFM) audits in accordance with the Audit Ordinance (Cap.122) (see http://www.legislation.gov.hk/eng/home.htm) and agreed VFM audit guidelines respectively. In regularity audits, the Audit Commission examines the annual Government accounts submitted by the Director of Accounting Services; and provides assurance that the Government‘s financial and accounting transactions are proper and conform to accepted accounting standards. For VFM audits, the Audit Commission aims to provide independent information, advice and assurance about the economy, efficiency and effectiveness with which any bureau/ department/ public body/ audited organisation has discharged its functions.

VFM audit reports are tabled biannually at the LegCo and considered by the Public Accounts Committee (PAC) of LegCo (see http://www.legco.gov.hk). The PAC conducts public hearings on selected VFM audit subjects to obtain evidence, information and explanations

ttp://www.legco.gov.hk/english/index.htm_








from government officials and senior staff of public organisations concerned. The PAC draws its own conclusions and recommendations through its reports. Both the Audit Commission and the PAC play an essential role in auditing the public sector and achieving public accountability. For the year 2007-08, the Audit Commission submitted two reports on VFM audits (consisting of 15 audit subjects) and one report on the accounts of the Government to LegCo.


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

The Financial Services and the Treasury Bureau (FSTB) regularly reviews government procedures in public procurement with a view to streamlining them.

In March 2008, the ICAC published a Best Practice Package on management of service contracts for reference by government officers with a view to helping them in putting in place corruption prevention safeguards.

In the first six months of 2007, the ICAC completed 48 reviews on government procedures in public procurement and public works to institute corruption-resistant procedures and to enhance transparency and accountability.

ICAC completed 92 reviews in 2007 and 21 in the first three months of 2008 on public sector procedures, such as public procurement and public works, to institute corruption prevention measures which help enhance transparency and accountability.











The Companies (Forms) Regulations were amended in April 2007. The list of persons who can certify documents and translations of documents submitted by overseas companies to the Companies Registry has been expanded to include practicing certified public accountants, professional company secretaries, and officers of the companies. The amendment should ease compliance with the Companies Ordinance (CO).

The measures have been effectively implemented since April 2007 and will be kept under review in the context of the rewrite of the CO.

In late August 2007, the Companies Registry will add to its Web site a section on compliance and a service to remind companies to file their annual returns.

In late August 2007, the Companies Registry introduced on its web site a new thematic section on "Compliance" to promote the awareness of companies and their officers in respect of their statutory filing obligations under the Companies Ordinance. A free Annual Return e-Alert Service is also now provided for subscribers to receive email notifications for filing their annual returns.

Legislative amendments to Part XI of the Companies Ordinance will be implemented in the fourth quarter of 2007. The amendments will simplify the procedure for registering non-Hong Kong, China companies and increase the publicly-searchable information about these companies.

Legislative amendments to Part XI of the Companies Ordinance were implemented in December 2007. The amendments help modernise the registration regime for non-Hong Kong companies, simplify the procedure for registering non-Hong Kong companies and increase the amount of information about these companies available for public search.

Legislative amendments in relation to new procedures for incorporating companies in Hong Kong will be implemented in the second half of 2008. The amendments will streamline incorporation procedures for local companies by introducing new incorporation forms. It will also make details of newly incorporated companies available for public search following incorporation.












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

In the first six months of 2007, 27% of the corruption reports received concerned government departments and 7% related to public bodies. 12 public officials were prosecuted and 71 public officials were recommended for disciplinary action.

In 2007, 27% of the corruption reports received concerned government departments and 7% related to public bodies. 30 public officials were prosecuted and 123 public officials were recommended for disciplinary action.

Legislation is being amended so as to include the offences of accepting bribes under the Prevention of Bribery Ordinance in the schedule of the Organised and Serious Crimes Ordinance. The amendment should enhance the ability to confiscate proceeds of corruption.

In addition to offences of offering bribes under the Prevention of Bribery Ordinance which have already been included in the schedule of the Organised and Serious Crimes Ordinance, the offences of soliciting or accepting bribes under sections 4, 5, 6 and 9 of the Prevention of Bribery Ordinance were added in the above schedule with the enactment of the Organized and Serious Crimes Ordinance (Amendment of Schedule 2) Order 2007 on 7 December 2007.

The Order allows the law enforcement agencies to apply to the court for orders to freeze, seize or confiscate proceeds or property derived from the corruption offences in question.


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

A Central Co-ordinating Committee on Anti-Money Laundering and Counter

http://www.fatf-gafi.org/document/19/0,2340,en_32250379_32236869_34354899_1_1_1_1,00.html












Financing of Terrorism chaired by the Financial Secretary was set up in April 2008 to strengthen Hong Kong‘s strategic response to the changing money laundering and terrorist financing landscape.

To align with the Financial Action Task Force on Money Laundering (FATF) standards, the Organized and Serious Crimes Ordinance was amended in January 2007 whereby the threshold for the requirements concerning verification of customer‘s identity and record keeping for both remittance and money changing transactions will be lowered from HK$ 20,000 to HK$ 8,000. Furthermore, if the sender and the instructor in a remittance transaction of HK$8,000 or above are not the same person, a remittance agent will be required to record both the sender‘s and the instructor‘s particulars (i.e. name, identity card number, telephone number and address).


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


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

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

Inter-agency co-operation The ICAC continues to maintain regular operational liaison with overseas and local law enforcement agencies.


In the first 9 months of 2006, the Witness Protection and Firearms Section of the ICAC‘s Operations

The ICAC continues to provide protection, where necessary, to witnesses under the WPP.








Department operated 10 Witness Protection Programs (WPP), some of which required 24-hour close protection measures. In June 2006, a barrister was convicted for attempting to disclose the identity of a participant in the WPP.

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

The Metropolitan Police

Asset Recovery Agency

Royal Canadian Mounted Police

Australian Federal Police

Hong Kong Police Force

To enhance cooperation and liaison, the ICAC held its annual Chief Investigators Command Course in October-November 2006. The course was attended by representatives of law enforcement from Hong Kong, China, Australian Federal Police, Australian Customs Service, Australian New South Wales ICAC, Corruption and Crime Commission of Western Australia, Anti-Corruption Bureau of Brunei, New Zealand Police, Royal Canadian Mounted Police, Singapore Corrupt Practices Investigation Bureau, Singapore Police, and counterparts from China‘s procuratorates.

Through established liaison, the ICAC continues to send officers of all ranks to courses and attachments with local and overseas agencies, including:

Hong Kong Police Force;

The Metropolitan Police of the United Kingdom;

The Royal Canadian Mounted Police;

Australian Federal Police;

Singapore Police Force; and

International Law Enforcement Academy.

The 27th Chief Investigators Command Course organized by the ICAC in November-December 2007 was attended by representatives of law enforcement from Hong Kong, and counterparts from Mainland China, Macao, the Asia Pacific region and Europe.

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

Construction work of the ICAC Headquarters building has been completed. By the end of 2007, all three departments of the ICAC will work in one building for the first time.

All departments of the ICAC now work under one roof in the ICAC Building and this helps enhance coordination and efficiency.


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

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

The ICAC handled 40 incoming and 92 outgoing requests for assistance in the first six months of 2007.

The ICAC handled 91 incoming (including 4 under the Mutual Legal Assistance Ordinance) and 214 outgoing (including 2 under the Mutual Legal Assistance Ordinance) requests for assistance in 2007.











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

In the first half of 2007, the ICAC‘s Advisory Services Group (ASG) received over 165 requests for advice on corruption prevention. The ICAC responded to all requests within two working days as pledged.

The ICAC‘s ASG received over 360 requests from private companies for corruption prevention advice in 2007 and over 150 such requests in the first three months of 2008. The ICAC responded to all requests within two working days as pledged.

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

In March 2007, the ICAC published a Best Practice Package to assist restaurant operators in strengthening their internal control systems in areas such as procurement, stores management and staff administration. A seminar was held to promulgate the best practices to the operators.

In December 2007, the ICAC joined hands with the Consumer Council to promulgate a Best Practice Package to help operators of supermarkets to enhance internal control and establish sound management practices.

In 2008, the ICAC will launch two Best Practice Modules separately on handling of insurance claims and good corporate governance practices for listed companies. The two Modules will be promulgated jointly with the respective regulators.

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

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

Out of the around 1,300 listed companies in Hong Kong, we have contacted 880 companies. Among them, about 70% have formulated or reviewed their staff code of conduct and 26% have received talks by the ICAC. About 53,000 managerial and frontline staff of these companies have attended talks and educational activities on anti-bribery law and ethics management.

A two-year Preventive Education Programme for Entrepreneurs of Small-

The joint publication by the ICAC and the GDPP entitled ―Corruption








Medium Enterprises (SMEs) will be launched in 2007-08. The objectives are to help entrepreneurs of transnational SMEs to understand the anti-corruption legislation of P.R. China and Hong Kong, China, and to equip them with corruption prevention and staff integrity management skills. One of the major components of the Programme is a joint venture with the Guangdong Provincial People‘s Procuratorate to produce by early 2008 a corruption prevention guide for SME entrepreneurs investing in Guangdong and Hong Kong, China.

Prevention Guide for SME Entrepreneurs Investing in Hong Kong and Guangdong‖ was launched in April 2008 at a business ethics conference jointly organized by the ICAC and the GDPP together with nearly 20 chambers of commerce and SME trade associations. Targeting at cross boundary SME operators and their company managers, the conference comprised keynote addresses, a discussion forum and a luncheon speech by Hong Kong and Mainland officials as well as prominent business leaders. Issues such as the anti-graft laws in both places, how to minimize corruption risks when conducting cross boundary businesses and how to practise ethics management to enhance competitiveness were discussed at the conference.

Non tax-deductibility of bribes Bribes in the guise of commissions or fees made to public officers or any person are not allowable deductions for Profits Tax purposes under the Inland Revenue Ordinance (Cap. 112) (a copy of the Ordinance is available at http://www.legislation.gov.hk/eng/home.htm).


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

The Financial Reporting Council (FRC) came into operation on 16 July 2007 following appointments of its Chairman and Members in December 2006 and Chief Executive Officer in February 2007. One of the main functions of the FRC is to investigate complaints of accounting irregularities of companies listed in Hong Kong, China.

The FRC has been functioning effectively.

In April 2007, a new regime for the revision of accounts and reports in the

The measures have been effectively implemented.










Companies Ordinance was implemented pursuant to the Financial Reporting Council Ordinance. This enables company directors to revise accounts voluntarily if the original accounts did not comply with the Companies Ordinance. This avoids prolonged reliance on inaccurate accounts.


Government departments are reminded through regulations and circulars to identify and review work areas which are vulnerable to corruption and to seek advice from the Corruption Prevention Department of ICAC on measures to plug corruption opportunities. As far as government procurement is concerned, there are procedures under which a contractor may be suspended from bidding for future contracts should he be convicted of an offence under the Prevention of Bribery Ordinance (Cap. 201).

To ensure the quality of site supervision of public works projects, an individual with conviction records or poor performance records, or being investigated or prosecuted by ICAC should not normally be accepted as Resident Site Staff.





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










Education programs In March 2008, the ICAC, joining hands with local universities, launched a new corruption prevention program with a view to promoting corruption prevention awareness among future construction professionals. Under the program, sessions on construction related corruption risks, the preventive measures, and professional ethics are incorporated in the curriculum of the final year construction related undergraduate courses. The ICAC will assist the universities in designing the content of the corruption prevention module as well as delivering it in the classes.








The Hong Kong Ethics Development Centre (HKEDC) organized seminars in

Apart from arranging workshops/seminars for members of








2006 to assist new professional bodies (e.g. business valuation) to enhance their professional standards.

professional bodies (e.g. Hong Kong Institute of Certified Public Accountants, Hong Kong Institution of Engineers, Hong Kong Institute of Architects, Hong Kong Business Valuation Forum, Hong Kong Institute of Chartered Secretaries and Hong Kong Institute of Directors), the Hong Kong Ethics Development Centre (HKEDC) also utilized their networks to promote ethical governance through publishing feature articles in their newsletters/journals and serving as a supporting organization for their territory-wide conferences on corporate governance and business ethics.

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

The Hong Kong Ethics Development Centre is organising a directors‘ ethics training programme with the relevant regulators, professional bodies and major chambers of commerce. The pilot forum will be held on 14 September 2007 for participants to interact with corporate and government leaders, and examine the evolving ethical challenges and practices. Subsequent seminars/workshops will be held regularly.

HKEDC organized the ―Ethics – The Core Value of Leadership‖ 2007 Directors‘ Forum on 14 September 2007 to kick off the training programme for company directors. To sustain the impact of the Forum, HKEDC will produce a video on the common ethical problems faced by company directors for use in its training programme, launch a tool kit to help company directors practise ethical leadership and organize thematic workshops on topical ethical issues.

The ICAC‘s training programme has been incorporated into the Continuing Professional Development Course for estate agents. A short training film to encourage corruption reporting was developed for a similar course for financial intermediaries. In February 2007, ICAC extended its training to the Skills Upgrading Scheme for outbound tourist guides run by the Travel Industry Council.

New contents for ICAC‘s training programme for Continuing Professional Development Courses have been developed for life insurance managers and intermediaries. Managing staff integrity messages are added to the managers‘ version while the frontline practitioners‘ version has enhanced messages on the importance of professional ethics and dire consequences of committing corruption. A new training film to facilitate discussion during the talks has also been developed.










OTHER


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: India – 88 –

India

India was not represented at the 9th and 10th Steering Group meetings.








Systems for compensation In India, salaries along with other allowances are provided to public servants according to a pre-determined pay scale. Compensations are provided to public servants if the servant is required to vacate the post before the expiry of an agreed period. The 6th Pay Commission has recently submitted its recommendation/report to the Government. The Commission has been set up to work out a comprehensive pay package for public servants that is suitably linked to promoting efficiency, productivity and economy through rationalization of structures, organizations, systems and processes within the government, with a view to leveraging economy, accountability, responsibility, transparency, assimilation of technology and discipline.


India introduced internal control mechanisms including mandatory training for promotions.

Public officials are hired through the Union Public Service Commission and State Public Service Commissions established under the Constitution of India. These two independent bodies conduct competitive examinations, and public officials are appointed based on







merit. Subordinate officials are hired on the same pattern through the Staff Selection Commission.

Article 311 of the Constitution of India provides that no person who is a member of a civil service of the Union or State or an all-India Service or holds a civil post under the Union or a State shall be dismissed or removed by an authority subordinate to that by which he was appointed and without giving him a reasonable opportunity of being heard.


The Comptroller & Auditor General of India (C&AG), during audit of expenditure and revenues of the Government of India, goes beyond the accounting of such transactions and conformity with the laid down procedure, to the underlined wisdom with which the expenditure have been incurred. The C&AG undertakes performance audits on various programmes of the Government to identify gaps, if any, between planned and actual achievements for possible correction.


India introduced internal control mechanisms including the rotation of officials.

There is an established rotational policy. Officials on sensitive posts are rotated every two/three years to avoid developing vested interests. As per rotational policy an officer of the level of Director/Deputy Secretary is rotated after 5 years, Under Secretary after 7 years, Section Officers after 10 years and Assistants etc. after 12 years.


Prohibitions or restrictions on Rules are in force to promote integrity







conflicts of interest and to prevent conflicts of interest.

Public officials are restricted from taking private employment after their retirement from public service.

Rules are in force to promote integrity and prevent conflicts of interest. As per the Central Civil Services (Conduct) Rules and All India Services (Conduct) Rules, no public servant shall use his/her position or influence directly or indirectly to secure employment for members of family or near relatives in companies or firms directly or indirectly with which the officer has official dealings. No public servant is permitted to accept gifts/lavish hospitality from any individual, industrial or commercial firms with which he/she is having official dealings, engage directly or indirectly in private trade or employment, take part in politics or canvassing, acquire property outside the country without the prior approval of the Government and enter into any transaction with any foreigner, foreign Government/ organization for acquisition of any movable or immovable property.


Rules are in force to require reporting on employment, investments, assets and properties, gifts etc.

As per provisions of the Conduct Rules, every public servant holding a Group ‗A‘ or ―B‘ post at the time of appointment is required to declare his assets/liabilities and is also required to submit an annual return giving full particulars regarding the immovable property inherited by him or owned/acquired by him in his own name or in the name of any member of his family. Any violation of these provisions attracts disciplinary action.








India is implementing an e-government scheme to take advantage of technology. It aims to deliver services to all citizens through an ―IT for all‖ scheme by 2008. These include access to land records, citizen service centers, e-enabled office processes and computerization of treasuries, banking operations, commercial taxes etc.

No public servant is permitted to accept gifts/lavish hospitality from any individual, industrial or commercial firms with which he/she is having official dealings, engage directly or indirectly in private trade or employment, take part in politics or canvassing, acquire property outside the country without the prior approval of the Government and enter into any transaction with any foreigner, foreign Government/ organization for acquisition of any movable or immovable property. The Central Vigilance Commission has recently recommended adoption of the Integrity Pact in major government procurement. The Pact essentially envisages an agreement between the prospective vendors/bidders and the buyer committing the persons/officials of both the parties, not to exercise any corrupt influence on any aspect of the contract. Entering into this Pact is a preliminary qualification for bidding. Independent External Monitors (IEM) are appointed to review independently and objectively, whether and to what extent parties have complied with their obligations under the Pact.


There is a code of ethics for the judiciary.

India has a well-structured public administration based on an established system of recruitment, clear and







transparent policies of promotion and elaborate conduct rules for maintaining absolute integrity and devotion to duty. The Conduct Rules specify the do‘s and don‘t‘s for the Government servants. Any violation of these Rules attracts disciplinary action.

Promoting reporting by officials of corruption and whistleblowing protection

Protection of ―whistle blowers‖ is provided under a Resolution dated 21st April 2004 where under the Central Vigilance Commission (CVC) has been designated as the authority to receive complaints or disclosure from whistle blowers. Under the Resolution, the identity of the complainant is kept secret unless the complainant himself discloses the same to any other authority. Adequate legal protection is also available to whistle blowers. If the ‗whistle blower‘ is victimized for making a complainant or disclosure, he may seek redressal from the designated authority that shall issue appropriate direction to the concerned authorities.


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


India has enacted the Fiscal Reforms and Budget Management Act, 2003 as an important institutional expression to ensure fiscal prudence and support for macro economic plans.

The constitutionally appointed Comptroller and Auditor General (CAG) oversees the accounts of the Union and the States (Chapter V, Articles 148-151, Constitution of India). The reports of the CAG relating to the accounts of the Union are laid before each house of the Parliament and those relating to the







accounts of the State are laid before the Legislature of the State. The Parliamentary Accounts Committee (PAC) of parliamentarians with a member from the Opposition Party as Chairperson, the Standing Committees and the Legislative Accounts Committees in the States, oversee the functioning of the executive conduct detailed examination and hearings and can call for all documents related to any decision or procedure. A system of checks and balances is built in at each level of Government to ensure transparency in the process. There is local fund audit for local bodies and these reports are also laid before the State Legislative Assemblies. There are detailed systems of Internal Audit and control with Integrated Financial Advisors and audit and accounting standards.


The Reserve Bank of India (RBI) has been continuously making efforts to ensure convergence of its supervisory norms and practices with the international best practices with a view to aligning standards adopted by the Indian Banking System with the Global standards. With a view to eliminate bias in compliance with the Accounting Standards, detailed guidelines have been made available for the guidance of Banks. The RBI is also responsible for continuously updating the standards and practices in accordance with the international norms in its role to regulate and supervise financial institutions and banks.

India‘s banks having persons outside India and foreign banks operating within India have been asked to migrate to the standardized approach for credit risk and the basic indicator approach for operational risks under BASEL II WEF.







March 31, 2008. All other scheduled commercial banks are encouraged to migrate to approaches under BASEL II for alignment with them, but in any case not later than March 31, 2009.


An independent Constitutional Audit agency is in place which audits the public accounts of the government with a view to oversee the legality and effectiveness of public spending. Its findings are placed before the Parliament and reviewed by a specially constituted Committee of Parliamentarians, the Public Accounts Committee, whose Chairman is invariably a Member of the Opposition party. In the States, the Accountants General conduct the audit of transactions of the Consolidated Fund of the State and the findings are submitted to the state legislature.

As regards the public sector undertakings, the Companies Act 1956 provides for statutory framework, which governs various processes within a company. Section 211 of the Act requires every company to prepare its accounts to reflect ‗true & fair view of the company‘ as per prescribed accounting principles/ standards. Statutory auditors appointed under the Act audit the accounts of the companies. Observations of the statutory auditors, that the affairs of the company have been conducted in a manner prejudicial to the company‘s interest, creditors/shareholders‘ interest etc. or any financial irregularities have been committed by the company‘s management, are required to be made specifically qualifying the accounts of the company with appropriate ‗qualificatory remarks‘ in their audit report. These qualificatory remarks are required to be explained by the







company management/Board of Directors in the Directors‘ Report to be annexed to the balance sheet as per statutory requirements of the provisions of the Companies Act. The balance sheet and profit and loss account of every company are required to be adopted by members in the general meeting on an annual basis and are also required to be filed with the Registrar of Companies. These documents are available for inspection by the public in the office of Registrar of Companies. Besides, there are other mandatory documents, which are required to be filed by companies with the Registrars of Companies viz. Annual Return, changes in directors‘ particulars, changes in registered office of the company and other event based returns.


India is implementing an e-government scheme to take advantage of technology. It aims to deliver services to all citizens through an ―IT for all‖ scheme by 2008. These include access to public procurement tender opportunities.

The Central Vigilance Commission with a view to bringing greater transparency and accountability has issued various guidelines with regard to public procurement procedure, its simplification, etc. The salient features of these initiatives are as follows:

In addition to the existing rules and practices regarding giving publicity of tenders through newspapers, trade journals and providing tender documents manually and through post etc. the complete bid documents along with application form shall be published on the web site of the organization. It shall be ensured by the concerned organization that the







parties making use of this facility of web site are not asked to again obtain some other related documents from the department manually for the purpose of participating in the tender process i.e. all documents up to date should remain available and shall be equally legally valid for participation in the tender process as manual documents obtained from the department through manual process.

The complete application form should be available on the web site for the purposes of downloading, and application made on such a form shall be considered valid for participating in the tender process.

The concerned organization must give its web site address in the advertisement/NIT published in the newspapers.

If the concerned organization wishes to charge for the application form downloaded from the computer then they may ask the bidding party to pay the amount by draft/cheques etc. at the time of submission of the application form and bid documents.

All major organizations are required to publish a summary every month, of all the contracts/purchases made above a certain thresholds value on their web site. The details to be provided include the date of publication of the tender, type of bid, last date of receipt of tender, number of tenders received, names of parties qualified after technical evaluation and names of those not qualified, value of contract, whether contract was awarded to L-1 and the name of the contractor.

It is compulsory to bring to the notice of the boards of the respective PSUs the details of all works awarded on







nomination basis for their scrutiny and vetting bedsides having them checked by and audit committee on random basis.

All CVOs to ensure documentation and update of works/purchase manuals especially in those organizations where procurement activities were substantial.


The institutions entrusted with the task of public scrutiny and oversight are Comptroller and Auditor General of India, Public Accounts Committee and Standing Committees of the Parliament.


The Representation of the Peoples Act and relevant rules for notification to the Election Commission provide transparency in campaign financing.

The Representation of the Peoples Act, 1951 as amended from time to time and relevant rules for notification of the Election Commission provide for transparency in funding of political parties and electoral campaigns and expenditure. Under the Act, all political parties, before the due date every financial year, are required to furnish a return of its income to the Election Commission. Every candidate at the time of filing his/her nomination paper for any election to the Council of States, Houses of the People, Legislative Assembly of a State or the Legislative Council of a State having such a council, shall furnish full and complete information in regard to the following five matters:

Whether the candidate is convicted/acquitted/discharged of any criminal offence in the past – if any, whether he/she is punished with imprisonment or fine.







Prior to six months of filing of nomination, whether the candidates is accused in any pending case, of any offence punishable with imprisonment for two years or more, and in which charge is framed or cognizance is taken by the court of law. If so, the details thereof.

The assets (immovable, movable, bank balances etc.) of a candidate and of his/her spouse and that of dependents.

Liabilities, if any, particularly whether there are any over dues of any public financial institution or government dues.

The educational qualifications of the candidate.

The Election Commission of India has laid down model Code of Conduct for the guidance of Political Parties and candidates. Under this Code, all parties and candidates are required to avoid scrupulously all activities which are ―corrupt practices‖ and offences under the Election Law, such as bribing of voters, intimidation of voters, impersonation of voters, etc. After announcement of Election dates, the Party in Power is required to ensure that no cause is given for any complaint that it has used its official position for the purposes of its election campaign. For example, the Ministers and other authorities in power are not supposed to announce any financial grants in any form or promises, make any promise of construction of roads, provision of drinking water facilities etc. or make any ad-hoc appointments in Government, Public Sector Undertaking etc.


With the liberalization of Indian economy since 1991, the list of items







requiring compulsory licensing policy has been considerably brought down. At present, only six industries require compulsory licensing mainly on account of the environmental, safety and strategic consideration. Similarly, there are only three industries reserved for the public sector. No industrial approval is required for industry not requiring compulsory licensing.

Promotion of foreign direct investment forms an integral part of India‘s economy policy. A liberal and transparent foreign investment scheme has been put in a place where most activities are open to foreign investment on automatic route without any limit on the extent of foreign ownership with progressive liberalization of the Indian Economy. The Role of the Government has been transformed from regulation and administration of the industrial sector into facilitating investment and technology and monitoring industrial development in the liberalized environment. The Government has also set up an independent regulatory bodies such as the Central Electricity Regulatory Commission, the Telecom Regulatory Authority of India, Insurance Regulatory and Development Authority (IRDA), SEBI etc.



1. Effective measures to actively combat bribery:


Discipline and Appeal Rules allow for dismissal of officials where there are ―serious corruption charges‖.







The Prevention of Corruption Act, 1988 has comprehensive provisions for criminalizing bribery and other acts of corruption covering all public servants including those from judiciary, military, local bodies and elected representatives holding public offices and performing public duties. Under the Act, any public servant taking gratification other than legal remuneration in respect of an official act is liable to be punished with imprisonment which shall not be less than 6 months but which may extend to five years and shall also be liable to fine. Discipline and Appeal Rules allow for dismissal of officials where there are ―serious corruption charges‖.


The Prevention of Money-Laundering Act, 2002 is the legal mechanism to prevent money-laundering and provides for confiscation of property derived from, or involved in, money-laundering. Under the Act, whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money-laundering and shall be punished with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine which may extend to five lakhs rupees.

The Foreign Exchange Management Act, 1999 has been put in place with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. Under this Act, save with the general or special permission







of the Reserve Bank, no person is permitted to deal in or transfer any foreign exchange or foreign security to any unauthorized person, make any payment to or for the credit of any person residing outside India in any manner or receive otherwise through an authorized person, any payment by order or on behalf of any person resident outside India in any manner.


The Prevention of Corruption Act, 1988 and the CVC Act, 2003 provide for effective investigative machinery to look into the offences of corruption. The Central Vigilance Commission and Central Bureau of Investigation are the centralized agencies for combating corruption. States also have their independent set up for investigation, prosecution and overall monitoring of the anti-corruption efforts. The Central Vigilance Commission is an autonomous statutory body and exercises superintendence over the functioning of the Central Bureau of Investigation with respect to investigation under the Prevention of Corruption Act, 1988. The Central Bureau of Investigation is entrusted with the responsibility for investigation of cases under the Prevention of Corruption Act, 1988.

The Prevention of Corruption Act, 1988 has specific provisions for conducting speedy trials. Section 4(4) of the Act provides that ―notwithstanding anything contained in the Code of Criminal Procedure, 1973, a Special Judge shall, as far as practicable, hold the trial of an offence on day-to-day basis‖. Similarly, Section 6 provides for summary trial of cases. The trials under all Statutes/Acts are conducted as per the provisions of the Cr. P.C.








Section 12 of the Prevention of Money Laundering Act, 2002 makes it obligatory on the part of all banking companies, financial institutions and intermediary to maintain records of all financial transactions of prescribed nature and value and furnish information to the Designated Authority.

Inter-agency co-operation A Financial Intelligence Unit (FIU) has been set up as the Central, national agency responsible for receiving, processing, analyzing and discriminating information relating to suspect financial transactions to enforcement agency and foreign FIUs. It is also responsible for coordinating and strengthening efforts of national and international intelligence, investigations and enforcement agency in pursuing the global experts against money laundering and related crimes.


Whistle blowers are extended protection against victimization in accordance with the Resolution of Government of India issued in April 2004.

Training and resources Specialized training is given to the personnel of investigating agencies by the respective Departments.


International cooperation for mutual legal assistance is depended upon the existence of bilateral agreement. The Code of Criminal Procedure, 1973 already provides for mutual assistance in criminal matters subject to signing of bilateral agreement to give effect to such agreement. Extradition Act, 1962 has provisions for dealing with extradition.








1. Promotion of corporate responsibility and accountability based on international standards:

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

The Companies Act 1956 provides the statutory framework, which governs various processes within a company. The Act is based on disclosures and provisions to protect the rights of the stakeholders. The Act contains provisions for punishments for companies, which violate provisions of the Act.

The provisions of the Act also contains adequate measures to ensure that companies carry out their functions in a manner which is fair, participative /democratic and transparent/disclosure based. Clear and unambiguous provisions to this effect have been provided for in the Act.

Decisions by companies are required to be made by way of passing of resolutions. The companies are required to maintain minutes/record of proceedings of meetings of Board of Directors and Shareholders. The minutes of shareholders meetings can be inspected by any member of the company.

Whistleblowing protection is also available to employees of Public Sector Undertakings under the Resolution dated 21st April 2004 whereby the Central Vigilance Commission has been authorized to receive complaints from whistle blowers.

Non tax-deductibility of bribes Under the Income Tax Act, no tax deduction is allowed for bribery amount which is an offence under the Prevention of Corruption Act,1988.








The Companies Act 1956 provides for statutory framework, which governs various processes within a company. Section 211 of the Act requires every company to prepare its accounts to reflect ‗true & fair view of the company‘ as per prescribed accounting principles/ standards. Statutory auditors appointed under the Act audit the accounts of the companies. Observations of the statutory auditors, that the affairs of the company have been conducted in a manner prejudicial to the company‘s interest, creditors/shareholders‘ interest etc or any financial irregularities have been committed by the company‘s management, are required to be made specifically qualifying the accounts of the company with appropriate ‗qualificatory remarks‘ in their audit report. These qualificatory remarks are required to be explained by the company management/Board of Directors in the Directors‘ Report to be annexed to the Balance sheet as per statutory requirements of the provisions of the Companies Act. The balance sheet and profit and loss account of every company are required to be adopted by members in the general meeting on an annual basis and are also required to be filed with the Registrar of Companies. These documents are available for inspection by the public in the office of Registrar of Companies. Besides, there are other mandatory documents, which are required to be filed by companies with the Registrars of Companies viz. Annual Return, changes in directors‘ particulars, changes in registered office of the company and other event based returns.

The provisions of the Companies Act, 1956 and the three Acts pertaining to







corporate professionals viz the Chartered Accountants Act, 1949, the Cost and Works Accountant Act, 1959 and the Company Secretaries Act, 1980 ensure that companies carry out their functions and activities in a manner which is fair and transparent. The provisions of the Companies Act, 1956 provide for punishment for company as well as its officers, who are in default, in case any such company contravenes any of the provisions of the Companies Act, 1956. Company is also liable, as a separate legal entity, for compliance of all other laws of the country (viz. India Penal Code, Code of Criminal Procedure etc.)


The Central Vigilance Commission has recommended adoption of the Integrity Pact in major government procurement. The Pact essentially envisages an agreement between the prospective vendors/bidders and the buyer committing the persons/officials of both the parties, not to exercise any corrupt influence on any aspect of the contract. Entering into this Pact is a preliminary qualification for bidding. Independent External Monitors (IEM) are appointed to review independently and objectively, whether and to what extent parties have complied with their obligations under the Pact.



1. Encouraging public discussion of corruption through:


Under the Constitution of India, every citizen of India has ―freedom to speech‖ and any organisation, body or media







have the freedom to discuss issues related to combating of corruption.

Public awareness campaigns Initiatives taken by the Government to curb corruption are given wide publicity through media, newspapers, television, web-sites of Ministries etc. In addition, ‗Vigilance Awareness Week‘ is observed every year with a view to make people in general, and the stakeholders of the respective organizations in particular, aware of the various preventive measures/systems improvement that had been introduced by the Organisation to reduce the scope of corruption, and in catalyzing action to fight corruption.


Non-Governmental organizations function within the legal and administrative framework for their functioning.

Education programs




The preamble of the Right to Information Act, 2005 recognizes that democracy requires an informed citizenry and transparency of information which are vital to functioning of democracy and also to contain corruption and to hold Governments and their instrumentalities accountable to the governed while underlining the expediency of providing information to citizens who desired to have it.

Measures to provide the public with meaningful access to

All citizens of the country have the right of information under Section 3 of the







information RTI Act. It shall be a constant endeavour of every public authority to take a step for providing as much information suo motu to the public at regular intervals through various means of communications, including the internet, so that the public have minimum resort to the use of this Act to obtain information. ―Information‖ includes any material in any form including records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, contracts, reports, papers, samples, models, data materials held in any electronic form and information relating to any private body which can be accessed by a public authority in any other law for the time being in forms. ―Public Authority‖ includes any authority or body or institution of self-government established or constituted by or under the Constitution, by any other law made by Parliament or State Legislature, or by notification issued or order made by the appropriate Government, and includes anybody owned, controlled or substantially financed as well as the NGOs substantially financed directly or indirectly by funds provided by the appropriate Government.




The Constitution of India has mandated a critical role of civil society in the form of 73rd and 74th Amendment that provide for local Self-Government, both in the rural areas and the urban centers securing the direct participation of the people in the decision making process. There is an increasing recognition of the role of NGOs in implementation of various development programmes







including those pertaining to basic services like health, education, rural development, empowerment of weaker and minority sections of the society etc. for ensuring effective delivery of services with direct participation of the beneficiaries.

Protection of whistleblowers Protection of ―whistle blowers‖ has been provided under a Resolution in April 2004 with the CVC as designated authority to whom complaints or disclosure can be made. The identity of the complainant will not be revealed unless the complainant himself has disclosed the same to any other authority. The whistle blower is protected against victimization. A bill for protection of whistle blowers is under consideration.



Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Indonesia – 109 –

Indonesia








Systems for compensation The Ministry of National Education has implemented an Allowance Program for Teachers which aims to increase teachers‘ prosperity, devotion and professionalism. In addition to a basic salary, teachers now receive a performance-based allowance.

The government of Indonesia has implemented bureaucratic reform in 2007-2008 in three main agencies, which are BPK (External Supreme Auditor), Ministry of Finance (including tax and custom offices) and Judicial office under the Supreme Court.

The Judicial office under authority of the Supreme Court has implemented bureaucratic reform by increasing judge's salary more than 300 percent, following the restructuring of human resources and measures to enhance institutional capacity. The process of reform is still ongoing.

The same reform is also being implemented by Ministry of Finance (including tax and customs offices) and BPK by increasing significant allowance for their officials (more than 300 percent in average higher than other government officials‘ salary).

However, there are still misleading bureaucratic reforms that focused mainly on increasing salary rather than a comprehensive package of reform.


In 2006-2007, the National Land Agency (BPN) has selected strategic officials at Echelon II and III levels. Candidates were assessed by a consultant to ensure transparency and accountability.

BKN (The Government Administration Office) has launched decree no 30 year 2007 on government official's recruitment guideline which regulates :

open vacancy using widely electronic and printing media







The Corruption Eradication Commission (KPK) carried out a tender in order to meet its human resources requirements for 2007. The outcome of the tender was announced in October 2006.

comprehensive assessment and selection process involving universities

computer-based processes

The agency also took important role in managing promotional instruments, defining job competencies, and establishing an independence assessment team (BAPERJAKAT) at central level.

The KPK as the role model of human resources development system in Indonesia has been implementing open and transparent hiring process involving independent and professional consultants in every step of recruitment. The system refers to the most current HR System such as Job Competencies, Salary Scale, Training and Promotion System, HR Computer Based System (MSDM), etc.



The National Land Agency has introduced the new rotation and assignment system namely profiling test (fit and proper test) involving independent consultants. The profiling test has been applied equally to echelon II, III, IV and V officials in order to fulfill recent job competencies requirements.



The Ministry of State Owned Enterprises has issued letter no 154 Year 2007 on the prohibition of compliance with improper demand from State Owned Enterprises Officials.

The Ministry of State Owned Enterprise has also issued several regulations on







promoting transparency and good corporate governance.

A typical example of institutional defensive approach is shown by the Code of Ethics applied by the Supreme Court which covers philosophical points of view on the present condition of judiciary. One of the best practices is the Code of Ethics applied to the commissioners of KPK which does not only rule the do‘s and don‘ts of the commissioners in their position as public officials, but also as individuals in their daily life.


State officials are obliged to report their personal wealth, according to Law No. 28/1999 on Clean State Officials Free from Corruption, Collusion, and Nepotism, as amended. In the six months to 30 June 2007, the number of reports increased as follows:

• Mandatory reports: 4.45%

• Disclosed reports: 8.24%

• Reports published in the State Gazette: 4.74%

Law no 28 Year 1999 states officials who are obliged to report their wealth regularly, namely:

1.State Functionaries in the State Supreme Institution;

2.State Functionaries in the State High Institutions;

3.Ministers;

4.Governors;

5.Judges;

6. Other State Functionaries under the Regulations and Legislation in force;

7. Other Functionaries having strategic functions in relation to the Organizing of the State under the Regulations and Legislation in force.

Graphic of Wealth Report Compliance Progress 2004-2007







Number of Mandatory Reporters

Number of Stated Administrators who have submitted LHKPN (wealth report)

System regulating contacts between government officials and business services user, particularly in corruption prone areas

Corruption Eradication Commission (KPK) has studied and observed the administration of public service system, presumed to be corruption prone in several public service departments, and made recommendations in order to ameliorate the system in minimizing the contact between government officials and business service users.

Directorate General of Immigration has made initial actions to avoid direct contact between government officials and business service users, such as biometric passport system and e-office implementation.


Directorate General of Taxes Office has launched regulation No 1 Year 2007 concerning the officials‘ code of conduct, which should be implemented by the entire government officials in the area of Directorate General of Taxes.

Promoting reporting by officials of corruption and whistle blower protection

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

Corruption Eradication Commission has conducted a series of awareness-







raising activities in order to make the public become more pro-active in reporting related cases and aware of the witness protection program as stated under KPK Law and Law No 13 year 2006 on Witness and Victims Protection.




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

In February 2007, the Government and Parliament began discussions concerning the Government‘s next annual budget. All stakeholders may monitor the discussions by attending the meetings or through the Web site of the Directorate General of Budget Ministry of Finance.

In line with Government Policy on budget transparency, the Minister of Finance has implemented Web based system to monitor national budget as recommended by the Parliament.


The Central Bank of Indonesia has implemented international standard (ISO 2000) concerning the internal audit system. Through the implementation of this international standard, the Central Bank of Indonesia is expected to achieve enhanced internal control and good governance.


On 30 October 2006, the President promulgated Law No. 15/2006 on the Audit Board (Badan Pemeriksa Keuangan - BPK). The new law broadened the BPK‘s jurisdiction, which

The financial development and supervisory board (BPKP) has optimized the quality assurance/control during audit process by multi-layered







now includes (financial and performance) audits of central and local governments and state enterprises. Audit results are submitted to the House of Representative (DPR), Local Representative (DPD), Local Parliament (DPRD), and the head of the respective governments. If the BPK discovers irregularities of a criminal nature, it will report the matter to the competent office. The BPK also monitors the implementation of audits.

supervision.

External Supreme Auditor Agency (BPK) performed auditing of all stakeholders of development including all constitutional agencies--Supreme Court, Judicial Court, Judicial Commission, etc., based on Law No. 15 year 2006. Based on their findings, the BPK has recommended having better financial system especially in Ministry of Finance, for example by controlling illegal accounts in government bodies, detecting illegal ownership of government properties, etc.


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

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

Indonesia expects to introduce an electronic-procurement system (e-Proc) in 2008.

The National Development Planning Agency has begun to implement e-procurement and e-announcement along with KPK and the Ministry of Communication and Information.

Transparency International Indonesia conducted a program on the Development of Integrity Islands (May 2007-2008), funded by the United Kingdom Foreign Commonwealth Office. The program has identified the implementation of an integrity pact for procurement as an area of work for 2007.

Indonesia Procurement Watch produced the following publications in 2006:

Application of the Integrity Pact on

http://www.pengadaannasional.depkominfo.go.id/



http://www.pengadaannasional-bappenas.go.id/

http://www.pengadaannasional-bappenas.go.id/







Procurement of Goods and Services

National Strategy for the Prevention and the Eradication of Corruption on Procurement of Goods and Services

Checklist of Monitoring on Procurement of Goods and Services

Basic Framework and General Policy on Procurement of Goods and Services

The Ministry of State Apparatus Reform has made several steps to amend procurements regulation no 80 year 2003, as follows :

establish the technical team to assist the procurement committee during the procurement process

engage the independent monitoring team during the procurement process

announce the procurement plan and pre-qualification result to the public through national newspaper (at Media Indonesia newspaper)

collaborate with National Development Planning Agency to facilitate the establishment of Public Procurement Policy Development Agency

The Indonesian National Army has launched regulation no 29 year 2007 following these matters:

procurement monitoring by the press during the tender opening and tender offers process

improving the e-announcement system in the mass and electronic media

extending the regulations concerning the down payment/quotation assurance issued by assigned government bank

issuing regulation no. 482/XII/2006 regarding the price index standard for







procurements


Indonesia has several oversight bodies such as BPK based on the constitution, BPKP based on presidential regulation and the internal oversight body in each department for scrutinizing development process at central and local levels.


The government of Indonesia enacted the new law no 2 year 2008 on Political Parties that governs processing of applications, funding of political parties and electoral campaigns and expenditure.

The National Elections Commission (KPU) has provided any information regarding the political parties, electoral process, campaigns and the result to the public in a transparent manner through their website www.kpu.go.id.

The National Elections Commission has also published an annual report to evince their activity and performance in the matter of electoral process.


The Ministry of State Owned Enterprises has issued several regulations concerning good corporate governance to define transparent, independent, accountable, responsible and fair business environment.





Indonesia‘s Corruption Eradication Commission (KPK) recently prosecuted high level officials and political persons,

http://www.kpu.go.id/







and searched the offices of one of the suspects.

KPK recently prosecuted high-level officials and political persons, and searched the offices of one of the suspects.

Within 6 months KPK has arrested highest level public officials (governor of central bank, members of parliament, senior prosecutor, former head of national police and ambassador, governor, mayor, judicial commission judge and other high rank government officials) that were alleged to have committed bribery (some of them were caught red handed). The anti-corruption court convicted 100% of the accused. The Commission successfully recovered the proceeds of crime in the same period, which amounted to more than US$ 50 million in cash.

Administrative sanctions such as dismissal were taken against all the accused by their agency as regulated by Government Regulation (PP) No 32/1979 on Public Official Dismissal.


In March-October 2006, the Money Laundering Unit of the Criminal Investigation Division of Indonesia National Police investigated 38 money laundering cases. 30 are under prosecution, 8 of which relate to corruption, 13 to bank fraud, and 9 standalone money laundering offences.

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

Bank Indonesia (BI) (the central bank) issued Regulation No. 8/28/PBI/2006 dated 5 December 2006 concerning Money Transmitter Activity. The aim is to ensure that money transmitters are fully and properly registered. BI will register all existing transmitters by 31 December 2008, after which new transmitters must apply to BI for permits.

Currently the government has been amending Law No. 25 year 2003 concerning The Crime of Money Laundering. The critical point of the amendment is to enhance capacity of Financial Intelligence Unit and other Law Enforcement Agencies in dealing with money laundering and its related predicate crimes.

Indonesian Government has launched The 2007-2011 National Strategy on the Prevention and Eradication of the Crime of Money Laundering in Indonesia (it has 5 pillars which are:

First, Laws and regulation, Law Enforcement and Implementation of Special Protection for Witnesses and Reporting Parties.

Second, Compliance of Providers of Financial Services (PFS), and Analysis and Submission of the Results of Analysis made from Suspicious







Transaction Reports (STRs).

Third, Information and Technology System and Human Resources.

Fourth, Domestic Cooperation and Development of International Network and

Fifth, Public Campaign for the Promotion of Public Awareness and Understanding.)

Indonesian Financial Transaction Reports and Analysis (PPATK) has received more Suspicious Transaction Reports (STRs). Until February 2008 the court has adjudicated 11 money laundering cases from that STRs.


Rules concerning investigation and prosecution of bribery are governed by Law No 3 year 1971, Law No 31 year 1999, Law No 20 year 2001 and Law No 30 year 2002.


KPK Law No 30 year 2002 authorizes KPK to disclose bank secrecy and other financial records in the open investigation stage. Indonesia FIU (INTRAC/PPATK) is also authorized to disclose bank secrecy in the closed investigation stage under Law No. 25 year 2003. Under special bilateral arrangement among government agencies (MoU), it is possible to disclose information related with corruption cases.

Inter-agency co-operation Several ad hoc teams were established to address complicated problems especially on anti-corruption, asset recovery, money laundering, Interpol, and other extraordinary crimes. The main objectives of establishing teams are to enhance cooperation and coordination among the pertinent agencies.

KPK and other law enforcement agencies regularly hold a coordination







and supervision meeting for data synchronization, technical assistance, etc.


Indonesia passed Law no. 13/2006 on Witness and Victim Protection. The law aims to encourage the public to disclose crimes by providing legal and security protection for those who report acts of corruption.

Whistleblower protection has been governed by law no 13 year 2006.

Currently, the government is selecting 14 candidates for commissioners who will be in charge of implementing the mandates of the witness and victim protection law. The end process will be Parliament‘s endorsement based on President's proposal by choosing 7 among the candidates.

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

KPK has made efforts to improve the personnel competence by training its staff either in Indonesia or abroad. Domestic training includes both internal and external training. Internal training is conducted by the KPK, while in the case of external training the KPK supports the training provider administratively.

In year 2007, 37 internal training programs and 42 external training programs were provided. There were also 12 training programs conducted abroad, namely, in Hong Kong, Singapore, Malaysia, Brunei, Thailand, France, Switzerland, UK, Germany, and Australia.


Indonesia signed a bilateral extradition treaty with Singapore on 27 April 2007. The treaty covers 31 types of criminal acts and has retroactive effect for 15 years. Nationals may be extradited for corruption offenses.

On 3 April 2008, Government of Indonesia have signed an agreement concerning MLA in Criminal Matters with Hong Kong SAR and Macao. Currently, a bilateral treaty on MLA is being negotiated with USA. In April 2008, Indonesian Parliament agreed to ratify South East Mutual Legal Assistance Treaty in Criminal Matters.







KPK signed formal bilateral agreement (MoU) with 12 anti-corruption agencies, i.e. CPIB Singapore, ACA Malaysia, ACB Brunei, EFCC Nigeria, SNACC Yemen, General Inspectorate Vietnam, Ministry of Supervision China, NCCC Thailand, General Inspectorate Cambodia, Ombudsman Philippines, ACRC Korea, and GIO Iran. Instead of formal bilateral agreement, KPK also maintains informal cooperation based on reciprocity and mutual benefit with other overseas law enforcement agencies.

NCB Interpol Indonesia cooperates with other law enforcement agencies through Interpol‘s networks of national counterparts to handle transnational crimes.



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

The National Committee on Governance Policy (KNKG) revised and began disseminating the General Guidelines on Good Corporate Governance (GCG) on 17 January 2007.

Bank Indonesia issued Regulation No. 8/14/PBI/2006 dated 5 October 2006 to improve the implementation of the GCG for public banks. The Regulation also requires independent parties and parties affiliated with shareholders to be appointed to the Board of Commissioners and Board of Directors.

Starting from year 2008, all banks and finance companies have to report their implementation of Good Corporate Governance to Indonesian Central Bank.

KPK has conducted Good Corporate Governance (GCG) Study. The study was based on provisions of the UNCAC which focuses on the importance of preventing corruption in the private sector. The study is researching and mapping what good corporate governance will look like in Indonesia. This study is being undertaken in preliminary form by the KPK in order to gauge how close private corporations listed on the stock exchange and state-owned enterprises, are to applying GCG principles. This study involved 68







companies from various industry groups.

The National Committee on Governance Policy (KNKG) revised and began disseminating the Whistleblower System Proceedings on 25 March 2008.

Corporate Governance Perception Index is released annually to encourage the private sector to implement GCG (based on a survey conducted by The Indonesian Institute for Corporate Governance).

Ministry of State-Owned Enterprises conducts GCG Socialization, Assessment and Review of 139 BUMN with regard to rights and responsibilities of share holders, GCG Policies, GCG implementation, Disclosure in Policy and Implementation of GCG, and Commitment in GCG Implementation. The Ministry has been improving process of GCG Implementation in State Owned Enterprises by amending their Decision No: KEP-117/M-MBU/2002.



Ministry of State-Owned Enterprises regulates obligation of State Owned Enterprises to have investigation audit by Internal Auditor Board (BPKP) in order to meet GCG compliance standards.


Indonesia has President's Decree No 80 year 2003 on Public Service Procurement which regulates mechanism of procurement including its sanctions.











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

In commemoration of International Anti-Corruption Day, KPK held the annual National Conference on Anti-corruption by inviting all government institutions to report their progress and effort in eradicating corruption. The last meeting was attended by more than 60 institutions. The result of the conference is an annual country report on anti-corruption.

National Development Planning Agency (Bappenas) has done consultation and public campaign for The National and Region Action Plan to Eradicate Corruption (RAN-PK & RAD-PK) in several provinces (for example, RAD PK East Province contained steps regarding corruption-prone matters like public procurement and woods/forest usage permit). Bappenas will also establish and coordinate UNCAC task forces to address all the issues related to the articles of the convention.

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

Transparency International Indonesia has engaged in the following activities:

1. Campaign of National Integrity System to Eliminate Corruption (December 2005 to November 2007): This program was funded by the Danish International Development Agency (Danida). The campaign aimed to strengthen the

The KPK has conducted a series of socialization activities, as well as events to improve the public‘s understanding of corruption eradication. These have included a public anti-corruption campaign through formal and informal education programs; cooperation with community institutions; information exchange; and creation of a







anti-corruption activities of civil society, local government and entrepreneurs in seven regions.

2. The Business Without Bribe Campaign for Entrepreneurs and State-Owned Companies (2006 to November 2007): The campaign promotes business without collusion, corruption or nepotism in Medan and Pekanbaru.

3. The Corruption Perception Index (CPI) Survey (October to December 2006): Funded by AusAid, the survey covered 1 760 businessmen from 32 Indonesian cities.

4. The Transparency Campaign in the Extractive Sector in the framework of Extractive Industries Transparency Initiatives (EITI) (2006-2007): This Program is the continuation of an initial study by TII on the transparency of the extractive sector in Indonesia. A coalition has been created with Publish What You Pay (PWYP) and a number of non-profit organizations. An international meeting is scheduled for August 2007 to strengthen the PWYP coalition.

5. A program to implement the Indonesian Integrity System as a Working Framework on the Eradication of Corruption: Learning from the Experience and the Expertise of Finland: This Program is being implemented in 2006-2007 and aims to strengthen tax management in Tanah Datar, West Sumatera through the Forum of Taxpayers (Forum Warga Pembayar Pajak/FWPP). The program also raises awareness within civil society of good governance through tax in a democratic system, the rights of taxpayers, and the social contract

database on the profile of corruption. These activities have been carried out in Pekanbaru, Surabaya, Yogyakarta, and Makassar

In 2007, socialization activities and informal discussions on gratuities (undue gift to public officials) were held for government and private institutions, such as the Directorate General of Tariffs and Import Duties, state/local government-owned enterprises, universities, provincial governments, the Department of Foreign Affairs, and the BKN, with a total of 54 activities being undertaken. The KPK has also been fostering cooperation with Indonesia Business Link since 2005, in order to conduct socialization in a number of regional IBL branches focused on the implementation of gratuity rules in day-to-day business.

KPK also printed and distributed more than 500,000 copies of books on ―Understanding to Eradicate Corruption: (30 types of corruption)‖ to all government institutions, universities, NGO, politicians, private companies and others.

The Commission develops campaign materials, comprising 15 different types of items: stickers, brochures, pocket books, pins, fairytale books and comics, and the production of instructional videos on gratuities and the filling in of LHKPN forms. These materials are distributed during various activities conducted by the KPK, at the request of the public, or during other activities that are supported by the KPK, all free of charge.

Transparency International Indonesia from May 2007 until 2008 has developed a program called Developing Island of Integrity. This program is funded by United Kingdom Foreign







between the elite, the people‘s representatives, and the community.

Commonwealth Office (UK FCO). As a first step, TI Indonesia has conducted an assessment to determine the new working area in 2007 which is Head of Regions (Governors/Mayor/Regent) that have strong commitment to combating corruption. The result will identify some of the potential areas to apply the Integrity Pact in Procurement of Goods and Services.

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

Indonesia Corruption Watch has conducted two programs:

1. Anti-corruption training for teachers: The objective is to form a network of teachers in fighting corruption through education.

2. Production of an education film on corruption as a teaching tool.

One article in The Government Regulation (PP) No 19 year 2005 on the Standard of National Education states that there should be a curriculum concerning anti-corruption spirit and attitude. By this rule, the Ministry of Education has issued Ministerial Decision No. 22 year 2006 on Unit Content Standard of Basic and Intermediate Education to incorporate the content in Citizenship subject. Now the National Ministry of Education also compiles the technical guidelines for anti-corruption implementation modules at every education level.

KPK has carried out Training of Trainers (28 times until December 2007), which were attended by students from 37 Universities across Indonesia. Also, 67 Memorandums of Understanding between the KPK and public and private universities across Indonesia were signed for the purpose of implementing anti-corruption education, campaign, and research. The follow-up to the Training of Trainers program was the provision of anti-corruption education at the high school level in cooperation with university students who had participated in the Training of Trainers program. Anti-corruption education for high school students was provided in many parts of the country. KPK also provided anti-corruption education







programs for all levels from kindergarten, junior high school to senior high school, and the regional parliament as well. KPK held workshop for members of regional parliaments (DPRD) to increase the capacity of the member's roles and functions.

The KPK in collaboration with several communities and non-governmental organizations held the events in order to gain more public participation in the area of corruption prevention.

Indonesia Corruption Watch and other NGOs have empowered community to involve in budgeting process by local government.




Law enforcement agencies can access all of information related to corruption cases including those under bank secrecy in the open investigation phase.


Bills on public access right on information are being drafted by the government and expected to be finished in the short term.

The public can access the information regarding the Supreme Court‘s final judgment through the Supreme Court website www.mahkamahagung.go.id or www.putusan.net. This aims to improve the judicature transparency to the public.

http://www.mahkamahagung.go.id/

http://www.putusan.net/










The 3 Pilar Kemitraan (3pK) was established by the Indonesia Chamber of Commerce (KADIN), Ministry of State Administrative Reform, and the Indonesian Transparency Community (MTI). The goal is to implement Law No. 30/2002 on the Corruption Eradication Commission and the President Instruction No. 5/2004 on the Acceleration of the Eradication of Corruption. Recent programs under the 3pK include:

The International Anti-Corruption Day on 9 December 2006, which was followed by all 3pK members, students, non-profit organizations, and directors and employees of companies.

The National Dialog to Eradicate Corruption by building integrity islands.

The promotion of good corporate governance (GCG) through brochures, publications, manuals, and a GCG clinic.

Indonesian Corruption Watch (ICW) held anti corruption civil community workshop all over Indonesia. ICW and other NGO alliance established Court Monitoring Coalition (Koalisi Pemantau Peradilan). They organized the National Dialog with the KPK Commissioners to discuss the ―KPK Road Map‖ and to monitor anti-corruption efforts.

Transparency International Indonesia in collaboration with Partnership for Governance Reform has conducted a performance assessment for Aceh Reconstruction Agency (BRR) especially on internal integrity aspects.

Based on the assessment result, TI Indonesia made several recommendations in improving the ability to tackle corruption in BRR.

In the government area, TI Indonesia has also promoted the integrity pact to the government officials in the entire six regions.

Protection of whistle blowers In 2006 Indonesia has legislated Law No 13 year 2006 on Witness and Victims Protection, according to which Indonesia now has the Witness and Victims Protection Agency (LPSK)


In 2007, Indonesia Corruption Watch:

Established a New Student Complaint Post to analyze complaints and provide assistance.

Handled cases relating to education and health, and reported the cases to the authorities.

Transparency International Indonesia

The Indonesia Corruption Watch has conducted several activities regarding the public sector, as follows :

disclosing information to the public

strengthening the school committee on monitoring

analyzing and monitoring corruption







(TII) has carried out the following activities:

The Capacity Enhancement of Civil and Local Government as an Effort to Prevent Corruption in Reconstruction of Aceh (February 2006 to March 2007): TII joined local NGOs to supervise the reconstruction of Aceh. Supervision committees (which included citizens as members) were established at the district level. The committees are obliged to collect, verify, and investigate citizens‘ complaints and report their findings in public consultation meetings.

Evaluation of the performance of the Aceh Rehabilitation and Reconstruction Agency (BRR) (January to May 2007): One of the report‘s recommendation was to maintain the independence of the Anti-Corruption Unit (SAK) by reassigning supervision of the Unit from the Executive Board to the Supervisory Board. The BRR is scheduled to implement this recommendation in July.

practices in the Indonesian court

evaluating the performance of the justice officials

monitoring the public officials‘ election in the judicature area

The Indonesian Procurement Watch and Transparency International have provided consultation regarding the integrity pact for the National Election Commissions (KPU).

OTHER Indonesia ratified the UNCAC on 18 April 2006.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Japan – 128 –

Japan

Japan was not represented at the 8th Steering Group meeting.









Systems for compensation The National Public Service Law (NPSL) provides that remuneration of national public employees is determined by the law (principle of determining remuneration by law), and revised by the Diet to bring it in accordance with general conditions of society. The National Personnel Authority (NPA) must make its recommendation for such revisions. Therefore, the NPA reports to the Diet and the Cabinet not less than once each year on the propriety of salary schedules. At the same time, it must make a recommendation on appropriate revisions in accordance with conditions that determine the remuneration (principle of meeting changing conditions). The Law concerning the Remuneration of Regular Service Employees also provides that the NPA must study the amount of remuneration for public employees and simultaneously make a recommendation to the Diet and the Cabinet on appropriate revisions.

With regard to the salary of local public employees, it is stipulated by the Local Public Service Law (LPSL) that local governments shall take measures as necessary to adapt working conditions, such as salaries, to the general








conditions of the society (Principle of Meeting Changing Conditions,). It is also stipulated that local governments shall determine salaries by taking into consideration such factors as living expenses, the salaries of state and other local governments employees, as well as workers employed in the private sector (Principle of Equality). A system has been established whereby independent and impartial Personnel Commissions shall make recommendations to adapt salaries to the general conditions in society.


In the application of the NPSL and LPSL, all of the people shall be accorded equal treatment and shall not be discriminated against by reason of race, religious faith, sex, social, family origin, etc. Appointment (hiring or promotion, etc.) of any national and local public employee shall be made entirely on the basis of the result of his/her examination and the merit of his/her performance of duties or other demonstrated abilities under the NPSL and LPSL.





The NPSL and LPSL define national and local public employees as servants of the whole people and obliges them to attend their duties in the interest of the public. The NPSL, LPSL, the National Public Service Ethics Law (Ethics Law), Ethics Bylaw and the Ethics Regulation respectively provide disciplinary and ethical rules observed








by national and local public employees. The NPSL and LPSL provides a wide range of disciplinary duties related to conflict of interests, such as restrictions on political activities, accepting positions in profit-making enterprises, engaging in outside business, etc. In addition, the Ethics Law, the Public Service Ethics Code (Ethics Code), Ethics Bylaw and Ethics Regulation prohibit further specific acts affecting people‘s trust of the public service, such as receiving a gift of money, goods or real estate and accepting hospitality, etc, from an interested party and request reports regarding the gifts, hospitalities, stock transactions, incomes, etc.


The Ethics Law stipulates the following report system.

Senior officials of national public service shall report to their heads of ministries when they receive a gift or hospitality, etc, of monetary worth exceeding 5,000 yen. A copy of the report shall be sent to the Ethics Board for screening (Applicable only to officials at the rank of Designated Service and above). The report shall be open to the public upon request (applicable only when exceeding 20,000 yen).

Very senior officials of national public service shall report to their heads of ministries on annual transactions of stock and bonds, and annual income. A copy of reports shall be sent to the Ethics Board for screening.


The Ethics Law and the Ethics Code prescribes prohibitions, such as receiving a gift of money, or goods from an interested party; obtaining a loan or borrowing free goods from or at the expense of an interested party;








receiving free provision of service from or at the expense of an interested party; playing golf or traveling with an interested party.


The NPA conducts training courses in order to ensure national public employees are fully aware of ethics.

The Ethics Board conducts planning and coordination of training programs for national public employees to maintain ethics related work duties, as well as plans and conducts training courses that are recognized as appropriate to host by itself based on the Ethics Law.

The appointing authority in each local government conducts training courses in order to ensure local public employees are fully aware of ethics.


The Code of Criminal Procedure, Article 239, paragraph 2 (Any government or public entities‘ official shall, when he/she considers that there exists an offence in the course of the performance of his/her duties, file an accusation.)




Article 28 of the Public Finance Law stipulates that a certain kind of documents should be attached to the budget for reference purposes when the budget is submitted to the Diet. These documents include information on borrowing, national property and financial position of public corporations. In addition to these statutory documents, the Japanese government








discloses a wide range of fiscal information voluntarily on a timely basis.


In Japan, financial administration is conducted based on legislation or guidelines of which standards and codes are significantly clear. These legislation, guidelines and Inspection Manuals have adopted relevant international standards such as Basel Capital Accord and discussions among international institutions and that of international conferences.


The Board of Audit of Japan audits constantly through the two audit methods, in-office documentary audit (Article 24, Board of Audit Law) and field audit (Article 25, Board of Audit Law), and the Board audits from the viewpoints of accuracy, regularity, economy, efficiency, effectiveness and others as prescribed in Article 20 of Board of Audit Law.

Among the above-mentioned viewpoints, ―regularity‖ is a very crucial factor in terms of anti-corruption measures because it focuses on whether or not the projects or programs are administered in conformity with the budget, laws and regulations.


The Accounts Law stipulates that public procurement must be based on open tendering in principle to ensure fair competition.

The Law on the Responsibility of Budget Implementation Officers stipulates that those officers who incur liabilities or make payments against statutes or budget on purpose or gross negligence will have to reimburse the damage caused.

According to Act Concerning

On 8 December 2006, the Act Concerning Elimination and Prevention of Involvement in Bid-Rigging (ACEPIBR) was amended to introduce a criminal penal provision for officers of procurement agencies and to expand the scope of illegal activities. The amendment came into effect on 14 March 2007.








Elimination and Prevention of Involvement in Bid Rigging etc., Fair Trade Commission may, when it recognizes involvement in bid rigging etc. by the employees of government etc. as a result of its investigation of bid rigging cases, demand that the Heads of Ministries and Agencies etc. implement improvement measures on the administration of bidding and contracts that are necessary for eliminating the said involvement in bid rigging etc. The Heads of Ministries and Agencies etc. shall perform a necessary investigation if there is any damage to the government, and if it is possible to impose disciplinary actions based on the National Public Service Law and the Local Public Service Law etc., upon the employees involved in said bid rigging etc. Such action shall mean dismissal, suspension from duty, reduction in pay or reprimand, and other sanction in the case of specified corporations.



Under the Political Fund Control Law, political organizations are obliged to submit to the Ministry of Internal Affairs and Communications or the election committee of each prefecture the income and expenditure on political funds for its information disclosure to the public in order to ensure integrity of political activities.

Under the Public Office Election Law, candidates for public office are obliged to submit to the central or the designated local election committee according to the location of public office the income and expenditure on election campaign funds for its information disclosure to the public in order to ensure integrity of election








campaign.






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

The Unfair Competition Prevention Law prohibits the giving, offering or promising of any advantage in order to cause an act of commission or omission etc. in relation to the performance of official duties of a foreign public official etc., committed in order to obtain or retain improper business advantage in the conduct of international business.

The bill is still under discussion in the Diet.


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



Prosecutors and police can investigate cases of bribery. Only prosecutor can prosecute criminal cases.


Prosecutors and police can obtain bank records without warrant if the bank voluntarily provides the records. If the bank refuses, prosecutors and police can obtain records with search warrant. Law for Punishment of Organized Crimes has provisions for Financial Intelligence Unit.

The Financial Intelligence Unit was originally part of the Financial Services Agency. On 1 April 2007, it was renamed the Japan Financial Intelligence Center and made a part of the National Public Safety Commission and National Police Agency. The purpose of the reorganization was to

Only financial institutions have been obligated to make suspicious transaction reports (STRs) to the authority in the past. By the implementation of the Act on Prevention of Transfer of Criminal Proceeds, however, the obligation of STR has been expanded to








improve the agency‘s ability to investigate and prevent money laundering.

Designated Non-Financial Businesses and Professions (DNFBPs) as well.

This has made it possible to gather various information related to money laundering including corruption cases.





Law for Punishment of Organized Crimes has provisions for MLA for confiscation.

Japan has Extradition Treaties with the US and Korea, and concluded MLAT with the US and Korea.

The treaty on mutual legal assistance in criminal matters between Japan and Korea came into force on 26 January 2007.

New legislation enabling asset repatriation to a foreign country came into force on 1 December 2006.

The treaty on mutual legal assistance in criminal matters between Japan and the people‘s republic of China is under discussion in the Diet.

Under the Article 12 of the Act on Prevention of Transfer of Criminal Proceeds, the National Public Safety Commission may provide foreign agencies with information on suspicious transactions.




Corporate statutory auditor‘s term of service was extended in 2001 from 3 to 4 years to reinforce corporate statutory auditor‘s independence.

In 2002, the Committee system was introduced to increase choices about type of corporate governance a company may use.

The new Corporate Code was promulgated on July 26, 2005 and entered into force on May 1, 2006.

The Code stipulates inter alia that large corporations (i.e., corporations with (a) JPY 500 million or more of stated








capital or (b) JPY 20 billion or more of liabilities on their most recent audited and approved balance sheets) must decide at their board meetings (or by directors in the case of corporations without a board) a basic framework of their internal control systems (including whether to establish such systems) and disclose a summary of such decisions to their shareholders in their business reports.

It has also strengthened the independence of accounting auditors by empowering corporate statutory auditors (a board of statutory auditors in the case of corporations with the board or an audit committee in the case of corporations with committees) to approve the amount of fees to be paid to their accounting auditors.

The Code has also strengthened the rights of shareholders; for example, unless otherwise provided in the articles of incorporation, shareholders are empowered to dismiss board members at a shareholders‘ meeting with a simple majority vote rather than the two-thirds majority as was previously required under the previous Commercial Code.

Information disclosure provisions have been strengthened in the interests of shareholders. For example, the disclosure provisions of the Corporate Code as to business reports and information materials of shareholder meetings require more information than previously required under the previous Commercial Code with respect to inter alia outside directors and other outside officers. Also, the Corporate Code has improved the rules of shareholders‘ derivative actions.

Under the Corporate Code, any corporation may appoint an accounting








auditor by providing so in its articles of incorporation. The Corporate Code has introduced an ―accounting counselor‖ (kaikei sanyo). Any corporation may appoint an accounting counselor by providing so in its articles of incorporation.

Financial Services Agency introduced obligation to disclose the conditions of corporate governance in annual report to improve transparency of corporate disclosure in 2003.

Non tax-deductibility of bribes Japanese law explicitly treats bribes for foreign officials in the same way as bribes for Japanese officials and therefore as non-deductible. (Income Tax Law, Article 45-2, Corporate Tax Law, Article55-5)


In Japan, the Corporate Code (the Code) requires companies to present true and fair financial statements and stipulates that these financial statements must comply with the generally accepted accounting practices. The Ministerial Regulations under the Code also stipulates specific items to be described and method of preparation.

In addition, to ensure truth of financial statements, as a part of preparation process, the Code requires financial statements to be approved by a board of directors (in the case of companies with a board) and audited by corporate statutory auditors (in the case of companies with such auditors) (in the case of companies which apply committee system, audit by audit committee.) In the case of ―large companies‖ under the Code, they are required to introduce external audit by an accounting auditor based on corporate accounting standards. As mentioned above, any company








incorporated under the Code may appoint an accounting auditor and/or accounting counselor by providing so in its articles of incorporation.

Furthermore, under the Code and other legislations, criminal, administrative and civil liabilities such as fines are imposed on false statement or misrepresentation, which is to ensure efficiency of such legislation.


The Regulation on the Budget, Settlement of Account and Accounting stipulates that those who deter fair competition in the public procurement process will be excluded from joining competition.







Education programs



Requirements for justice and other governmental agencies to disclose efforts to promote

Senior officials of national public service shall report to their heads of ministries when they receive a gift or








integrity and accountability and to combat corruption

hospitality, etc. of monetary worth exceeding 5,000 yen under the Ethics Law. The report shall be open to the public upon request (applicable only when exceeding 20,000 yen).


<Reference: General Rule for Right of Access to Information>

Under the Information Disclosure Acts, the right to request the disclosure of documents held by ministries and public corporations is guaranteed, which can be exercised by any person. Documents, including electromagnetic records, are ones that are written or obtained by employees‘ ministries and public corporations in their duties and are retained for organizational use.




Protection of whistleblowers A report on the protection of whistleblowers was released by the Quality-of-Life Policy Council (the advisory body to the Prime Minister or other Ministers) at the end of May 2003. A consensus has been reached on the necessity of legal framework for the protection of employees who raise concerns about malpractice in the area of consumer interest.


The Japan Overseas Enterprises Association held a seminar entitled ―The Criteria of Bribes to Foreign Public Officials and Bribe Prevention from the Perspective of Corporate Social Responsibility‖. The Director of the Foreign Ministry‘s OECD Division described the OECD‘s Phase 2bis examination of Japan and explained








the government‘s position and efforts to prevent bribery of foreign public officials.

OTHER

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



Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Kazakhstan – 141 –

Kazakhstan

Kazakhstan was not represented at the 10th Steering Group meeting.








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


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






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









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









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

On 14 April 2005, the President issued a ―Decree on Measures to Strengthen the Fight against Corruption, Discipline and Order in the Performance of Government Bodies and Officials‖. The decree creates Disciplinary Councils of the Agency of the Republic of Kazakhstan on Civil Service in all provinces (oblasts) and the cities of







Astana and Almaty. The Councils aim to prevent corruption, develop proposals to strengthen discipline, and adjudicate allegations that civil servants have violated anti-corruption laws or the Code of Honor.



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





The punishment for corruption violations and crimes has been toughened.


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













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

















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

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


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











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




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



OTHER

Kazakhstan is considering signing the UNCAC.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Korea – 147 –

Korea















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

The Anti-Corruption and Civil Rights Commission (ACRC) announced in December 2007 its plans to increase transparency and prevent corruption related to the development of public building lots. The reform plans to be








implemented in 2008 include strengthened oversight of perusal and use of information on land development plans and enhanced transparency in the organization and management of city planning committees.

The ACRC made policy recommendations for oversight institutions in December 2007 to increase transparency and efficiency in the supervision of public organizations. It recommended that an employee of an oversight agency be prohibited from being appointed as auditor of an inspected organization within two years after his or her retirement from the supervising agency.




The ACRC will provide training on anti-corruption and ethics for 2,790 public officials of national and local governments, senior officials of public corporations, and teachers from March to December 2008. Starting from 2008, the trainees will include teachers of ethics and social affairs, principals and vice-principals of secondary schools since anti-corruption content will be incorporated in the curriculum of all secondary schools in 2010.


The Anti-Corruption Act was amended in July 2007 to extend whistleblower protection to employees in both the public and private sectors. Those who report violations of the Code of Conduct for Public Organization Employees will

In 2007, the ACRC received 103 allegations of corruption committed by public officials and provided 26 whistleblowers with rewards of US$270 thousand from the recovered assets and 8 whistleblowers with monetary








also be protected. awards of US$50 thousand.






The Recall Act took effect in May 2007, allowing voters to oust governors, mayors and local council members who engage in corrupt practices, negligence of duties or abuse of power.



KICAC conducts an annual Integrity Survey to assess the level of integrity in more than 300 public organizations. The findings of the survey are published at the end of the year.

The ACRC announced the result of 2007 Integrity Survey on 17 January 2008. According to the survey findings, overall integrity of the public sector of Korea scored 8.89 on a ten-point scale, a slight increase from the previous year, while the offer of bribes dropped from 0.7% to 0.5%. Those surveyed were about 90 thousand citizens who had recently experienced services of 333 public sector organizations.

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

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








electoral campaigns and expenditure






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

The Korean government ratified UNCAC on 29 February 2008 and deposited the instrument of ratification with the UN Secretary-General on 27 March. The Convention entered into force on 26 April in Korea.



A bill on the confiscation and recovery of proceeds of corruption was drafted in July 2007, and will be tabled in the regular parliamentary session in September 2007.

The Act on the Confiscation and Recovery of Proceeds of Corruption, an implementing law of UNCAC, was enacted on 28 March 2008 and took effect on 26 April simultaneously with the entry into force of UNCAC in Korea.




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


International cooperation








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




Non tax-deductibility of bribes The Enforcement Decrees of the Income Tax and Corporate Tax Acts were amended in February 2007. The Decrees now stipulate that ―bribes‖ pursuant to the Criminal Act and ―bribes, non-pecuniary assets, and economic advantage under the Act on Preventing Bribery of Foreign Public Officials in International Business Transactions‖ as not tax-deductible.


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

The Securities-Related Class Action Act was expanded in January 2007 to include all listed companies. The Act allows small investors to file for damages caused by fraudulent accounting, false disclosure, and stock price manipulation. Under this Act, all investors are eligible for compensation when one of them wins a lawsuit.












Public awareness campaigns The ACRC organized ―Clean Wave Festival‖ on 9 December 2007 to commemorate the International Anti-Corruption Day. The event consisted of award ceremonies and various performances, bringing together more than 300 people including public officials, members of civil society groups and college students.


Education programs
















The Korean government has supported the implementation of K-PACT (Korean Pact on Anti-Corruption and Transparency) administratively and financially since March 2005.

As of August 2007, the K-PACT has been endorsed by 10 central government agencies, 18 public corporations, and 14 local governments.

As of April 2008, the K-PACT has been endorsed by 12 central government agencies, 19 public corporations, and 14 local governments.

With the signing of the Forestry Industry K-PACT in October 2007, the industrial signatories to the K-PACT have increased to six industries—construction, health and medical care, finance, social welfare, education, and forestry.



OTHER

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

In February 2007, KICAC and UNDP agreed to provide anti-corruption technical support to four Asia-Pacific countries under a two-year joint project.

As part of the joint project with UNDP, the ACRC is planning to provide anti-corruption technical assistance to Bangladesh in 2008 and will hold an inception meeting within the year. It will provide training in 2008 for public officials of Bhutan and Bangladesh to help build their anti-corruption capacity.








In December 2006, KICAC and the Indonesian Corruption Eradication Commission signed a memorandum of understanding on mutual cooperation on combating corruption.

In September 2007, the Korean network of the UN Global Compact will be launched.

With the launch of the Korean network of the UN Global Compact in September 2007, the number of Korean participant companies and organizations has increased to 113 as of April 2008 from three in 2005.

The ACRC (Anti-Corruption and Civil Rights Commission) was established on 29 February 2008 by consolidating the KICAC (Korea Independent Commission against Corruption), the Ombudsman of Korea, and the Administrative Appeals Commission.

The ACAC has served as Secretariat for the Anti-Corruption Agency (ACA) Forum, created in November 2002 as a channel for policy dialogue among heads of anti-corruption agencies in the Asia-Pacific region. The 5th Forum will be held in Seoul in October 2009.

The ACRC is planning to organize APEC Anti-Corruption Capacity Building Workshop in October 2009.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Kyrgyz Republic – 155 –

Kyrgyz Republic








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

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

Government resolution No. 111 of 24 May 2006 created a Working Group to prepare a Presidential Decree on a unified labor payment system for public officials. The National Agency on Corruption Prevention took part in the Working Group. The draft Decree categorizes the positions of state officials based on the Registry of State Positions of the Kyrgyz Republic. The Decree is expect to set:

The rate of official salaries of political and administrative positions of the civil service;

The rise in wages for class ranks and special ranks of public officials;

Extra remuneration based on length/record of service and for judges.

Compensation systems play a great role in encouraging officials in undertaking their functional responsibilities. In Kyrgyzstan some considerable measures have been provided to improve material stimulation of officials.

Presidential Decree No. 548 of 13 December 2007 named ―Conditions of work payment of officials and municipal workers of Kyrgyzstan‖ was issued. It provided new conditions of salary payments and wage increases in order to attract highly-qualified personnel to state service, provide stable and independent state service, stimulate integrity and proper work of officials and improvement of government authority.

In this case, effective and unified mechanism of salary payment is being implemented. In addition, Kyrgyz is reforming and increasing transparency in salary payment for budget sphere workers.


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

For 2006, the percentage of recruitments that were made without competition decreased to 13.7% out of 2 708 recruitments in total. During January-April 2007, the percentage dropped to 7.7% out of 863 recruitments.

In 2007, level of appointments not based on Civil Service Law of Kyrgyzstan decreased. There were 3031 people appointed to the positions in governmental bodies and 93 of them (3.1%) were appointed not according to the Civil Service Law. Civil Service Agency‘s workers are included to the attestation-competition commissions







and directly participate in the procedures of competitive appointments to vacant civil positions.

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

Draft regulations on ―Competition for Filling a Vacant Administrative State Position within the Civil Service of the Kyrgyz Republic‖ are now pending approval by the Council on Civil Service.


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

From November 2006 to September 2007, the observance of civil service recruitment legislation was monitored in six state bodies: Ministry of Labor and Social Protection; Ministry of Education, Science and Youth Policy; Ministry of Health; Ministry of Economy and Finance; Service of Financial Intelligence; and State Agency on Real Estate Rights Registration. Recommendations were made to eliminate violations that were detected.

From September 2007 to May 2008, the observance of civil service recruitment legislation was monitored in ten ministries/agencies: Central Elections Commission, NACP of Kyrgyzstan, Agency on Drugs Control of the KR, Ministry of Communication and Transport, Ministry of Economic Development and Trade, Ministry of Healthcare, Ministry of Science and Education, Ministry of Culture and Information, Ministry of Industry; and National Agencies on Tourism, Architecture and Building.

According to the results of monitoring, recommendations on how to eliminate identified discretion were made for the above governmental bodies.

The Public Prosecutor Office is responsible for enforcing the Civil Service Law. In the first half of 2007, the Office made 93 revisions, 58 submissions, 14 protests, 15 prescriptions and 3 warnings. The Office also instituted 10 criminal, 1 disciplinary, and 4 administrative proceedings.


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

In the second half of 2006, 584 civil servants were rotated, of which 568 were rotated internally, in the following bodies:

Kyrgyz Parliament (Jogorku Kenesh)

In the 2nd half of 2007 civil servants were rotated in the following bodies:

Parliament (13)

Ministry of Emergency Situations (4)







(4 senior and 26 main positions out of 30)

Ministry of Foreign Affairs (11 senior positions)

Ministry of Labor and social Protection (2 senior positions)

Ministry of Transport and Communications (4 senior and 3 junior positions)

Ministry of Emergency Situations (1 junior position)

Ministry of Economy and Finance (4 junior positions)

Ministry of Justice (5 main, 3 senior and 7 junior positions)

Agency on Real Estate Rights Registration (2 senior positions)

Agency on Environmental Protection and Forestry (1 main, 7 senior and 15 junior positions)

Agency on Financial Supervision and Reporting (2 main positions)

State Tax Inspection Agency (8 senior and 14 junior positions)

Customs Inspection Agency (9 main, 42 senior and 412 junior positions)

Osh Oblast Administration Agency (1 senior and 1 junior position)

State Committee on Taxes and Tax Collections (47)

State Customs Committee (151)

National Agency on Professional and Technical Education (1)

Osh Oblast Administration (5)

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

Draft Regulations ―On Promotion of Civil Servants‖ are pending approval by the Council on Civil Service.

Draft Regulations ―On Rotation of Civil Servants Occupying Special Categories of State Positions of the Kyrgyz Republic‖ are still being discussed.









Revised drafts of the Code ―On Ethics of Civil Servants of the Kyrgyz Republic‖ and Regulations ―On Civil Servants‘ Ethics Commissions‖ were submitted to the President‘s Office for review.

Revised drafts of the Code ―On Ethics of Civil Servants of the Kyrgyz Republic‖ and Regulations ―On Civil Servants‘ Ethics Commissions‖ are still pending review by the President‘s Office.


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

In 2006, the Civil Service Agency received 976 declarations from civil servants occupying political and special state positions. This represents 98.5% of the total number of working civil servants. 15 failed to submit their declarations.

In 2007, the Civil Service Agency provided the information on these 15 civil servants to the President, Prime Minister and Speaker of Parliament. The Agency also published the information on its Web site, in the mass media and in the ―Civil Service and Career‖ newspaper.

The Agency also published summaries of the data filed by civil servants. As well, the Agency developed mechanisms to check the filed data.

According to the results of Declaration campaign of 2007, 13846 declarations from civil servants at administrative positions were presented to the Agency on Civil Service. This amounts to 100% of the total number.


Independent research has shown that unofficial payments remain high in regulatory public bodies, health care and education. Causes of corruption include the large number of administrative barriers, lack of transparency in public funding and non-compliance with the law. Lack of funding and inexperience in developing legislation based on international best practices exacerbate the problem.

In order to prevent corruption among civil servants and business service users, Agency on Civil Service conducts tenders for public







procurement.


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

With an assistance of the Embassy of France, a workshop was conducted on 18-19 December 2006 on ―Hiring, Training and Career Growth of Civil Servants: France‘s Experience‖. State-secretaries, heads of recruitment/personnel of state bodies and the Agency‘s staff attended.

In January 2007, the National Agency on Corruption Prevention held a two-day workshop on ―Income Declaration – A General Measure on to Prevent Corruption in the Public Administration‖. Participants include 88 officials from central administrative state bodies, territorial offices of agencies, and civil society.

In March 2008, Agency conducted a 2 day workshop on ―Income Declaration – One of the Measures of General System on Corruption Prevention in Public Administration‖. The participants included officials from administrative state bodies and mass media.

In February 2007, the National Agency on Corruption Prevention held workshops on income declaration and recruitment competition. The workshop was attended by 70 civil servants of Osh Oblast in Osh city and 78 officials in Jalalabad.

In April 2007, the Civil Service Agency organized a two-day workshop on ―Ethics of Civil Servants: Experience of European Countries‖. Participants included 80 civil servants from state secretaries, ethics commissions, and personnel departments. France‘s experience was described by Mr. Phillip Sagohn from the Planning and







International Relations unit, Ministry of Civil Service of France.

Agency on Civil Service, in co-operation with World Bank, conducted 1st international conference on ―Personnel administration modernization – civil service improvement factor: experience exchange‖ in September 2007. Representatives of similar bodies from Ukraine, Russian Federation, Azerbaijan, Kazakhstan, Lithuania and state-secretaries of state bodies of Kyrgyzstan took part in the conference.

The goal of the conference was to share the most progressive international experience in civil service sphere, especially promotion of ethics in civil service and to discuss possible benchmarking of such experience.

During the conference, the Agency and General Administration of Ukrainian on Civil Servants signed an agreement, aimed to strengthen international cooperation in civil service sphere.


Other At a meeting with international experts, the head of the Civil Service Agency described the implementation of recommendations made under the Istanbul Action Plan of the Anti-Corruption Network for Eastern Europe and Central Asia. The recommendations dealt with the selection mechanism when recruiting civil servants, observance of civil service legislation by state bodies, and declaration and data publication on incomes and liabilities by officials in political and special positions as well as their relatives.











In order to implement all international standards of FTC/ML and organize regulation and control of financial institutions in Kyrgyzstan, new agreements were signed with supervising bodies (National Bank of Kyrgyz Republic (NBKR) and State Agency on Financial Supervision).

New permanent working groups were formed by supervising bodies:

- with NBKR, in bank regulations (including affiliates), other financial and credit companies licensed by NBKR in the field of FTC/ML.

- with State Agency on Financial Supervision (2 independent working groups – professional participant of equity markets and other subjects licensed by State Agency on Financial Supervision)

In the framework of working groups, educational workshops were held, draft regulations were prepared and discussed concerning different areas of financial market, and minimal requirements on internal control were improved.

Information was collected on the subjects of financial monitoring, which included examples of organization of internal control procedures, concrete examples on investigated works, and statistics based on the methodology







recommended by FATF.

Almost all measures of international standards on regulation and control of financial institutions are working in Kyrgyzstan.


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

In the five months to July 2007, the Chamber of Accountants of the Kyrgyz Republic and its territorial subdivisions conducted 612 audits covering government budgetary institutions, economic organizations, and the implementation of budgets at the local level. The audits uncovered irregularities in the amount of KGS 670 million (USD 17 million).

Since September 2007, the Chamber of Accountants and its territorial subdivisions have conducted 775 audits. 529 of them covered government budgetary institutions, 177 economic organizations and 69 local governments.

The audits uncovered financial violations in the amount of KGS 3,584,563.9 thousand (USD 3,190.7 thousand).


New standard procurement procedures were approved in October 2006. The procedures allowed a procuring organization to rely on price quotations and price lists without using the standard package of tender documentation. Failure to comply with procurement procedures is punishable by penalties or warnings.

Based on the Governmental Resolution on draft law ―On the Amendment and Alteration of the Law on Public Procurement,‖ the Agency is working out a plan for a project involving cancellation of coordination on such matters as methods of public procurement; cease of procurement procedures; rejection of tenders if inaccurate information on quality and list of items is given while centralized trades are in progress; and cancellation of trades.

It is planning to raise penalties for officials. The project has been agreed by 13 Kyrgyz Ministries, and is pending revision at the Ministry of Justice.


The National Agency of the Kyrgyz Republic for Preventing Corruption was created in October 2005. The decision







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

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

In 2007, 942 inspections were conducted as a result of prosecutor bodies‘ actions on oversight of implementing anti-corruption legislation. According to their results, 470 protests, 104 warnings, 67 administrative and 5 disciplinary proceedings, 150 prescriptions were made and 304 of them were not investigated.


Simplification of the business A draft Tax Code has been submitted to Parliament for review. The draft Code

Parliament has transferred the draft Tax Code to its Committee on Fiscal Policy







regulatory environment aims at simplifying business regulatory requirements.

for review. Parliament will review the draft Code in September-October 2007.

Law No. 72 ―On the Procedure for Controlling Business Subjects‖ was adopted on 25 May 2007 and will come into force on 8 September 2007.

On 7 June 2007, the Government adopted Resolution No. 216 which amends its earlier Resolution No. 378 of 1996 ―On Declaring Incomes and Income Tax Payment by Entrepreneurs Individuals on the Patent Basis‖. The amendment aims to create favorable conditions for taxpayers, eliminate unreasonable controls, eradicate corruption in tax bodies, legalize the shadow economy, and increase the government‘s tax receipts.

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

Draft laws ―On the Order of Conducting Audits in Business Structures‖ and ―On Licensing‖ are still under consideration.

In order to implement the law of the KR ―On the Order of Conducting Audits in Business Structures‖ and Presidential Decree No. 330 of 2 July 2007 ―Measures on Improving the Order of Conducting Audits in Business Structures‖ with the direct participation of business structures, the Governmental Resolution No. 533 ―Order of Conducting Audits in Business Structures and Definition of Governmental Bodies Having Right to Conduct Audits in Business Structures‖ was passed as of 6 November 2007. According to Resolution No. 533, the Regulation ―On the Order of Conducting Audits‖ was approved where the following was regulated: order of audit procedures, co-ordination of audit plans, measures prohibiting duplication of audits on the same issue by different bodies.

Also, certain bodies having right to conduct audits are to be reorganized and pending approval at the Parliament of the Kyrgyz Republic.







Since 2007, the total number of inspections is 47 440 with 44 029 planned inspections and 3 411 unplanned ones. Inspections decreased by 4 % since the approval of ―Law of Inspections‖ in September 2007.

In 2007, 492 assignments on inspections were denied.

Ministry of Economic Development and Trade monitors groundless interference of controlling bodies in the work of business entities.





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

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

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

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

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

To bring the Criminal Code in line with the UNCAC, the National Agency on Corruption Prevention has drafted amendments to the Code and submitted them to the Ministry of Justice.

In order to make national legislation in conformity with international standards, mainly with the UN Convention against Corruption, General Prosecutor Office worked out a draft law ―On Amending and Alteration of the Criminal Code of Kyrgyzstan‖, particularly articles number 52, 224, 225, 303, 303-1, 304, 305, 308-1, 310, 311, 312, 313, and 314 (sanctions for bribery by the public officials).

Under the Anti-Corruption Law, the Public Prosecutor‘s Office carried out







185 inspections in the first half of 2007, resulting in 25 protests, 3 prescriptions, and 2 warnings. The Office also instituted 168 criminal and 2 administrative proceedings.


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

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

Parliament is considering various amendments to the bill ―On the Fight against Money Laundering and Financing Terrorism‖; the bill‘s first reading took place in 2004.

On 31 July 2006, the President signed the Law ―On the Fight against Financing Terrorism and Money Laundering‖. The law creates a legal mechanism to fight terrorism financing and money laundering. It seeks to protect the integrity of the financial system from criminal infringements. The law came into force on 8 November 2006.

Law No. 135 ―On Combating Money Laundering and Terrorist Financing‖ came into force on 8 November 2006. The institutional structure to implement the law is being set up. The Financial Intelligence Service will be the focal point of the system. Supervision and law enforcement bodies are also deploying necessary resources and undertaking structural reforms to implement the law.

The Financial Intelligence Service conducted numerous training workshops, almost all dealing with financial monitoring.

A periodical information bulletin will soon be published covering money laundering typologies prepared by the Financial Action Task Force.

On 28 January to 4 February 2007, the Eurasian Group (EAG) assessed the anti-money laundering and terrorist financing regime in Kyrgyzstan. On 13 June 2007, the EAG‘s plenary session adopted the assessment report.







A working group was created according to the President Decree of 4 September 2007 under the Security Council of Kyrgyzstan in order to improve efforts to counter terrorism financing and extremism in Kyrgyzstan, improve legislative system and institutional environment and meet international demands in accordance with the FATF Recommendations 40+9.

On 9 November 2007, the Financial Intelligence Service worked out an ―Action Plan on Realization of Requirements of FATF Recommendations 40+9 in Kyrgyzstan.‖ The action plan was discussed and signed by the President on 23 November 2007.

In the framework of the action plan, elaboration of draft laws on the amendment and alteration of the following legislation is planned:

Criminal Code;

Administrative Code;

Law on Terrorism Financing and Anti-Money Laundering

Law on Licensing

Law on Amnesty Provided with the Legalization of Personal Monetary Assets, Movable and Immovable Property

Law on Banks and Bank Activities‖

Law on Governmental Registration of Legal Entities‖.

The projects are pending approval at the ministries and will be sent to the Parliament soon.


The Department on Combating Corruption in the Office of Public Prosecutor has been reorganized as the Department on Supervision (Order







of General Prosecutor No. 13 on 8 June 2007). The Department is responsible for enforcing the laws on the civil service, anti-corruption, banks and banking, and anti-money laundering and terrorist financing.


Draft legislative amendments have been submitted to Parliament to deal with bank secrecy issues in the reporting of suspicious transactions by banks to the Financial Intelligence Service.

Draft Laws on terminating contradiction in providing access to information and regulation of information were passed through new hearings at the committees after the new Parliament is formed. After parliamentary hearings on these issues to be held in summer 2008, the draft laws will be submitted to the Parliament.

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

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

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

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

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

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

In 2007, Agreement on Cooperation between Offices of Public Prosecutor of CIS member-states for improving anti-corruption acts and promotion of rights and interests of citizens was signed.







develop solutions.

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


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

Training and resources The Kyrgyz Republic might receive financial support for its anti-corruption work amounting to USD 15million from the US-funded Millennium Challenge Account Program. Under this scheme, a Country Plan was developed which emphasizes anti-corruption in 2006-2007. The Plan consists of three components: supremacy of law with an efficient judicial system; anti-corruption in law enforcement bodies; and increasing the effectiveness of criminal prosecution.

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

Educational centre of Chamber of Accountants is being founded.

Tax officials are educated through a permanent working course at the Ministry of Finance.

The Financial Intelligence Service







conducts regular trainings for the staff of commercial banks and professional participants of equity market.

Employees of financial banks are educated by the specialists of FIS of KR at the educational centre of Bank Union.

Special office equipment for educational workshops has been purchased.


On 14 December 2006, the Financial Intelligence Service (FIS) and its counterparts in Belarus and Russia signed agreements to cooperate on anti-money laundering and terrorist financing.

Based on bilateral international agreements (Russia, Belarus, Ukraine, etc.), 11 mutual assistance requests were received and 4 requests were sent, one of them by personal initiative.

In November 2007, in the framework of UN Project, officials of the FIS and law-enforcement officials participated in an educational tour to the governmental committee of Financial Monitoring of Ukraine.

On December 13, 2007 in Saniya city, China, the FIS of Kyrgyz Republic signed a Memorandum of Understanding with the Centre of Analysis and Monitoring of Anti-Money Laundering of the Republic of China.

The FIS of Kyrgyzstan has drafted a plan for the projects of Memorandums on Mutual Cooperation with financial monitoring bodies of Afghanistan, Estonia, Moldova, Malaysia and money transfer companies of ―Western Union‖ and ―Unistream‖.












In 2006, 3 943 enterprises (40% of the total) used the new International Standards of Financial Reporting (ISFR), 1 559 enterprises (16.1%) used Kyrgyz standards, and 4 198 (43.3%) used the old system of accounting.

Main objectives, powers and responsibilities of Chamber of Accountants and its territorial subdivisions are defined by Law ―On Chamber of Accountants‖ of August 13, 2004.

Chamber of Accountants is the auditor of all governmental and municipal companies, organizations and institutes of Kyrgyzstan. It exercises powers over companies and organizations with private property form where the government plays a major role or in case that the government owns at least 33.3% of their property. It is unable to impose sanctions on administrative workers and workers of object being audited.

Responsibility of auditors and specialists-experts of Chamber of Accountants are prescribed by the law and other legal regulations.

Law ―On auditing activity‖ does not







concern the Chamber itself but other private auditing companies.

Reports and recommendations made by the Chamber of Accountants are presented to the object of audit, its supervising body, the Parliament and the President.






The leaders of the National Agency on Corruption Prevention appeared in television programs in the framework of the Soros-Kyrgyzstan Foundation‘s ―Open Kyrgyzstan‖ Project.

In May 2007, a Central Asian Forum on Public Procurement was held. Representatives from Kazakhstan, Tajikistan, Uzbekistan, Poland, Korea, Kyrgyzstan, international financial donors such as the World Bank, UNDP, ADB and European Bank participated.

The officer of the National Agency on Public Procurement took part in the ―Fighting bribery in the public procurement‖ workshop, in November 2007 in Indonesia.

In March 2008 a Round Table was conducted, where representatives of the Parliament, procuring organizations and Cooperative Unions discussed direct co-operation of government with agricultural commodity producers.







A web site was launched, providing legal documents, inspection protocols at procuring organizations, ―Project discussion‖ column, and anti-corruption fight pillar works. Through this web site, anybody can make suggestions and recommendations on improving system of public procurement.

Public awareness campaigns With the assistance of the UNODC‘s regional office, wall posters and calendars with anti-corruption messages in English and Kyrgyz have been distributed.

The work of raising business issues via the mass media is in progress: ―Ala-Too Plus‖ telecast, Radio ―Manas‖, and several articles in printed mass media and the publications of information agencies.

Bodies of Financial Police work with the mass media to raise awareness of the fight against corruption offenses at governmental bodies, and excessive interference in the work of business subjects. They also created a web site of financial police (www.finpol.kg) in November 2007, where all the information on the activity of financial police is published.

The National Agency on Corruption Prevention and the Ministry of Education and Science held a competition of children‘s pictures and essays on the topic ―I Am Against Corruption‖. The winners were announced on 1 June 2007.

The National Agency on Corruption Prevention is planning to hold a workshop for road inspection officers on corruption problems in the road inspection system.

Ministry of Economic Development and Trade of Kyrgyz Republic conducted some activity on the organization of business meetings, round tables, etc.

On January 11, 2008, a round table was conducted on issues of implementing legal rights in the inspections of business subjects and definition of ways to overcome obstacles.

A workshop on ―practice adaptation of the procedure of analysis of regulatory

http://www.finpol.kg/







effect of normative legal acts‖ was held from 25th to 29th of February 2008 for representatives from ministries, committees, other bodies, and the city administration of Bishkek.

A project for making a draft law ―On Optimization of Normative Legal Base of Business Activity Regulation‖ was presented at a plenary session of the Parliament.


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

In accordance with the National Strategy on the Fight against Corruption and its Action Plan, the NACP developed training materials and education programs for schools and universities. On 26-27 June 2007, the Agency and the Ministry of Education and Science gave a presentation of the Training Manual on Anti-Corruption Education to the heads of the curriculum departments of the schools in Bishkek city.

Besides the main introductory course, 1-day and 2-day workshops were held on managing public procurement, consulter services, tender winning issues, agreements and administration.

Anti-corruption curriculums for schoolchildren have been developed with the assistance of the American Bar Association. The curriculums will be applied at the beginning of the 2008 academic year.

The anti-corruption program for students of High Education Institutes has been developed with the assistance of the American Bar Association. The program is under approbation in High Education Institutes.

The Center of professional training of General Prosecutor‘s Office conducts extension courses for the investigation-operative officers on the fight against corruption and economic crime.

The NACP conducted a joint workshop on November 22, 2007 with ACA of Malaysia for governmental and municipal servants, representatives of non-governmental organizations and mass media. The workshop addressed the positive experience of repressive







and preventive measures and methods of fight against corruption.

The NACP and the Administration Academy under the President are now planning to design lecture courses for the public and municipal servants on anti-corruption rules, ethical codes of conduct, and increase of integrity and accountability.

In order to raise public awareness of anti-corruption activity and corruption prevention, as well as to improve and spread anti-corruption training programs, the NACP and Ministry of Education and Science developed a plan of joint measures. In the framework of this plan, picture and essay competitions among students are being prepared.




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

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


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

A revised Law ―On Guarantees and Free Access to Information‖ is still under review by Parliament.

Regional training-information center of Public Procurement Agency regularly places announcements of procuring organizations on bidding and selection







in its Bulletin.

In accordance with the Presidential Decree ―On Access to Information Kept by the Governmental Bodies and Local Autonomous Governments,‖ the information on working days of financial police is distributed to citizens for reference in filing application and request of information.

The helplines are in operation within all subdivisions of General Prosecutor‘s Office. Citizens can raise any issues concerning violations of law. Besides, the Prosecutor‘s Office provides information upon request concerning its activity, in particular matters regarding the rights and freedom. The web-site is functioning at present and press conferences and briefings are regularly conducted.




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

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







institutions have signed the Memorandum.

Under its work plan for 2007, the National Agency on Corruption Prevention has developed a procedure to ensure civil society‘s constant participation in the implementation of the President‘s Decree ―On Measures for Enhancement, Normative Consolidation and Implementing into Practice the Interaction of State Bodies, Local Authorities and Civil Society‖ (11 May 11 2006).

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


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

Transparency International has been involved in:

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

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







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

Other

Kyrgyzstan has adopted a Development Strategy which is the major conceptual document reflecting the country‘s in 2007-2010 vision. One of the aims of the strategy is to fight against corruption continuously. Responsibility for implementing this aspect of the Strategy has been assigned to the National Council of the Kyrgyz Republic on Fight against Corruption.

Kyrgyz Republic has joined the ―Millennium Challenge Accounts‖ in August 2007. The following spheres will be financed under the program: reforming of enforcement structure, judicial reforms and fight against corruption.

The Kyrgyz Republic cooperates very closely with international organizations in the field of country‘s development in accordance with the Joint Country‘s Support Strategy for 2007-2010. The partners of JCSS are oriented to: economic management, conducting of complex reforms in public financial resources management; corruption reduction; provision of ecological sustainability and management of natural resources.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Macao, China – 179 –

Macao, China









Systems for compensation The ―General Career Regime‖ stipulates the salary scheme for public servants. The Government is updating and modifying the Regime to create better professional prospects for civil servants.

According to the released consultation document, the main proposals in the revision of ―General Career Regime‖ are as follows:

Create better and more reasonable promotion prospects;

Raise the hiring requirements (i.e. academic, training and working experience) of some groups of career, as well as adjust the related salary scheme;

Solve the problem of unequal pay for equal work caused by different types of hiring contracts.


In the project of the revision of career regime, the hiring and promotion system will be applicable to all public staff, regardless of individual‘s contractual or appointment arrangement.

The Government is considering, also, the establishment of a central authority to undertake and coordinate the hiring and promotion procedures of public officials.


The Government is drafting regulations on accountability of high-ranking officials to be included in the ―New Route for Public Administration Reform‖, a new reform plan for public administration.











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


The Commission Against Corruption (CCAC) is conducting a review of the law on ―Declaration and Public Monitor of Incomes and Properties‖, studying how to enhance the transparency of declarations submitted by high-ranking officials.


In September 2007, the CCAC launched the ―Integrity Management Plan‖, with the aim to comply with the Government‘s strategy of building a clean administration. Until February 2008, 59 of 60 government departments/institutions have signed the ―Integrity Management Plan-Protocol of Collaboration‖ with the Commission. The Protocol stipulates various aspects regarding supervision, corruption prevention and education. The departments/institutions are responsible for implementation while the Commission is responsible for providing technical assistance. Through an effective communication mechanism, both parties will review together the results of implementation.

In the 4th quarter of 2007, the CCAC had conducted, with the joint effort of Identification Bureau, an examination and research project on the procedures of issuing of travel documents. Recommendations were made to ensure the administrative procedures are in compliance with the law and to








enhance the efficiency and transparency of administrative operations, as well as to eliminate the factors that facilitate corruption and fraud.


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

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

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

The English version of the ―Guidelines on the Professional Ethics and Conduct of Public Servants‖ was published and free copies were sent to public departments and institutions. Chinese and Portuguese versions are available upon request.

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

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

53 of 55 public departments (96%) formulated internal codes of conduct, including 16 small departments that have adopted the Commission‘s ―Guidelines on the Professional Ethics and Conduct of Public Servants‖.

Until March 2008, 57 of 60 public departments/institutions have formulated internal codes of conduct. A few departments have already revised its code of conduct by introducing modifications obtained from the implementation.

In October 2006, the Commission organized a ―Workshop of sharing experiences on integrity‖. Over 240 department heads and senior management officers of public departments attended the workshop. Speakers from P.R. China, ICAC (Hong Kong, China) and the Macao, China government shared their experiences in building a culture of integrity in the public service, and in developing codes of conduct.

Over 50 seminars were organized for more than 1 400 civil servants on topics such as codes of conduct, anti-corruption, and declaration of property and incomes.

Under the ―New Route for Public Administration Reform‖ announced in








June 2007, the Government will reinforce the management of civil servants, especially in strengthening the culture of incorruptibility and integrity in public service.

In collaboration with the offices of the 5 Secretaries, the Commission launched a series of workshops in July 2007 on integrity management to strengthen the integrity of middle- and high-ranking officials.

In August 2007, the CCAC will start organizing a series of workshops for all government departments. Priority will be given to departments that carry out sensitive/corruption-prone duties, with an aim to enhance their awareness of integrity.

From August to September 2007, the CCAC organized a number of ―Workshops on Integrity Construction‖ for the civil servants involved in public works and transportation. With explanations and case studies, the workshops aimed to strengthen the public officers‘ awareness of integrity when discharging their duties.







Public procurement procedures and adequate

On the basis of the existing legal system, the ―Guidelines for the

A project to revise the public procurement system has been included

In 2007, the Commission completed a thorough research study on the








simplified administration procedures

Procurement and Acquisition of Public Goods and Services‖ provide practical suggestions on the operational procedures of public procurement to ensure fairness, transparency and efficiency.

in the new plan to reform the public administration.

―System of Procurement of Public Works‖, providing recommendations to improve the relevant legal system as well as to diminish the loopholes and deficiencies that may exist.

In the 1st quarter of 2008, the Office of the Secretary for Transport and Public Works promulgated the ―Instructions on the Expenditure on Public Works and the Acquisition of Properties and Services,‖ and all the public departments in this area are obliged to act in conformity. This effort aims to solve the problem of different interpretations of legislation and rules by different departments by giving clear, concise and standardized guidelines on the following topics: the selection of procurement method; the setting up of a committee that verifies the eligibility requirements and the setting up of an evaluation committee; the selection criteria; the amount of additional works; the recusal system and the monitoring mechanism of the execution of works.















On 6 December 2006, the CCAC arrested and detained Ao Man Long, a former Secretary for Transport and Public Works. In April and May 2007, the Commission transferred 2 cases concerning Ao to the Public Prosecutions Office. The cases involved 36 defendants (including 4 relatives of Ao).

It is alleged that Ao abused his authority and took bribes from a number of public work project contractors between 2002 and 2006. The properties involved totaled over MOP 790 million. Ao also allegedly falsely declared his income and properties, and possessed wealth disproportionate to his official income.

In June 2007, the Public Prosecutions Office formally charged Ao with bribe-taking, money laundering, and abuse of power. The charges were transferred to the Court of Final Appeal.

In accordance with the Basic Law, the Chief Executive also asked the Central Government of P.R. China to remove Ao from all official duties.

In January 2008, the former Secretary for Transport and Public Works, Ao Man Long, was sentenced to 27 years in prison and a fine of 240,000 patacas for corruption, money laundering, abuse of power, unjustified wealth and a false income declaration (According to the Macao Penal Code, the ―regular‖ maximum prison term amounts to 25 years, however, in ―exceptional‖ cases, the term can reach a maximum of 30 years.) The court also ordered assets worth 252.8 million patacas to be confiscated.


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

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

Pool, analyze and facilitate information related to money

The GIF has issued guidelines related to the law on prevention and repression of money laundering and organized explanatory sessions to enhance the public awareness in this aspect.








laundering and terrorist financing;

Inform the Public Prosecution of suspected money laundering and terrorist financing operations;

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

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

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

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

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

At the end of 2006, the Macau Lawyers Association established guidelines to prevent and combat money laundering. The aim is to ensure that lawyers abide by the law.





Training and resources In 2006, the CCAC planned to set up a second regional office in order to build a








closer relationship with the public. In the first quarter of 2007, it was decided that the new office would be located on Taipa Island. Construction is now in progress. The new office is close to the newly developed projects of gaming enterprises.

In June 2007, a senior CCAC investigation officer spoke in one of the modules of a diploma program on ―Strategic Corruption Control and Organizational Integrity‖ offered by a tertiary education institution of Macao China. The officer discussed how the CCAC strives to build a new culture among public servants through proactive strategies of anti-corruption, prevention and education.

In March 2007, the CCAC launched a recruitment campaign to strengthen the institution‘s manpower and capability. All selected candidates must take a training course and examination on the requisite legal knowledge and investigation techniques before working for the CCAC.

With a former judge‘s assistance, the CCAC organized an internal training course for its investigation officers in July 2007.


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

Regarding the implementation of United Nations Convention Against Corruption in Macao SAR, the Government is in the process of studying the elaboration of relevant legislation.

In June 2007, the CCAC sent a legal advisor and a senior investigation officer to the First International Association of Anti-Corruption Authorities (IAACA) Seminar organized

With the purpose of advancing exchanges between China (including HK SAR and Macao SAR) and the Portuguese-speaking countries on the issue of promoting legality in








by the Supreme People‘s Procuratorate of P.R. China. The experiences of anti-corruption efforts in Macao, China were presented in the seminar.

administration, the Commission hosted the ―Ombudsman and Legality in Administration Conference‖ in October 2007. Delegations from 9 countries and regions participated in the program. This event included a 2-day study visit hosted by the Ministry of Supervision of the PRC. The event provided an opportunity for the exchange of views and experiences and paved the way for future cooperation between China and Portuguese-speaking countries.




The CCAC conducted a study on strategies to control and prevent corruption that may occur in the gaming sector.

According to the Policy Address for 2008, the investigative power of the CCAC will be expanded to the private sector. The CCAC is in the process of revising its Organizational Law and is making other relevant preparations.















With the purpose to facilitate exchanges on theories and practical experiences of integrity education, the CCAC organized the ―Symposium on Education of Integrity and Honesty for Teenagers‖ in November 2007. Scholars and experts from China, Taiwan, Hong Kong and Macao were invited to share their experiences on the field. Over 150 school principals, supervisors, teachers, representatives from the educational field, public departments and youth associations attended the Symposium.

In March 2008, the CCAC organized a Forum to discuss the integrity in the private sector with the aim to promote the society, especially the private sector, to participate in the establishment of clean and fair society. Experts and scholars from Hong Kong, Portugal and Macao were invited to share their experiences and exchanged opinions with the participants. There were approximately 700 participants from the public sector (including juridical area) and the private sector attended this event.



Education programs Macao, China has regularly launched education and promotion programs to gain the support and participation of all

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

The CCAC continued organizing the following programs:

The ―New Generation of Integrity‖

The CCAC continued organizing the following programs to foster teenagers‘ awareness on integrity and honesty:








sectors of society, including the general public, community-based organizations, civil servants and students of primary, secondary schools and universities. The CCAC plans to undertake measures to develop teenagers‘ sense of antipathy to corruption.

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

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

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

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

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

program for over 2 500 primary school students.

―Education Programs on Honesty for Teenagers‖ for over 9 000 secondary school students.

―Integrity Week‖ for 1 500 secondary school students.

Co-organizing a variety show with a civil association to promote integrity and law-abidingness to teenagers.

Publishing a comic book ―Integrity Story Salon‖ that contains stories of ancient China and adapted cases investigated by the CCAC.

Developing ―Teen City‖, a Web site on integrity and honesty for teenagers in order to reach more teenagers and to transmit the message of integrity in a more interesting way.

The ―New Generation of Integrity‖ program for over 5,500 primary school students and evaluation was conducted based on reply of questionnaires from teachers;

―Education Program on Honesty for Teenagers‖ for over 7,000 secondary and tertiary school students.

Co-organizing a comic drawing contest named ―Draw a New World of Integrity‖ with a student association in Macao. Over 200 pieces of drawing were received and an exhibition of awarded pieces was

toured around 10 schools （

awarded students‘ schools） in

Macao.

Co-organizing a Chinese calligraphy contest with a civil association that used honesty and integrity as the theme. Over 1,700 students participated.

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

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

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

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

The CCAC organized the following activities for the general public:

Over 20 seminars for more than 1 000 people from different associations and enterprises on anti-corruption, ombudsman, and integrity awareness.

Publishing ―Selected Cases of the Ombudsman‖ to promote the Ombudsman functions of the CCAC.

The CCAC Commissioner and staff spoke at anti-corruption conferences, lectures and seminars organized by different universities.

Setting up booths at bazaars organized by civil associations to promote integrity awareness.

The CCAC organized the following activities for the public:

Seminars for more than 1,500 people from different associations and enterprises on anti-corruption, ombudsman and integrity awareness.

Over 40 seminars and workshop for more than 2,076 civil servants on code of conduct, anti-corruption, public procurement and declaration of property and incomes.

Publishing ―Love for Integrity II‖, a book of selected articles published in the column of ―Clean Administration Forum‖ in newspaper to increase public awareness on anti-corruption and ombudsman.

Setting up booths at the bazaars








organized by civil associations to promote integrity awareness.

Designing a new poster reminding civil servants not to receive gifts and the posters were sent to all public departments.

Producing a new series of radio and TV advertisement for public broadcast through mass media.








The Commission organized meetings with 6 civil associations to listen to their opinions on fighting corruption.

The Commission visited 9 civil associations to listen to their opinions as well as met with the press to exchange opinions on anti-corruption and ombudsman.

The Commission organized 3 sessions with the press to explain the work of the CCAC in 2007 and to gather their opinions.


Involvement of NGOs in








monitoring of public sector programs and activities

OTHER

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

Based on the experience from the last legislative assembly election in 2005, the CCAC completed in 2006 a report providing suggestions on how to eliminate loopholes in the electoral legislation.

Revisions to the Chief Executive Election Law and the Legislative Assembly Election Law were included in the reform plan for public administration. The CCAC was consulted in the process of the revision.

The Government released public consultation documents for the proposed revision of the Chief Executive Election Law, the Electoral Law for the Legislative Assembly and the Voter Registration Law. The purpose of the proposed revisions is to facilitate the electoral systems and tackle election bribery. Major proposed changes included strengthening the power of the Electoral Affairs Committee (it is suggested that a representative of the CCAC and a representative of the Public Prosecutions Office be part of the proposed Legislative Assembly Election Management Committee), raising the requirements for local associations and organizations to become legal person voters, and abolishing voter registration cards. By cancelling voter registration cards, those people who try to buy votes would not be able to collect registration cards to meddle in the elections. It is also proposed that the penalties for bribing and other violations of electoral laws be increased, and the regulations for campaign donations be tightened.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Malaysia – 193 –

Malaysia








Systems for compensation On 21 May 2007, the Prime Minister announced pay increases for civil servants ranging from 7.5-35%, while increases for the Royal Malaysian Police and Armed Forces will range from 9-42%. The increment takes effect in July 2007. The Prime Minister also announced a 100% increment in the Cost of Living Allowance for civil servants.

Effective from 1 July 2007, all the civil servants including the Royal Malaysian Police and Armed Forces were paid the new salary plus the new amount of the Cost of Living Allowance.

On 10 May 2008, the government announced the retirement age of civil servants raised from 56 years old to 58 years old effective 1 July 2008, calculation of pension based on a maximum of 30 years of service (up from the current 25 years of service) effective from 1 January 2008.







Systems regulating contacts







between government officials and business services users, particularly in corruption-prone areas






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





The Parliament of Malaysia established the Special Select Committee on Integrity on 8 December 2005. The Committee consists of 12 members from both the ruling and opposition parties and is headed by a Minister. The purpose of the Committee is to examine and discuss issues on ethics and integrity among the public; plan







and implement an integrity action plan so as to achieve the five targets of the National Integrity Plan (NIP); recommend improvements to the NIP implementation programs; study and examine existing laws and regulations to strengthen values, ethics and integrity, and to discuss the views and recommendation of the public; submit proposals to Parliament on policy changes, and legislative reviews and amendments; and examine and implement the strategies and integrity agenda outlined in the NIP. Since its inception in early 2006, the Committee met the public four times to receive complaints and to obtain views on ethics and integrity issues.


Simplification of the regulatory environment

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

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

The Certificate of Completion and Compliance (CCC) System for new buildings came into force on 12 April 2007. The system introduces self-certification and self-regulation into the building industry. Certification will be issued by professional architects registered with the Board of Architects Malaysia, professional engineers registered with the Board of Engineers Malaysia, and building draughtsmen registered with the Board of Architects Malaysia. CCCs are to be issued with the Notice of Vacant Possession, thereby reducing the waiting time before occupancy.

It is being practiced and ever since less complaints have been received from the public in relation to this issue.











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

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

Implement article 16 of the UNCAC (bribery of foreign public officials and officials of international organizations) by adding the offence to the Anti-Corruption Act 1997. Malaysia believes that this is the only article of the UNCAC that remains unimplemented;

Expand whistleblower protection; and

Allow attendance of proceedings via videolink.

The government has put on hold proposed amendments to the Anti-Corruption Act that aimed to implement article 16 of the UNCAC (bribery of foreign public officials), expand whistleblower protection, and allow attendance of proceedings via videolink.

The Attorney General‘s Chamber is drafting plans for a Witness Protection Program.

Malaysia is transforming the Anti-Corruption Agency to a commission. The process of transformation requires the Anti-Corruption Act 1997 be amended. Therefore, the proposed amendment of the act that aims to implement article 16 of UNCAC (bribery of foreign public officials) is still put on hold awaiting amendments to the other sections of the act.






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







June 2006.

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

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

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

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

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











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








On 10 March 2006, the Police Complaint Bureau launched the Public Polling System as proposed by the Prime Minister. The initiative aims to provide the public with an opportunity to







voice their opinions and suggestions on government projects.

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

Measure public perception of corruption

Measure public involvement in fighting corruption

Develop benchmarks for corruption

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

A consultant has completed the corruption perception survey and presented the results on 7 and 8 June 2007 to the management of the Anti-Corruption Agency (ACA). The consultant will improve the paper before it is presented to the government.

The corruption perception survey will be presented before the Prime Minister on a date to be fixed by the Prime Minister‘s Office.

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


Education programs



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







to combat corruption





On 27 June 2007, the ACA and vice chancellors from 20 local universities discussed establishing anti-corruption secretariats in universities. The objective of the secretariats is to carry out anti-corruption activities in universities so as to instill students with good values and high integrity.

On 6 December 2007, establishment of anti-corruption secretariats in 20 universities has been launched and officiated by Minister of Higher Education. Each university appointed members of the secretariats. Several activities were carried out by the secretariats including talks on anti-corruption, games, informative entertainment (persembahan bermesej) and religious activities. All activities were initiated and organized by the secretariats and supervised by ACA.

On 9-10 July 2007, 200 students from 20 higher learning institutions attended the Anti-Corruption Convention for Institutes of Higher Learning. The event was organized by the ACA with the cooperation of Ministry of Higher Learning, Ministry of Youth and Sport, and the National Union of Malaysia Muslim Students. The Convention aimed to inculcate anti-corruption values among students of higher learning. Resolutions from the Convention will be forwarded to the government for implementation, including one to set up anti-corruption clubs in Malaysian universities.









OTHER

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


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Mongolia – 202 –

Mongolia











The Law on Public Service was amended by the resolution of the State Great Khural in May 2008. The main objectives of the amendment were aimed to promote independence of the civil service from politics, and create a pleasant working environment for civil servants in a sustainable manner. The purview and authority central state organizations has increased in accordance with these amendments. The aforesaid law states that civil servants apart from political positions should not belong to a political party.

In accordance with these legal amendments, the National Commission for Civil Service is responsible for nominating a candidate for a public organization in strict order of merit based on test results, but the employer has authority for appointment.

According to these amendments, should be held to fill any civil service posts occupied on a temporary basis. The amendments provide that National Commission for Civil Service has an authority to neglect the resolution on illegal dismissal of civil servants. In other words, some improvements have been made on protecting the rights of civil servants.












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

The Law on Public Service imposes the following restrictions for civil servants on taking any type of incentives, and loans from a citizen, organization, or company while they are fulfilling their duties and responsibilities. The restrictions were stated herein, to prevent civil servants from conflict of interests.

Anti–Corruption Law states that public officials are prohibited from exerting pressure on or intervening in other organizations‘ activities on matters unrelated to his/her official duties, using the power of his/her position and working contacts and relations established based on his/her position.

The Independent Authority against Corruption (IAAC) drafted the Law on Prevention of Conflict of Interest in Public Service under the technical support of the World Bank Governance Assistance Project and submitted the draft law to the President Office of Mongolia for further discussion.

The Law on Ethical Code for Civil Servants was legislated in 1999. In addition, most organizations have their own codes of conduct. However, as regulations on conflict of interest were not stated, the procedures for codes of conduct were updated and amended to prevent conflict of interest.

Disclosure and/or monitoring of, for example, personal

The new Law on Anti-Corruption obliges public servants to declare their

The IAAC has developed the manual on procedure for asset and income








assets and liabilities assets on a regular basis declaration, which includes registration, monitoring and conducting an analysis of assets and incomes. It organized training sessions and developed. reporting forms which are in use now.

Income and asset declaration of 99.6 % of the higher level of public officials were made public through the gazette ‗‘Turiin medeelel‘‘ and IAAC website in 2008, as required by the Anti-Corruption Law.


According to the Anti-Corruption Law, public officials are prohibited from using his/her official power in private interests, affording preferences to others, any violation of law, expressed in action or failure to act , which enables an individual or a legal person to benefit from such preferences, as well as misuse of public budget.

The IAAC and Mongolian Employers‘ Federation organized a one-day open consultative workshop on ‗‘employers against corruption‘‘ in March 2008 under the technical support of World Bank Governance Assistance Project. As a result of the consultative workshop, recommendations were developed by the participants, employers and businessmen, and submitted to the Government for further discussions and taking adequate measures to invalidate such laws and regulations which cause bottlenecks and corruption. These recommendations were discussed during the Cabinet Meeting, and a resolution was made to amend or invalidate illegal laws and orders, decisions, procedures and rules that cause bottlenecks, corruption or conflict of interest based on detailed studies, and to broadcast the result through mass media as well as to amend laws if required.









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

Law on Anti-Corruption obliges public and corporate organizations to maintain codes of conduct in the respective institutions.

Capacity building and training issues for civil servants were included in the updated codes of conduct for civil servants. The Anti-Corruption law provides that state institutions should seek comments from the IAAC before adopting codes of conduct/ethics for officials of its particular sector; non-governmental organizations have obligations to approve codes of conduct/ethics for the staff and provide transparency of the financial and operational reports; and the private sector should develop and follow operational codes of ethics. The IAAC recommends that codes of conduct/ethics should contain training on ethics for staff. The IAAC is organizing such training sessions as ―ethics for public service‖ and ―ethics for lawyers‖ for civil servants.


Law on Anti-Corruption promotes reporting by officials as well as provides certain protection guarantees.

The IAAC is receiving information and complaints in regard of corruption from citizens and legal bodies through its special hot line 1969 on a 24-hour basis. Law on Anti-Corruption states that, if necessary, witnesses and other persons who assisted in the process shall be placed under the protection of the police.




A website is established by the Ministry of Finance that enables information on fiscal policy and state budgeting to be updated on a regular basis. Also, all negotiations with the IMF and the WB are followed by press releases or

As stated in the Law on Anti-Corruption, state organizations should inform the public about the public revenues and expenditures, foreign loans and aids and their allocations in a timely manner.








conferences. Furthermore, the law provides that unless otherwise provided for by the legislation, procedures of specific government institutions for issuing licenses and permits, registration, monitoring and competitive selection processes consistent with their functions, shall be open to the general public and provide citizens with opportunities for review and comment. The IAAC delivered recommendations incorporating the above mentioned issues to all levels of state organizations, and monitors the implementation of the law and its recommendations.

The state annual budget execution is posted on a regular basis at the dynamic portal web site under the Ministry of Finance.



A regulatory and practice reform on internal auditing is under progress supported by the ADB together with the Ministry of Finance.

The IAAC has established a working group on preventing corruption and raising public awareness of anti-corruption in cooperation with the Government, and its implementation plan is approved. Within this scope of work, the IAAC is examining certain laws and regulations of a number of organizations in terms of organization of public service, assessing the legal environment for avoiding bottlenecks, corruption and economic pressure. Degree of quality and transparency and effectiveness of the public service will be assessed within the scope of work mentioned above. Seminars are organized on ‗‘Assessing corruption risks and plan for prevention‘‘ in collaboration with Government Chancellery under technical support of Asia Foundation. Methodological support is provided for each ministry








and agency to develop prevention plans on anti-corruption. The IAAC studies procedure on compensation and fees for such public service organizations as the health, civic registration, and property registration agencies.


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

A new Law on Procurement has been in action since February 2006.

A new Law on Public Procurement by the resolution of the State Great Khural has been in action since 15th of February 2006. A number of procedures and orders to implement the law were approved by the Ministry of Finance. All related legislation, procedures, orders, and manuals regarding the Law on Public Procurement are posted on the web site managed by the MoF.

The IAAC in collaboration with Transparency International, Mongolia organized training on ―preventing corruption in the public procurement process‖ for civil servant, general managers of public budget, and staff for legal institutions and provided them with training manuals.

The recommendations submitted to the Government as a result of the consultative workshop held in collaboration with Mongolian Employers‘ Federation were discussed during its Government meeting. As a result of the meeting, a working group including civil society members was established for the purpose of monitoring public procurement activities








and procedure for providing special licenses.


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

Law on Anti-Corruption, adopted by the Parliament in July 2006, has been in action since November 2006. An independent anti-corruption body will be created.

Resulting from the concrete actions by the Government of Mongolia for addressing corruption issues, following Mongolia‘s signing of the UN Convention against Corruption in 2005, the revised Law on Anti-Corruption was adopted in 2006, and the Independent Authority against Corruption (IAAC), Mongolia‘s first ever independent institution for combating corruption was set up in 2007.

As provided in the Law on Anti-Corruption, the IAAC is mandated to educate and raise awareness of the public on anti-corruption and increase the efficiency in the fight against corruption. It has authority to investigate and inspect corruption incidences and compile and analyse the annual income and asset statements by civil servants.

Functionally, there are 4 major divisions and service lines and units within the IAAC including 1. Prevention and Public Awareness Division 2. Monitoring and Evaluation Division, 3. Investigation Division; and 4. Administrative Division. The main service lines include: Intelligence service; Research Unit, Security and inspection service and Financial and Operational services. The agency employees 90 staff members.


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

Law dated 29th of December 2005 on election states the amount and type of donation for electoral campaigns and has obligation to include certain








activities such as distribution of gifts, etc. in the expenditure report for electoral campaigns.






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

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

The amended Criminal Procedures Law, effective as of September 08, 2007, provides for the IAAC‘s investigative power and 8 categories of crimes.


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

Anti-Money Laundering and Terrorist-Financing Law has been in action since July 2006.

According to the Law on Anti-Money Laundering and Terrorist–Financing, the Financial Information Unit at the Mongol Bank was established on 30 November 2006. The FIU has developed required procedure for banks and financial organizations and started to put in place all necessary instruments to communicate with international organizations. In accordance with the Law on Anti-Money Laundering and Terrorist–Financing, the unit collects information on suspicious cash transactions from banks and financial organizations. Mongolia joined the Asia/Pacific Group on Money Laundering in 2004 and has reported its activities successfully.


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

The amended Criminal Procedures Law, effective as of September 08, 2007, provides for the IAAC‘s investigative power and 8 categories of








crimes. Those include namely the crimes related to abuse of power by civil servants by exceeding the limits of their authority, abuse of power by officials of NGOs and private entities by exceeding the limits of their authority, rent seeking, bribery, brokering of bribery, and misuse of public money in the Criminal Code.


Law on Anti-Money Laundering and Terrorist-Financing enables respective authorities to have access to and monitor bank commercial records.

In exercising its mandate, the IAAC will follow the above-mentioned procedures which are stipulated in the Criminal Procedures Law and the Law on Intelligence Service.

The IAAC has authority to obtain necessary information, survey results, explanations, definitions and other documents free of charge from businesses and entities, officials and individuals, review these materials and request expert analyses and verifications.

Inter-agency co-operation The IAAC has signed the memorandum of understanding with the Ministry of Education, Culture, and Science with purpose to support corruption prevention activities in the education sector and to collaborate in this area.


Law on Anti-Corruption states that, if necessary, witnesses and other persons who assisted in the process shall be placed under the protection of the police.













As stated in the Law on Anti-Corruption, a legal body should have codes of conduct for business. The participants shared their opinions regarding this issue during the consultative workshop held in collaboration with National Employer‘s Association.








The IAAC in collaboration with Asia Foundation organized a forum ―Development of corruption prevention plan‖ for managerial staff of state organizations.

-Public discussion on ―National Programme for Anti–Corruption‖ was organized in collaboration with Mongolian National TV and NTV.

-A number of activities such as








―Cultural Festival‖ were held and best advertisement and essay on corruption among the media staff were announced. These competitions are part of the campaign ―Lets us unify our voices against corruption‖, initiated by the Eagle TV and other NGOs.

-Methodological support was provided for preparation of TV programmes such as ―Time for combating against corruption‘‘ in collaboration with TM TV and a discussion ―Lets us unify our voices against corruption‖ in collaboration with Eagle TV.

Public awareness campaigns A competition for TV interview was organized for journalists and reporters and essay and painting competitions were held for students. The IAAC produced a drama whose objectives were raising public awareness of the negative aspects and consequences of corruption. The drama was produced in a comedy style for easy understanding.

A number of training sessions were organized on ―The ways of preventing corruption‖, ―Criminal code of corruption‖, ―Codes of conduct/ethics for lawyers‖, and ―Cause of corruption‖ for staff of legal institutions; police officers, judicial officials and prosecutors as well as civil servants from state organizations.


Law on Anti-Corruption provides for the establishment of a public council within the framework of the Anti-Corruption Agency that will ensure monitoring and accountability of the agency.

The IAAC is considering increasing public participation in combating against corruption, in particular by collaborating with NGOs and mass media. Law on Anti-Corruption states that an ad hoc Public Council shall be established by the IAAC with the purpose to ensure active public involvement in combating corruption, to voice its opinion, and to provide guidance on corruption issues and implementation of the anti-corruption








law.

Working procedure of the Public Council was approved by the IAAC and is now in action.

Public discussions were organized on updating National Programme in combating corruption and input was incorporated.

Education programs Training curriculum for pupils of the secondary school was updated by adding the content on the prevention of corruption and negative aspects and consequences of corruption in cooperation with Ministry of Education, Culture and Science. This was intended as an activity for advocacy to introduce the consequences of corruption to the youth and children.




Law on Anti-Corruption requires justice and other governmental agencies to disclose efforts to promote integrity and accountability and to combat corruption.


The IAAC is operating its Web site and updating required links. Recommendations on providing the public with meaningful access to information and enhancing transparency were sent by the IAAC to state organizations in order to decrease the bottlenecks and increase public access to information.

The IAAC monitored the operation of 197 state organizations in collaboration of NGOs to identify the status of








bottlenecks, degree of transparency and ethical issues among civil servants for the duration of 6 months. The managerial staff of the state organizations were notified of the results, and methodological support was given so that they can consider the issues that were raised and correct identified weaknesses.

Information and complaints regarding bottlenecks and bureaucracy of the certain state organizations were received through special telephone line 1977 with the duration of 6 months, and measures were taken to address the problems. The IAAC targeted and worked with the top organization, which scored higher in terms of its bureaucracy and bottlenecks, and took adequate remedial measures.






Law on Anti-Corruption provides for the establishment of a public council within the framework of the Anti-Corruption Agency that will ensure monitoring and accountability of the agency.

In collaboration with Open Society Forum, a study on state organizations bureaucracy and bottlenecks was conducted with the purpose to increase monitoring role of NGOs to ensure civil service transparency. Results were communicated to the managerial staff of state organizations and disseminated through public mass media.

OTHER


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Nepal – 215 –

Nepal









Systems for compensation The Government of Nepal shall take necessary steps for compensation.


Good Governance Act, 2008 will guide them.


Laws concerning those institutions and Good Governance Act will guide them.


Usually it is done after 2 years.



Civil Code controls the conflict of interest in the judiciary while in the private sector they have their own control mechanisms. For the civil service the law is yet to be formulated.


All public officials must disclose their personal assets within the first 60 days of each fiscal year. The National Vigilance Centre monitors the records.


Nepal has formulated and implemented departmental working procedures.

The Commission for the Investigation of the Abuse of Authority (CIAA) held coordination meetings with service

CIAA is continuously holding coordination meetings with service delivery offices to identify problems and








delivery offices to identify problems and solutions.

find the solutions. CIAA directs National Vigilance Center to implement the decisions.


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

CIAA has already formulated and implemented the Code of Conduct and requested other public and private sector organizations to formulate and implement the Code of Conduct.


Whistleblowers Protection Act is yet to be formulated.




Fiscal transparency shall be guided and regulated by the Public Procurement Act passed on 14 January 2007 and Good Governance Act passed on 6 January 2008.


Financial Institutions shall be regulated and supervised by the Nepal Rastra Bank which is a central bank.


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

Auditor General's Office is responsible for auditing of the public administration and the public sector.

Public procurement procedures and adequate simplified

The Public Procurement Act was passed in September 2005. Nepal has








administration procedures created Procurement Offices at different levels. Penalties are imposed for wrongdoers. The Act also emphasizes transparent and competitive procurement.

Nepal made a plan to enact a ―Public Procurement Law‖ to make procedures more transparent and simple.

―Public Procurement Act‖ has been formulated and implemented.


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


Election Commission Act regulates and monitors the processing of applications, funding of political parties and electoral campaigns and expenditure.


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

Nepal Rastra Bank and Federation of Nepal Industry and Commerce oversee the business regulatory environment.





CIAA is the apex constitutional body for the sanctions for bribery of public officials.


Anti-money Laundering Act was passed by the Parliament on 28 January 2008.









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

CIAA Act and Regulations govern the investigation and prosecution of bribery.


Bank, financial or commercial records and secret bank information are being available upon the request of CIAA in the process of investigation and prosecution.

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

Interaction programs have been carried out with the Secretaries of all Ministries to enhance cooperation and coordination in controlling corruption.

Interaction programs with the Secretaries, Departmental Heads and Corporate Heads are being carried out to reduce corruption.

CIAA holds monthly meetings with focal points of the Government‘s line ministries regarding the implementation of CIAA‘s decisions on disciplinary actions and preventive measures.

CIAA continues to hold monthly meetings with focal points of the Government‘s line ministries regarding the implementation of CIAA‘s decisions on disciplinary actions and preventive measures.


Law related to the protection of persons who assist the authorities is yet to be formulated.

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

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

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

The CIAA provided training and support services for prosecutors and monitored








the performance of attorneys in court. Prosecution manuals are being prepared.

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

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

CIAA made a plan to organize regular training events and workshops to enhance the knowledge and skills of its Investigation Officers.

CIAA is carrying out a full package of trainings related to investigation, prosecution and computer for its staff and other stakeholder officials.

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

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

The CIAA will organize regular training events and workshops to enhance the knowledge and skills of its Investigation Officers.


Extradition Act and Mutual Legal Assistance (MLA) are yet to be formulated. However, Extradition Treaty between Nepal and India exists.











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

Concerned regulatory bodies shall carry out these functions. CIAA has been taking the initiative to get it implemented.



Transparent company accounting and auditing, and penalties for false accounting cases are directly handled by Revenue Investigation Department. CIAA investigates the cases involving public officials.


CIAA and other concerned agencies shall carry out administrative sanctions for bribery of public officials. CIAA files cases before the competent court.





Nepal has installed complaint boxes at public places and offices.

Nepal expects to undertake several activities to encourage public

CIAA signed a Memorandum of Understanding on a USAID project to

CIAA has established the Anti-Corruption Central Coordination

Good Governance Unit has been established from central to district level








discussion of corruption, including conducting research and soliciting feedback; and establishing outreach offices

assess the effectiveness of CIAA in curbing corruption in Nepal.

Committee (ACCC) at the national level and Anti-Corruption District Coordination Committee (ACDCC) at the district level. The CIAA Commissioner heads the ACCC and Chief District Officers head the ACDCC. These committees include representatives of civic society and public and private sector organizations. The purpose of these Committees is to allow their members to discuss and enhance anti-corruption efforts.

upon the initiative of CIAA to reduce corruption. Such units are governed by the respective agencies and monitored by CIAA. ACCC and DCC function under the guidance of CIAA.

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

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

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

CIAA produced a country-wide weekly radio program named ―Sadachar‖ (Integrity) to enlist public support against corruption.

Public awareness has been raised through the publication of newsletters, brochures, posters, pamphlets, booklets, calendars and so on.

CIAA Commissioners and senior CIAA officers made regular visits to different corruption-prone areas.

CIAA has commenced Community Education program at the school, college and community level. So far, more than 1,500 persons have been benefited from this program.

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


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

CIAA is supporting NGOs in raising public awareness by jointly organizing seminars and interactions.

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

CIAA commissioners and staff conduct frequent field visits.

CIAA has organized essay and speech competition among college students








and provided awards to the best journalists on corruption issues.

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

Nepal conducted a number of training activities, including:

Training of trainers for anti-corruption community education;

School visit programs; and

Talks with women's groups, cooperatives, business communities, community-based organizations, etc.

Besides community education program, CIAA organizes interaction, trainings and seminars across the country from time to time.




CIAA disseminates information related to its pertinent activities to the public through press releases and organizes meet-the-press programs from time to time.


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

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

Nepal has improved access to information by sensitizing the media and holding periodic press conferences, particularly when special issues emerge. It has launched a webpage that is periodically updated








with charge sheets of major corruption cases. It has produced a weekly radio program on corruption.

Nepal has enacted a Right to Information Law.

CIAA has developed its own Web site which provides comprehensive information to the public.




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

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

CIAA Commissioners and senior officers participated in various forums and initiatives undertaken by civil society organizations.

CIAA Commissioners and senior officers have continued to participate in various forums and initiatives undertaken by governmental as well as non-governmental organizations.

Protection of whistleblowers Whistleblowers Protection Act is yet to be formulated.


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

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








level.

OTHER

The Interim Parliament has endorsed a proposal to ratify the UNCAC. The forthcoming Parliament is most likely to ratify the UNCAC in due time.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Pakistan – 225 –

Pakistan









Systems for compensation The pay-scales of government employees were increased by 20% on 1 July 2007. The Federal Board of Revenue introduced an enhanced remuneration package for its employees.

The pay-scales of government employees are regularly revised with the budget announcement. An enhancement is expected in July 2008 as well. However, the emoluments vary from department to department based on the nature of their work. For example, the Federal Board of Revenue, Motorway and Highway Police and the National Accountability Bureau etc. pay their employees a handsome amount in the shape of special allowances.


An efficient and transparent system is already in place. Hiring and Promotion policies are being administered and periodically reviewed by the Establishment Division in consultation with the Federal Public Service Commission (FPSC). An identical system also exists at the sub-national level.

An ongoing, World Bank assisted, Public Sector Capacity Building Project (US$ 55 million) includes a component for strengthening of the FPSC.


Standing Committees of the Federal and Provincial legislatures do oversee and debate the functioning of the respective government departments to guard against misuse of discretionary powers. This oversight is provided by








the Constitution.




The conduct of government servants is regulated by the Government Servants Conduct Rules, 1964.


Under the Government Servants Conduct Rules, 1964 all government servants are required to declare their assets and liabilities on a financial year basis.

In order to improve the ability to monitor and ensure accuracy of the declarations, the system has been revamped through the introduction of a computerized monitoring mechanism. For this purpose, data has been migrated from the old to the new system, and the new software has been operational since March 2008.


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

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

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

E-filing of income tax returns has been made possible for companies, non-salaried individuals, and associations of persons.

The Federal Board of Revenue has introduced e-filing of sales tax and federal excise duty.

Promotion, training and supervision of officials viz.

A draft code of conduct for politicians and parliamentarians that includes penal measures has been prepared.








codes of conduct Rules of Business for the civil service have been reviewed to make it more result oriented.

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

The Civil Services Reform Unit has continued the Professional Development Program for civil servants. In 2007, nearly 100 junior to middle ranking officers were selected to pursue master‘s degrees in foreign universities.

The World Bank assisted capacity development project for the civil services is continuing. Applications for the next group to be trained in various professional fields are being processed at the Civil Services Reform Unit of the Establishment Division.

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

Pre-service and in-service training of public officials is an integral part of their career progression. A three-month Mid Career Management Course has been recently made mandatory for eligibility to be considered for promotion. Mandatory training for senior training has been in place, which has now been made more intensive and focused. Performance / results during the training are given specific weightage for calculation of qualifying scores for promotion.

Pakistan will prepare a good governance and anti-corruption handbook for civil servants, and review the Government Servants Conduct Rules that had been last revised in 1964.

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

Promoting reporting by officials of corruption and whistle blowing protection

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




Pakistan has taken steps to prevent corruption in the reconstruction activities in earthquake-devastated








areas. The Auditor General of Pakistan has formed a dedicated directorate to enhance fiscal propriety in relief efforts.

There is already a clearly laid out system for ensuring fiscal transparency.


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

The SBP has issued revised prudential regulations, which include provisions on know-your-customer, customer due diligence, record retention due diligence in correspondent banking, and reporting of suspicious transactions. The SBP has also established an FIU to receive, analyze and disseminate STRs.



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

NAB is encouraging the provincial Governments to adopt the Procurement Rules as early as possible. The Governments of Sindh and Balochistan Provinces have adopted the Public Procurement Rules 2004.

The Government of the Province of Punjab promulgated the Procurement Regulatory Authority Ordinance in May 2007.

Sindh Public Procurement Regulatory Authority (SPPRA) has recently been established in the province of Sindh.


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

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















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

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

The sub-committee of the Standing Committee of the National Assembly has completed a final review of the anti-money laundering bill. The bill is expected to be passed soon.

An Anti Money Laundering Ordinance was promulgated in September 2007. It establishes money laundering as a standalone offence and provides for the establishment of an independent Financial Monitoring (Intelligence) Unit for receiving, analyzing and disseminating Suspicious Transaction Reports. Mechanisms for interagency coordination have also been provided for by establishment of a high-level National Executive Committee for policy / strategy advice to combat money laundering and a General Committee to assist the NEC and to provide opportunities for more interagency cooperation.

The AML Ordinance prescribes rigorous imprisonment up to 10 years, fine up to Rupees One million and forfeiture of property involved in money laundering.

Rules and regulations are currently being prepared, and reporting and processing of STRs and ensuing investigations have already started.












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

During the year 2007 more than 800 NAB officials and staff underwent trainings in different investigative, administrative and financial management courses.

During the financial year 2007–2008, the Government of Pakistan provided NAB with a total budget outlay of Rupees 897.241 million.


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

During the year 2007 NAB processed 24 cases of international cooperation in the areas of requests for legal assistance, extradition and other assistance from and to foreign jurisdictions.



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








whistle blowing protection and staff training








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

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

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

The Awareness and Prevention Division of the NAB has continued with its Awareness Drive. The Drive utilizes the print and electronic media, as well as direct interaction with various segments of civil society and the youth through lectures, seminars, speeches and poster competitions in educational institutions. The Drive also targeted the public sector through lectures and seminars. On 9 December 2006, NAB organized a seminar presided by the

During the last year also, NAB utilized the print and electronic media through advertisement campaigns, newspaper articles, talk shows, discussions, thematic drama serials and songs to raise awareness on the ills of corruption. NAB also carries out direct interaction through seminars, workshops and lectures with targeted groups such as under-training public officials, students, parliamentarians and civil society groups. NAB is








Prime Minister, and an anti-corruption walk in the federal capital led by the Chairman of the Senate. Similar events were organized in the provincial capitals.

particularly engaging the youth since they are the nursery of any society and the future flag bearers of Pakistan. Activities like poster and declamation contests among students were also organized by NAB on the themes that highlight the evil of corruption, thereby molding the young minds towards abhorrence and zero tolerance in respect of corruption.


NAB actively supported Transparency International Pakistan in the ―Youth in Governance‖ initiative and participated in seminars organized at education institutions.

Education programs The project for incorporating anti-corruption themes in the national curricula has concluded with the Ministry of Education making the necessary amendments.




The NAB website is regularly updated to provide information to the public on the menace of corruption. Cases of public officials prosecuted and convicted under the National Accountability Ordinance are also being displayed on the website. NAB also publishes an Annual Report every year in the month of March. The report reflects major scams and corruption cases, statistics and new anti corruption initiatives. Annual Report for 2007 has recently been published. The Report has been presented to the President of Pakistan, circulated to public and private sector organizations,








educational institutions and has also been placed on the Bureau‘s website for public information.





NAB Pakistan, through its Awareness and Prevention Division has been encouraging civil society and youth groups in awareness and preventive drives. During the events organized for the International Anti-Corruption Day, on 9 December 2007, representatives of the media, academia and NGOs were specially invited to exchange views with a gathering of public officials, students and other members of civil society to elaborate on the role various segments of society can play in combating corruption. Similarly, radio and television talk shows and discussions were also held to raise the level of awareness about the problem and the resolve and cooperation needed from different segments of the society to fight this menace. Special supplements in leading newspapers were also published. Winners of poster competition were awarded cash prizes and shields by the Prime Minister of Pakistan to encourage involvement of youth in the anti corruption efforts.

Protection of whistleblowers Legislation is being contemplated.









OTHER

Ratification of the UNCAC is in progress.

The Federal Cabinet has approved ratification of the UNCAC and the ratification instrument is expected to be signed shortly.

Pakistan ratified the UNCAC on 11 August 2007 and the ratification instrument has been notified to the United Nations Secretary General. NAB, as the focal agency for implementation of the UNCAC has set up a Committee to coordinate all actions for implementation of the Convention. In this regard, NAB organized a senior level seminar in November 2007 for important stakeholder ministries and departments, as a starting point for ensuring ownership of the UNCAC by all relevant agencies. Focal points in each agency have been designated for ensuring better coordination in implementation of the Convention.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Palau – 235 –

Palau











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

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

The Republic of Palau Public Law (RPPL 7-13) authorized the Bureau of Public Service System to implement new reclassification guidelines and procedures. The reclassification system updated the descriptions of civil service positions and reclassified positions based on new requirements for each job. This effort seeks to create a more transparent compensation system based on specific merits.



The Division of Customs has recently restructured its personnel setup and adopted a new regulation to rotate officers in specific posts that poses potential risks of corruption.



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

The Law on Ethics is in place to require all government officials from the Division Chiefs and Bureau Directors to








and liabilities disclose their personal assets and liabilities to the Ethics Commission annually.









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

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

The Office of the Public Auditor continues to publish its reports to the media, which has raised the level of public awareness and led to the filing of criminal charges against government officials for corruption.


Palau plans to increase transparency in the procurement process. Procurement Officers will work with Congress to address deficiencies in the Procurement Act and to simplify procedures and guidelines for the procurement process. The Procurement Officers will initiate

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

The Congress has passed amendments to the Procurement Law to allow disbarment proceedings against dishonest vendors. On 3 January 2007, Congress also passed legislation streamlining the requirements for small purchases.








awareness programs to ensure all agencies comply with procurement rules and regulations.

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

On 25 July 2007, the Office of the Public Auditor and the Palau Chamber of Commerce discussed creating a partnership for curbing corruption in government procurement. The initiative also aims to provide a mechanism for protesting or mediating improperly awarded procurements. The Plan has been submitted to ADB for technical and financial assistance in design and implementation.









Palau hopes to pass new anti-money laundering (AML) legislation. The Asia Pacific Group on Money Laundering (APG) found the Financial Institutions Act of 2001 and the Anti-Money Laundering and Proceeds of Crime Act of 2001 (AMLPCA) to be non-compliant

Plans to educate the National Congress and to conduct an awareness campaign have progressed. The FIU, Financial Institutions Commission (FIC) and the Australian AMLAT team have planned a joint three-day public awareness campaign in December

As a result of cooperation between Congress and the Office of the President, Palau recently passed two major pieces of legislation that deals with anti-money laundering and corruption.








with the 40 Recommendations and the 8 Special Recommendations of the Financial Action Task Force (FATF). To address these shortcomings and the FATF‘s new Special Recommendation 9, Palau has drafted revisions to the AMLPCA. Additionally, the government drafted a Cash Courier Disclosure Act (CCDA) to curb corruption and money laundering through cross-border cash movement. Enactment of the legislation has experienced significant difficulty. The Senate finally passed the CCDA and the AMLPCA after one and two years respectively. Furthermore, it appears that the legislation may again face similar problems in the House of Delegates. The government therefore plans to educate the National Congress on the importance of these laws in the global fight against corruption. The government will also seek assistance from international organizations in this regard.

2006 on these issues. This campaign will include meetings between AMLAT and the National Congress on the importance of a robust regime for anti-money laundering / combating the financing of terrorism (AML/CFT) and such a regime‘s positive effects on corruption. It will also include meetings with officials of the Executive Branch to improve coordination in AML/CFT and anti-corruption efforts. The campaign will be capped off with a half-day seminar for the judiciary, the local bar and local financial institutions on financial crimes, red flag indicators for financial institutions and professionals, and the use of Anti Money Laundering systems to deter corruption.

The Cash Courier Disclosure Act of 2007 (RPPL 7-27, passed on 10 May 2007) will require the recording of the amounts and sources of cash and cash equivalents entering and leaving the country. Transport of cash of $10 000 or more or its equivalent across Palau‘s borders must be declared.

The Counter-Terrorism Act of 2007 (RPPL 7-28, passed on May 10, 2007) provides measures to detect, prevent, and suppress the financing of terrorism. The legislation implements the international terrorism conventions to which Palau is party.


Congress was considering the transfer of the Office of the Special Prosecutor to the Ethics Commission or to abolish the office altogether.

As a result of intense public debate against the transfer or closure of the Office of the Special Prosecutor, the office continues to bring more charges of corruption against public officials and corruption activities.





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

On 22-26 October 2006, Palau attended the First Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities in Beijing, P.R.








assets China. The conference focused on the implementation of UNCAC.













Education programs

















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

The Office of the Public Auditor has contacted ADB/OECD regarding funding for developing, implementing and operating guidelines for a partnership with NGOs on corruption issues.

OTHER

Palau expects to sign the UNCAC in The President signed and introduced a joint resolution in the National








December 2006. Congress to ratify the UNCAC.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Papua New Guinea – 242 –

Papua New Guinea








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

An across-the-board 3% salary increase is being implemented for all public servants commencing in January 2008.

The Government announced housing subsidy of K80,000 for all government employees. An MOU has been signed with the local bank (Bank of South Pacific) for public servants to get loans under this scheme.

Police Force of PNG has a new salary scale with increases at all ranks up to Deputy Commissioners. Specific allowances related to police duties have also been increased.


Many government departments has implemented merit-based recruitment. This is done through outsourcing of recruitment to private reputable recruitment companies.












Leadership Code administered by PNG Ombudsman Commission has been enforced effectively with a number of persons covered under the Code prosecuted for non-compliance with this Constitutional requirement on disclosure by leaders.



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

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

Papua New Guinea is continuing its public sector reform on the capacities of provincial and local governments. The efforts focus on agencies that are considered vulnerable to corruption.





The government has set up two Commissions of Inquiry. One will look at the operation and accounts of the Finance and Treasury Departments. The other will investigate the accounts of the Investment Cooperation Fund.

Commission of Inquiry into Investment Corporation Fund has been concluded. The findings have been tabled in Parliament highlighting massive irregularities in the management of the funds, especially in the process of changing the name to Pacific Balanced Fund.

Inquiry into Finance Department has recommenced after it was halted last







month The Prime Minister has appointed two more persons to the penal of the Commission of Inquiry.



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



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

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

NACA is fully operational. In late 2007 and up to May 2008, NACA carried out follow-up investigation in the Southern Highlands Provincial Government and have made over 40 arrests which are now pending trial in court.

NACA has approved investigation into widespread fraud in Internal Revenue Commission (national tax collector). This investigation is scheduled to commence in July 2008, after manpower has been withdrawn from Southern Highlands assignment.


The Government set up an Inter-Agency Committee looking into impediments to business and investment in the country. This Committee has made recommendations for reform in the systems, rationalization and realignment of strategies to improve performance.












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


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

Papua New Guinea is implementing the Proceeds of Crime Act. It is also establishing a financial intelligence unit in the police force. The unit is expected to be operational in November 2007.

Financial Intelligence Unit which is central to the implementation of the Proceeds of Crime legislation has been set up within the Fraud and Anti-Corruption Directorate of the Police Force of PNG. This is progressing well and financial institutions have been cooperative so far by jointly announcing in the media their obligation to report suspicious transactions to FIU.


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

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





International cooperation including exchange of information and evidence, extradition, and search, seizure,

Papua New Guinea is implementing its new Extradition Act and Mutual Legal Assistance Act.







forfeiture and repatriation of assets











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







elections in July 2007.


Education programs










Cabinet is considering an Initiative for Partnership with Civil Society.

OTHER

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

Papua New Guinea ratified the UNCAC







in June 2007 and is now implementing the Convention.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Philippines – 249 –

Philippines


Steering Group meeting (May2006) Measures reported at the 9th







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


With the support of the Australian Government, the Ombudsman (OMB) completed a 5-day intensive training on Recruitment and Selection for human resource management personnel. The training was provided through the Philippine Human Resource Development Facility and was attended by chairpersons and members of the Selection and Promotion Board for 1st and 2nd level employees and the Committee on Appointments for 3rd level employees. The program consisted of 4-6 week on-the-job coaching/mentoring.

The training was followed by the preparation of the OMB‘s recruitment and selection manual describing the process and procedures developed in the training. The manual was then disseminated to middle managers.

The Ombudsman has an approved recruitment and selection manual and middle managers have been trained on targeted and competency-based hiring and selection process.

Oversight of discretionary








decisions and personnel discretionary powers


Encouraged by the Ombudsman‘s Integrity Development Review (IDR) Program, the Philippine National Police has implemented a rotation/limitation of postings of key personnel in revenue-generating units, comptrollership, and finance service.




Philippine public servants file annual Statements of Assets, Liabilities, and Net Worth (SALN). In January 2007, through the World Bank-Asia Europe Meeting Trust Fund, the OMB completed the software development for the data banking of the SALN. The software allows financial trend analysis of high profile public servants and data entry for the Lifestyle Check Program. Because of limited resources, the OMB has decided to target the three agencies that are or perceived to be the most corrupt: the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and the Department of Public Works and Highways (DPWH). The private sector, including private citizens, churches, people‘s organizations and community-based NGOs will assist in the gathering of data and information.

The Civil Service Commission tightened the rules on asset disclosure to achieve more effective asset investigation and forfeiture. A new ―Statements of Assets, Liabilities, and Net Worth‖ (SALN) form was issued which required very specific information so as to avoid vague or incomplete definition of assets. The new form requires declarations by public officials, his/her spouse and minor children. SALN software will require adjustments to make it compatible with the new SALN form.









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

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

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

In 2006, the Integrity Development Review Project was completed in 5 agencies, namely, the BOC, BIR, DPWH, Land Transportation Office, and the Philippine National Police. The findings are to be presented on 23 and 27 July 2007 to the Advisory Group, which is chaired by the OMB and consists of the heads of the different agencies.

With funding from the European Commission, the IDR Project was expanded to 11 additional agencies: Department of Environment and Natural Resources, Department of National Defense, Light Rail Transit Authority, Bureau of Corrections, Land Registration Authority, Department of Agrarian Reform, Armed Forces of the Philippines, National Irrigation Administration, Department of Health, Bureau of Fire Protection, and the Department of Budget and Management-Procurement Service. As well, tripartite (internal auditor, resident ombudsman and NGO) agency-based monitoring groups were established in 16 IDR agencies to monitor the implementation of the IDR action plans.

The Philippines is planning a project on Enhancing Integrity Infrastructure in Air Cargo Handling System at the Ninoy Aquino International Airport. The project includes an in-depth study of corruption in the air cargo system, a development assessment framework, reform recommendations, and an action plan.

The Final Report on Enhancing Integrity Infrastructure in Air Cargo Handling System at the Ninoy Aquino International Airport has been submitted. An agency-based tripartite monitoring group is in the process of being established. The group will monitor, among other things, the implementation of short term recommendations, namely: e-formatting of Customs Administrative Orders (CAOs) / Revenue Memorandum Orders (RMOs); publication of frequently asked questions (FAQs); trade symposiums on broker management to reduce the interface of brokers and employees; establishing a record of imports at NAIA; random audits of brokers and reporting of findings.


The OMB and local government units have conducted Integrity Development and Public Accountability Seminars to promote the ―Code of Conduct and Ethical Standards for Public Officials and Employees‖ (Republic Act No.

In partnership with the Society of Jesus, seminars on Ehem! were given to 645 personnel involved in procurement in 18 agencies, including the Bids and Awards Committee, BAC Secretariat, Technical Working Group and








6713). Inspection Committee.

The OMB conducted seminars on public accountability for local government unit officials in Quezon City, Iloilo, Cebu, Davao and Cagayan de Oro. Similar seminars were conducted among personnel of the Philippine National Police and the Armed Forces of the Philippines.

The Career Executive Service Board (CESB) conducted 22 executive leadership training programs, 17 learning and nurturing programs for CES officials, and 30 accredited trainings.

With financial assistance from the European Commission, more than 600 middle managers in agencies participating in IDR were trained on the Institutionalization of Mentoring Activities for Middle Managers in Government (Risk Management).

The Development Academy of the Philippines (DAP) has developed citizen‘s charters for 6 local government units (LGU) (Laoag, Sorsogon, Digos, Bacolod, Dumaguete, and Iligan Cities). A manual on making a citizen‘s charter was also developed and printed for distribution. The DAP also trained 152 LGU officials on how to use the citizen‘s charter toolkit.


The OMB has prescribed rules on internal whistleblowing and reporting.

Through the IDR Project of the Ombudsman, internal reporting and whistleblowing have been promoted in 16 IDR agencies, 7 of which have established their internal reporting and whistleblowing mechanisms. With the assistance of the Asia Foundation, a capacity building seminar on ―Initiating Institutionalisation of Whistleblowing Culture in the Organisation‖ will be rolled out in may 2008.











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

As of 15 September 2007, Electronic-New Government Accounting Systems have been implemented in 476 agencies, including 230 national government agencies, 202 local government units, and 44 Government-Owned and Controlled Corporations. 34,450 personnel were trained and 1,742 were deployed for the rollout of the new systems.



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

The Office of the President through the Presidential Anti-Graft Commission initiated a project to strengthen internal audits of procurement. An assessment report on the operational quality of 15 pilot agencies and a generic internal audit manual that includes a Quality Assurance Program were completed in October 2007.

The Civil Service Commission (CSC) implemented the Public Service Delivery Audit (PASADA), which is a mechanism to (1) systematically check and evaluate the performance of government‘s frontline services, (2) provide commendation for agencies with excellent and efficient services, and (3) assist those which may need improvement on specific areas in order to address inefficiency.

Public procurement procedures and adequate

The Government Procurement Reform Act 2003 has resulted in a simplification

With the support of The Asia Foundation and USAID, there are now

In coordination with The Asia Foundation and G-Watch, the OMB

The OMB and Procurement Watch, Inc. (PWI) developed the Operational








simplified administration procedures

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

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

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

Capacity building/training and information dissemination are underway.

conducts training seminars on the Procurement Law and monitors the implementation and award of contracts.

The Procurement Training for Trainers, Observers and Monitors conducted its first set of training activities on 14-15 December 2006. Five further trainings were completed in March-July 2007. The final trainings will take place on 16-20 July 2007. As well, training was provided to observers in April-June 2007, with the final training during the first week of August 2007. Upon completion, the program will have trained 200 trainers and 75 observers.

The manuals for training trainers and observers were critiqued and finalized.

Guidelines for Bids and Awards Committee (BAC) Observers‘ Feedback and Complaint Handling Mechanism. These guidelines were issued in response to the implementing rules and regulations (IRRs) of the Government Procurement Reform Act of 2003 (R.A. 9184). The IRRs permit BAC observers to submit observation reports to the Bureau of the Resident Ombudsman in the procuring agency. 1,000 manuals were printed and 5 regional trainings were conducted. In partnership with PWI, the OMB conducted 15 trainings (358 participants) for CSO procurement monitors, observers & trainers.

The Department of Budget and Management released the Philippine Bidding Documents (PBDs) Edition II for mandatory use by all government agencies to standardize the bidding documents in all agencies. The Government Procurement Policy Board approved the Generic Procurement Manual. Training on the use of the PBDs and the Manual have been rolled out. Meanwhile, a Tripartite Code of Conduct for procurement officials, BAC observers, and suppliers/contractors has been drafted.

The Government Electronic Procurement System (GEPS) version 1.1 was launched on 25 November 2006. The new version offers enhanced functionalities to support a more efficient, convenient, and transparent procurement process. The system was adopted by 84% of the national government agencies, 92% of the state colleges and universities, 51% of the government-owned and controlled corporations, and 5.5% of the local government units. By the end of 2006,








5,091 agencies and 18,734 suppliers had registered in the system. The savings generated from the use of the system from 2001-2006 was estimated at PhP 414 million.




The National Competitiveness Council is composed of representatives from the private sector, the National Economic and Development Authority, and the Departments of Trade and Industry (DTI), Finance (DOF), Transportation and Communication (DOTC), and Education. The Council has created an Anti-Red Tape Task Force to monitor improvements in business transactions and cost. One of the Task Force‘s initiatives is an on-going e-governance project for applying and issuing clearances. A pilot project is underway in 50 barangays nationwide.

The Department of Trade and Industry is spearheading the Philippine Business Registry Project. This is an inter-agency project involving the Securities Exchange Commission (SEC), Department of Trade and Industry (DTI), Board of Investments (BOI), Intellectual Property Office (IPO), Philippine Export Processing Zone Authority (PEZA), Bases Conversion Development Authority (BCDA), Social Security System (SSS), Bureau of Internal Revenue (BIR), Pag-ibig, Philhealth, and LGUs.

The purpose of the project is to








eliminate red tape by harmonizing business registration processes among agencies involved in business registration. The project also aims to reduce documentary requirements. The project will be implemented in two phases: (1) a data registry will be developed, and (2) a portal will be developed at which all transactions will be done via a single window. Target dates of completion are December 2007 and 2008, respectively.





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

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

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

Administrative penalties for high-ranking officials in 2006 include:

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

Project Case Assist and Operation Big Fish aim to prosecute the ―big fish‖ of corruption who have eluded the OMB over the past 15 years. Prosecutors will focus on 50 of the most prominent and high-impact cases identified at the Sandiganbayan.

Ombudsman‘s Office of the Special Prosecutor is waiting for decisions by the Sandiganbayan in the following high profile prosecutions:

The construction of the Diosdado Macapagal Boulevard.

The PIATCO case involving the construction of the Ninoy Aquino International Airport (NAIA) Terminal 3.

The plunder case against Major General Carlos Garcia and forfeiture of unlawfully acquired properties.

Loss of USD 1.17 million by the Philippine Government resulting from faulty design of the Mega dike in Pampanga.

Case against former Makati Mayor Elenita Binay for overpricing in the purchase of office furniture and equipment amounting to more than








and Zamboanga state university

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

USD 7.32 million.

Tax credit scam cases in which the accused approved tax credit certificates on the basis of spurious documents.

Case involving an anomalous acquisition of properties using the funds of the Armed Forces of the Philippines (Retirement and Separation Benefits 9AFP-RSBS).

PEA-AMARI Case involving an overpriced reclaimed property of the manila-Cavite Coastal Road.

The conviction rate rose from 19% in 2006 to 56% in 2007. The OMB also exceeded its cumulative conviction rate target of 33% and currently registers a 35% conviction rate. Significant cases include the former President Estrada, who was convicted of plunder. 2007 also saw the highest volume of plea bargains, including Estrada‘s co-accused Atong.

In addition, the Ombudsman penalized 1,200 public officials for administrative and disciplinary offenses in 2004-2006. The Civil Service Commission penalized officials in 264 cases in 2004-2007.

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

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

The Ombudsman Task Force Green Lane is reviewing 47 cases charged by the Revenue Integrity Protection Service.

The Ombudsman dismissed two assistant revenue officers, a customs collector and a regional district officer from the public service finance departments. The Ombudsman also suspended the executive director of the

http://www.rips.gov.ph/










anti-smuggling task force and senior officials in the Bureau of Internal Revenue.

More than 50 government officials were charged with criminal and administrative offenses resulting from lifestyle checks.

47 cases charged by RIPS under review by Ombudsman Task Force Green Lane

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

The legislation remains pending.


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

The Anti-Money Laundering Council (AMLC) has frozen USD 13.46 million and forfeited USD 439,024 in proceeds of corruption.

The Anti-Money Laundering Council filed 17 cases of money laundering related to corruption. These cases were filed with the Office of the Ombudsman, Department of Justice, and the Regional Trial Court. The cases involved a total of more than PHP 500 million.


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

The legislation remains pending. The legislation remains pending.


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


Inter-agency co-operation The OMB and the Department of Education (DepEd) have signed a Memorandum of Agreement to cooperate in investigating corruption

The OMB forged strategic partnerships with other anti-corruption bodies, particularly the AMLC, Office of the Solicitor General (OSG), the DOF-








involving DepEd officers. The OMB has created the Sama-samang Paglaban sa Katiwalian (SAPAK) para sa Kabataan, a task force that will investigate such complaints and file charges if there is sufficient evidence.

RIPS, Federation of Filipino Chinese Chambers of Commerce, Mactan Chamber of Commerce, and the Mindanao Business Council. These are in addition to the multi-agency / sectoral partnerships under the national anti-corruption program of action (NACPA).

The Presidential Anti-Graft Commission formed partnerships with the AMLC, OSG, National Bureau of Investigation, Philippine National Police, Dilaab (Barug), and 10 other agencies.

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

The Courts have forfeited over PHP 18 million of laundered proceeds of corruption.


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


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

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

Efforts are being made to establish a mediation system in the OMB to unclog the investigation and prosecution process. The target is to resolve 300 cases by mediation by 2007.

The Ombudsman established its Rules of Procedure on Mediation. With financial assistance from the Millennium Challenge Corporation, the Ombudsman trained 105 Ombudsman personnel, most of whom are public assistance providers.

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








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

The legislation remains pending.

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

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

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

The Ombudsman Legal Resource for Public Accountability and the CD lecture series were disseminated to OMB personnel.

A number of training activities for OMB investigators and prosecutors were conducted in 2007 through the Millennium Challenge Account-Philippine Threshold Program (MCA-PTP):

OMB Case Build-Up Workshop and Prosecution Rally (February 2007): the event was attended by the deputy and assistant ombudsmen and directors of all area and sectoral offices.

Ombudsman-Revenue Integrity Protection Service case build-up workshop

Roundtable workshop with Sandiganbayan Justices en banc and OMB prosecutors to discuss delay in resolving cases

A series of workshops on 25-29 June 2007 with U.S. Prosecutor Cliff Stricklin on the Enron and Nacchio

The Ombudsman Training and Resource Center was inaugurated with the support of the Millennium Challenge Account - Philippines Threshold Program (MCA-PTP).

Human resource training and development intervention was made through the assistance of the Philippine-Australia Human Resource and Development facility. There was also training on monitoring and evaluation of projects.

Investigation and surveillance equipment was provided through the MCA-PTP.

Anti-fixing and anti-red-tape training was provided to public assistance and corruption prevention personnel.








cases

Legal writing and research training series for 300 investigators and prosecutors beginning on 19 June 2007

Development of training profiles for investigators and prosecutors

The World Bank is supporting the development of case flow management software for the Office of the Special Prosecutor and the development of a database of the statements of assets and liabilities. The Bank has also supported an Advanced Field Investigator‘s Course.

In January 2007, a grant from the World Bank-Asia Europe Meeting Trust Fund supported the completion of the software for the Case Monitoring System for the Office of the Special Prosecutor and for the basic and advanced training of the field investigators.

The 3-pronged anticorruption strategy of enforcement, prevention and promotion was adopted in the medium term Philippine development plan. Capacity building training was provided.

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

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

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

Providing training and acquiring equipment for investigation and surveillance;

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

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

The OMB is laying the groundwork for the full rollout of the electronic case management and information management system. Upon completion, the system will connect the six existing OMB offices via local area and wide area networks.

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

With USAID-ROLE funding, select OMB








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

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

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


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

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

The Ombudsman participated as an expert/presenter in the Experts Workshop on Asset Recovery, organized in cooperation with the UN Office on Drugs and Crime. The event was held in Basel, Switzerland on 15-16 May 2007. The OMB presented on topics such as the mandate of the Philippine Presidential Commission on Good Government to recover stolen assets, government efforts to recover assets from the U.S. and Switzerland, obstacles encountered, and lessons learned.








The Overall Deputy Ombudsman participated in the 3rd APEC Senior Officials Meeting (SOM III) and Related Meetings – Anti-Corruption and Transparency Task Force Meeting on 22 and 24-25 June 2007. The meeting included an anti-corruption workshop and discussions on customs procedures, procurement, and promoting dialog between the public and private sectors.

The Ombudsman participated in a public-private sector anti-corruption partnership seminar organized by the Malaysian Anti-corruption Agency.

The Presidential Commission on Good Government (PCGG) is tasked with recovering ill-gotten wealth acquired prior to February 25, 1986. It has successfully recovered USD 854 million deposited by Marcos in Switzerland. It has also remitted over USD 1.46 billion to the treasury.







The Government Procurement and Policy Board has issued Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants for certain offenses, including ―Any documented








unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.‖ The guidelines define blacklisting as: ―An administrative penalty disqualifying a person or an entity from participating in any government procurement for a given period.‖





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

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

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

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

Inform the public about the OMB‘s role in fighting corruption;

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

Enlighten the private sector and the international business community about the stability of the Philippines‘ investment climate given its stance

The OMB is continuing to organize public accountability and anti-corruption lectures (e.g. Ehem! Aha! service excellence on frontline service).








on corruption.

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

The OMB continued to distribute a newsletter to raise anti-corruption awareness and to encourage the public involvement in corruption prevention.

This activity is continuing.

Three integrity television shows were aired to raise awareness of anti-corruption and to encourage public involvement in corruption prevention.

Two 30-second infomercials were produced and shown in cinemas to publicize the anti-corruption efforts of the OMB and the Revenue Integrity Protection Service.

Weekly 30-minute radio segments with the Ombudsman as the guest (Magsumbong sa Ombudsman) were aired nationwide in May-June 2007. During the program, the OMB discussed its mandate, activities and projects. The OMB also took questions and complaints from listeners by phone.

This activity is continuing in the Radyo ng Bayan.

The OMB is developing an interactive website to allow convenient public access to its services.

In the process of migrating up-loadable website information

The Presidential Commission on Value Formation and the PAGC have conducted values / ethics-related activities.


In July 2007, the OMB and Mactan Chamber Of Commerce and Industry Phil‘s Inc. (a domestic non-stock, non-profit entity) entered into a Memorandum of Agreement whereby the OMB accredited the Chamber as its official ―graftwatch‖ unit for Mactan Island. The Chamber will therefore assist in checking the lifestyle of officials, ensuring clean public procurement, monitoring local

This activity is continuing.








government spending, reporting instances of corruption, and making recommendations for improvement. In return, the OMB will assist the Chamber‘s members to build capacity to fight corruption.

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

The OMB provided the ―Ehem! Aha!‖ Values Formation Training to 564 participants from 15 of the 17 participating government agencies. Training for the remaining two agencies will be completed by August 2007.

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

On 2 March 2007, the Graft and Corruption Education Teaching Exemplars, a set of 52 teaching modules as well as orientation and workshops for trainers and teachers. The Exemplars were launched at a press conference attended by the OMB, Deputy Education Secretary, European Commission Ambassador Alistair MacDonald, and U.S. Agency for International Development Mission Director Jon Lindborg.

A total of 203,113 copies of the Graft and Corruption Prevention Teaching Exemplars has been printed for distribution in over 44 000 public elementary and secondary schools nationwide.

Teaching exemplars promotion is a continuing activity. The project supports the distribution of teaching exemplars to more than 44,000 schools nationwide. It also includes activities to train teachers on how to use the exemplars and how to integrate them into classroom lessons. The program also establishes a monitoring and evaluation mechanism.

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

The OMB has established a research/thesis assistance program to help graduate and undergraduate students and researchers on corruption prevention and control issues.

Debate, essay, slogan and poster-making competitions were held to raise








anti-corruption awareness.




A bill on the right to information is pending.


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

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

The OMB is planning to establish an Investors Help Desk to attract investment by reducing red-tape.




NGOs and civil society are regular members of the agency-based Integrity Development Committees of agencies that participate in the IDR.

Protection of whistleblowers The OMB published ―Aha! A Citizen‘s Primer on Whistleblowing‖ in June 2006.

Involvement of NGOs in monitoring of public sector

The Philippines has created the National Anti-Corruption Program of

The OMB secretariat for NACPA is now fully operational. Capacity building /

Activities that took place under the National Anti-Corruption Program of








programs and activities Action (NACPA). This is a multi-sector, high-level coordinating mechanism that involves the executive, legislative and judicial branches of government, Constitutional Commissions, local government units and civil society. A Covenant of Commitment was signed on 17 March 2006 and the Plan will provide consultation and coordination in fighting corruption. The OMB is attempting to establish the NACPA to convince public officials and employees, private citizens and civil society organizations to not just complain or criticize the government, but to also take part in anti-corruption initiatives and programs. The Philippines seeks the cooperation and support of the international donor community to make the goals of the NACPA become reality.

training for the NACPA Secretariat on procurement and project management has been conducted.

Action (NACPA) include:

Inception Workshop for the Establishment of the Multi-Sectoral Anti-Corruption Council (MSACC) (27 November 2006)

Seminar on Internal Control (13 December 2006)

Pre-Conference for MSACC (20 February 2007)

Launching of the MSACC (1 March 2007)

Strategic Planning and Drafting of a Medium-Term Plan (6-8 June 2007)

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

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

OTHER

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

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

The Senate ratified the UNCAC on 8 November 2006.

A monitoring tool is being finalized under the NACPA initiative.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Samoa – 269 –

Samoa

Samoa was not represented at the 8th and 9th Steering Group meetings; the report delivered at the 10th Steering Group meeting hence also includes measures taken

earlier than the 9th Steering Group meeting.





Systems for compensation Section 69 of the Public Service Act 2004 (PSA) stipulates that, subject to the Act and other legislation, a public servant is not entitled to any compensation for any reduction in salary or in respect of termination of employment.


The PSA contains a number of relevant provisions:

Section 34 requires vacancies to be advertised.

Section 35 limits the power of a Chief Executive Officer (CEO) regarding appointment, promotion and transfer.

Section 36 requires that the merit of a person in relation to a position be assessed based on skills, abilities, educational qualifications etc.

Section 71 requires a notice to be published in the Public Service Official Circular concerning every appointment, promotion, employment and termination of a contract employee, and retirement or termination of employment of an officer.

Section 55 provides that grievances may be lodged with a relevant CEO.

Section 49 gives a job applicant the right of appeal to the PSC Board of Appeal.


Section 55 of the PSA provides that grievances may be lodged with a relevant CEO, while s. 49 gives a job applicant the right of appeal to the PSC Board of Appeal.


The PSA contains the following relevant provisions:

Section15 states that a CEO is responsible, under the responsible Minister, for the effective and efficient management of the respective Ministry (including rotation of assignments).

Sections 37 and 38 allows the Public Service Commission to transfer officers between Ministries and to move employees to Ministries where functions are moved.

Section 35 limits the power of a Chief Executive Officer (CEO) regarding




appointment, promotion and transfer.



Section 19(f) of the PSA provides that every employee and every CEO shall disclose, and take all reasonable steps to avoid, any real or apparent conflicts of interest in relation to their employment.


Section 19(f) of the PSA provides that every employee and every CEO shall disclose, and take all reasonable steps to avoid, any real or apparent conflicts of interest in relation to their employment. In addition, section 19(i) requires every employee and CEO to act with integrity and not misuse their status or authority to seek or obtain a benefit for him/herself or any other person or body.


There is no law or regulation that prevents contacts between government officials and business services users. However, there is a code of conduct which states that such association or act should not bring the public service into disrepute.


Section17-19 of the PSA stipulates key standards and values for CEOs of Ministries and every employee. In particular, Section 19 of the PSA contains a Code of Conduct, requiring every employee and every CEO to:

be honest and impartial,

work carefully and diligently,

treat everyone with respect and courtesy and without coercion or harassment,

comply with all laws that apply to them,

comply with all lawful and reasonable directions given to them by persons who have authority to give those directions,

disclose and take all reasonable steps to avoid any real or apparent conflicts of interest in relation to their employment,

use government resources properly,

use official information only for official purposes,

act with integrity and not misuse their status or authority to seek or obtain a benefit for themselves or any other person or body,

uphold the values of the public service as described in section 17 of the PSA,

comply with any other conduct requirements set out in the regulations, and

uphold the good reputation of the public service.


There are no express whistleblower provisions in Samoan law.







Section 17(1)(e) of the PSA states that, subject to the Constitution and the rule of law, the Public Service Commission, every CEO and every employee must uphold the following values in their work:

Transparency, i.e., taking actions and making decisions in an open way,

Accountability, i.e., being able to explain the reason for actions taken, and taking responsibility for those actions.

Furthermore, section 15 of the Public Finance Management Act 2001 sets out the principles of responsible fiscal management. Part IV of the Public Bodies (Performance and Accountability) Act 2001 sets out the economic, financial and fiscal policy of the government.


Regulation and supervision of financial institutions are set out in the following statutes:

(i) Central Bank of Samoa Act 1984 and subsequent Amendments,

(ii) Financial Institutions Act 1996 and subsequent Amendments,

(iii) Exchange Control Regulations 1999,

(iv) Money Laundering Prevention Act 2007, and

(v) Insurance Act 2007.

Under this legislative regime, all commercial banks, money transfer operators and insurance entities are licensed and supervised by the Central Bank of Samoa. Prudential supervision of the banks is based on the Basel Core Principles of Banking Supervision, whereas the principles set out by the International Association of Insurance Supervisors are used to supervise the insurance sector. Customized standards based on international best practice are used to supervise the National Provident Fund and the Development Bank.

Laws have been amended to prohibit the establishment of shell banks in Samoa.


Under the Audit Office Ordinance 1961, the Chief Controller and Chief Auditor has the power to audit the Government and public sector entities, but may appoint a private sector company to undertake the same on his behalf. In practice, the Office of the Controller and Chief Auditor conducts spot audits of all payments made through the Ministry of Finance through the verification of all appropriate levels of authorities, signatories, supporting documents and purchase orders before final approval for payment is issued.


Under the Public Finance Management Act 2001, the Treasury Instructions and the Public Bodies (Performance and Accountability) Act 2001, tender procurement procedures are based on international best practice similar to those set by the World Bank and the ADB. A Tenders Board chaired by the




Minister with certain heads of Ministries screen and approve tenders for public procurement of goods and services. Tender is open to all the bidders.


Under the Public Finance Management Act 2001, the Treasury Instructions and the Public Bodies (Performance and Accountability) Act 2001, complaints about a tender procedure may be lodged with the CEO, the Ministry of Finance, or the relevant Minister under which the tender was advertised.


Pursuant to the Electoral Act 1963, the Office of the Electoral Commissioner has relevant information that the public can access. However, there is no legislative or administrative requirement to file, disclose or access information with regard to the funding of political parties, electoral campaigns and expenditure other than those disclosed for the taxation purposes.


Seminars are being conducted in the private and public sectors on the new Companies Act. Consultations are underway regarding the Companies Regulations. The Investment Act 2001 and Regulations are being reviewed with technical assistance from the World Bank.




Sanctions for bribery of public officials Section 35 of the Crimes Ordinance 1961 defines official corruption as corruptly accepting, obtaining, agreeing to accept, or attempting to obtain for him/herself or any other person, any bribe (which includes money or other valuable consideration) on account of anything done or to be done by him/her in an official capacity. Official corruption also includes corruptly giving or offering any person holding any such office or to any other person any such bribe on account of any such act. The offense is punishable by imprisonment of not more than 5 years.

In addition, section 19 of the PSA states that it is a breach of the Code of Conduct if bribery is used to seek or obtain a benefit for the employee or for any other person or body. The Electoral Act 1963 also contains an offense of bribery in general elections.


Samoa‘s anti-money laundering regime is set out in the Money Laundering Prevention Act 2007 and the Prevention and Suppression of Terrorism Act 2002. Also of application is the Mutual Legal Assistance in Criminal Matters Act 2007 and Proceeds of Crime Act 2007.

Consultations on anti-money laundering measures with the private sector are on-going. Particular focus is placed on the role of non-profit organizations. Also, revised guidelines and regulations on AML/CFT will soon be issued to all the relevant stakeholders.

Awareness seminars have been held with stakeholders and those affected by the Money Laundering Prevention Act.

Anti-money laundering training is scheduled for the latter part of 2008 for the key stakeholders in the financial and non-profit sectors.





Under the Crime Ordinance 1961 and the Proceeds of Crime Act 2007, the investigation of official corruption is the same as that for other criminal offences. The Police investigate cases and prosecute them in District Court. Where a public official (i.e., the accused) is of a known standard in the government or the community, or is a member of the police, the Attorney General‘s office assists in the investigation and conducts the prosecution.


The Money Laundering Prevention Act 2007 overrides the secrecy of banks and financial information.

Inter-agency co-operation A Task Force comprising the relevant government ministries coordinates efforts in money laundering prevention. The Money Laundering Prevention Act provides for the sharing of information, including with foreign entities under memoranda of understanding.

The Governor of the Central Bank is the Chairman of the AML/CFT Task Force as stipulated under the Money Laundering Prevention Act 2007. Other members include CEOs of Ministry of Finance, Foreign Affairs, Immigration, Customs and Inland Revenue, the Attorney General, Samoa International Finance Authority, the Police Department, and the Financial Intelligence Unit. New members that have been considered include the Registrar of Domestic Companies and Other Entities as well as the Ministry of Environment and Natural Resources.


Samoa does not have legislation for protecting whistleblowers. However, the courts (by order), the Attorney General‘s Office and the police may protect witnesses if it is in the interests of justice or the public.

Training and resources The Public Service Commission has carried out extensive training on the Code of Conduct.

Training programs have been held in the public and private sectors on the implementation of standards and measures for deterring corruption.


International cooperation, particularly in the area of money laundering, is provided under the Mutual Assistance in Criminal Matters Act 2007, the Money Laundering Act 2007, the Proceeds of Crime Act 2007, and the Financial Institutions Act 1996.





Transparent company accounting and Section 23 of the Public Bodies (Performance & Accountability Act) 2001




auditing, and penalties for false accounting

provides that, in addition to financial reports, accounts and information required by the Companies Act 2001, each public body shall prepare financial reports, accounts and information. The Society of Accountants Act contains a Code of Conduct and sets out disciplinary proceedings for false accounting.






Channels and forums to discuss corruption include the media, NGO seminars, and meetings of Cabinet, the government, ministries and CEOs.

Public awareness campaigns Government bodies and the private sector have raised public awareness of corruption through media programs, seminars and training events.


The government supports NGOs and is the main source of funding for most NGO projects.

Education programs The Public Service Commission has held education seminars.




The relevant statutes include:

1. The Public Bodies (Performance & Accountability Act) 2001 and Regulations, which contain extensive provisions on the accountability and transparency of the work of public bodies. The provisions are also geared toward preventing corruption.

2. The Komesina o Sulufaiga (Ombudsman) Act 1988 gives the Ombudsman wide powers to investigate any matter or complaints referred to the Ombudsman by the government or private persons. The Ombudsman has been very active recently.


Under the PSA, the Public Service Commission is required to advertise employee promotions and termination, including termination because of a breach of the Code of Conduct.

Samoa does not have a freedom of information legislation. However, government Ministries, corporations and agencies may provide information on




request.




Protection of whistleblowers Samoa does not have legislation to protect whistleblowers.


With the support of the government, NGOs are active in many areas as a watchdog.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Singapore – 276 –

Singapore









Systems for compensation The Government has recently reviewed the staffing indicators and salary data in the private sector and made a salary adjustment for the Civil Service in 2nd Quarter of 2007. The intention is to ensure that public officers‘ salaries keep pace with the market. The Government is also increasingly moving towards a performance-based remuneration package.

Further reviews on the salary packages of public servants have been done and those falling behind the private sector have been adjusted accordingly over the last few months.






A set of Post-Employment Rules was introduced in Section L (Conduct and Discipline) of the Instruction Manual. The purpose is to prevent an employee from using sensitive information acquired while in a previous office to the advantage of a new employer in a related area of work. The Rules include measures such as cooling-off periods.

Disclosure and/or monitoring








of, for example, personal assets and liabilities


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

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


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

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

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

The Public Service Division will publish and distribute a Code of Conduct Booklet to civil servants as part of employee education.













Singapore will be evaluated by the Financial Action Task Force in September 2007.

Singapore has undergone the FATF evaluation in Sep 07. The report has been finalized and discussed at the FATF plenary in Feb 08.


















Regulations were put in place to monitor cross border movement of large amount of cash.



Inter-agency co-operation . Inter-agency cooperation in capacity building was further enhanced with 4 more anti-corruption agencies (Cambodia, Philippines, Thailand and Vietnam) joining the MOU grouping amongst the anti-corruption agencies in ASEAN (from the original 4 of Brunei, Indonesia, Malaysia and Singapore)


Training and resources The CPIB has expanded its efforts in building its forensic computer capability and its staff‘s skills in financial investigation. Many of CPIB‘s cases nowadays involve computer materials and electronic evidence, and CPIB had to resort to electronic evidence in several cases. The CPIB has also built other investigation expertise, especially in financial investigation, since corrupt offenders use increasingly sophisticated

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








methods.

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

The Anti-Corruption Expertise Workshop will be organized on a bi-annual basis. In 2008, Singapore will explore the possibility of hosting an ADB/OECD Workshop.

CPIB held an international Anti Corruption Expertise (ACE) workshop in Sept 2007 with the theme ―Excellence in Computer Forensics‖.

CPIB will be organizing the next regional ACE Expertise Workshop in second half of 2008 and hosting the ADB-OECD conference in Nov 08.


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

The partnership is on-going. Since the amendment of the Mutual Assistance in Criminal Matters Act (MACMA), Singapore has received requests for assistance from jurisdictions not having MLA treaties with Singapore and has assisted in obtaining evidence and freezing of criminal proceeds.

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

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

The CPIB participated in various international forums, e.g. Conference of States Parties to the UN Convention against Corruption, and the APEC Anti-Corruption and Transparency Experts Task Force Meeting.

The MACMA was amended in 2006 to allow assistance to be provided to a foreign country in the absence of a treaty if there is dual criminality and an undertaking of reciprocity. The MACMA covers corruption offences.

Singapore is planning a seminar on ―Civil Service Accountability and Good








Governance‖ as part of the 14th ASEAN Conference on Civil Service Matters.

To establish and strengthen collaborative efforts against corruption among ASEAN member countries, Singapore will organize an ―Anti-Corruption Expertise Workshop - Excellence in Computer Forensics‖ on 10 September 2007. It will also host the 3rd Memorandum of Understanding Meeting amongst Anti-Corruption Agencies in ASEAN on 11-12 September 2007.




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

An Office of the Commissioner of Charities was established to regulate the charity sector and enhance








governance of charity organizations and their accountability to donors, beneficiaries and the general public.

In August 2006, the Director of CPIB gave a presentation to various international and local participants in a conference organized by the Harvard Project for Asian and International Relations held at a local university.








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

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

With the increased outreach, the CPIB has found a need to review the materials and resources for education and prevention. For example, the CPIB is considering acquiring mobile exhibition materials for use in off-site talks and visits. It is revamping its Web

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








site to make it a tool for outreach to the public and an education and prevention resource. The Web site is also used to provide electronic services to the public, such as allowing the public to book talks and permitting defense lawyers to procure documents from the CPIB.

Public awareness campaigns CPIB has distributed a new set of anti-corruption posters to civil service departments and community centres/clubs to create greater awareness.


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

In addition to education programs reported previously, CPIB is:

1. in the midst of discussions with the LKY School of Public Policy to jointly launch an anti-corruption executive program end of 2008.

2. Collaborating with the National University of Singapore and the Singapore Management University to run anti corruption modules for the relevant undergraduate programs.

The Bureau also provided a module in the Home Team Senior Command and Staff Course, which trains leaders of the Home Team (comprising Police, Civil Defence, Immigration, Prisons, Narcotics and Ministry Home Affairs executive services).

The Bureau conducted numerous talks and visits for local and foreign public officials as part of their training programmes.

The Bureau‘s staff delivered presentations at international events eg at APEC workshops, workshops organized by ADB-OECD, IAACA training seminar and regional training events.








Efforts are in progress to raise anti-corruption awareness among grassroot organizations such as the Resident Committee, Citizen Consultative Committee, and Community Club.




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







OTHER

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

Singapore recently joined the APEC Anti-Corruption and Transparency Task Force (ACT) and attended the Task

CPIB attended the APEC ACT meeting in Vietnam in September 2006. CPIB made a presentation during the seminar








Force‘s meeting in Hanoi in February 2006.

on ―Public–Private Partnership in Fighting Corruption‖. At the request of the organizers, CPIB invited a KPMG expert consultant to share his experience on the subject.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Sri Lanka – 286 –

Sri Lanka

Action Plan Standard Measures reported at the 8th Steering Group meeting (May

2006)









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






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

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





2006)





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

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

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


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

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

Draft legislation relating to whistleblower protection has been prepared and discussed by the Cabinet of Ministers.







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

A recently established National Procurement Agency has issued revised guidelines on procurement of goods, works and services.




2006)





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







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

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

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


The Prevention of Money Laundering Act and the Financial Transactions Reporting Act were recently enacted. These statutes

The recently enacted Prevention of Money Laundering Act No. 5 of 2006 and financial Transaction Reporting Act No. 6 of 2006 provide measurers to

The recently enacted Electronic Transaction Act No 19 of 2006 provide measurers to combat and prevent electronic money laundering




2006)




deal with the collection of data relating to suspicious transactions and provide for prevention, detection, investigation and prosecution of money laundering and terrorist financing. Sri Lanka is a member of the Asia Pacific Group on Money Laundering (AMLPG).

combat and prevent money laundering.





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

Although the Bribery Act and the Commission Act provide witness protection and immunity, specific legislation on these matters is being considered.

Draft legislation relating to witness protection has been prepared and discussed by the Cabinet of Ministers.

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

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

The USAID program to train the legal officers of the commission to Investigate Allegations of Bribery or Corruption is almost complete. UNDP funded programs have been scheduled for the rest of 2007.

The program to train newly enrolled legal officers of the CIABC was conducted.




Corporate governance, internal company controls such as

The CIABC has completed a study on the need to enact legislation




2006)




codes of conduct, establishing channels of communication, whistleblower protection and staff training

relating to whistleblower protection.








Anti-Corruption Day seminar titled ―Mainstreaming Anti-corruption: Search for strategies‖ held.

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

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

Public awareness programs conducted in the tsunami affected areas. Public awareness television programs telecasted.


Public awareness programs planned to be conducted in the tsunami affected areas, funded by ADB/TAARP.

Anti-corruption school competition in Arts, Essay and Slogans held, funded by UNDP




2006)




Education programs








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

A four-digit hotline has been installed to facilitate the reporting of bribery or corruption.

24 hour hot line has been installed to facilitate the reporting of bribery or corruption.

Protection of whistleblowers A UNDP Commission Report on whistleblower protection is being considered.


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

OTHER


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Thailand – 292 –

Thailand









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

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

The Cabinet approved in principle the Draft Civil Service Act on 26 June 2007: this is now under the consideration of the National Legislative Assembly. It proposes provisions relating to, inter alia, revising the basic salary scale.

The Civil Service Act 2008 was enforced on 26 January 2008, with Sections 44-51 restructuring the promotion and compensation systems with the concept of competency and performance-based human resource management. This Act replaces the single salary scale by various scales based on work and performance. In effect, it will increase flexibility and effectiveness as well as equity in civil servants‘ compensation.


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

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

The Cabinet approved in principle the Draft Civil Service Act on 26 June 2007: this now under the consideration of the National Legislative Assembly. It proposes provisions relating to, inter alia, establishing a ―Merit Protection Board‖

The Civil Service Act 2008 (Sections 24-33) prescribes provisions relating to the Merit System Protection Board, which has powers in monitoring and protecting the Merit System of human-resource management in each government department.


The Civil Service Act 2008 shifts discretionary decisions and personnel discretionary powers from the Office of the Civil Service Commission to Ministries and Departments. Such discretionary decisions and powers involved: creating positions; recruiting skilled personnel, specialist and competency officers; re-entering; and examining legal procedures.


The Succession Plan is a personnel assignment system, with a strategic plan facilitated by a personnel expertise








inventory HR Database.



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

The Cabinet approved in principle the Draft Conflict of Interest Act on 22 May 2007: this is now under the consideration of the National Legislative Assembly.

The Draft Conflict of Interest Act has been passed by the National Legislative Assembly and is presently under the consideration of the Constitutional Court.

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

The new Constitution of the Kingdom of Thailand 2007, Section 122, prescribes that members of the House of the Representatives and Senators, among others, should perform their duties with integrity in the common interest of the Thai people without conflict of interest.

Chapter XII –―Scrutiny of the Exercise of State Powers‖ of the Constitution of the Kingdom of Thailand 2007, Part 2 (Sections 265-269) prescribes provisions about Acts detrimental to public interests (Conflict of Interest). Section 265 of Part 2 states that ―a member of the House of Representatives and a senator shall not:

(1) hold any position or assume any duty in any Government agency, State agency, or State enterprise, or hold a position of member of a local assembly, local administrator, or local government official.

(2) receive, interfere with or intervene in any concession from the State, a Government agency, a State agency or








a State enterprise; or become a partner to a contract of a monopolistic nature with the State, a Government agency, a State agency or a State enterprise; or become a partner or shareholder in a partnership or company receiving such a concession; or be a party to a contract of that nature, directly or otherwise.

(3) receive any special payment or benefits from the State, a Government agency, a State agency or a State enterprise over and above what the State agency or State enterprise pays to other persons in the normal course of business; or

(4) perform any act prohibited under section 48 [viz. be a partner or shareholder in a partnership or company engaging in telecommunication businesses; or be a contractual partner to the said partnership or company].

The provisions of (2), (3) and (4) above shall apply to the spouses and children of members of the House of Representatives or senators and to other persons who, not being spouses or children of members of the House of Representatives or senators have acted as instructed, as accomplices or as entrusted by members of the House of Representatives or senators in relation to the acts under this section. ―

Section 269 of the Constitution prescribes that the Prime Minister or a Minister shall not be a partner or shareholder in a partnership or a company, or continue to be a partner or shareholder in a partnership or a company up to the limit as provided by law. If the Prime Minister or a Minister wishes to continue receiving the said benefits, the Prime Minister or Minister must inform the President of the








National Counter Corruption Commission within 30 days as from the date of the appointment and transfer his or her shares in the partnership or company to a juristic person which manages assets for or on behalf of others as provided by law. This provision also applies to the spouse and offspring who have not yet become sui juris of the Prime Minister and the Minister.

Thailand participated in the International Seminar on ―Conflict of Interest: a Fundamental Anti-Corruption Concept‖ organized by the Commission for Eradication of Corruption in Indonesia (KPK) and the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific in Jakarta, Indonesia on 6-7 August 2007.


The Constitution of the Kingdom of Thailand 2007 Chapter XII –―Scrutiny of the exercise of State Powers‖, Part 1, prescribes provisions for the scrutiny of assets. That is, Section 259 prescribes that persons holding the following political positions:

- Prime Minister

- Ministers

- Members of the House of the Representatives

- Senators

- Others political officials

- Local administrators

- Members of local assemblies

shall submit accounts showing particulars of the assets and liabilities of themselves and those of their spouses and their children who have not yet become sui juris to the National Counter Corruption Commission each time upon taking or vacating office. The submission of accounts showing the

Members of the Cabinet submitted accounts showing particulars of their assets and liabilities in accordance with the Constitution on 4 April 2008.

Members of the House of the Representatives submitted accounts showing particulars of their assets and liabilities in accordance with the Constitution on 20 March 2008.Senators submitted accounts showing particulars of their assets and liabilities in accordance with the Constitution on 8 May 2008.

The World Bank‘s annual ―Doing Business‖ survey has added a 11th indicator on transparency: the cooperation of the NCCC was sought by the Doing Business team in completing the survey in order to measure the strength of transparency and conflict of interest laws that apply to Members of Parliament (lower house). The survey will be published in 2009.








particulars of assets and liabilities mentioned above shall include the assets which the political office holder has entrusted to others, or which are in the possession and care of others, directly or otherwise.


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

The Constitution of the Kingdom of Thailand 2007 prescribes the formation of a Financial Committee as an individual organization. Its powers and duties shall proceed as the Trail Administrative Court and do any administrative punishment to financial offender, such as, auditor or secondary party, to make decision for any matter in dispute about finance. If there is no appeal, the decision will be final, but if there is an appeal, it must be sent to the Supreme Administrative Court. Therefore the Organic Act on State Audit needs to be amended 253.

These power and duties have been proscribed under the Audit Guide to Conduct.


Thailand has:

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

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

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

The Office of the Civil Service Commission has launched a strategic training plan to develop core values among civil servants in moral courage; integrity and responsibility; nondiscrimination; transparency; and result-orientation. All civil servants are being encouraged to record their own good behavior following those five core values and the information is to be used in performance appraisal and future promotion.

Promoting reporting by officials of corruption and whistleblowing protection

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

The government has encouraged all agencies to monitor corruption in their organizations and has cited this activity as a KPI for all agencies.

The draft on amendment of organic law on National Counter Corruption Commission, which a number of sections in the draft providing for measures on protection of corruption whistleblower, was declared unconstitutional by the Constitutional








Court due to error in the drafting process. The original draft is to be reconsidered by the Government and the National Counter Corruption Commission.

A draft law to establish the Office of the Public Sector Anti-Corruption Committee (PACC) is enacted on 25 January 2008. The PACC has powers and duties to prevent and suppress corruption among mid-level government officials.

Members of the National Legislative Assembly proposed the revision of the Witness Protection Act 2003 to amend the definition of a ―witness‖ to include whistleblower, with mechanisms provided by the law to protect witnesses also be available to whistleblowers.

The Draft Amendment of the Organic Counter Corruption Act, which had a number of sections providing for measures on the protection of corruption whistleblowers, was declared unconstitutional by the Constitutional Court due to an error in the drafting process. The original draft is to be reconsidered by the Government and the National Counter Corruption Commission.

Every department or government agency has set up a ―Government Center for Transparency‖ as centers for promoting transparency and accountability through formulating and implementing plans for ―unit transparency‖ and determining transparency indicators. Such centers also serve to coordinate and monitor the implementation of the plan.

The government has encouraged all agencies to monitor corruption in their organizations and has cited this activity as a KPI for all agencies.

A draft law to establish the Office of the Public Sector Anti-Corruption Committee (PACC) is enacted on 25 January 2008. The PACC has powers and duties to prevent and suppress corruption among mid-level government officials.


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

Measures and systems to Thailand created the ―Government Fiscal Management Information

Thailand is improving its fiscal transparency based on the Manual on








promote fiscal transparency System‖ (GFMIS) to serve as the back office of the administration. GFMIS is designed to ensure efficiency, accountability and transparency through on-line real time surveillance of the Government‘s entire financial process.

Fiscal Transparency and Code of Good Practices on Fiscal Transparency by the International Monetary Fund.

The Constitution of the Kingdom of Thailand 2007, Chapter 8 (Sections 166-170): ―Fiscal Affairs, Finance and Budget‖ prescribes provisions, requiring, inter alia, that ―expenditure estimates of the State shall be made in the form of an Act: the Annual Appropriations Act. The bill must be accompanied by details showing, for instance, revenue estimates, specifying objectives, activities, work programs and projects in each item of expenditure estimates. Also, it must show the financial status of the State with the aggregate profiles of expenditures and revenues, benefits and loss of revenues from tax exemptions, necessary for the determining of a budget to fund past commitments, debt accumulation of the State, as well as the financial positions of State enterprises.


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

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

Early in the year, a team from the World Bank and International Monetary Fund interviewed executives of all relevant authorities for their review under the Financial Sector Assessment Program. The final report of the assessment is in the process of being produced.

The final report of the assessment was approved by the APG in July 2007 in Australia.


This is in accordance with the Audit Standard for Government Agencies.


Thailand has amended the Government Procurement Act and Regulations, including modernizing rules and regulations on government procurement according to the principles espoused by

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








the United Nations Commission on International Trade Law (UNCITRAL).

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

Thailand participated in the 11th Session of the UNCITRAL Working Group I (Procurement) on ―Possible Revisions to the UNCITRAL Model Law on Procurement of Goods, Construction and Services‖ in New York, USA on 21-25 May 2007.

The National Counter Corruption Commission organized a seminar on ―Conflict of Interest and Public Procurement‖ for 4,000 participants from 14 provinces.

The Ministry of Finance finished drafting the Decree on Government Procurement with a public hearing on this to be held in September.

The Cabinet approved in principle the Draft Decree on Government Procurement on 22 October 2007: this is now under the consideration of the Office of the Council of State.

In April 2007, the Thai Government, in collaboration from the World Bank, assessed the public procurement system in Thailand using OECD/DAC (Development Assistance Committee) Baseline Indicator System (BIS), resulting in the identification of comparative strengths and weakness in four areas (pillars) as follows:

(1) Legislative and Regulatory Framework;

(2) Institutional Framework and Management Capacity; (3) Procurement Operations and Market Practices; and

(4) Integrity of the Public Procurement System.

BIS assessment highlighted areas for the improvement of public procurement, primarily

(i) enhancing existing legislative and regulatory rules;

(ii) standardizing procurement practices;

The Comptroller General‘s Department launched the Thai Government Procurement website, www.gprocurement.go.th (Thai language only) which aims to promote accountability. This will be developed to provide government procurement information from all public agencies.

http://www.gprocurement.go.th/








and

(iii) developing a monitoring system for evaluating government agency procurement performance in both central and local government.


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

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

The plan to set up the Office of the Public Sector Anti-Corruption Committee is now under review to be in line with the Government‘s policy.

The draft law to establish the Office of the Public Sector Anti-Corruption Committee (PACC) for mid-level government officials is currently being amended to be in line with the Constitution of the Kingdom of Thailand 2007.

The draft law to establish the Office of the Public Sector Anti-Corruption Committee (PACC) was enacted on 25 January 2008. The office has powers and duties to prevent and suppress corruption in mid-level government officials. The Cabinet also appointed the Secretary-General of the office and set aside a budget for the office‘s operations. In addition, the Cabinet has submitted the names of the Corruption Commission to the House for approval.


Section 236 of the Constitution 2007 sets out measures to control financial contributions to and the election expenditures of political parties and candidates. It also allows inspection of financial records of political parties and of the payment or receipt of money that may affect voting results.


According to the Constitution of the Kingdom of Thailand 2007, Part 6 Section 81, the ―State shall pursue directive principles of State policies in relation to legislation and the administration of justice‖:

―(3) to bring into existence the law








establishing an independent law reform agency to be in charge of the revision and development of the law of the country, including the revision of laws on the implementation of the Constitution, provided that opinions of those affected by such laws shall also be heard;

(4) to bring into existence the law establishing an independent justice-administration reform organization to be in charge of revision and development of the operation of agencies concerned with the administration of justice.‖





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

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

The Ministry of Justice proposed the following draft laws as recommended by a committee comprised of relevant agencies, independent organizations and academics:

1. The Draft Amendment of the Criminal Code to revise the definition of and provisions related to the bribery of ―foreign public officials‖ and ―officials of public international organizations‖ and the suspension of the statute of limitations where the alleged offender has evaded the administration of justice. The Cabinet approved the draft in principle on 12 June 2007. The National Legislative Assembly is shortly to consider the draft.

2. The Draft Asset Recovery Act and

The Draft Amendment of the Criminal Code, the Draft Asset Recovery Act and the Draft Mutual Legal Assistance in Criminal Matters Amendment Act relating to asset recovery have been approved by the Office of the Council of State and are under the consideration of the Cabinet. If approved, they will be submitted to the House of Representatives.








the Draft Mutual Legal Assistance in Criminal Matters Amendment Act relating to asset recovery were submitted to the Cabinet in June 2007.


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

The Draft Amendment of the Money Laundering Control Act has been approved in principle by the Cabinet and is now under the consideration of the National Legislative Assembly.

The Money Laundering Control Amendment Act was enacted on 2 March 2008 with the addition of a ninth predicate offence on illegal gambling.


Sections 66 and 67 of the Organic Act on Counter Corruption were amended to allow the National Counter Corruption Commission to begin an investigation without receiving a complaint, where there is a suspicion that the Prime Minister, a minister, a lawmaker, or a political official has become unusually wealthy or has engaged in malfeasance.

The National Counter Corruption Commission has a process for verifying the personal assets of public servants who are ranked level 10 upwards, identical to that of the Anti-Money Laundering Office.


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

Inter-agency co-operation AMLO signed MOU on the exchange of information with National Counter Corruption Commission.

Thai agencies cooperate under the The Public Sector Anti-Corruption








Office of the Prime Minister‘s Regulation on Cooperation in accordance with the Money Laundering Control Act B.E. 2542, B.E. 2544 (2001)

Committee (PACC) is a new organization established as the central government organization for coordinating cooperation on the prevention of corruption among mid-level agency personnel. It will cooperate in various ways with the National Counter Corruption Commission to develop and enhance effective cooperation.

The Anti-Money Laundering Office has signed MOUs with many organizations, such as Bank of Thailand, Office of the Consumer Protection Board, Department of Land and the Revenue Department for efficient inter-organization cooperation.


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

Section 19 of the Money Laundering Control Act B.E. 2542 (1999) prescribes protection for a person making a report, disclaiming their responsibility when the report was made in good faith even if it damages another party.

The National Counter Corruption Commission will send a new draft of the Organic Act on Counter Corruption B.E.2542 (1999) to the Cabinet concerning rules for witness protection.

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

The National Counter Corruption Commission and the United Nations Asia and Far East Institute for the Prevention of Crime and the Treatment of Offenders organized a project on ―Training Anti-Corruption Officer‖ in November 2006.

The National Counter Corruption Commission and the Ministry of Foreign Affairs co-hosted a capacity-building workshop on ―Combating Corruption Related to Money Laundering‖ on 20-22 August 2007 in Bangkok, Thailand.

The Public Sector Anti-Corruption Committee and the National Counter Corruption Commission will organize a training course for investigators with a view to increasing efficiency and cooperation between the organizations in June-July 2008.

The National Counter Corruption Commission is setting up the special institute, the Sanya Dhamasakti Anti-Corruption Institute, for the holding of inter-agency training programs and seminars.

International cooperation including exchange of information and evidence,

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








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

Thailand is considering the ratification of the Mutual Legal Assistance in Criminal Matters Treaty among Like-minded ASEAN members.

Thailand has agreed to ratify the ASEAN Mutual Legal Assistance in Criminal Matters Treaty.

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

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

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

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

Thailand plans to send representatives to attend the Second Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities, to be held in Bali, Indonesia, in November 2007.

Thailand sent representatives to attend the Second Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities, held in Bali, Indonesia, in November 2007.

The National Legislative Assembly is considering a draft amendment to the Extradition Act B.E. 2472 (1929).

The Extradition Amendment Act was enacted in January 2008 and will come into force in mid July 2008.

Thailand plans to hold seminars between neighboring countries‘ anti-corruption organizations. For example, cooperation with international organizations is being considered by the Office of the Public Sector Anti-Corruption Committee in order to enhance its anti-corruption efficiency.

Both the NCCC and PACC are sending officers to attend the ABA-RACA Regional Asset Recovery Skills Training








in Malaysia, in June 2008.

National strategies The NCCC has launched the National Strategies for the Fight against Corruption, which dovetail with the organization‘s own Strategic Plan for 2008 – 2012. The 4 prime National Strategies are:

1. The inculcation of values, morals, ethics and discipline in all sectors

2. The mobilization of national collective strength to prevent and suppress corruption

3. The strengthening of anti-corruption agencies

4. The nurturing of professional anti-corruption personnel



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

The proposed amendment to the Securities and Exchange Act B.E. 2535 (1992) will add new provisions to promote corporate governance in publicly traded companies. The amendments include:

1. Clearer definitions of the duties and responsibilities of directors and executives;

2. Boards of Directors are made responsible for appointing a corporate secretary responsible for the preparation and filing of documents in compliance with the conditions set forth;

3. Rights of shareholders to bring a law suit on behalf of the company against the company‘s directors and executives with a view to retrieving ill-gotten gains from them. The

The Securities and Exchange Act B.E. 2535 (1992) and the Securities and Exchange Act (No.4) B.E. 2551 were enacted on 4 March 2008.








proposed provision also allows such shareholders to receive reasonable expenses incurred in the course of litigation;

4. Rights of shareholders to propose certain issues for the consideration of the Board of Directors to be added to the agenda for a forthcoming shareholders‘ meeting; and

5. Rules governing proxy solicitation in order to allow shareholders to make informed decisions whether or not to give proxy to the solicitor.

Also the proposed amendment to the Securities and Exchange Act B.E. 2535(1992) includes provisions for whistleblower protection. This was approved, in principle, by the Cabinet and will be shortly considered by the National Legislative Assembly.




The Comptroller-General‘s Department has e-auction regulations: this can be a way to clarify the process for companies which would like to proffer a bid to the government.

The Procurement Decree B.E.... is under the consideration of the Office of the Council of State.





Many anti-corruption fora and seminars, in terms of both prevention and suppression, have been organized by

On 12 December 2007, the NCCC, together with the UNODC, the American Bar Association Rule of Law Initiative








relevant authorities for dialogues and the exchange of opinions among all parties concerned.

and Mahidol University and with the support of the US Department of State, organized a symposium and exhibition to mark International Anti-Corruption Day.

On 27 December 2007, Office of the Civil Service Commission arranged a seminar with the cooperation of 5 organizations: the Office of the Ombudsman, the National Counter Corruption Commission, the Center for the Promotion of National Strength on Moral Ethics and Values, and the Foundation for a Clean and Transparent Thailand.

The main objective was to create an opportunity for public participation in enhancing transparency in Thai society.

The Ministry of Justice, Thailand, the UNODC and the World Bank co-hosted a conference on ―New Strategic Directions in Controlling Corruption: The Recovery of Stolen Assets‖ on 10-12 March 2008 in Bangkok, Thailand. 60 participants from 9 countries attended.

The National Counter Corruption Commission together with the UNODC and the American Bar Association Rule of Law Initiative are preparing to co-host the ―Symposium on Thailand, State Party to the UNCAC‖ on 2 June 2008, at the Siam City Hotel, Bangkok, for government officials.

Public awareness campaigns To raise awareness, Thailand has launched the ―I AM READY‖ campaign to promote honest, active, moral, relevant, efficient, accountable and democratic government. The Foundation for a Clean and Transparent Thailand was set up to cultivate morality and ethics of all Thai people, to urge the suppression of corruption and to promote transparency. ―Jai Thai Sai Sa-ard‖ was launched to widen awareness and to

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

The Office of the Public Sector Development Commission (OPDC) is making progress with the development of models for government agencies under the Strategic Plan for the Thai Public Sector Development (2003-2207). Consultants are analyzing six units which were chosen as model offices in order to identify successful elements for changing mindset, work culture and values. The consultants are in the process of selecting the 4 pilot

The government has declared an anti-corruption campaign to be one of its prime policies.

Every government agency has been mandated to launch at least one project to encourage the public to monitor and prevent corruption in the public sector.

The government has set up the Transparent Government Center to encourage civil service integrity








urge Thais to fight corruption for a better Thai society. ―Raising Awareness and Building up a Wide and Strong Network Countrywide‖ has been proposed as a priority area and reform project.

offices (2 departments and 2 provinces) from among the 34 applicants to implement the model.

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

Thailand proposed a ―Raising Awareness and building up a Wide and Strong Network Countrywide‖ project as a reform project to be undertaken under the 3rd implementation cycle (2007 – 2008) at the 8th Steering Group Meeting held in Manila, Philippines, 17 – 19 May 2006. As of 10 August 2007, 18 departments within 9 Ministries and 2 agencies reported that they have implemented their plans to launch or be engaged in public awareness campaigns in this area.

The Office of the Civil Service Commission will soon introduce a ―Transparency Index‖ as a benchmark to assess the government‘s actions and performance.

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

In 2008, OCSC has launched a campaign to raise public awareness of anti-corruption and to build a strong sense of the responsibility of model civil servants acting for the national interest. The activities include presenting and publishing details of civil servants‘ annual vow to His Majesty to perform their tasks well.

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

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

The National Counter Corruption Commission has set up eight provincial counter corruption offices in the four regions of Thailand to increase public involvement channels.








University to raise public awareness.


In 2004 the government set up the Centers for the Promotion of National Strength on Moral Ethics and Values (aka Moral Centers) to create a learning society with moral bases. The Moral Centers have supported and promoted knowledge management on ethics and morals; coordinated and supported networking among moral ethics organizations; provided moral ethics information; and established cooperation with various individual organizations .

The Office of the Civil Service Commission has set up the Transparent Thailand Foundation.

Education programs The National Counter Corruption Commission has educated people and set up networks to monitor anti-corruption activities.




As a KPI, every public sector agency has to improve or originate measures to promote anti-corruption internally.

The new Civil Service Act Section… prescribes an Ethical Code and Merit Protection Board.












The Foundation for a Clean and Transparent Thailand regularly arranges its network for 84 organizations for monthly discussion of corruption.

Moral Centers nationwide have engaged in public awareness and promoted transparency and accountability.

Protection of whistleblowers The National Counter Corruption Commission is considering providing protection to whistleblowers.

Members of the National Legislative Assembly proposed the revision of the Witness Protection Act.2003 to amend the definition of the ―witness‖ to include whistleblowers. Mechanisms provided by the law to protect witnesses will also be applicable to whistleblowers as a consequence


OTHER

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

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

The Intergovernmental or interagency Committee comprised of all relevant agencies, independent organizations and academics completed its assignment in May 2007 by reaching the following conclusions:

a) in principle, Thailand has already promulgated several laws which are in compliance with key principles of the UNCAC, especially its mandatory commitments. That is to say, the current Thai legal and regulatory regimes have enacted and introduced legal provisions which are in line with key principles and provisions of the UNCAC

b) to ensure full and proper compliance with the UNCAC, the Intergovernmental Committee has agreed that there are only three areas needing the proposal of draft








law amendments and new draft acts in order to incorporate the following:

the definitions of and provisions relating to ―Foreign Public Official‖ and ―Official of a Public International Organization‖;

the suspension of the statute of limitations where the alleged offender has evaded the administration of justice; and

asset recovery .

Also, the intergovernmental committee prepared a comprehensive matrix or table indicating a full analysis of existing domestic laws vs. UNCAC commitments, mandatory, voluntary and optional, as a useful self-assessment worksheet.

The Ministry of Justice, as the appointed focal point of the process for ratifying the UNCAC, has already proposed the draft laws i.e., the Draft Amendment of the Criminal Code; the Draft Asset Recovery Act and the Draft Mutual Legal Assistance in Criminal Matters Amendment Act, relating to asset recovery provisions, to the Cabinet for its consideration. Once these Acts are approved by the National Legislative Assembly, Thailand will be ready to ratify the UNCAC.

The Cabinet, at its meeting on 21 August 2007, approved in the principle Thailand‘s ratification of the UNCAC and approved the proposed Draft Asset Recovery Act and Draft Mutual Legal Assistance in Criminal Matters Amendment Act.

In addition, a Thai translation of the UNCAC, a full report of the Intergovernmental Committee‘s analysis and completed matrix or table of self-assessment analysis were submitted to the Cabinet by the Ministry of Justice in

On 4 December 2007, the Cabinet approved the Ministry of Foreign Affairs‘ proposing the UNCAC to the National Legislative Assembly for its approval. Moreover, the Cabinet assigned the Ministry of Foreign Affairs to undertake related proceedings for the ratification of the UNCAC, with a Reservation pertaining to Article 66, Paragraph 2. Once the National Legislative Assembly approves the UNCAC and all draft laws proposed by the Ministry of Justice and such laws become effective, the country is ready to ratify the UNCAC. The Cabinet also assigned the Ministry of Foreign Affairs to comply with a provision stated in Section 190 of the Constitution of the Kingdom of Thailand, 2007, prior to ratification.

The National Legislative Assembly at its Meeting of 19 December 2007 approved, in principle, the UNCAC.








June 2007.

The Cabinet, at its meeting on 21 August 2007, acknowledged the full report of the Intergovernmental Committee‘s analysis.

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

On 7 November 2006, the Cabinet approved recommendations related to anti-corruption, including:

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

Creating a Code of Ethics/Conduct for performance of the Cabinet

Strengthening moral and ethics in the business and government sectors.

Thailand attended the First Conference of State Parties to the United Nations Convention against Corruption in Amman, Jordan, 10-14 December 2006.

Thailand participated in the 2nd Session of the Conference of the State Parties to the United Nations Convention against Corruption in Bali, Indonesia (27 January -2 February 2008)

Thai delegates participated in the International Cooperation Workshop on Technical Assistance for the Implementation of the United Nations Convention against Corruption held in Montevideo, Uruguay on 30 May to 1 June 2007.

Thailand attended the Workshop on Asset Recovery and Workshop on Review of Implementation held in Vienna, Austria, 27-31 August 2007.








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

Thailand has participated in the following activities relating to APEC:

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

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

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

ACT accepted a proposal by the Office of the National Counter Corruption Commission for a capacity building workshop on ―Combating Corruption Related to Money Laundering‖ in 2007.


Thailand participated in the APEC Anti-Corruption and Transparency (ACT) Experts Workshop on ―Building Integrity in the Private and Public Sectors: Implementing APEC‘s Anti-Bribery Principles‖ in Cairns, Australia (22 June 2007)

Thailand participated in the 5th Meeting of the APEC Anti-Corruption and Transparency (ACT) Experts Task Force, in Cairns, Australia (24 - 25 June 2007)

ACT accepted a proposal by the National Counter Corruption Commission to undertake a Comparative Study of Anti-Corruption Measures and Procedures in APEC.


Thai delegates participated in the 1st APEC Senior Officials Meeting and Related Meetings held in Lima, Peru (26 February - 3 March 2008)

Thailand participated in the ASEAN-SOM Transnational Crime Expert Meeting on Anti-Corruption, in Jakarta, Indonesia 1-2 May 2007.

Thailand participated in the 2nd Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities (IAACA) in Bali, Indonesia (21-24 November 2007)

Thailand participated in a Workshop on ―The Fight against High-Level Corruption is a Common International Responsibility: Strengthening Cooperation Mechanisms in the Asia-Pacific‖ in Lima, Peru (22-31 October 2007)

The Draft Extradition Amendment Act B.E.2472 (1929) is currently under the

The Extradition Amendment Act was enacted in January 2008 and will come








consideration of the National Legislative Assembly.

into force in mid July 2008.

Sections 66 and 67 of the Organic Act on Counter Corruption have been amended to allow the National Counter Corruption Commission, where there is a suspicion that any person holding a particular position, e.g., Prime Minister, Minister, Member of the House of Representatives, Senator or any other political official, has become unusually wealthy or committed the offense of malfeasance, to undertake a fact-finding inquiry without requiring any injured person to lodge a written request to the Commission.

The Constitution of the Kingdom of Thailand 2007 provides for the integrity of holders of political office and government officials.


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Vanuatu – 315 –

Vanuatu

Vanuatu was not represented at the 8th, 9th, 10th and 11th Steering Group meetings.


















Promoting reporting by








officials of corruption and whistleblower protection






























Corporate governance, internal company controls








such as codes of conduct, establishing channels of communication, whistleblower protection and staff training










Education programs

















OTHER


Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Vietnam – 320 –

Vietnam













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

As required by Decree 158 of the Government, Ministries, branches and localities are focusing on developing regulatory documents on the compulsory rotation of several working positions.



On 14 June 2007, the Government issued Decree No. 102, which prohibits officials who leave office from conducting business in the areas covered by their previous office for a specified period of time.

Disclosure and/or monitoring of, for example, personal

The new Anti-corruption Law includes provisions dealing with publication and








assets and liabilities transparency of assets, property and incomes.

On 9 March 2007, the Government issued Decree No. 37 requiring declaration of assets and income from 10 groups of officials, including full-time National Assembly Deputies, full-time members of the People‘s Council, candidates to the National Assembly, and members of the People‘s Council.

Ministry of Home Affairs, in coordination with Vietnam Fatherland Front, is submitting to the Government the draft joint Resolution, which provides guidance to the implementation of some articles of the Ordinance on regulation of democracy at communal level. At the same time, it continues seeking for consultative opinions for the finalization of the project on mandatory income control over public officials who hold high working positions.

On implementing Decree 37 of the Government on income and asset declaration, Ministries, branches and localities have instructed and assisted the public officials who are obliged to declare in declaring their income and assets as required by the laws. By the end of February 2008, 25 branches, 5 district people‘s committees and 59 state bodies have submitted asset declaration reports.

Together with the declaration of asset and income by public officials, agencies and organizations at central and grassroot levels have started to pay salary for public servants through bank accounts as required by Instruction 20 of the Prime Minister.


The Government and the Prime Minister issued the ―Master Programme on State Reform from 2001-2010‖ and the ―Decision on the Programme to Build and Improve the Quality of Public Servants Period I (2003-2005)‖. In its annual resolutions for administrative reform, the government aims to establish a culture of leadership and management. This is reflected in the responsibilities and behavior of public servants in handling citizens‘ affairs.

Vietnam will undertake the Master Program on Building Capacity of the Inspectorate System 2006-2010. The Program aims to build a strong, honest and professional inspectorate system that can discharge its responsibilities in inspection, and handle complaints and the new responsibilities under the Anti-Corruption Law. The inception phase, which lasts one year from 1 October 2006, aims to ensure the effectiveness and efficiency of the subsequent steps








Vietnam has also engaged in administrative reform on the handling of affairs among agencies, and between state agencies and citizens so as to reduce bureaucracy.

of the Program. On 6 October 2006, the Inspector General of the Government Inspectorate of Vietnam signed 5 bilateral Joint-Financing Agreements with Sweden, Canada, Denmark, Norway and Netherlands. The Agreements will commit financial support of international donors to the inception phase of the Master Program.

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

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

On 10 May 2007, the Prime Minister issued Regulations on gifts to and from public servants, including procedures for dealing with such gifts.

Many cities and provinces have issued the action programmes to implement the Resolution of the 5th meeting of the Central Executive Committee of the Party on fostering administrative reform, enhancing the effectiveness and validity of state management work, simplifying administrative procedures, improving the quality of one-stop mechanism. Several ministries and branches have adapted the standard of ISO 9001-2000 in administrative management work.

Together with the administrative reform process, many cities and provinces have implemented the codes of conduct of public officials at local governments.

Promotion, training and supervision of officials viz.

The Government Inspectorate of Vietnam has established the ―Course of

On 1 August 2006, the Prime Minister issued Direction No. 26, which strictly

On 14 June 2007, the Government issued Decree No. 103, stipulating the








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

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

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

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

4. Conducting social-economic inspections and handling complaints.

prohibits the use of public funds for illegal gift offering and guest reception.

responsibilities of the officials and heads of agencies and organizations in reducing waste and practicing thrift. The Decree also contemplates awards and disciplinary measures for officials.





Ministry of Finance has issued 45 documents guiding the implementation of financial regulations which are related to the prevention of and fight against corruption.

International standards and








practices to regulate and supervise financial institutions


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



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

The new Central Steering Committee on Anti-corruption conducted its first meeting on 4 October 2006 in Hanoi, 5 days prior to the Conference on Enhancing the Party‘s Leadership against Corruption and Wastefulness. The Committee is headed by the Prime Minister and includes a deputy Prime Minister, the Inspector General, Minister of Public Security, Vice Minister of National Defence, Director General of the Supreme People‘s Procuracy, Tribunal President of the Supreme People‘s Court, Vice Chairman of the Party‘s Central Control Committee, Vice Chairman of the Central Committee for Internal Affairs, and Minister of Culture and Information.

The Committee has the power to:

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

(2) implement anti-corruption measures; and

(3) judge the responsibilities of the heads of agencies.

As the Head of the Committee, the Prime Minister can temporarily suspend the following officials who are suspected of corruption or who obstruct anti-corruption activities: deputy

On 27 August 2007, the Office of the State President promulgated amendments to the Law on Preventing and Combating Corruption. Steering Committees on preventing and combating corruption will now be established at the central level headed by the Prime Minister and at the local level headed by the Chairmen of Provincial People‘s Committees. Steering Committees at the local level are responsible for assisting the Executive Committee of the party hierarchy, People‘s Councils and People‘s Committees in directing collaborative efforts, supervision and speeding up of anti-corruption activities within their localities.

Functional agencies have recommended, developed and submitted to the Prime Minister for approval and issuance of Resolution 03 on the Action Programme of the Government period 2007–2011, which specifies that ―fostering state administrative reform, enhancing the prevention of and fight against corruption, practicing of thrift and anti-wastefulness‖ is one of the five main groups of tasks in the instructing and regulating of the Government.

Up to 31 March 2008, 58 provinces and cities at central level have established the Steering committees on preventing and combating corruption. They have put their focus on choosing the qualified and experienced persons for the position of Deputy head of the committees as well as those who work as assistants for the committees. With the motto of ―perfecting organizational structure goes along with fostering operational activities,‖ in many cities and provinces, the Steering committees have developed detailed plans, programmes, regulations as well as working documents serving the operations of the Committees.

Office of the Central steering committee on anti-corruption, in coordination with








ministers; the chairman, vice-chairmen and standing members of the People‘s Councils; the chairman, vice- chairmen and other members of the provincial People‘s Committees; and persons appointed and removable by the Prime Minister.

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

the Ministry of Public Security, Supreme People‘s Procuracy and Supreme People‘s Court, have finalized for the issuance of Coordinating Regulation in boosting up and raising the quality of the investigating, prosecuting and judging complicated and severe corruption cases. The committee has also coordinated with the Government Inspectorate, Ministry of Public Security, Supreme People‘s Procuracy and Supreme People‘s Court in implementing the Coordinating Regulation in preventing and combating corruption.







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

Major corruption cases have been exposed and sanctioned recently with a view to deter and prevent corruption.








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



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




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



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

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



Corporate governance,








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








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

On 28 June 2007, the Government Inspectorate launched the first anti-corruption Internet portal in Vietnam (chongthamnhung.thanhtra.gov.vn). The portal allows communication and exchange of information between citizens, agencies and the Government Inspectorate. The Anti-corruption Bureau manages the portal by classifying the information received and forwarding it to the relevant division.



Education programs

http://chongthamnhung.thanhtra.gov.vn/











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





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

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

On 27 March 2007, the Government issued Decree No. 47 on cooperation between state agencies and the Vietnam‘s Fatherland Front. The Decree applies to many bodies including the media, the press, businesses, business associations, career associations, people‘s inspection boards, and citizens. One critical provision gives the press the right to investigate corruption cases, to request information from government agencies, and to report corruption to the public (if the reporting is true and objective). The

The Central Committee of Vietnam‘s Fatherland Front and its affiliates of all levels have strengthened cooperation with state management agencies in developing institutions, disseminating anti-corruption laws, as well as supervising the implementation of those laws. The anti-corruption steering committees at provincial level have coordinated with the provincial Fatherland Front and its affiliates to encourage their members and citizens to participate in detecting and denouncing corrupt acts and








Decree also gives citizens the right to report corruption to state agencies if they provide their identity and address.

malpractices; and at the same time, conduct preventive measures towards behaviors which take advantage of the fight against corruption to cause social instability.

Protection of whistleblowers Pursuant to Decree No. 47, state agencies shall protect persons who report corruption.


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

OTHER

To implement the Anti-corruption Law, the government has devised the ―Course of Action of the Government Implementing the Anti-corruption Law‖. The plan‘s main objectives include minimizing and reducing corruption in all aspects of social and economic life, raising awareness among all parties of anti-corruption, and providing guidance to all agencies to implement the Plan. The Plan identifies five main issues:

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

2. Reviewing, amending and replacing institutions and policies;

3. Disseminating the Anti-corruption








Law;

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

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

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

Vietnam, as the Chair of the APEC Anti-Corruption and Transparency Task Force (ACT) in 2006, organized the ―Public-Private Dialogue on Anti-corruption and Transparency in Business Transaction‖ on 9-10 September 2006 and hosted the APEC ACT Meeting on 12-13 September 2006.

Under the framework of the 2008 Work plan of the APEC ACT, the Government Inspectorate of Vietnam will hold an international symposium on Anti-corruption and Administrative Reform from 25-26 June 2008. This is a forum for representatives of APEC member economies, international and domestic experts and scholars on anti-corruption and administrative reform to share experiences and information, and to discuss and figure out effective measures to take advantage of the interactive relationship between administrative reform and anti-corruption.

Under the main theme of Anti-corruption and Administrative Reform, the symposium will focus its discussions on the following sub topics:

- Administrative reform for effective anti-corruption;

- Role of inspection/anti-corruption agencies in boosting up administrative reform;

- Administrative procedure reform for effective prevention of corruption;

- Public finance reform for effective anti-corruption;

- Private sector with administrative reform for the purpose of anti-corruption.

From 8-9 August 2006, the Government Inspectorate and the Embassy of Denmark organized a workshop entitled

Regarding the UN Convention against Corruption, at the moment, Vietnam is proceeding with final procedures for the








―Vietnam and the Preparation for the Ratification of the UNCAC‖. This workshop aimed to consolidate the ideas of related ministries and branches of government on the UNCAC‘s ratification before they are submitted to the Government for consideration.

ratification of the Convention by the second half of 2008.

On 18 May 2007, the First Dialog on ―Position, Functions and Responsibilities of Vietnam‘s anti-corruption agencies‖ was organized by the Vietnam Government Inspectorate, Office of the Central Steering Committee on Anti-corruption, State Auditor, Supreme People‘s Procuracy, Office of the Government, and the Ministry of Public Security. The Dialog was attended by foreign donors, Vietnam‘s anti-corruption agencies, Central Office and Boards of the Party, Ministry of Culture and Information, Ministry of Foreign Affairs, Vietnamese Lawyers Association, and representatives of foreign embassies. The participants agreed that:

Greater cooperation is needed between Vietnam‘s anti-corruption agencies and international donors;

Further dialogs should be held biannually before the Consultative Group Meeting of Vietnam‘s international donors.

With permission of the Prime Minister, every year, before the Consultative Group Meeting (CG Meeting), the Government Inspectorate of Vietnam holds 2 Dialogues on anti-corruption between the Government of Vietnam and the community of international donors. Through these dialogues, international friends and donor community further understand and highly appreciate political will of the Government of Vietnam in the fight against corruption.

The Government Inspectorate of Vietnam is developing an Anti-corruption Strategy to the year 2020. A working group has been established to prepare the draft, which is expected to be completed by September 2007. The Strategy includes and is closely connected to other strategies of the Government on administrative and judicial reforms, enhanced transparency, and access to information.

At present, the Government Inspectorate of Vietnam is developing the Anti-corruption Strategy of Vietnam to 2020. It is expected that the Draft of this important Strategy will be submitted to the Government for consideration and ratification by September 2008.