Prevention of Conflict of Interests 28 – 2 9 June Sofia, Bulgaria

1. REPUBLIC OF ALBANIAHIGH INSPECTORATE OF DECLARATION AND AUDIT OF ASSETS Prevention of Conflict of Interests28 – 29JuneSofia, Bulgaria

2. Legal framework The High Inspectorate of Declaration and Audit of Assets(herein after referred as HIDAA) as one of the main anti-corruption and independent agencies in the fight against corruption, functions upon: • Law no.9049 dated 10 April 2003“On the declaration and audit of assets, financial obligations of the elected and certain public officials” • Law no.9367 dated 7 April 2005“On the prevention of conflicts of interest in the exercise of public officials” HIDAA

3. Law on the Prevention of Conflict of Interests This law aims: • To guarantee an impartial and transparent decision-making, • In the best possible interest of public and of its trust in public institutions, • Through preventing conflicts between public interests and private ones of an official in the exercise of his function. HIDAA

4. What is a conflict of interestsituation? “Conflict of interest”is a situation of conflict Between the public duty and the private interest of an official, in which he has direct or indirect private interests, That affect, might affect, or seem to affect in an incorrect way the performance of his public duties and responsibilities This definition as well as the rules and procedures of this law are applicable to all public officials of public administration.

5. Responsible Authorities for the Prevention of Conflicts of Interest • HIDAA is the Central Responsible Authority • 2. The authority or structure responsible for the implementation of this law in public institutions, are: • the superiors of the officials, according to the hierarchy, within a public institution; • the directorate, units of human resources or units specially charged, according to the need and the possibilities of every public institution; • the superior institutions HIDAA

6. HIDAA role in the prevention of conflicts of interest The High Inspectorate , in the quality of the central authority responsible foe the implementation of this law, performs the following duties and responsibilities: Providing technical assistance for advising and supporting legal initiatives, undertaken by the public institutions for the prevention of conflicts of interest; Strengthening the capacities for the administration of conflicts of interest in public institutions; Counciling officials, superiors, and providing reccommandations for agencies, at their request or not, on specific conflicts of interest cases; Verification and administrative investigation of case by case conflicts of interest, at the request of the public institutions, or when neccessary, also on its own initiative; Setting of punitive administrative measures, as stipulated by the law. HIDAA

7. Types of conflict of interest • Case by case conflict of interest, is a situation with a conflict of interest, which appears case by case and is related to a particular decision-making process • Continuing conflict of interest, is a situation in which a conflict of interest might appear repeatedly and/or often in the future. HIDAA

8. Restrictions for case by case conflict of interest The law on the prevention of conflicts of interest has defined restrictions on case by case conflicts of interest situations, concerning the following: • Prohibition of entering into contracts, • Providing income because of the public function • Providing gifts, favors, promises and preferential treatment The law has stipulated restrictions for the related persons as well, the spouse/adult children and the parents of the official and of the spouse of the official. HIDAA

9. Restrictions for continuing conflict of interest situations The restrictions and/or prohibitions for continuing conflicts of interest situations are stipulated in accordance to the public position of the official and the possibility of falling into a conflict of interest situation, mainly in two categories: 1. Restriction in exercising private activities and engagement in organizations • Having leading positions in non-beneficial and beneficial organizations • As a physical person, partnership, or free-lance profession • 2.Restrictions concerning the possession of shares and parts of capital, in proportion with the function and the possibility of falling into a conflict of interest situation • Active ownership (MPs, local government officials , high-rank and middle management public officials....) • Passive ownership (Members of Council of Ministers, deputy ministers,officials of tax and customs office, etc.) HIDAA

10. Main ways of solving a conflict of interest situation It is the duty and responsability of the public official to solve the conflict of interest situation, in one of the following ways: • Transfering or alienation the private interests, • Self-exclusion from the decision-taking proces, • Resigning from the private engagement, duties and functions • Resigning from the public function • Notify his superior, in a written form, on the way of solving the conflict of interest situation. The official is not released from the responsibility for falling into a conflict of interest, when the measures taken by him, do not turn out to be effective in preventiong and avoiding CI. HIDAA

11. Main ways of solving a conflict of interest situation The superior of the official, has the obligation to prevent and solve a conflict of interest situation, in one of the following ways: • Taking actions to the officials • Restricting the official from information • Not assigning duties that might lead to a possible CI • Not permitting the official to take part in the decision-making process • Rreviewing or changing the duties and competences • Transfering the official into another duty • Avoid his appointment or selection in a certain position • Taking actions to the act (activity of the official) • Annulling or revoking the act taken into a CI situation HIDAA

12. Applied sanction for infringing the conflict of interest legislation Administrative measure,provided by Inspector General 400 Euro, at max Disciplinary measures, regardless criminal or administrative responsibility Criminal charges, when a conflict of interest situation becomes a corruptive affair. HIDAA

13. HIDAA additional role TRAINING Public Officials, Representative Authorities PUBLICATIONS Training manual on conflict of interest in local government, Training manual on conflict of interest on public procurement, Legal commentaries on hypothetical cases, Leaflets for tax and customs officials HIDAA

14. Public and media ccollaboration HIDAA, considers media, civil society and the public as their most important counterparts in the fight against corruption. HIDAA, provides priority for any kind of data offered by the media and public; HIDAA, takes account of the reports, surveys, analyses, corruption trends produced by national or international NGOs HIDAA, analyses and investigates any information provided by the free phone no. 0800 9999, or e-mail address: unedenoncoj@hidaa.gov.al, or by mail HIDAA, guarantees confidentiality of the source of the provided information HIDAA, starts administrative investigatives, based on the provided information. HIDAA

15. Regional Cooperation In May 2010, the institution, with the support of RAI Secretariat, HIDAA was first elected leader of the newly formed Informal Experts Network (IEN), a body composed of all the HIDAA counterpart institutions in Eastern Europe. Representatives of anti-corruption institutions of 12 member countries opted for the High Inspectorate Network as the leader of this international forum, to assess the institution's ongoing commitment on assets declaration and conflict of interest issues. This is one of the main achievements of an Albanian institution among international homologues, and is the result of institutional determination to strengthen the principles of good governance. HIDAA

16. THANK YOU www.hidaa.gov.al