Anti-corruption programme for governments

Most infrastructure projects are government owned, controlled, financed or guaranteed, and/or require government approvals. Because of this central role, government conduct has significant influence in relation to the degree of corruption in any project. Corruption may be materially increased by the involvement of government officials. On the other hand, corruption in a project may be materially decreased where the relevant government department has good governance internally and requires the implementation of anti-corruption measures on the project.

To minimise the risk of corruption by government officials, government departments should take anti-corruption action by implementing a systematic programme to prevent and detect corruption internally, in government projects, and in other dealings with third parties. An anti-corruption programme will not guarantee that there will be no corruption. However, it could materially assist in its prevention and detection. In addition, in the event of prosecution of the department or its officials for alleged involvement in corruption, or in a civil action for breach of duty for failing to ensure proper use of funds, such a programme could provide important evidence that the department had taken reasonable steps to prevent corruption. This could avoid or mitigate liability.

An anti-corruption programme should be implemented and monitored with care and attention equal to that given to any other management or audit process. The programme should be modified according to: size of the department, value and nature of the department's functions, location of projects, and perception of risk. Small or low risk contracts or projects would require a lower level of preventive action than large or high risk contracts or projects. However, it should be remembered that while commercial risk may be reduced according to the size of the contract or project, the criminal risk may remain the same. There is no precise recipe for such modification. This is a value judgment to be made by the government department itself.

The following Anti-Corruption Programme may be of use as a template. Parts 1 - 4 recommend actions for individual government departments. Part 5 recommends actions for national governments.

Template: Anti-Corruption Programme

Definitions
The following definitions apply to this programme:

“Business partners” includes project owners, joint venture partners, consortium partners, contractors, consultants, sub-contractors, suppliers, advisors, agents or other intermediaries.

“Corruption” means bribery, extortion, fraud, deception, abuse of power, embezzlement, trading in influence, money-laundering and other similar activities.

“Employee” means any officer or employee of the government department, and "employment contract" should be construed accordingly.

Part 1: Government Department: Internal actions

Anti-corruption code: The government department should develop an anti-corruption code and publish this code on its website.
Statement of personal support: The head of department should make a statement of personal support for the anti-corruption code and this statement should be published on the department's website.
Head of department responsibility for the programme: The head of department should take responsibility for the effective implementation and operation of this programme.
Compliance officer: A senior officer should be made responsible for ensuring that the government department complies with its anti-corruption programme. He must be provided with proper authority to implement and monitor all programme activities and must have direct and prompt access to the head of department and other senior officers.
Employment contracts: All employment contracts should include anti-corruption employment terms to ensure that there are express contractual obligations and penalties in relation to corruption.
Gifts policy: The government department should develop and implement a gifts policy whereby it either prohibits the giving or acceptance of all gifts, hospitality, and donations, or sufficiently limits and monitors this activity.
Training: The government department should provide anti-corruption training on a regular basis to all relevant employees to make them aware of the types of corruption, the risks of engaging in corrupt activity, the department's anti-corruption code, and how they may report corruption.
Rules: The government department should post up anti-corruption rules for employees which serve as a regular reminder to employees of the corrupt activities that are prohibited by the department, the department's gifts policy, and the department's corruption-reporting procedures.
Detection procedures: The government department's audit processes should check for any indication of corruption. Random checks should also be carried out of contracts, transactions, accounts, and permits and licences issued or refused.
Reporting procedures: The government department should set up internal procedures for reporting corruption which enable employees to report corruption in a safe and confidential manner to a responsible senior officer of the department.
Dealing with corruption: The government department should set up procedures for dealing with corruption which may arise where corruption is reported or discovered by the department and which may involve employees, business partners, and/or other government officials.
Internal review: The government department should carry out an annual internal review of the anti-corruption programme and should revise the programme as appropriate in the light of this review.
Independent assessment and certification: The government department should commission regular independent assessment and certification and revise the programme as appropriate in the light of this review.

Part 2: Government Department: Internal actions - Regional and local offices
Anti-corruption programme: The government department should require its regional and local offices to adopt an anti-corruption programme that is at least as stringent as its own, and should develop a procedure for reviewing the implementation and effectiveness of those programmes.
Senior management approval of the business of regional and local offices: The government department should establish a decision-making process in relation to the business of its regional and local offices whereby the decision process and the seniority of the decision-maker is appropriate for the value of the transaction and the perceived risk of corruption.

Part 3: Government Department: External actions - Projects
Adoption of project anti-corruption measures: In relation to any project where the government department is the project owner, the department should implement a project anti-corruption system. Where it is not the project owner, but is involved in a project, it should encourage or require the project owner to implement a project anti-corruption system.
Action by central regulatory authority: In many countries, public sector construction procurement is regulated by a central government body. In such case, the regulatory authority should, as part of its general procurement policy, require government project owners to implement a project anti-corruption system on their projects.

Part 4: Government Department: External actions - General
Approval procedures and permits: The need for government approvals, for example in the application for permits or payments, provides opportunities for corruption, particularly in extorting facilitation payments for duties that should be performed as a matter of course. Any government department which is responsible for dealing with such applications should take the following actions:
1. The number of government approvals required, and the number of people required to issue these approvals, should be reduced to the minimum necessary to ensure fair and effective government.
2. A senior officer should be appointed to whom complaints of extortion can be made.
3. A list of official fees, time-scales and required documents which should properly apply to government procedures should be established.
4. The contact details of the senior officer to whom complaints may be made and the list of fees, time-scales and required documents should be published on the government department's public website and posted up in the relevant government public offices.
5. An official policy should be established to compensate any organisation which has been prejudiced by an unreasonable delay in dealing with its application within the specified period.
Procurement procedures: The government department should use fair and transparent procurement procedures which minimise the opportunity for corruption.
Publication of anti-corruption code to business partners: At the outset of any business dealing, all relevant existing and potential business partners should be made aware in writing of the government department’s anti-corruption code.
Due diligence: Before entering into any business partnership or transaction, the government department should carry out due diligence on its potential business partners and on the proposed projects and transactions to identify as far as possible the risk of corruption in engagement with those partners or in those transactions.
Decision-making process: The government department should establish a decision-making process whereby the decision process and the seniority of the decision-maker are appropriate for the value of the transaction and the perceived risk of corruption.
Anti-corruption contract terms: Contracts between the government department and its business partners should contain anti-corruption contract terms which provide express contractual obligations and penalties in relation to corruption.
Adoption of anti-corruption programme: Where it is within the government department’s power to do so, it should require each business partner to adopt an anti-corruption programme that is at least as stringent as its own for the duration of the relevant business dealing, and this requirement should be made a term of the relevant contract. Where it does not have the power to impose this requirement, it should request each potential business partner to adopt such a programme.
Transparency: The government department should, as far as possible, ensure transparency in all its dealings.
Documenting all dealings: All business dealings which are of sufficient value and which could form part of a corrupt transaction should be documented in writing.
Monitoring execution of contracts: The government department should monitor the execution of contracts to which it is a party in order to ensure that there is no corruption in its execution.
Reporting: The government department should establish external procedures for reporting corruption to enable the public to report details of suspected corruption. These reporting systems should be widely publicised. People should be able to report by telephone, letter, or e-mail. Reports should be capable of being given anonymously, and the confidentiality of sources should be protected.
Debarment: The government department should develop a debarment policy in relation to organisations which have been convicted of corruption.
Working with other stakeholders: The government department should work with other stakeholders, in the public and private sectors, to reduce corruption in the infrastructure sector. This work should be publicised both to employees and on the department's website.

Part 5: National Government Actions
Good law: Governments should ensure that there is good criminal and civil law in relation to corruption.
1. Good criminal law should have the following features:
  1. It should be clear so that laymen may understand how they may incur liability.
  2. It should be comprehensive so that it captures all corrupt situations.
  3. It should be fair so that it apportions liability and penalty according to culpability.
  4. It should be relatively easy to prosecute so that its concepts are simple and its standards of proof are reasonable and attainable.
  5. It should impose proportionate penalties as follows:
    1. The penalties should be of varying degrees of severity to reflect the seriousness of the crime and the culpability of the defendant;
    2. The penalties should be applied evenly to all types of corruption so that, for example, political corruption is punished with equal severity as other types of corruption;
    3. The penalties should be no less severe than penalties for other crimes of equivalent gravity so that, for example, corruption should be punished with equal severity to theft
    4. Sentencing should take account, in mitigation, of genuine attempts made by the defendant to prevent the occurrence of the offence, or to introduce effective anti-corruption procedures subsequent to the date of the offence.
2. Good civil law should have equivalent features to those referred to above in relation to criminal law. In particular, it should be clear, comprehensive, fair, relatively easy to use, and result in proportionate remedy. It should enable a plaintiff to receive financial compensation or other remedy for loss or damage, whether financial or otherwise, suffered as a result of corruption.
Effective investigating, prosecuting and judicial authorities: Investigating, prosecuting and judicial authorities should have the following features:
1. They should be honest, competent and properly remunerated.
2. They should be independent of government.
3. Their officials should be appointed by independent and transparent means.
4. They should be able to operate without interference from government.
5. Adequate resources should be allocated to them to enable them to carry out their functions effectively.
6. They should co-operate openly with other countries’ agencies to exchange information and evidence.
7. Their activities should be subject to regular independent assessment.
Effective investigation and prosecution: Criminal investigations and prosecutions and civil actions should have the following features:
1. The approval of a government official should not be required for their commencement or continuation.
2. Political interference should be prohibited, save in extreme circumstances. Economic and commercial concerns should not constitute grounds for interference.
3. In cases where political interference is permitted, the grounds for such interference should be made public and should be subject to legal challenge.
4. No head of state or government official should have immunity from criminal prosecution or civil action
Transparency in prosecution: The prosecuting authorities should publish to the public, on a regular and prompt basis, their record of prosecutions and convictions for corruption.
Asset recovery: Adequate steps need to be taken to recover and repatriate assets stolen through corrupt activities. Governments should ensure that they have adequate procedures and that they co-operate with other governments in relation to asset recovery.
Enhanced co-operation with other countries: Preventing corruption can only be effective with inter-governmental co-operation. Governments should increase their efforts to work with other governments, and with appropriate international institutions, to ensure that all countries properly implement their international obligations under the UN, OECD and other international anti-corruption conventions and agreements.
Enhanced co-operation with industry and civil society: Anti-corruption mechanisms will be most effectively implemented by co-operation between government, industry and civil society. Governments, industry and civil society should work more openly and actively with each other to develop and implement effective anti-corruption mechanisms. (See Anti-Corruption Forums.)

Other Resources

Several organisations provide services and/or have developed tools to assist in the implementation of anti-corruption measures. These organisations are listed below in alphabetical order. If the following details are inaccurate or incomplete, or if you are willing for your organisation to be listed below, please send details to GIACC. Only services and tools which are available free of charge will be listed.

Business Anti-Corruption Portal has produced the following anti-corruption resources and tools:

About Corruption: Definitions, interpretations and references to international and national legislation and initiatives.
Integrity System: Model code of conduct; Model risk assessment tool.
Due Diligence Tools: Tools related to seeking and vetting an agent or consultant, setting up a joint venture and implementing a project.
Country Profiles: Information on various countries.
Information Networks: Contact information to turn to for local help.
Links to relevant documents and websites for further reference.

Centre of Anti-Corruption Studies provides resources for the study and analysis of issues pertaining to the fight against corruption in Hong Kong and internationally. It is a research institute established in 2009 under the auspices of the Hong Kong Independent Commission Against Corruption.

Control Risks/Simmons and Simmons have published Facing up to Corruption 2007 – A Practical Business Guide. This provides practical advice on the nature and risks of corruption, international legal initiatives, corporate anti-corruption policies, and dealing with corrupt situations.

FIDIC - International Federation of Consulting Engineers has published its Business Integrity Management System (BIMS), which is designed to help businesses deal with integrity risks.

Global Transport Knowledge Partnership (GTKP) is developing a data base of reports and actions in relation to good governance and corruption prevention on road projects.

International Chamber of Commerce (ICC) has published Combating Extortion and Bribery: ICC Rules of Conduct and Recommendations (2005)

Organisation for Economic Co-operation and Development (OECD) has produced the following two tools:

Transparency International has produced, in conjunction with several leading international organisations, the Business Principles for Countering Bribery suite of documents designed to assist organisations to implement and manage an effective anti-bribery system.

Business Principles for Countering Bribery is an anti-bribery code that organisations can either adopt or use to benchmark against their own systems.
Business Principles for Countering Bribery - Small and Medium Enterprises Edition is an edition of the Business Principles tailored to the needs of small and medium enterprises.
The Six Step Implementation Process guides organisations through the various stages of developing, implementing and monitoring their own anti-bribery systems.
The Guidance Document provides background and clarification to the Business Principles, and assists organisations in implementing or reviewing their anti-bribery programme.
A Self-Evaluation Module is in development .

UK Anti-Corruption Forum has published an Anti-Corruption Action Statement recommending anti-corruption actions for business associations and professional institutions, companies, project owners, funders and governments. It has also published the following papers:

World Economic Forum – Partnering against Corruption Initiative (PACI) has adopted the PACI Principles for Countering Bribery which are closely modeled on TI’s “Business Principles for Countering Bribery”.

World Federation of Engineering Organisations (WFEO) has published an Anti-Corruption Action Statement recommending anti-corruption actions for professional engineers, professional engineering institutions, governments, project owners, project funders, and companies. This has been published in two language versions:

Page first published on 1st May 2008

Most recent update on 31st August 2011

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Anti-corruption programme for governments

Part 5: National Government Actions