2014 China-EU High Level Forum “ China and EU Dialogue: Rule of Law ”

1. 2014 China-EU High Level Forum “China and EU Dialogue: Rule of Law” Subtopic reforming the System of law enforcement: development of administrative oversight bodies as anticorruption tool Ms. Johanna Beate Wysluch Johanna.wysluch@giz.de Bejing, China 12th of June 2014 China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

2. Control of the administration and anticorruption (example:Germany) China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

3. Administrative and anticorruption control in the EU by institutions (excerpt) China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

4. Olafs role and some considerations • Till 1998 Unit for coordination for Corruption and Fraud in the EU – UCLAF depended on the European Commission (integrity scandal triggered change) • Since 1999 part of European Commission, but totally (reconfirmed in 2005) independent in its work (independence improved quality and trust) • Improved its information and transparency policy after criticism from European Court of Auditors in 2005 • Conducted since 1999, 3500 investigations on which as a result Euro 1.1. billion has been recovered, 335 people received sentences in member states with a total up to 900 years • Mandate only cover administrative investigation and as follow up recommendations and monitoring of it,but no disciplinary neither criminal procedures (effective work stops at border of member states and limited by EU body responsible for disciplinary sanctions) • Establishment of European Attorney General shall close that gap China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

5. External financial control at centralized level: German Bundesrechnungshof ( BRH) BRH is a supreme federal audit authority as independent body of auditing only subject to the law (independent) Does not evaluate policy decisions made in compliance with applicable legislation (no political interference) Examines federal financial management (external control mechanism) Reports to the Houses of Parliament and federal government, but also addresses audited bodies in management letters Provides advice to government bodies ( prevention function) No supervision function over state courts of audit in Laendern China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

6. How did the state audit function change in Germany? Fromthecertificationof a voucherandeconomyaudittowards a voucherunindependentand operational auditofadminstrativeprocesses, organisationsandstructures; fromtheimplementationaudittowardstheprogrammeaudit: fromthecritisicmoftheimplementationtowardscriticismofthestatetasks; fromtheauditbasedcriticismtowardstargetorientedpolicyadvise – throughauditand at request; fromtheauditofthepasttowards a futureorientedauditingtask; China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

7. China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

8. Internal revision at all levels of administration and lessons learned • not used my the whole administration neither at central nor at decentralized level • as Implementation not mandatory by law, but recommend by BGH and 16 state courts of audit • Establismneht of IR often done without prior risk analysis • but only a risk analysis can decide whether “small solution” like a whistleblower system is enough or whether an IR needs to be established • IR often not directly linked to the Management • but IR is an instrument for steering and management and not only an approach to control China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目

9. Hypothesis An effective administrative oversight body – whether externally or internally – needs to be totally independent by its institution and staff, but being constantly monitored by a watchdog like an ombudsperson to be able not only to audit but also to give political advice without any conflict of interest. China-Europe Public Administration Project II (CEPA II) 中欧公共管理二期项目