Transcript Increasing personal responsibility

ETHICS AND GOOD GOVERNANCE:
DFID’S APPROACH TO ANTICORRUPTION
MARK ROBINSON
CHIEF PROFESSIONAL OFFICER, GOVERNANCE,
CONFLICT AND SOCIAL DEVELOPMENT
Slide 1
‘An even greater duty on us … to ensure that aid secures 100
pence of value for every hard-earned British taxpayers’
pound we spend’
‘And let no-one be in any doubt whatsoever: a zero tolerance
approach to corruption’
Andrew Mitchell, Secretary of State, October 2010
Slide 2
Corruption:
‘the abuse of entrusted power for private gain’
Transparency International
Corruption: Three risks
1.
2.
3.
Slide 3
Brake on development
•
Funds stolen
•
Diversion of resources
•
Taxes evaded
•
Bribes paid
•
Policy decisions distorted
•
Exacerbates risk of conflict and instability
Misuse of DFID funds
•
Poor use of public resources
•
Threat to public support for aid at home
Risk to UK global reputation
•
Bribery by international companies
•
Financial centres holding and laundering stolen funds
DFID tackles all sides of the equation
1. Bilateral programme – DFID Country offices
– public financial management (PFM) / audit should mean better fiscal
discipline, more strategic allocation of resources and better value for money
– Parliaments, Public Accounts Committees, Anti-Corruption Commissions
– key sectors: police, investment environment, revenue management,
service delivery (health, education)
– community-based monitoring of budgets
2. Working with multilaterals
– World Bank: stronger internal programming through DFID secondees and
support for Stolen Assets Recovery Initiative
– IMF: anti money laundering advice
– UN: DFID assessing audit regime of each major agency
Slide 4
Strengthening parliamentary committees
• In Ghana, DFID supported the Public Accounts Committee
(PAC) from 2007 to 2009,
• This included assistance with a place to meet, research on
cases, access to library materials and electronic information
systems, training the media on the role of the PAC and
specific cases, and finance for public sittings of the PAC.
• Broadcasting PAC hearings on radio and TV got people
talking about corruption and the standard of questions and
answers improved.
Slide 5
Combating Corruption: in partner
developing countries
•Strengthen country PFM systems
•Broader empowerment and
accountability improvements
•Fiscal discipline
•Complementary international
initiatives
•Value for money
•Strengthen anti-corruption
enforcement
•Use UN convention against corruption
to agree specific remedial actions
Slide 6
Better Public Financial
Management:
•Strategic resource allocation
Less corruption
3. Safeguarding aid
– better internal controls & response to frauds; mapping vulnerabilities across
DFID operations
– designing corruption risk management into programmes / sectors
4. Making international action work
– effective UK action on international cases (bribery, asset recovery)
– extractives – EITI, Natural Resource Charter; transparency of payments
(Dodd-Frank)
– levelling the playing field for all (e.g. G20, UN Convention and anti-money
laundering standards)
Slide 7
Global architecture
• 2005 UN Convention against Corruption (UNCAC) - for the first time sets out agreed
obligations for all countries to adhere to. To date, 158 countries (and the EU) have become
parties to the Convention, one of the highest tallies for a UN Convention. UNCAC pays
particular attention to the importance of ensuring efficient and effective legal co-operation
between countries in dealing with corruption cases that span more than one jurisdiction.
• UK is co-chairing G20 Anti-Corruption Working Group - hope to see progress on, e.g.,
ensuring level playing field on combating bribery (China, India, Russia - non-OECD players)
- and on ‘non-traditional’ sanctions such as travel and visa bans
• DFID working with Commonwealth Secretariat on collaboration with African
Commonwealth Anti-Corruption Commissions - first conference convened all ACCs last
year in Botswana where we explored scope for mutual help between ACCs
• DFID is part of a donor partnership with the International Organisation of Supreme Audit
Institutions (INTOSAI), the worldwide body to which most Supreme Audit Institutions
(including the UK NAO) belong.
• UK will also co-chair the Open Government Partnership in 2012 and chair G8 in 2013 we will use these major opportunities to press on anti-corruption, transparency and
accountability further globally.
Slide 8
Other Whitehall
DFID-funded
Intelligence
Cross Whitehall
PEPs Strategy Group
[DFID secretariat]
(HMT, SOCA, SFO, FSA,
City of London
Met Police
SOCA
Overseas corruption
Intelligence Cell
Investigation
Prosecution
Met Police
City of London Police
Bribery o/s by UK companies &
citizens – developing countries
25 current cases; 2 prosecutions
11 on charge; £6.5m identified
for restraint/confiscation
Serious Fraud Office
Investigation and prosecution
Bribery & money laundering
Slide 9
Crown Prosecution Service
Confiscation orders
Tracing & recovering stolen
Assets – developing countries
£150m+ restrained
6 prosecutions since 2009
Recovery & Return
Crown Prosecution
Service
2 posts dedicated to
developing
country casework
(commencing Mar 11)
Results in UK asset recovery work
• Real and cost effective successes – we have spent around
£4-5m since 2006 on asset recovery in the UK (around £1m
per year) yet have recovered more than £160m
• Former Nigerian state governor James Ibori is on trial at
Southwark Crown Court as we speak as a result of the work
of our Metropolitan Police Unit
Slide 10
Independent Commission for Aid Impact (ICAI)
• Independent of DFID
• Reports to Parliament (International Development
Committee), not to DFID
• Remit to scrutinise all UK oda, in all Govt Depts
• 4 Commissioners, mainly private sector background
(and former head of Kenyan anti-corruption commission)
• KPMG contracted to deliver studies
Slide 11
ICAI CORRUPTION STUDY
The questions:
• How effective are DFID’s approaches to
protecting UK aid funds from fraud and
corruption?
• How well does DFID help its partners countries
to fight corruption?
Publication date – 22 November
Slide 12
IDC Hearing – 13 December
5 key findings:
1. ‘Must tackle issue more assertively’
… Anti-corruption strategy in each country
2. ‘Resources in counter-fraud and anti-corruption fragmented’
… Review structure to develop more co-ordinated approach
3. ‘Need clearer procedures for managing risk in specific aid types
and sectors’
… Develop processes for particular aid types and invest in due
diligence
Slide 13
4. ‘Scale up support for law enforcement and national accountability
institutions’
… Focus on supporting more robust law enforcement & innovative
forms of beneficiary monitoring and community mobilisation
5. ‘Need to increase capacity to collect and manage intelligence on
corruption’
… Invest more in intelligence collation and analysis of risks in particular
sectors and countries. Currently too reactive.
Slide 14
DFID’s response
• DFID can shape wider donor approach in coming years – seen as highly positive
opportunity
• Should be proactive and on the front foot – as much a change in working culture
than simply more /heavier procedures
• Immediate priorities:
– Developing country level fraud and anti-corruption strategies
– Building up internal coherence through a Fraud Risk Management Group
– Beef up effort on empowering community/beneficiaries’ voice
– Engage Whitehall partners on supply of technical skills for partners
– Work with multilaterals to improve systems
– Strengthen specialist skills and capacity across DFID
Slide 15
Our three pronged strategy
• domestic action here at home on bribery, tackling illicit flows
and recovering stolen assets for eventual return
• action in the international sphere to encourage more
international legal collaboration on cases, especially moving
ahead on asset recovery
• action in our partner countries, especially trying to get
UNCAC as the operating framework for donor/government
collaboration and planning
Slide 16