Transnational Corruption Investigations

Recently at the Economics of Corruption 2009 course in Passau the following module was presented.

Transnational Corruption Investigations

Training and qualifying practitioners, researchers and students in anti-corruption is increasingly requested, utterly needed, but still in its infancy. For many years now Professor Lambsdorff at the University of Passau has developed a training program that fills this gap, joining the world of theory with the world of practice. An analysis of political, economic and organizational incentives allows participants to obtain a profound understanding of the forces that are at play. Survey techniques and statistical analysis confront theory with data. Interactive tools such as games, poster presentations and case studies involve participants and make them acquainted with today's challenges. Prof. Johann Graf Lambsdorff and his team have spearheaded models for reform related to such issues as contract penalties, compliance systems, debarment, procurement, leniency and corporate liability. Participants are introduced into this body of research.

For more information on this course click ICCG

C- Fighter Anti-Corruption Guide - Word for the Day - 27-09-09

EMBEZZLEMENT

Definition

When a person holding office in an institution, organisation or company dishonestly and illegally appropriates, uses or traffics the funds and goods they have been entrusted with for personal enrichment or other activities.

Example in practice

Chung Mong Koo, former chairman of Hyundai Motors Co., was convicted in 2007 of
embezzling US$ 110 million from company funds, a portion of which was allegedly used to pay off politicians and government officials.

Relevant links

—— Transparency International: Global Corruption Report 2004 – Political Corruption.
www.transparency.org/publications/gcr/download_gcr/download_gcr_2004

—— U4 Anti-Corruption Resource Centre: Embezzlement of Donor Funding in Health
Projects.
www.cmi.no/publications/file/?3031=embezzlement-of-donor-funding-in-health-projects

New Free Anti-Corruption Training Online!

The Global Infrastructure Anti-Corruption Centre (GIACC) has on 1st September 2009 published an on-line anti-corruption training module: “Identifying and avoiding corruption in the infrastructure sector”.

The module is designed to help users:
· achieve a better understanding of corruption in the infrastructure sector
· avoid corruption
· identify corruption
· deal with corruption appropriately if confronted with it.

There is no charge for the use of the module.

The module can be used by individuals, and also by professional institutions and organisations as part of their formal training for their members and employees. It is aimed primarily at middle and senior management, particularly those involved in procurement, tendering, sales and marketing, design, project management, claims management, commercial management, financial management, legal, compliance, and internal audit.

This training can be used by organisations and individuals wherever they are located or working as, although the law will vary between jurisdictions, the module covers general principles and examples which have worldwide applicability.

The module is designed to be undertaken by individuals working by themselves on-line. However, an organisation could project the web-pages onto a screen, and use the whole or part of the module as part of a training workshop.

Upon completion of the module, you can type your name into a box on the certificate web-page, and you then can print out a GIACC certificate of completion of the course which includes your name and date of completion. GIACC does not retain any record of these names. This certificate can be given to your employer or professional institution as proof of completing the module.

For further information, and to access the module, go to:
http://www.giaccentre.org/onlinetraining.intro.php

C- Fighter Anti-Corruption Guide - Word for the Day - 11-09-09

DISCLOSURE

Definition

Provision of information as required under law or in good faith, regarding activities of a private individual, public official, company or organisation. Information can include a political candidate’s assets, a company’s financial reports, an NGO’s donors or a whistleblower’s accusations.


Example in practice

Following a lobbyist scandal in the US, a total of 51 corporations — including American Express, Chevron, General Electric and Merck — agreed to adopt new rules that voluntarily bind companies to disclose publicly any corporate funds that are used for political purposes, either at the state or federal level.


Relevant links

—— International Chamber of Commerce: Commission on Anti-Corruption. Combating
Extortion and Bribery - ICC Rules of Conduct and Recommendations.
www.iccwbo.org/uploadedFiles/ICC/policy/anticorruption/Statements/ICC_Rules_of_Con
duct_and_Recommendations%20_2005%20Revision.pdf

—— International Finance Corporation: Disclosure Policy.
www.ifc.org/ifcext/disclosure.nsf/Content/Disclosure_Policy

—— Shell: Financial Disclosure Policy.
www.shell.com/home/content/om—
en/about_shell/our_performance/financial_disclosure/financial_disclosure_1512.html

—— U4 Anti-Corruption Resource Centre: Query - Corruption, Political Party Financing and Electoral Campaigns.
www.u4.no/helpdesk/helpdesk/queries/query8.cfm

—— World Bank: Disclosure Glossary.
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/INFORMATIONDISCLOSUR
E/0,,menuPK:199023~pagePK:213743~piPK:213746~theSitePK:222993,00.html

C- Fighter Anti-Corruption Guide - Word for the Day - 10-09-09

DEBARMENT

Definition

Procedure where companies and individuals are excluded from participating or tendering projects. Governments and multilateral agencies use this process to publicly punish businesses, NGOs, countries or individuals found guilty of unethical or unlawful behaviour.

Example in practice

The World Bank debarred Lahmeyer International, a German company, and Acres
International, a Canadian-based firm, in 2004 and 2006, respectively. The decision was taken after a Lesotho court found the companies guilty of bribing officials to win contracts for a multi-billion dollar water supply scheme, the Lesotho Highlands Water Project. Lahmeyer has been suspended for seven years from doing business with the Bank while Acres has been made ineligible for three years.

Relevant links

—— Transparency International: Recommendations for EU Debarment System.
www.transparency.org/content/download/5661/32802/file/TI_EU_

Debarment_Recommendations_06—03—28.pdf
—— U4 Anti-Corruption Resource Centre: Debarment as an Anti-Corruption Means.
www.u4.no/themes/debarment/main.cfm

—— UK Anti-Corruption Forum: Fair and Efficient Debarment Procedures.
www.anticorruptionforum.org.uk/acf/fs/groups/fair_efficient.pdf

—— World Bank: Listing of Ineligible Firms.
www.worldbank.org/debarr

—— World Bank: Sanctions Committee - Report Concerning the Debarment Processes of the
World Bank.
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,content
MDK:50002288~pagePK:84271~piPK:84287~theSitePK:84266,00.html

C- Fighter Anti-Corruption Guide - Word for the Day 09-09-09

CORRUPTION

Definition

The abuse of entrusted power for private gain. Corruption can be classified as grand, petty and political, depending on the amounts of money lost and the sector where it occurs. Also see ‘grand corruption’, ‘petty corruption’ and ‘political corruption’.

Example in practice

According to a national survey in India, more than 70 percent of families that live below the poverty line have reportedly paid a bribe to law enforcement and local housing authorities.

Relevant links

—— Asian Development Bank: Anti-Corruption Policies and Strategies.
www.adb.org/Documents/Policies/Anticorruption/anticorrupt300.asp?p=policies

—— OECD: Corruption - Glossary of International Criminal Standards.
www.oecd.org/document/2/0,3343,en_2649_34857_40460290_1_1_1_1,00.html

—— World Bank: Helping Countries Combat Corruption.
www1.worldbank.org/publicsector/anticorrupt/corruptn/cor02.htm

C- Fighter Anti-Corruption Guide - Word for the Day 08-09-09

CORPORATE GOVERNANCE

Definition

Procedures and processes for how private sector organisations are directed, managed and controlled, including the relationships between, responsibilities of and legitimate expectations among different stakeholders (Board of Directors, management, shareholders and other interested groups).

Example in practice

The Board of Directors of General Electric (GE) oversees how management serves the
interests of shareowners and other stakeholders on a variety of issues of corporate
governance. In the past, the Board has received briefings on the company’s controllership, compliance and litigation trends and environmental risk management.

Relevant links

—— European Corporate Governance Institute.
www.ecgi.org/

—— Global Compact: Business against Corruption.
www.unglobalcompact.org/docs/issues_doc/7.7/BACbookFINAL.pdf

—— Global Corporate Governance Forum.
www.gcgf.org/

—— International Corporate Governance Network.
www.icgn.org/

—— OECD Principles of Corporate Governance.
www.oecd.org/DATAOECD/32/18/31557724.pdf