The Control Model in Perú

1. The Control Model in Perú Genaro Matute Mejía Ph.D. Comptroller General Republic of Perú

2. AGENDA • Subjects of Control • Institutional Objectives • Strategy • Anti Corruption Activities • Performance Evaluation • Anticorruption Preventive Strategy • Program “Juega Limpio” • Conclussions

3. Subjects of Control • Central Government, all its agencies, including the Armed Forces and the National Police • Regional and Local Government and its agencies. • The administrative divisions of Congress, the Judicial, and the Attorney General. • Constitutionally Autonomous Agencies. • The Regulators and the Privatization bodies. • The Government enterprises • Private and International organizations as well as the NGOs for the State resources received and managed.

4. Main Aspects of the Law 27785 • Strengthening of the economic, administrative and financial autonomy of the Control System • The System is formed by the Contraloria General, the Institutional Control Offices and the contracted external Financial Audit Firms • Three types of control: ex-post, previous and preventive • Ex-post control is external and selective • Previous control in: Public Debt Operations, Additional Construction Contracts, Military Secret Procurement • Preventive Control to respond question to avoid mistakes and avoid corruption

5. Main Aspects of the Law 27785 (cont) • Sanctions can be imposed to certain infractions • Evaluation and Control of Public Servants Disclosure Income and Wealth Forms • Decentralization Process of the Office in 16 regional offices • The Head of the Institutional Control Office depends only upon the Contraloria, who approves the Annual Control Program

6. Institutional Objectives

7. CGR - Vision • Model Institution, • recognized for its ethical principles and the most competent technological, professional and knowledge body, • offering to the people confidence and security in the use of the public resources, • using effective and timely control techniques, • promoting an environment of honesty and transparency in the public affairs, and • contributing to the integrated development of the country.

8. CGR - Mission Is the Supreme Institution in the National Control System Monitors: • The efficient, effective, and economic use of the public resources, • The Public Debt Management. and • The Compliance in the execution of the budget of the public sector and the acts of the individuals and institutions subjects to control , Cooperating with the State to achieve its objectives of National Development and the wellbeing of the Peruvian Society.

9. EQUITY PROFESSIONALISM TRANSPARENCY HONESTY VALUES

10. GENERAL STRATEGIC OBJECTIVES TO CONSOLIDATE THE INSTITUTIONAL DEVELOPMENT TO MODERNIZE THE GOVERNMENTAL CONTROL TO PROMOTE AND PARTICIPATE IN THE ERRADICATION OF CORRUPTION TO STHRENGTENING THE NATIONAL CONTROL SYSTEM

11. Institutional Strategy

12. Integrated Control Strategy Public Policy Assessment Performance Evaluation Financial Auditing Anticorruption Strategy Level of Corruption

13. Strategic Blocks Future Development Prevention Efficiency and Value for Money Performance Anti-corruption Strengthening

14. Knowledge Management Approach Organizational Culture People RESOURCES Infrastructure Processes Organizational Structure Information Technology

15. Strengthening: Anti-Corruption Initiatives • Compliance Auditing • Institutional Control Offices • Regional Control Offices • Evaluation and Control of Public Servants Disclosure Income and Wealth Forms • Financial Auditing: external to private firms • Technical support to the Justice System • Special Interventions • Anti-Corruption Intelligence • Armed Forces and Police Force Control • Quick Actions

16. Sanction System • Results of Control Reports: Administrative, Civil and Penal faults. • Administrative: Internal administrative process • Civil: Judicial System • Penal: District Attorney, Police & Judicial System • Results: Highly ineffective

17. Quick Actions Report CGR CGR Special CGR Police Special CGR Police Accusation District Attorney Criminal Complaint Filing Courts CGR Attorney

18. QUICK ACTIONS

19. Performance Assessment • Managerial Auditing • Management Contracts Assessment • Promotion of Internal Control • Environmental and National Heritage Auditing • Social Programs Assessment • Public Debt Reports • Accountability Reports • Privatization and Concessions Control • Public Policy Assessment

20. Sector Executive Branch Público Ejecutivo Policía Entidades de Justice System Private Sector Nacional Administración del Perú de Justicia Children & Youth Empresas APS EPA Congreso Congress Privadas Entidades de Niñez y Police Supervision and Control Supervisión Juventud y control Sociedad Civil Society Civil ANTICORRUPTION PREVENTIVE STRATEGY

21. Children and Youth Programs • Value Discussions • Presentation “ The Impact of Corruption on you and your future” • 200 Schools Nationwide, public and private • Last 2 years of High School • 12,000 Students participating in 2005 • In 2006 Inviting other institutions to participate • Target for 2006: 50,000 students

22. Program “Juega Limpio” “Fair Play”

23. Objective: “Juega Limpio” • Respect for the open and fair competition • Reduction of losses due to paybacks • Social Responsibility • Incidence over government procurement • Transparency in Operations • Clear Rules of the Game • Improvement in the purchase power • Saving money to the taxpayers

24. “Juega Limpio” • Signing and working: • Sociedad Nacional de Industrias • Cámara de Comercio de Lima • Asociación de Exportadores • Perú Cámaras • Consejo Nacional de la Construcción • 44 Firms in the Health Industry

25. Conclusions • Short, Medium and Long Term Actions • Performance Assessment in the way, but not in high priority • Prevention with all actors in the Society • Strong Response using integrative actions: intelligence, individual, compliance, and quick actions • Modernization and Strengthening Program IDB • Value Chain: Improvements in Sanction System