ENGLISH - Anti-corruption Reforms in Eastern …

1 FIGHTING corruption IN Eastern europe AND CENTRAL ASIAAnti- corruption Reforms in Eastern europe and Central AsiaProgress and Challenges, 2013-2015 Fighting corruption in Eastern europe and Central Asia Anti-corruption Reforms in Eastern europe and Central Asia PROGRESS AND CHALLENGES, 2013-2015 About the OECD The OECD is a forum in which governments compare and exchange policy experiences, identify good practices in light of emerging challenges, and promote decisions and recommendations to produce better policies for better lives. The OECD s mission is to promote policies that improve economic and social well-being of people around the world. Find out more at About the Anti-corruption Network for Eastern europe and Central Asia Established in 1998, the Anti-corruption Network for Eastern europe and Central Asia (ACN) supports its member countries in their efforts to prevent and fight corruption . It provides a regional forum for the promotion of Anti-corruption activities, the exchange of information, elaboration of best practices and donor coordination via regional meetings and seminars, peer-learning programmes, and thematic projects.

2 ACN also serves as the home for the Istanbul Anti-corruption Action Plan. Find out more at This report is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. OECD 2016 FOREWORD Anti-corruption Reforms IN Eastern europe AND CENTRAL ASIA: PROGRESS AND CHALLENGES, 2013-2015 OECD 2016 3 FOREWORD Since 2013 countries in Eastern europe and Central Asia have introduced a number of new important Anti-corruption Reforms . However, corruption continues to remain high in the region. This report identifies progress achieved in the region as well as remaining challenges that require further action by countries.

3 The report analyses three broad areas of Anti-corruption work, including Anti-corruption policies and institutions, criminalisation of corruption and law-enforcement, and measures to prevent corruption in public administration and in the business sector. The analysis is illustrated by examples of good practice from various countries and comparative cross-country data. The report also analyses the role that the OECD Anti-corruption Network for Eastern europe and Central Asia (ACN) played in supporting Anti-corruption Reforms in the region. The report focuses on the nine countries in the region that participate in the OECD/ACN initiative known as the Istanbul Anti-corruption Action Plan: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Ukraine and Uzbekistan. It also presents examples from other countries in the region as well as OECD countries to give a broader perspective for the analysis. The report covers the period from 2013 till July 2016, when the third round of monitoring of Istanbul Action Plan countries was implemented, and is based on the results of this monitoring.

4 It thus updates the 2013 publication Fighting corruption in Eastern europe and Central Asia, Anti-corruption Reforms in Eastern europe and Central Asia, Progress and Challenges, 2009-2013 , which summarised the results of the second round of monitoring. The ACN countries provided information and comments, and they also reviewed the draft report. The draft report was presented at the ACN High Level Meeting on 21-22 April 2016 and the final report at the ACN plenary meeting on 16 September 2016. The findings of the report provide the basis for the new ACN Work Programme for 2016-2019. This report was prepared by the OECD/ACN Secretariat at Anti-corruption Division (ACD) of the OECD Directorate for Financial and Enterprise Affairs. Mr. Dmytro Kotlyar, ACN Consultant, coordinated preparation of the report and drafted chapters 1 ( Anti-corruption trends in Eastern europe and Central Asia), 3 (Criminalisation of corruption and law enforcement), and sections on public procurement, access to information and integrity in the judiciary in chapter 4 (Prevention of corruption ).

5 Mrs. Olga Savran, ACN Manager, drafted the sections on integrity in the public service and on business integrity in chapter 4 (Prevention of corruption ) and chapter 5 (OECD Anti-corruption network for Eastern europe and Central Asia). Mrs. Rusudan Mikhelidze, ACN Project Manager, drafted chapter 2 ( Anti-corruption policy and institutions) and section on international co-operation in chapter 3 (Criminalisation of corruption and law enforcement). The ACN Ukraine project team (Mrs. Tetyana Khavanska, Mrs. Antonina Prudko and Mr. Andriy Kukharuk) and Mrs. Martina Limonta, ACN Assistant, contributed in the preparation of the report. Mr. Brooks Hickman, ACD Anti-corruption Analyst, provided editorial assistance. TABLE OF CONTENTS Anti-corruption Reforms IN Eastern europe AND CENTRAL ASIA: PROGRESS AND CHALLENGES, 2013-2015 OECD 2016 5 Table of contents Acronyms .. 9 Executive summary.

6 11 Chapter 1. Anti-corruption trends in Eastern europe and Central Asia .. 15 Spread of corruption in Eastern europe and Central Asia .. 15 Participation of the region in global Anti-corruption efforts .. 25 Chapter 2. Anti-corruption policy and institutions .. 29 Political will to fight corruption .. 29 Anti-corruption strategies and action plans .. 32 Surveys and research on corruption .. 45 Public participation in fighting corruption .. 50 Awareness-raising and education .. 54 Anti-corruption preventive and policy coordination institutions .. 58 Conclusions and recommendations .. 66 Chapter 3. Criminalisation of corruption and law enforcement .. 69 Criminalisation of corruption and harmonisation of legislation .. 69 Bribery offences and their elements .. 72 Other corruption offences .. 80 Liability of legal persons .. 93 Definition of an official .. 113 Sanctions .. 116 Confiscation .. 121 Statute of limitations, immunities and effective regret .. 125 International co-operation and mutual legal assistance.

7 134 Specialised law-enforcement bodies .. 144 Investigation and prosecution of corruption cases .. 150 Conclusions and recommendations .. 158 Chapter 4. Prevention of corruption .. 163 Integrity in the public service .. 163 Public procurement .. 201 Access to information .. 222 Integrity in judiciary .. 239 Business integrity .. 254 Chapter 5. OECD Anti-corruption network for Eastern europe and Central Asia .. 273 How does the ACN work .. 273 ACN Evaluation .. 281 Way forward .. 282 ACN Funding .. 284 TABLE OF CONTENTS 6 Anti-corruption Reforms IN Eastern europe AND CENTRAL ASIA: PROGRESS AND CHALLENGES, 2013-2015 OECD 2016 Figures 1. To what extent do you think that corruption is a problem in the public sector in this country? .. 15 2. IAP, EU and OECD countries in the TI s corruption Perception Index (2015, Score) .. 16 3. IAP countries in the Transparency International corruption Perception Index (CPI Score) .. 18 4. Have you paid a bribe to any one of 8 services listed in the past 12 months?

8 , % Yes .. 19 5. Country ranking in TI corruption Perception Index and WEF Global Competitiveness Index .. 20 6. Worldwide Governance Indicators, Control of corruption .. 21 7. Ranking of IAP countries in global ratings .. 23 8. World Bank s Enterprise Survey, 2013 data.. 25 9. Correlation between confidence in national government and perception of government corruption , 2014 .. 32 10. Statistics on enforcement of private sector bribery in some IAP countries .. 83 11. Legal status of central purchasing bodies in the OECD countries .. 203 12. Volume of procurement methods used in Ukraine (number of procurement, 2010-2015) .. 206 13. Types of review bodies in the EU Members States .. 211 Tables 1. corruption Perception Index, Transparency International, Eastern and Central europe and Central Asia .. 17 2. corruption , Nations in Transit, Freedom 19 3. Worldwide Governance Indicators: Control of corruption and Rule of law .. 22 4. Istanbul Action Plan countries in global governance and doing business ratings.

9 23 5. World Bank s Enterprise 24 6. Adherence of the IAP and ACN countries to international Anti-corruption and related treaties .. 26 7. Anti-corruption Strategies and Action Plans adopted in the IAP countries in 2012-2015 .. 33 8. How to involve civil society: Practical examples from Anti-corruption strategies in 2013-2015 .. 53 9. Global corruption Barometer (2013), IAP countries .. 54 11. Criminalisation of elements of bribery offences in the IAP countries .. 74 12. To act or refrain from acting in the exercise of his or her official duties .. 79 13. Elements of private-sector bribery offences .. 82 14. Statistics on enforcement of private sector bribery in some EU countries .. 84 15. Enforcement of trading in influence offence in Ukraine .. 86 16. Statistics on enforcement of trafficking in influence in some EU countries .. 88 17. Offence of illicit enrichment in Lithuania, Moldova, Mongolia and Ukraine .. 88 18. Provisions on corporate liability in international legal instruments.

10 94 19. Form of corporate liability in the ACN countries .. 98 20. Models of corporate liability in the ACN countries .. 98 21. Liability of legal persons (LP) for corruption offences in the ACN countries .. 100 22. Mixed (fixed/proportionate) corporate fines for corruption offences in the ACN countries .. 110 23. Legal and natural persons prosecuted for bribery in the ACN countries in 2010-2013 .. 112 24. Definition of foreign public officials in the IAP countries .. 116 25. Maximum sanctions for basic (non-aggravated) offences in the IAP and ACN countries .. 120 26. Provisions on confiscation in IAP countries .. 122 27. Statute of limitations for corruption offences in the IAP countries .. 126 28. Persons with immunities in the IAP countries .. 129 29. International co-operation in the ACN countries: treaties in force .. 137 30. Central Authorities in the IAP countries .. 141 31. Specialised Anti-corruption law enforcement bodies in the ACN countries .. 145 32. Statistics of corruption and related offences of public officials in Ukraine (2013-2014).