C-FIGHTER Community

Transnational Corruption Investigations

2009-11-04T05:57:00.000-08:00

Recently at the Economics of Corruption 2009 course in Passau the following module was presented.

Transnational Corruption Investigations

Training and qualifying practitioners, researchers and students in anti-corruption is increasingly requested, utterly needed, but still in its infancy. For many years now Professor Lambsdorff at the University of Passau has developed a training program that fills this gap, joining the world of theory with the world of practice. An analysis of political, economic and organizational incentives allows participants to obtain a profound understanding of the forces that are at play. Survey techniques and statistical analysis confront theory with data. Interactive tools such as games, poster presentations and case studies involve participants and make them acquainted with today's challenges. Prof. Johann Graf Lambsdorff and his team have spearheaded models for reform related to such issues as contract penalties, compliance systems, debarment, procurement, leniency and corporate liability. Participants are introduced into this body of research.

For more information on this course click ICCG

C- Fighter Anti-Corruption Guide - Word for the Day - 27-09-09

2009-09-27T10:05:00.000-07:00

EMBEZZLEMENT

Definition

When a person holding office in an institution, organisation or company dishonestly and illegally appropriates, uses or traffics the funds and goods they have been entrusted with for personal enrichment or other activities.

Example in practice

Chung Mong Koo, former chairman of Hyundai Motors Co., was convicted in 2007 of
embezzling US$ 110 million from company funds, a portion of which was allegedly used to pay off politicians and government officials.

Relevant links

—— Transparency International: Global Corruption Report 2004 – Political Corruption.
www.transparency.org/publications/gcr/download_gcr/download_gcr_2004

—— U4 Anti-Corruption Resource Centre: Embezzlement of Donor Funding in Health
Projects.
www.cmi.no/publications/file/?3031=embezzlement-of-donor-funding-in-health-projects

New Free Anti-Corruption Training Online!

2009-09-18T16:11:00.000-07:00

The Global Infrastructure Anti-Corruption Centre (GIACC) has on 1st September 2009 published an on-line anti-corruption training module: “Identifying and avoiding corruption in the infrastructure sector”.

The module is designed to help users:
· achieve a better understanding of corruption in the infrastructure sector
· avoid corruption
· identify corruption
· deal with corruption appropriately if confronted with it.

There is no charge for the use of the module.

The module can be used by individuals, and also by professional institutions and organisations as part of their formal training for their members and employees. It is aimed primarily at middle and senior management, particularly those involved in procurement, tendering, sales and marketing, design, project management, claims management, commercial management, financial management, legal, compliance, and internal audit.

This training can be used by organisations and individuals wherever they are located or working as, although the law will vary between jurisdictions, the module covers general principles and examples which have worldwide applicability.

The module is designed to be undertaken by individuals working by themselves on-line. However, an organisation could project the web-pages onto a screen, and use the whole or part of the module as part of a training workshop.

Upon completion of the module, you can type your name into a box on the certificate web-page, and you then can print out a GIACC certificate of completion of the course which includes your name and date of completion. GIACC does not retain any record of these names. This certificate can be given to your employer or professional institution as proof of completing the module.

For further information, and to access the module, go to:
http://www.giaccentre.org/onlinetraining.intro.php

C- Fighter Anti-Corruption Guide - Word for the Day - 11-09-09

2009-09-11T10:04:00.000-07:00

DISCLOSURE

Definition

Provision of information as required under law or in good faith, regarding activities of a private individual, public official, company or organisation. Information can include a political candidate’s assets, a company’s financial reports, an NGO’s donors or a whistleblower’s accusations.

Example in practice

Following a lobbyist scandal in the US, a total of 51 corporations — including American Express, Chevron, General Electric and Merck — agreed to adopt new rules that voluntarily bind companies to disclose publicly any corporate funds that are used for political purposes, either at the state or federal level.

Relevant links

—— International Chamber of Commerce: Commission on Anti-Corruption. Combating
Extortion and Bribery - ICC Rules of Conduct and Recommendations.
www.iccwbo.org/uploadedFiles/ICC/policy/anticorruption/Statements/ICC_Rules_of_Con
duct_and_Recommendations%20_2005%20Revision.pdf

—— International Finance Corporation: Disclosure Policy.
www.ifc.org/ifcext/disclosure.nsf/Content/Disclosure_Policy

—— Shell: Financial Disclosure Policy.
www.shell.com/home/content/om—
en/about_shell/our_performance/financial_disclosure/financial_disclosure_1512.html

—— U4 Anti-Corruption Resource Centre: Query - Corruption, Political Party Financing and Electoral Campaigns.
www.u4.no/helpdesk/helpdesk/queries/query8.cfm

—— World Bank: Disclosure Glossary.
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/INFORMATIONDISCLOSUR
E/0,,menuPK:199023~pagePK:213743~piPK:213746~theSitePK:222993,00.html

C- Fighter Anti-Corruption Guide - Word for the Day - 10-09-09

2009-09-11T09:53:00.000-07:00

DEBARMENT

Definition

Procedure where companies and individuals are excluded from participating or tendering projects. Governments and multilateral agencies use this process to publicly punish businesses, NGOs, countries or individuals found guilty of unethical or unlawful behaviour.

Example in practice

The World Bank debarred Lahmeyer International, a German company, and Acres
International, a Canadian-based firm, in 2004 and 2006, respectively. The decision was taken after a Lesotho court found the companies guilty of bribing officials to win contracts for a multi-billion dollar water supply scheme, the Lesotho Highlands Water Project. Lahmeyer has been suspended for seven years from doing business with the Bank while Acres has been made ineligible for three years.

Relevant links

—— Transparency International: Recommendations for EU Debarment System.
www.transparency.org/content/download/5661/32802/file/TI_EU_

Debarment_Recommendations_06—03—28.pdf
—— U4 Anti-Corruption Resource Centre: Debarment as an Anti-Corruption Means.
www.u4.no/themes/debarment/main.cfm

—— UK Anti-Corruption Forum: Fair and Efficient Debarment Procedures.
www.anticorruptionforum.org.uk/acf/fs/groups/fair_efficient.pdf

—— World Bank: Listing of Ineligible Firms.
www.worldbank.org/debarr

—— World Bank: Sanctions Committee - Report Concerning the Debarment Processes of the
World Bank.
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,content
MDK:50002288~pagePK:84271~piPK:84287~theSitePK:84266,00.html

C- Fighter Anti-Corruption Guide - Word for the Day 09-09-09

2009-09-09T11:36:00.000-07:00

CORRUPTION

Definition

The abuse of entrusted power for private gain. Corruption can be classified as grand, petty and political, depending on the amounts of money lost and the sector where it occurs. Also see ‘grand corruption’, ‘petty corruption’ and ‘political corruption’.

Example in practice

According to a national survey in India, more than 70 percent of families that live below the poverty line have reportedly paid a bribe to law enforcement and local housing authorities.

Relevant links

—— Asian Development Bank: Anti-Corruption Policies and Strategies.
www.adb.org/Documents/Policies/Anticorruption/anticorrupt300.asp?p=policies

—— OECD: Corruption - Glossary of International Criminal Standards.
www.oecd.org/document/2/0,3343,en_2649_34857_40460290_1_1_1_1,00.html

—— World Bank: Helping Countries Combat Corruption.
www1.worldbank.org/publicsector/anticorrupt/corruptn/cor02.htm

C- Fighter Anti-Corruption Guide - Word for the Day 08-09-09

2009-09-09T11:29:00.000-07:00

CORPORATE GOVERNANCE

Definition

Procedures and processes for how private sector organisations are directed, managed and controlled, including the relationships between, responsibilities of and legitimate expectations among different stakeholders (Board of Directors, management, shareholders and other interested groups).

Example in practice

The Board of Directors of General Electric (GE) oversees how management serves the
interests of shareowners and other stakeholders on a variety of issues of corporate
governance. In the past, the Board has received briefings on the company’s controllership, compliance and litigation trends and environmental risk management.

Relevant links

—— European Corporate Governance Institute.
www.ecgi.org/

—— Global Compact: Business against Corruption.
www.unglobalcompact.org/docs/issues_doc/7.7/BACbookFINAL.pdf

—— Global Corporate Governance Forum.
www.gcgf.org/

—— International Corporate Governance Network.
www.icgn.org/

—— OECD Principles of Corporate Governance.
www.oecd.org/DATAOECD/32/18/31557724.pdf

C- Fighter Anti-Corruption Guide - Word for the Day 07-09-09

2009-09-09T11:16:00.000-07:00

CONVENTIONS

Definition

International and regional agreements signed or formally adopted through ratification by multiple states that establish rules and standards on issues which are typically cross-border in nature and require a common approach for effective, multilateral cooperation.

Example in practice

With 140 government signatories, the United Nations Convention against Corruption
(UNCAC) is the first international anti-corruption instrument that legally binds acceding and ratifying countries to implement far-reaching reforms and establishes a common stance for efforts to combat corruption. Other multilateral conventions on corruption include the OECD Anti-Bribery Convention, the African Union Convention on Preventing and Combating Corruption and the Inter-American Convention on Corruption.

Relevant links

—— Interpol: Conventions Regarding Anti-Corruption.
www.interpol.int/Public/Corruption/Conventions/default.asp

—— Transparency International: Anti-Corruption Conventions and Other International
Instruments.
www.transparency.org/global_priorities/international_conventions

—— U4 Anti-Corruption Resource Centre: Anti-Corruption Conventions – An Overview.
www.u4.no/themes/conventions/intro.cfm

—— UK Anti-Corruption Forum.
www.anticorruptionforum.org.uk/acf/fs/resources/instruments/

C- Fighter Anti-Corruption Guide - Word for the Day - 06-09-09

2009-09-08T14:50:00.000-07:00

COMPLIANCE

Definition
Refers to the procedures, systems or departments within public agencies or companies that ensure all legal, operational and financial activities are in conformity with current laws, rules, norms, regulations and standards.

Example in practice

In Bhutan, those who are found guilty of failing to comply with the Anti-Corruption Act of 2006, which requires public servants to accurately declare their assets and liabilities, are subject to penalties under the country’s penal code.

Relevant links

—— Compliance Week.
www.complianceweek.com/

—— Ernst & Young: Corruption or Compliance - Weighing the Costs, 10th Global Fraud
Survey.
www.ey.com/Global/assets.nsf/International/FIDS_Corruption_or_compliance_weighing_t
he_costs/$file/Corruption_or_compliance_weighing_the_costs.pdf

—— GTZ: A Comparison of Compliance Reviews Based on the UN Convention against
Corruption.
www.igac.net/pdf/publications_gtz_compliance.pdf

C- Fighter Anti-Corruption Guide - Word for the Day - 05-09-09

2009-09-06T13:06:00.000-07:00

COLLUSION

Definition

A secret agreement between parties, in the public and/or private sector, to conspire to commit actions aimed to deceive or commit fraud with the objective of illicit financial gain. The parties involved often are referred to as ‘cartels’. The collusion is a type of fraud and includes a secret agreement between two or more persons, who seem to, and promote the appearance of having conflicting interests, to abuse the law or the legal system, deceive a court or to defraud a third party.

Example in practice

The Ghanaian government has been accused of allegedly colluding with logging companies to allow them to operate without the proper licensing and certification standards, resulting in estimates by civil society organisations that only 5 of the 600 logging concessions in the country are legal.

Relevant links

—— European Investment Bank: Anti-Fraud Policy.
www.eib.org/attachments/strategies/anti_fraud_policy_20080408_en.pdf

—— OECD: Glossary of Statistical Terms.
http://stats.oecd.org/glossary/detail.asp?ID=3159

—— US Department of Justice: An Antitrust Primer.
www.usdoj.gov/atr/public/guidelines/211578.htm

-- List of 14 Links to Collusion releases, cases and judgments
http://www.serve.com/pfc/collusion.html

C- Fighter Anti-Corruption Guide - Word for the Day - 04-09-09

2009-09-04T14:03:00.000-07:00

CODE OF CONDUCT

Definition
Statement of principles and values that establishes a set of expectations and standards for how an organisation, government body, company, affiliated group or individual will behave, including minimal levels of compliance and disciplinary actions for the organisation, its staff and volunteers.

Example in practice

The federal government of Nigeria has adopted a ‘Code of Conduct for Ministers and Special Advisers’ engaged in government business dealings to ensure that the actions and behaviour of public officers conform to the highest standards of public morality and accountability.

Relevant links

—— EU Code of Conduct on Arms Exports.
www.consilium.eu.int/uedocs/cmsUpload/08675r2en8.pdf

—— UN International Code of Conduct for Public Officials.
www.un.org/documents/ga/res/51/a51r059.htm

—— World Bank: Fighting Judicial Integrity – Examples of Judicial Codes of Conduct.
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTLAWJUSTINST/0,,contentM
DK:20756643~menuPK:2036129~pagePK:210058~piPK:210062~theSitePK:1974062,00.
html

C- Fighter Anti-Corruption Guide - Word for the Day - 03-09-09

2009-09-03T17:52:00.000-07:00

CLIENTELISM

Definition

An unequal system of exchanging resources and favours based on an exploitative
relationship between a wealthier and/or more powerful ‘patron’ and a less wealthy and
weaker ‘client’.

Example in practice

- In Mexico, caciques, or local power brokers, provide peasants with plots of land, loans, security and a medium through which to sell their crops in exchange for the peasants’ votes and support, often using strong-arm tactics to reinforce their power.

Relevant links

—— USAID: Clientelism, Patrimonialism and Democratic Governance - An Overview and
Framework for Assessment and Programming.
http://pdf.usaid.gov/pdf_docs/Pnacr426.pdf

—— World Bank: Policy Research Paper, Democracy, Credibility and Clientelism.
www.0wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2005/02/02/000009486
_20050202165259/Rendered/PDF/wps3472.pdf

C- Fighter Anti-Corruption Guide - Word for the Day - 02-09-09

2009-09-02T18:47:00.000-07:00

CIVIL SOCIETY

Definition

The arena, outside of the family, state and market where people associate to advance a common set of interests. Voluntary and community groups, non-governmental
organisations (NGOs), trade unions and faith-based organisations commonly are included in this sphere, making the term broader than an NGO.

Example in practice

- An assessment of Mali’s civil society has shown that at the grassroots level, there are numerous parents’ associations, community committees on health, women’s associations and other groups that have come together to advocate for their members’ interests vis-àvis the government’s provision of services. National-level groups, such as those representing journalists, have also formed, including to pressure the government to better and more systematically address corruption and poverty.
- In 2008 the Caribbean Procurement Institute and the International Federation of Purchasing and Supply Management (IFPSM) sponsored the establishment of the non-profit Caribbean Association of Procurement Professionals (CAPP) a civil society organisation dedicated to promoting public procurement reform and enhancing procurement professionalism throughout the Caribbean region.
- The C-Fighter Community (Right here!) is an example of a civil society initiative to help curb corruption in society. Join the C-Fighter Community on LMG World TV.

Relevant links

—— Civicus.
www.civicus.org

—— BBC World Service: Civil Society - The Ultimate Third Way.
http://news.bbc.co.uk/2/hi/special_report/1999/02/99/e—cyclopedia/1156120.stm

—— European Commission: Justice and Home Affairs – Freedom, Security and Justice
Glossary.
http://ec.europa.eu/justice_home/glossary/glossary_c_en.htm

—— UN Non-Governmental Liaison Service.
www.un-ngls.org

—— World Bank: Civil Society.
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/CSO/0,,pagePK:220469~theSite
PK:228717,00.html

C- Fighter Anti-Corruption Guide - Word for the Day - 01-09-09

2009-09-02T18:30:00.000-07:00

BRIBERY

Definition

The offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal, unethical or a breach of trust. Inducements can take the form of gifts, loans, fees, rewards or other advantages (taxes, services, donations, etc.).

Example in practice

- More than 15 percent of respondents to a national household survey in Guatemala reported that they paid a bribe when trying to (re)connect to the public water system.
- In Bangladesh, 64.5 percent of citizens in a national survey responded that they paid a bribe when interacting with law enforcement agencies. Bribery across all agencies in Bangladesh is estimated to reduce the country’s national income by 3.84 percent.
- The State Administration for Industry and Commerce in China reported that in the first quarter of 2009 a total of 584 business bribery cases were uncovered, which was a decrease of 1.18% over the same period in 2008.

Relevant links

—— OECD Anti-Bribery Convention.
www.oecd.org/department/0,3355,en_2649_34859_1_1_1_1_1,00.html

——Transparency International’s Bribe Payers Index.
www.transparency.org/policy_research/surveys_indices/bpi

——Transparency International’s Business Principles for Countering Bribery.
www.transparency.org/global_priorities/private_sector/business_principles

C- Fighter Anti-Corruption Guide - Word for the Day - 31-08-09

2009-08-31T21:15:00.000-07:00

AUDIT

Definition

An internal or external examination of an organisation’s accounts, processes, functions and performance to produce an independent and credible assessment of their compliance with applicable laws, regulations and audits.

Example in practice

- Indonesia’s Supreme Audit Agency found US$ 40 million missing from post-Tsunami emergency funds and massive irregularities, including that the bulk of materials bought went unused and many purchases were made long after the emergency period was over.’Social’ or community’ audits, where local citizens tracked whether aid was delivered, were also conducted by recipient villages in Indonesia.

Relevant links

—— Institute of Internal Auditors (IIA).
www.theiiaa.org

—— INTOSAI (International Organization of Supreme Audit Institutions).
www.intosai.org/en/portal/

—— ISSAI (International Standards of Supreme Audit Institutions).
www.issai.org/composite-347.htm

—— PEFA (Public Expenditure and Financial Accountability).
www.pefa.org/

C- Fighter Anti-Corruption Guide - Word for the Day - 30-08-09

2009-08-30T10:51:00.000-07:00

ASSET RECOVERY

Definition

The legal process of a country, government and/or its citizens to recover state resources stolen through corruption by current and past regimes, their families and political allies, or foreign actors.

Example in practice

- In February 2009, the Swiss courts ruled that US$ 6 million in assets allegedly stolen by former Haitian President Jean-Claude Duvalier and held in Switzerland’s banks should be returned to the island nation after the account holders failed to prove that their funds were acquired ‘legitimately’
- See also our Chiluba Story which cites the UK court's seizure of former President of Zambia's home as proceeds of crime.
- In Trinidad and Tobago it is reported that the Government has recovered over 33 million USD of stolen monies from the Piarco Airport Development Project.

Relevant links

—— The Camden Assets Recovery Inter-Agency Network (CARIN).
www.europol.europa.eu/publications/Camden_Assets_Recovery_Inter—Agency_Network/CARIN_Europol.pdf

—— International Centre for Asset Recovery: Basel Institute on Governance.
www.baselgovernance.org/icar/

—— UNODC: Open-ended International Working Group on Asset Recovery.
www.unodc.org/unodc/en/treaties/CAC/working-group2.html

—— World Bank: Stolen Asset Recovery (StAR) Initiative.
http://siteresources.worldbank.org/NEWS/Resources/Star-rep-full.pdf

C- Fighter Anti-Corruption Guide - Word for the Day - 29-08-09

2009-08-28T23:15:00.000-07:00

ACCOUNTABILITY

Definition

The concept that individuals, agencies and organisations (public, private and civil society)are held responsible for executing their powers properly. In theory, there are three forms of accountability: diagonal, horizontal and vertical.
The following examples apply to the public sector.

Diagonal accountability is when citizens use government institutions to elicit better
oversight of the state’s actions, and in the process engage in policy-making, budgeting, expenditure tracking and other activities.

Horizontal accountability subjects public officials to restraint and oversight, or ‘checks and balances’ by other government agencies (i.e. courts, ombudsman, auditing agencies, central banks) that can call into question, and eventually punish, an official for improper conduct.

Vertical accountability holds a public official accountable to the electorate or citizenry through elections, a free press, an active civil society and other similar channels.

Understanding accountability mechanisms and paradigms is key to being effective as an anti-corruption expert. Knowing the agencies responsible for each sphere of government activity is important

Example in practice

In Costa Rica, the existence of three branches of government, as well as two autonomous
state authorities with equivalent responsibilities (electoral and auditory branches), has
created horizontal accountability and allowed for a separation of powers among state
agencies, which are constitutionally empowered to take action against one another when
required.

Relevant links
—— AccountAbility.
www.accountability21.net/

—— International Budget Partnership.
www.internationalbudget.org/

—— National Endowment for Democracy: Institutionalizing Horizontal Accountability.
www.ned.org/forum/reports/accountability/report.html

C-Fighter Anti-Corruption Guide - Word for the Day 28-08-09

2009-08-28T22:51:00.000-07:00

Everyday Learn a New Key Definition from the C-Fighter Anti-Corruption Guide

ACCESS TO INFORMATION

Definition:

The right by law - often through freedom of information legislation (acts or laws) - to access key facts and data from the government and any public body. Budgets, project approvals and evaluations are typically published although citizens can petition for more materials to be released.

Many countries have access to information or as it is called in some freedom of information legislation. This legislation is one of the most critical tools in a Corruption Fighter's tool box. Oftentimes in order to effectively build your case you need to first make an application under this type of legislation to get the necessary information about whether or not a suspect act is in fact a corrupt one.

It should be noted that most access legislation exempts certain documents which are considered threatening to a country's security, economic, domestic and/or international affairs.

NB: This legislation gives a citizen a right to access information from a Government body or authority NOT against private citizens and corporations.

Relevant links

-- Article 19 Global Campaign for Free Expression.

www.article19.org/work/index.html

-- International Freedom of Expression.

www.ifex.org

-- UNDP Practical Guidance Note on the Right to Information.

www.undp.org/governance/docs/A2I_Guides_RighttoInformation.pdf

Become a Corruption Fighter!

2009-08-28T22:14:00.000-07:00

Find all the tools you need to become an Anti-Corruption Expert in our C-Fighter Anti-Corruption Guide & Toolbox.

Corruption and its effects are a global challenge which is crippling countries ability to provide critical goods and services to its citizens. From small bribes paid to public officials to the holding of stolen assets by banks, the impacts from these abuses on states and citizens are the same: the undermining of the rule of law, the violation of rights, opaque institutions, lost public resources and weakened national integrity.

To effectively address these problems, anti-corruption solutions need to be pursued through coordinated and deliberate action by international, national and local partners that use the same language and agree on its meaning.

Right here on this blog you can learn how to join and become effective within the global anti-corruption movement and more than that you can become armed with the tools that will make you an expert in your own right to help companies and individuals fight corruption on a daily basis.

The C-Fighter Guide & Toolbox is absolutely FREE and will be constantly updated. Feel free to submit questions and get advice for any sticky situations you may find yourself in.

Why not gain marketable expertise in a field where you can make a real difference to the global corruption challenge? Can't find an answer? Well browse C-Fighter and let us show you how!

Don't Just Complain about it.. Become a Part of the Solution