Specialty Session: National Security Forces
Specialty Session: Integrity and Corruption Issues as They Apply to Other Security Forces
Specialty Session: National Customs Services
Specialty Session: Integrity and Corruption Issues Specific to Financial Regulators
Specialty Session: Integrity and Corruption Issues Specific to Procurement Officials
Specialty Session: Integrity and Corruption in the Judiciary
Specialty Session: Global and Regional Anti-Corruption Frameworks
Specialty Session: Internal Oversight: Prevention, Detection and Investigation
Specialty Session: Non-Governmental Organizations

Specialty Session: National Security Forces
February 25, 1999

Moderators: Rodrigo Lloreda, Minister of Defense (Colombia) Louis Caldera, Secretary of the Army (USA)

Purpose: (1) To address integrity and corruption issues in National Security Forces (NSF); (2) to foster cooperation to combat corruption in NSF institutions; (3) to facilitate promotion of effective mechanisms to recognize, prevent, and respond to corruption which targets NSF institutions in a national and multilateral context.

Findings:
1. Leadership by example; training; and promotion of NSF core values of duty, honor, country, are important components of effective NSF anti-corruption measures.

2. Types of corruption encountered depend on the role of the NSF in society, but potential vulnerability increases with higher levels of NSF involvement in civilian activities such as counter-drug and border patrol missions.

3. Drug testing of NSF personnel has shown to be effective in identifying NSF personnel vulnerable to corruption.

4. A free press; rotation of personnel in sensitive positions; providing NSF personnel with adequate compensation in the form of a living wage and pension benefits; and a military justice system that is fair, independent, and subject to civilian oversight, are important preventative measures.

5. No universal solution exists. Sharing information; regional meetings to address the issue of corruption in the context of drug trafficking, organized crime, and illegal weapons trafficking; and additional meetings of this group were recommended.

Panel Participants:
Co-chair Rodrigo Lloreda Caicedo, Minister of Defense (Colombia)
Co-chair Louis Caldera, Secretary of the Army (USA)
Dr. Armando Blasco, Secretary for Military Affairs (Argentina)
General Benedito Onofre Bezerra Leonel, Chief, Armed Forces Joint Staff (Brazil)
General Teerawat Putamanonda, Director, Policy and Planning Office, Ministry of Defense (Thailand)
Major General Mousa Moh'd Azouqa, Director of Armed Forces Officers Affairs (Jordan)
Colonel Kim Carter, Acting Director of Military Prosecutions (Canada)

(Approximately 100 participants attended from at least 40 nations, including defense attaches' and senior military and civilian officials.)

Moderator: Michael de Feo
Assistant Director of FBI, Office of Professional Responsibility

Purpose: To examine strategies and share experiences both successful and not successful in the fight to monitor corruption within police forces and other investigative agencies.

Findings: Mr. de Feo presented strategies that have not been successful in reducing corruption among police forces including limiting the budgets of police forces, inattention to internal controls, reliance on using the judicial and legislative branches to regulate police, and allowing minor misconduct to be tolerated within police forces as long as there is not a public scandal. The panelists each shared methods that are proving successful in their country.

Ms. Yam outlined in brief the 24 year history of Hong Kong's Independent Commission Against Corruption (ICAC) which investigates all reports of corruption in the civil service, and reports directly to the Chief Executive of Hong Kong. The main source of complaints is from the public. Ms. Yam emphasized the public's confidence is critical to ICAC's success. Corruption in the police force has been minimized, though cases continue to be investigated. In recent years, more investigations center on customs officials, and allegations of corruption originating in the private sector.

Police Chief Pennington detailed the abuses of power rampant within the New Orleans police force when he became chief in 1994. With the assistance of a FBI investigative unit, five years later nearly one-third of the force has been either arrested, dismissed, or disciplined, and new officers hired. Methods that have worked include creation of a separate Public Integrity Unit to monitor the police, doubling of the officers' salaries, limiting of off-duty employment, a rotation system for assignments, and effective prosecutions of police abuse cases.

Mr. Tantawi, Director of the Administrative Control Agency (ACA) in Egypt, gave a thorough explanation of the extensive checks and balances within that agency which has been the watchdog of the Egyptian civil service since 1964. He outlined the clear code of conduct that government employees abide by, as well as how the ACA itself is monitored by a Special Operations Department.

Ambassador Tufo emphasized that to successfully attack corruption the target must be clear and attainable. In Hungary, the focus is to root-out corruption related to Russian-speaking organized crime rings. Mr. Pinter, Hungary's Minister of Interior, outlined steps his government has taken, and the importance of international cooperation in order to share and gain insight to new methods of fighting corruption. The Q and A session lasted nearly 30 minutes with questions on details of the approaches the panelists had shared as well as suggestions for more advanced anti-corruption strategies in this electronic Information Age.

Panel Participants:
Ms. Lily Yam, Hong Kong;
Mr. H. Ahmed Tantawi, Egypt;
Mr. Richard Pennington, New Orleans, LA;
Mr. Peter Tufo, U.S. Ambassador to Hungary;
Mr. Sandor Pinter, Hungary

Moderator: William Keefer, Assistant Commissioner for Internal Affairs

Purpose: To educate international delegates about Customs Service practices, internal integrity programs and other mechanisms in place to prevent global corruption.

Findings: Areas of common concern included the passage of new legislation, modernization of public administration and equipment upgrades, the hiring of inspectors and outside consultants, effective and committed leadership, and the periodic transfer of staff to avoid potential pockets of corruption at the source.

Michael Danet, Secretary General of the World Customs Organization opened the discussion by addressing the issue of global trade. The rapid growth of trade, the accelerating pace of development, and new information technology challenge the moral fabric and integrity under which Customs Services operate. The World Customs Organization and the international customs community are aware of the importance of integrity and their obligation to protect the public against illegal activity in law enforcement organizations.

Michael Roche, Deputy Chief Executive Officer of the Australian Customs Service addressed the levels of corruption within a government system, and the vulnerabilities faced by Customs officials. Corruption is a pervasive problem, which needs to be seen in the context of the whole organization, rather than one level at a time. The development and implementation of client service charters, developing integrity strategies, the use of external accountants and a comprehensive performance management system all serve as a basis to prevent the presence of corruption within the public sector. Additionally, reforms in legislation, spot inspections, frequent discussions with international monetary organizations and modernization of enterprise can serve a useful purpose in developing and maintaining integrity in the workplace.

Finally, Enrique Fanta, the National Customs Director of Chile addressed the issue of progressive change, measures of effectiveness, a system of auditing, pre-employment background investigations, and a clear policy with regard to revenues and tax controls. Mr. Fanta first said that Chile appears just under the United States on "Transparency International's" global anti-corruption list. The elements of integrity in Chilean Customs include community service, newer technologies, a clear policy of integrity and accountability, a management by results system which has a bearing on salary, improving interoffice communication and reinventing or simplifying customs procedures which reduce paperwork.

Panel Participants:
Michel Danet, France
Michael Roche, Australia
Enrique Fanta, Chile

Moderator: Eugene Ludwig, United States

Purpose: he panel identified and suggested remedies for those areas of financial regulatory activity where regulators may be subject to attempts by financial institutions and others to bribe or intimidate the regulators in pursuit of specific regulatory and supervisory actions such as licensing and rulings.

Findings: n introduction, Moderator Ludwig emphasized the structural and institutional harm created by individual acts of corruption by regulators. He stated that corruption is not merely an ethical issue, but also an issue with profound economic implications. He emphasized that while mechanism and safeguards must be created in regulatory body, a "culture of integrity" must be developed.

Dr. Yoon noted that the problem of corruption in Korea is closely linked to the economic restructuring currently underway in the country and that free and open competition are the only ways to revitalize Korea's economy. Dr. Armendariz stated three priorities: (1) preventing undue exposure of financial regulators to corruption; (2) controlling and supervising financial regulators; (3) improving transparency re: the regulators' actions.

Professor Noble addressed the issue of cooperation between regulatory and enforcement officials. He emphasized the need for a limited number of clearly understood rules and regulations and the need for transparent enforcement outcomes and processes. Ms. Nouye discussed how to protect against use of the banking system for criminal or corrupt practices. Ms. Hannigan discussed the role of the Ethics Counsel at the SEC and explained the law and administrative procedures put in place to address not only public official impropriety, but appearances that would threaten public confidence.

Kenyan Foreign Minister Masakhalia reviewed steps that Kenya is taking to address corruption and reform its financial sector, including: (1) full liberalization of the financial sector; (2) establishment of a Deposit Protection Fund; (3) improved management; (4) disclosures; (5) observation of ethical standards; (6) ethics of inspectors; and (7) legal capacity to ensure compliance.

Panel Participants:
Danielle Nouye, France
Patricia Armandariz, Mexico
Barbara B. Hannigan, U.S.
Ronald Noble, U.S.
Won-Bae Yoon, Korea

Moderator: Donald Strombom

Purpose: To discuss specific ways of addressing corruption by suppliers, contractors and government officials in government procurement and how to create integrity in the procurement system.

Findings: This panel took seriously the request to provide specific examples of how to address corruption in government procurement. Panelists and participants recognized that the overwhelming evidence from the national view and the private sector view, that corruption is bad for development and for business. At the same time, the information exchanged during the presentations and discussion led to the conclusion that there are no "quick-fixes." Hard work, time and commitment are the keys to an efficient and successful procurement regime. The following summarizes the specific examples to address corruption in government procurement as discussed by the panel and participants:

Ways to Address Corruption on the Supply and Demand Side of the Procurement Equation

-- Development of transparent rules and procedures standardizing the procurement process. -- Development of rules for suppliers that directly address the propensity to engage in corruption.

Mechanisms for Narrowing Opportunities for Corruption

-- Privatization of state-owned enterprises. -- Creation of procedures and decision-making criteria for procurement officials that lead to a predictable outcome.

Recognition of the Advantages of Multilateral Initiatives

-- Ratification and implementation of the OECD Convention on Bribery and Corruption. -- Conclusion of a multilateral transparency agreement on government procurement in the World Trade Organization.

Assistance by Multilateral Development Banks

-- Assist borrower member countries to develop standardized procurement rules and procedures. -- Assist borrower member countries in creating the necessary tools to implement these practices.

Panel Participants:
Aldalberto Giavarini, Argentina
Theodore Nkodo, Cote D'Ivoire
Larua Rojas, Venezuela
Joe Sutton, United States
Howard Wilson, Canada

Moderator: Mr. Russ Wheeler, Deputy Director, Federal Judicial Center

Purpose: To address the independence of the American Judiciary as a model for promoting integrity, independence and impartiality.

Findings: Justice Sandra Day O'Connor of the United State Supreme Court stressed every nation's need for a fair and equitable judiciary. Decisions should be based on law, not on personal gain, politics or fear. Endemic corruption threatens this equitable application and enforcement of law. She suggested the solution to the problem is structural independence of the judiciary. She indicated a number of features of the U.S. model which are successful in this regard: lifetime tenure of judges, salaries which are set constitutionally, not by another branch of the government, impeachment as the sole means for removing judges. She said judges must not be afraid to enforce the law and they must make decisions based entirely on the law, not influenced by public opinion or threats. Judges must have the power and courage to make decisions which provoke public outcry.

Justice Stephen Breyer of the U.S. Supreme Court agreed that structural independence is the foundation for a judicial system free of corruption. He suggested that governments must take strides to ensure that judges will not be fired, threatened or removed for their decisions. He also stressed that the judges themselves have obligations to maintain the effectiveness, accessibility and honesty of the system. The public must have faith in the honesty of the system, leading the system to reinforce itself. He noted that U.S. judges must publicly disclose gifts and income.

Former Congressman Robert Kastenmeier reiterated the importance of lifetime appointments of federal judges. He also indicated that the screening process is extremely important and that the system created by which judges review their colleagues for corruption has been successful.

Federal District Court Judge Michael Mihm of Illinois suggested five reasons for the success of the U.S. federal judiciary in avoiding and counteracting corruption: the exhaustive screening process, the transparency of the legal process and openness of proceedings, adequacy of compensation, personal judicial commitment to honesty, and the ability to obtain advisory opinions from other judges regarding possibly corrupt behavior.

Paul Sheridan, Chief Judge of the Arlington Circuit Court in Virginia, discussed the Virginia commission which oversees the judiciary. He stressed that it was a secret process geared toward protection of the identity of those accusing judges of wrongdoing. He noted that the system had been quite successful in dealing with possible issues of corruption among state judges.

Moderator: Alan P. Larson, Assistant Secretary of State for Economic and Business Affairs

Purpose: To review key global anti-corruption instruments, such as the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions ("OECD Anti-Bribery Convention"), and regional initiatives, including the Inter-American Convention against Corruption, and proposals for activities in Africa and Asia

Findings: Panelists described current international, regional, and domestic anti-corruption efforts. Mark Pieth discussed the value of the OECD Convention in limiting the supply-side of the bribery equation, including the importance of a strong monitoring mechanism. Judge William Heath described the problems of corruption on South Africa, and means, such as the creation of a special court and a special investigating unit to recover government assets, which have been successful in combating it. Jorge Garcia Gonzalez discussed progress in meaningful implementation of the OAS Convention to address corrupt business practices in the Western Hemisphere. Guy De Vel outlined the Council of Europe's goal to implement an ambitious and comprehensive program to counteract the spread of corruption, with focus on creating a network of cooperation for transition economies. Ramon Cardenas emphasized the importance of political will and concrete action in the Philippines' approach on these issues. Andrew Pincus said the US Government's anti-corruption strategy has focused on implementation of the OECD Convention, as well as support for regional initiatives such as the OAS Convention, and initiatives in Africa and Asia. The group discussed the merits of global versus regional approaches, and the lack of an international mechanism was an obstacle to enforcement. There appeared to be consensus that progress at all levels -- international, regional, and national -- were critical to success.

Panel Participants:
Dr. Mark Pieth, Organization for Economic Cooperation and Development
Judge William Heath, South Africa
Jorge Garcia Gonzalez, Organization of American States
Guy De Vel, Council of Europe
Ramon Cardenas, Philippines
Andrew J. Pincus, United States

Moderator: Jacquelyn L. Williams-Bridgers

Purpose: To identify common approaches and obstacles to internal governmental oversight mechanisms for the prevention detection and investigation of fraud waste and abuse in the context of a variety of governmental structures.

Findings:
1. To serve our people, government must operate free from the waste and uncertainty that fraud and corruption create.

2. In countries where large scale privatization is replacing government-provided services, anti-corruption efforts must also encompass the private sector.

3. In newly independent nations an additional challenge to anti-corruption efforts is to build a sense of ownership where there was once widespread distrust of the government that had been externally imposed.

4. Whatever the government structure, transparency in governmental functions is essential to creating and maintaining the public's confidence in their government and in the integrity of public officials.

5. In countries where bribery has become way of life, and graft is perceived as a necessary way of sustaining your family, corruption must be linked to a loss of public services that the government can provide.

6. International cooperation against corruption is essential to ensure there is no safe haven or financial advantage for the gains associated with corrupt practices.

Panel Participants:
Mr. Michael Bromwich, US
Mr. Rodrigo Moraga Guerrero, Chile
Mrs. Miria R.K. Matembe, Republic of Uganda
Mr. Giorgi Baramidze, Republic of Georgia

Moderator: Frank Loy, Under Secretary for Global Affairs

Purpose: To begin a dialogue between governments and NGOs on corruption and rule of law, and to discuss how governments and NGOs can work together on these issues.

Findings: As representatives of civil society, NGOs are integral players in the fight against corruption. There is a wide range of NGOs with an interest in anti-corruption efforts -- from those working directly on the issue to human rights organizations, business and professional associations, and academic organizations. These groups need to work together and with governments to strengthen anti-corruption policies and legislation, educate the public, and help shape and inform debate within countries and internationally.

In many cases, NGOs have been fighting corruption longer than governments or businesses. It is clear that at this Forum, we did not fully exploit the NGO presence. As governments create strategies for combating corruption, we must seek to incorporate the views and experiences of NGOs from the beginning. NGOs can and do play many roles in fighting corruption. They broaden public interest and bring together interested parties and experts with government officials to discuss particular issues. They help governments design legislation and programs to implement domestic strategies and international conventions. They help make government and society more transparent and accountable, and create an environment in which fraud and corruption cannot thrive.

Participants suggested a number of concrete ways in which governments and NGOs can work together to fight corruption. We can work together to make information about government more accessible to the public. NGOs play a key role in collecting and disseminating on what legislation exists, and how it is being implemented, on responsible government officials, and issues that need to be addressed. We can work together to promote, create, and implement independent audit organizations, whistleblower laws, and other mechanisms designed to hold government institutions accountable. We can work to create government and business standards, which both serve as a measure of an organization's commitment to corruption and help create a process within organizations for addressing corruption and ethics issues. And we can work internationally to share and compare experiences on what strategies have been effective in fighting corruption and promoting the rule of law. In exchanging information among our peers, NGOs and governments will be able to increase and improve ideas for addressing specific problems.

Finally, NGO participants highlighted an important warning as we close this Forum: to talk about this issue, to admit our shortcomings and confess that we struggle as governments and societies with corruption, is a good first step. However, if we do not follow this step with concrete action, it will only serve to increase public cynicism, and to undermine the rule of law we seek to promote.

Panel Participants:
Frank Loy, USA
Stuart Deming, USA
Joe Onek, USA
NGO and government representatives from Argentina, Australia, Austria, Costa Rica, Cote d'Ivoire, the Czech Republic, Georgia, India, Indonesia, Latvia, Romania, and the United States.