Connecting the Dots: Consolidating Good Governance and Fighting Misuse of Public Goods Money in Politics

1. Connecting the dots: European perspectives over consolidating good governance and fighting misuse of public goods Money in Politics – Linking public resources to the illicit financing of political parties Bucharest, Romania 7 – 8 September 2017 Mr. Jacopo Leone Democratic Governance Officer OSCE Office for Democratic Institutions and Human Rights (ODIHR)

2. ”What needs to be said, and which in any case everyone knows, • is that the greater part of political funding is irregular or illegal” • Bettino Craxi, former Italian Prime Minister

3. The Italian case of ‘Mafia Capitale’ ‘A massive criminal enterprise to skim money from public contracts’ ‘The group known as Mafia Capitale has infiltrated the ganglions of public administration in Rome, taking the place of institutional organs for the preparation and the decision-making process in public affairs’, Italian Court of Cassation, 2015.

4. ELECTIONS POLITICAL PARTIES DONATIONS IN-KIND / MONEY / BRIBES “OLIGARCHS” Money in Politics Weakest links STATE AGENCIES / STATE-OWNED ENTRPRISES PUBLIC CONTRACTS IN EXCESS OF REGULAR PRICE / PRIVATISATION /TAX BREAKS PRIVATE SECTOR

5. A Growing Normative Structure • International conventions / agreements • United Nations Convention against Corruption (UNCAC) • Council of Europe Recommendation (2003) 4 • ODIHR/VC Guidelines on Political Party Regulations • Open Government Partnership • National laws and policies • Political Finance Regulators / Anti-Corruption Agencies / Auditing institutions • Access to public information rules (FOIA) • Asset disclosure requirements • Political finance regulations • Anti-corruption strategies, transparency laws, anti-money laundering laws, etc.

6. Where Is The Problem? Lack on an effective system of supervision and sanctions (‘Toothless bulldog’) • Lack of co-operation among anti-corruption bodies • Third GRECO Evaluation from one western OSCE pS: “The GRECO Evaluation Team is concerned that the responsible authorities have established few or no communication and cooperation channels to exchange information on their activities, their findings and their concerns and to better coordinate their action in this field” • Organized Crime and corrupt politicians are, on the contrary, able to establish excellent channels for co-operation: “Corruption has changed radically over the past 20 years…The usual relationship of a corrupt perpetrator paying a public official to obtain an undue benefit was not applicable. The perpetrator and the politician belong now to the same organization”, R. Cantone.

7. ODIHR EOM Reports Findings

8. Way Forward – Next generation of reforms Comprehensive Approach → “Combating corruption requires long-term and comprehensive strategic approaches and strong institutions”. OSCE MC Dublin 2012 Advanced Legislation→ Political finance legislations are the second generation of anti-corruption reforms – necessary but not enough. There is a need for better regulations on transparency in lobbying, integrity in public procurement, and regulations against abuse of state resources. Financial institutions → Establish stronger cooperation with financial institutions in combatting corrupt practices. Regional Approach → Recognize global dimension of political corruption and create effective monitoring/investigating tools and cooperation.

9. Thank you for your attention OSCE/ODIHR Office for Democratic Institutions and Human Rights ul. Miodowa 10 00-251 Warsaw Poland http://www.osce.org/odihr