What Went Wrong Jakarta 110811 - Tony Kwok

8/4/2019 What Went Wrong Jakarta 110811 - Tony Kwok

http://slidepdf.com/reader/full/what-went-wrong-jakarta-110811-tony-kwok 1/47

What Went Wrong &

What Can be done Now

Tony Kwok, SBS, IDSAdjunct Professor & Course Director, HKU

UNODC Anti-corruption Expert Group

Visiting Lecturer, International Anti Corruption Academy

Visiting Expert UNAFEI

Regional Coordinator, IAACAVisiting Professor, PRC National Prosecutors College

Anti-corruption Advisor to Mongolia

Former Deputy Commissioner, ICAC HK



Definition & Types of Corruption

Misuse of

Power

for Private gain

Conflict of

interest

Bribery

Fraud

Embezzle-

ment



Definition of A Bribe• Gift, loan, fee, commission, reward

consisting of money or valuable orproperty

• Office, employment, contract

• Payment or discharge of liability

• Service or favour



Where do we find Corruption ?

Legislative

Executive

Judiciary

Police

Corruption

Corrupt

Civil servants

Campaign

Financing

Corrupt

Magistrates

$International

&

National

Private Sector

$

Offer bribe

$International

&

National

Private Sector

$

Offer bribePrivate

Sector

Agents



True or False

• Corruption is so serious in this country that itwill take a decade to eradicate it?

• If we can identify all the opportunities for

corruption, and plug them all, corruption willbe eradicated?

• We can rely on the dedicated anti corruptionagency to eradicate corruption?

• Government should focus on public sectorcorruption, and leave business sector alone



Public Protest on Corruption in 70’



Public Housing

Scandal



Hong Kong Success

•Eradicated most overt corruption in 3 years•Enforced private sector corruption, enableslevel playing field for business•Clean election

•Efficient & accountable government•Change the public attitude

– no longer tolerating corruption as a way of life –willing to report corruption nonanonymously

•Enhance economic growth



Anti Corruption Agencies in Asia• Singapore – Corrupt Practices Investigation Bureau –

1967

• Malaysia – Anti Corruption Agency – 1967• Hong Kong – ICAC – 1974• Brunei – Anti Corruption Bureau – 1982• Philippines – Ombudsman - 1987

• Pakistan – National Accountability Bureau – 1999• Thailand – National Counter Corruption Bureau – 1999

• Macau – Commission Against Corruption – 1999• South Korea – KICAC – 2002

• Indonesia – Corruption Eradication Commission – 2003

• Bangladesh – Anti Corruption Commission – 2004• Mongolia – Independent Authority Against

Corruption – 2006• Cambodia – Anti Corruption Commission - 2010



Why ACA fail

• Lack of resources

• Lack of independence• Wrong strategy• Inadequate law• Inadequate jurisdiction – private sector,

election• Lack of public credibility & support• Lack of coalition• Corrupt judiciary• Lack of professional staff • Lack of public accountability & internal control• Lack of POLITICAL WILL



What are the Key Success

Factors in CombatingCorruption?



Three Important

Understanding1. There is no single solution in

fighting corruption2. You can’t rely on single

agency to fight corruption

3. Zero tolerance



Three pronged approach

• Education

• Prevention

• Deterrence



ICAC Organization

ChartCommissioner

Community

Relations

Corruption

Prevention

Deputy

Commissioner

Operations



Why Enforcement is important?• Demonstrate political will

• Encourage public support• Driving force for system review

• Provide basis for public education

• Recovery of corrupt proceeds• Deter the most corrupt!



• Zero tolerance policy• Effective complaint system to

encourage public report

• Protection of whistle blower• Quick response

• Proactive approach

• Professional investigation andprosecution

• Publicity on successful convictions

Effective Deterrence



Professionalism &

Integrity• Professional investigators

• Intelligence experts

• IT experts

•

Accountants• Lawyers

• Management/technical

experts

•PR, education, ethic experts

• Sense of mission

•Whiter than white



Effective Corruption Prevention

• Management system control

• Vulnerability areas control



Key System Control

• Procurement Management

• Financial Management• Human Resources Management

• Complaint Management



• Public procurement & servicecontracts

•

Public work• Revenue collection

Law enforcement

Licensing

Public service delivery

Vulnerability Areas Control



Ministries Anti Corruption

Action Plan

• Philippines, Mongolia, Serbia

• Prime Minister’s Workshop – agreed

common action based on 4 pillars• Tailor made ministries action plan

• ACU to coordinate training needs

• Quarterly progress report to ACU, thento the Cabinet

• Review annually



PILLAR I

Ethical

Leadership

PILLAR II

Individual

Integrity

PILLAR

IV

Monitoring

&

Deterrence

PILLAR III

Systems

Integrity

Ministry Anti Corruption Action Plan



• No or ineffective anti-corruption strategy andaction plan•Lack of clear ethical standard for staff •Lack of enforcement of ethical conduct•Human resource policy/management•Bureaucracy not conducive to efficiency &transparency•Lack of effective mechanisms for accountability•Outdated regulations and poor enforcement• Conflicts of interest are common•Lack of adequate procurement procedures

•Weak internal audit and monitoring systems

Internal factors affecting thegovernment agencies’ fight against

corruption



Corruption Prevention - targets

Poor System Control

Poor Staff Integrity



Corruption Opportunity

and System Control

SystemControl

CorruptionOpportunity

Efficiency, transparency &Accountability

Procedural Guidelines

Supervisory Checks andControl

Public complaint &Independent Audit

Professional CP Studies



Staff Integrity and Corruption

Risk

Staff Integrity

CorruptionRisk

Issue Code of Ethic

Declare Conflict of

Interest/assetIntegrity vetting

Commit to zero

tolerance strategySet role model by senior

officers

C d f Ethi



Code of Ethic

• Leadership by example

• Acceptance of entertainment, gifts,loans & discount

• Declaration of conflict of interest

• Abuse of authority• Leakage of confidential information

• Outside work

• Declaration of investment

• Life style – gambling, indebtedness etc

• Sunshine Test



Effective Public Education

Public Education &

CommunicationProgramme



Objective

•

Change the public attitude• Enlist the public support

• Encourage public report

• Promote the deterrent effect

• Promote a clean society

•

Promote the corporate image of anti-corruption agency

• “Force” political will!



–

Media – publicity

– Media commercials

– TV/radio drama series

– Face to Face

– Community activities – exhibition,competition

– Ethic campaign

– Conference, seminar

– School moral education

– Training in public & business sector

Public Education Methods



Adequate Law

Offences :• Gifts

•

Illicit enrichment• Conflict of interest

• Private sector corruption

• Unauthorized disclosure

of investigation



Adequate Law

Investigative Power :•Bank enquiry

•Demand for information

•Arrest & detain

•Search

•Restrain property

•Surrender travel document

•

Surveillance•Undercover

•Telephone interception



• Independent Complaint Committee

• Operations Review Committee

Check & Balance

The Monitoring Role of the Operation Review Committee



The Monitoring Role of the Operation Review Committee

Assessed by Directorate daily

Report Centre

Corruption Not InvolvedCorruption Involved

Letter

Phone Call

Person

E-mail

Referral - ICAC RO, Other Govt. Dept.

Non-pursuable Pursuable

Investigation

Unsubstantiated Substantiated

Report to S. for J.

Fiat

Prosecution

OperationReview

Committee

NAAppropriate Autority Informed

Allegation of

Criminal Offence

Police & other law

enforcement agencies

No Allegation of

Criminal Offence

Appropriate Authority

(with Consent of Complainant)

E l E h i bli &



Equal Emphasis on public &

private sector corruption

• Double standard

• Identical to deception and theft

• Protect investment

• Level Playing field

• Consumer interest

• Financial Market stability

• Public safety• Catalyst to organized crime & crime

P t hi



•

Government agency Action Plan• Business community

• Professional bodies

•

Civil society organizations• Educational institutions

• Mass media

•

Public• International networking

Partnership



Adequate Resources

• ICAC Annual Budget US$89M

• HK population:7M – US$13 per capita

• Your country’s Population: ?

• ? x US$13 =

• ICAC Budget = 0.38% of HKG budget

• Your country’s Govt budget : ?

• 0.38% of Govt budget = ?• ICAC-900 investigators:180,000 civil servants

(1: 200)

• Your country – ? civil servant : ? investigators?



Top Political Will

Independence



Top Political Will can be

measured by :

• Resource support for Anti-

corruption Agency• Push for anti corruption friendly

law

• No political interference

• Zero tolerance policy



Key Success Factors

• Effective 3 pronged approach• Start off with effective enforcement

• Professional & incorruptible staff

• Adequate law• Adequate resources

• Partnership

• Equal emphasis – public & private sector

• Public support

• Independence

• Top political will

K I



Key Issues•What are the key corruption problems at the national level?•What are the key corruption problems at the ministries level?

•What should be the national anti-corruption strategy?•What is the role of the government ministries in combatingcorruption?•What additional anti corruption law should be introduced?•Questions on the national anti-corruption agency:

To ensure the independence of the ACA The Jurisdiction of the ACA in relation to public and privatesector corruption, election and related offencesHow much investigative power should be givenHow much manpower and resources should be given to ACA

How to ensure the ACA staff is professional and of highintegrityHow to ensure the public accountability of ACA

The role of other accountability institutionsThe role of the judiciaryThe role of the civil societies



Some Initial suggestions

• Revised anti corruption law based on UNCAC

• Set aside 0.3% of budget for KPK

• Build up an accountability system for the KPK – watchdog committee

• Presidential Anti Corruption Workshop onGovernment agencies annual action plan

• Certified Institutional Integrity Manager in everygovernment agencies & public listed company

• Government/Business Sector partnership on BusinessIntegrity

How can the donors



How can the donors

help?

• Ministries anti-corruption action planworkshop

• Capacity building for individual

ministries in implementation of actionplan

• Training courses for certified

institutional integrity manager• Launch Business integrity initiative



Thank Youhttp://www.kwok-manwai.com

What Went Wrong Jakarta 110811 - Tony Kwok

Documents

Transcript of What Went Wrong Jakarta 110811 - Tony Kwok