Corruption Impact Assessment (CIA)

Corruption Impact Assessment(CIA)

Section to Coordinate the Struggle Against Corruption www.vlada.cz The Office of the Government of the Czech Republic The Office of the Government of the Czech Republic

Mgr. Milan Kryštof Čech, D.B.A. e-mail: cech.milan.krystof@vlada.cz The Office of the Government of the Czech Republic

Corruption in the Czech Republic The Office of the Government of the Czech Republic

Corruption in Czech law Corruption is a crime • acceptance of a bribe – penalty max. 12 years in prison • provision of a bribe – penalty max. 5 years in prison Crime is also the adoption bribe or provide abribe through a third person. The Office of the Government of the Czech Republic

Number offenses of bribery 2000 – 2009 identifiedproven The Office of the Government of the Czech Republic

Corruption Perception IndexTransparency International The Office of the Government of the Czech Republic

Why is the fight against corruption a priority of government ? • negative impact on the public confidence in the rule of law • create unofficial non-democratic power structures • non-transparent allocation of public money • decelerating the economic growth The Office of the Government of the Czech Republic

Because: • These are proven and measurable consequences of corruption in the Czech Republic. • With these findings do not correspond the number of proven cases of corruption and public perception of corruption. • The government gives priority to prevention over repression because by the latent crime is much more efficient. The Office of the Government of the Czech Republic

The main document on which theCIA is created: „Government's strategy in the fight againstcorruption for the period 2011 – 2012“ Government Resolution No. 837, Nov. 16th 2011, Par. 5.6 The Office of the Government of the Czech Republic

CIA - what is it ? New preventive tool to be introduced for newly admittedand selected the already existing laws to reduce the incidence of corruption enabling legislative environment. The Office of the Government of the Czech Republic

CIA - source of inspiration • Czech CIA within the EU is an innovative solution, because it is complete system. • Method is inspirated by a similar procedure which is used in South Korea, but its process differs significantly. The Office of the Government of the Czech Republic

CIA – method definition Proportional analysis with different depth and extent used to evaluate the corruption risks of the proposed legislative solutions. The Office of the Government of the Czech Republic

CIA - timetable for implementation • elaboration of the basic theses Feb. 29th 2012 • elaboration of methodologies Jun. 30th 2012 • verification of the pilot project and completion method based on findings from the pilot project Aug. 31th 2013 • decision on the inclusion of the standard legislative process Nov. 30th 2013 • set up standard applications Jan. 1st 2014 The Office of the Government of the Czech Republic

CIA - essential principles • proportionality • responsibility • consistency • transparency • public involvement The Office of the Government of the Czech Republic

Ad 1 - proportionality • For determination of the width and depth of analysis is responsible offeror Law. • In determining the depth of analysis is always necessary to take into account the importance and scope of the problem and extent of anticipated impacts on corruption and corruption risks. The Office of the Government of the Czech Republic

Ad 2 - responsibility • The ministries are responsible for processing the CIA. • They are required to match the legislative proposal and final report CIA. • Quality control is ensured by the Office of the Government and carried out in two stages in the legislative process: a) during the legislative process, b) by sending a legislative proposal to thegovernment. • Yet unsolved problem is the changes made by MPs in approving laws. The Office of the Government of the Czech Republic

Ad 3 - consistency • Publication examples of good and bad practice to standardize the procedure. • Publication procedures and methodologies used in the particular case to assess eaten to standardize methods and procedures. • Publication models systematic qualitative and quantitative analysis. The Office of the Government of the Czech Republic

Ad 4 - transparency • Publication of data on the activity carried on in formats allowing downloading, sorting and processing of data. • For each activity must be publicly available information as it contains exactly and who handles. • Part of the transparency regulators is also a form of presentation outputs that should be understandable even for non-specialists and must not be implemented through voluminous documents in which the informations are lost. The Office of the Government of the Czech Republic

Ad 5 - public involvement • The draft Regulation will be within the CIA submitted for public consultation in terms of risk of corruption. • All reviews will be published on the CIA's special website like this is already happening in the Regulatory Impact Assessment. The Office of the Government of the Czech Republic

CIA – when it is processed • Cia will be the obligation part of every bill with a few exceptions (that will be discussed further). • CIA will be performed as a separate assessment in cases where it is necessary to evaluate the potential of corruption existing regulation. • In the event that there is a suspicion that the scope for corruption can be created through non-legislative document (strategy, design, etc.) - that determine the direction of the executive branch in a particular area for several years, it is necessary that the CIA will be also made to these documents. The Office of the Government of the Czech Republic

CIA - types • CIA is mandatory separate part of each regulatory impact assessment (RIA). It is sufficient if it turns out that the risks of corruption are not large (small CIA). • If it in this simple evaluation turns out that the risks of corruption are higher, the offeror is required to prepare a report substantially larger and deeper as a separate document (big CIA). The aim is not to burden the Ministry of unnecessary paperwork and implement a comprehensive evaluation only if it is really necessary. The Office of the Government of the Czech Republic

CIA – when it is not processed • amendment to the Constitution • changes in constitutional law • in a state of legislative emergency • draft law on state budget and final account • in cases of emergencies • case only changes the parameters of existing laws (eg tax rates) The Office of the Government of the Czech Republic

if the government made decision in plan of legislative work • case only changes the parameters of existing laws (eg tax rates) • in the case of draft implementing regulations, when their risk of corruption is already included in the evaluation of the draft legislation The Office of the Government of the Czech Republic

„SMALL“ CIA - content • which entities in terms of their number, market power, structure and organization are affected by the draft law • evaluation of known cases of corruption and other violations of law in the past • determination of the major corruption risks that may be related with solutions The Office of the Government of the Czech Republic

CIA - situation when simple evaluation (small CIA) is not sufficient and is need prepare a large study (big CIA) • assumption that the minor corruption will commit a large number of subjects (citizens) • assumption of systematic corruption of a small number of subjects that dominated the area (sector firms) • these are draft regulations that may affect the transparency of public administration and the principles of open government (availability of information) The Office of the Government of the Czech Republic

„BIG“ CIA – also contains • completely justification for the current legislation does not • evaluation of current legislation or its part in relation to the analysis of the actual state • description of links to other legislation • description of political preferences or strategies, of which the proposal is based The Office of the Government of the Czech Republic

description of differences between targets based on the general political requirement and targets based on professional requirements • set quantifiable indicators of the target state • using the results of risk analysis will assess whether the targets will aim to eliminate or reduce risks • assessment of the risks would result in acceptance of new legislation • assessment of the risk resulting from the failure to adopt new legislation The Office of the Government of the Czech Republic

CIA - consultation with the public With whom: • professional community • laic public • „Watch dogs“ organizations (Transarency International etc.) The Office of the Government of the Czech Republic

Why? • obtaining additional overview of the situation of corruption • estimate the size of corruption cases in the areas covered by the proposed regulation • find other suitable sources of information • finding new perspectives of viewing the problem • identification of other possible options for solutions The Office of the Government of the Czech Republic

obtain the results of an independent evaluation of potential impacts • the views of the appropriate legislative and non-legislative measures to prevent or eliminate corruption in the region • finding a balance between competing interests • increase understanding of the design and better preparedness of subjects to implement the legislation • mitigate the risk of unforeseen consequences The Office of the Government of the Czech Republic

CIA – methods of elimination of identified risks • strengthening of control mechanisms - increased frequency and depth controls • strengthening of enforcement mechanisms • enhance transparency during the legislative process and implementation process of the proposal • introduction or strengthening of the principle of open data in the proposed regulation The Office of the Government of the Czech Republic

In the event that the proposed solution proves inadequate, and if this is not possible to resolve some of these measures, the proposal must be revised prior to transfer to the Government, so that the risk of corruption is acceptable. The Office of the Government of the Czech Republic

CIA – other related • always must be evaluated costs associated with changes and must be minimized administrative and financial requirements for the participants of legal relations • if arise for municipalities and counties costs associated with the transfer of state power must be quantified and must be determined source of their coverage The Office of the Government of the Czech Republic

CIA - conclusion • Of course the CIA is not itself able to solve problems with corruption, • but it provides universal guidance on how to proceed and what to avoid when drafting laws and • methodology to measure the degree of corruption risks in this context . The Office of the Government of the Czech Republic

CIA will lead to the unification of practice across Ministries. • Reduces the risk of corruption opportunities in the law due to not sufficent experience or not sufficent imagination officials. • Reduces the risk of deliberate formulation of legislation in a manner allowing a later corruption, especially by implementing the consultation and traceability of such provision. The Office of the Government of the Czech Republic

Thank you for your attention The Office of the Government of the Czech Republic

Corruption Impact Assessment (CIA)