Slides for a seminar session and discussion © Denis Osborne, 2007 1

REDUCING CORRUPTION: CONFRONTATION

GET TOUGH! DETER!Increase the risks and reduce the gains

from corrupt activities

Slides for a seminar session and discussion © Denis Osborne, 2007 2

WHAT OBJECTIVES for deterrence?

1. People who might act corruptly … don’t

2. Those who have acted corruptly … stop

3. All get fast, fair justice; less cases in court

4. Government trusted, society wins respect

Slides for a seminar session and discussion © Denis Osborne, 2007 3

FIVE MEASURES to deter?

1. Clarify laws, regulations, codes

2. Chase the money

3. Sting the corrupt

4. Test integrity

5. Speed work of courts

Ethics and Good Governance

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A WARNING!Implementation could damage your reputation!

BE WARNED

Some are radical ideas intended for consideration, not for immediate application without due care.

They may represent trends, especially iftechnology increases the dangers fromcorruption, fraud and their risks tosociety and its security

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GET SIMPLE LAWS Dangers from corruption may lead many

countries to consider revising laws Frustration with court delays may also

encourage law reform Success with such reform would be shown by:

– A higher percentage of convictions – Judges would understand cases better– Prosecutors avoid less certain cases– Cases take less time in court– Criminals deterred by risk of conviction

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CHASE THE MONEYInvestigate excessive riches

Require those who may receive bribes to Declare: require a declaration of assets

– Then we need to verify: but how? (costly process)– Use ‘spot checks’ – Punish through courts those ‘caught’– Often an effective deterrent

OR Publish: let public see declarations

– Then press / media will ‘verify’!

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CHASE THE MONEY FURTHER Explain life-style or holding of assets greater

than known salary would justify– Used in HK: ‘found’ compatible with Human Rights – Raises bigger issues: is Privacy a Right?– Little privacy in village society

except dangerous ‘secret societies’– In ‘developed’ countries

in practice a privilege of the rich … Use ‘forfeiture’

– with ‘automatic’ loss of assets

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CATCH THOSE WHO TAKE RETRIEVE STOLEN ASSETS

What does law allow?

After criminal conviction for corruption assets gained from corrupt acts should be forfeit

– ... and all property in excess of ‘reasonable’ or ‘explicable’ wealth?

If criminal conviction difficult – State should be able to take civil case

against suspect, in which conviction depends on ‘balance of probabilities’ not ‘beyond reasonable doubt’

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CATCH THOSE WHO PAY Get evidence against companies for the State

or corporation to retrieve losses in civil courts Judgement then on basis of probability,

not on proof ‘beyond reasonable doubt’– In US companies are presumed to have gained a

benefit of three times the value of a bribe. Offer immunity if officials tell and give

full evidence against those who pay?– Profitable for state, hits source of bribes

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USE STINGS AGAINST THOSE WHO PAY STINGS are operations to catch someone

when they are expected to act corruptly A business representative is expected to offer a

bribe. What might be done? What evidence is allowed in court?

– If stings are not allowed, consider using stings to find who acts corruptly

– Then ‘watch and catch’ in ‘real life’

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USE STINGSAGAINST THOSE WHO DEMAND, EXTORT A government official or company employee is

expected to ask for a bribe. Use a sting? Seek co-operation of companies who complain

about ‘culture of corruption’ and ‘having to pay’ – Seek help from Chambers of Commerce,

foreign governments– Make a condition for acceptability

to bid for Government contracts?

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TEST INTEGRITY Examples of ‘Integrity Testing’

in the New York City Police Results gained (1%, 25%, 300%; low costs)

– random tests justified when corruption VHF? Use of ‘Quality Assurance’ in London

– targeted tests appropriate where corruption LF For us

– what evidence allowed in court?– use tests, even if not for prosecution?

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TEST INTEGRITY Privatised integrity tests? The example of India Telling of this may win staff support for tests! USE manager-staff equivalents?

– If ‘agents’ actually offer bribes

beware challenges about ‘human rights’

or criminal prosecution of agents– But quality assurance acceptable?

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SPEED COURTS. GO SOFT! Use courts only if conviction virtually certain This may mean dropping old cases

– But try to avoid statutes of compulsory time limitation If possible have priority allowed for some new

cases as best way to get fast and fair justice– That may deter people more than

expecting trial ten years from now– and concentrate resources more on

present investigations than trying to retrieve ‘dead’ evidence

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OFFER IMMUNITY?

Corrupt acts are secret crimes,

evidence is hard to get Consider offers of immunity insofar as law

allows As for EU and US against ‘cartels’

– Where changed law was reported to bring company directors running to report colleagues in corrupt syndicates

Consider use of ‘plea bargains’

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CONSIDER AMNESTY

Priority for anti-corruption efforts;

Retrieval of past losses?

Protection for the future?

Let’s debate use of an amnesty later …

But consider briefly the

‘management equivalent’

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GIVE WARNINGS Warn for first and not-too-large corrupt offences

don’t prosecute. Cost effective!– saves costs and time of courts– evidence that many staff then go straight– and work as loyal members of team

Avoid prosecution where possible!– It costs much money– It uses vast resources– It causes delays– The results are not guaranteed

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BE DETERMINED The acid test … is not so much the measures that have been formulated, but the sincerity and determination in enforcing them

Chinese proverb, quoted by Chua Cher Yak, (then) Director of the Corrupt Practices Investigation Bureau, Singapore

Success depends on us doing the job well more thanon our choice of strategies, systems, tools…

We need to know the ‘broader picture’, have clear objectives, choose priorities, keep simple, select and change targets