Anti-Corruption Policies in Asia and the Pacific Self-Assessment Report Fiji Islands

Transcription

1 ADB/OECD Anti-Corruption Initiative for Asia and the Pacific The Secretariat Anti-Corruption Policies in Asia and the Pacific Self-Assessment Report Fiji Islands Over the last decade, societies have come to realize the extent to which corruption and bribery has undermined their welfare and stability. Governments, the private sector and civil society alike have consequently declared the fight against corruption to be of highest priority. In the Asia-Pacific region, twenty-one countries have expressed their commitment to fight corruption by endorsing an anti-corruption action plan within the framework of the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific, a first-of-its-kind partnership between all stakeholders of Asian and Pacific countries. The Action Plan comprehensively promotes the regions objectives and needs for reform to develop effective and transparent systems for public service, to strengthen anti-bribery initiatives, to promote integrity in business operations, and to support citizens involvement. In order to gain a comprehensive and structured overview of the endorsing countries legal and institutional framework in place to ensure and enhance transparency in the public sector, combat bribery and promote transparency in business operations, and facilitate public involvement in the fight against corruption, endorsing countries of the Action Plan have decided to take stock of their relevant legal and institutional provisions in place. The following report reflects the Anti-Corruption Policies that the Fiji Islands have reportedly in place as of October Organized along the topics of the Anti-Corruption Action Plan for Asia and the Pacific, it outlines the legal and institutional framework governing each of its issues, the respective implementing agencies and recent of planned reforms. Self-assessment reports provided by the other countries that have endorsed the Anti-Corruption Action Plan for Asia-Pacific as well as a summarizing overview of the anti-corruption policies in the region are available at the Initiative s website (www1.oecd.org/daf/asiacom/stocktaking.htm). For further information about the Anti-Corruption Initiative for Asia-Pacific and its work, please refer to www1.oecd.org/daf/asiacom/. Jak Jabes, Director, Governance and Regional Co-operation, ADB jjabes@adb.org phone: , fax: Frederic Wehrlé, Co-ordinator, Anti-Corruption Initiatives, Anti-Corruption Division, OECD frederic.wehrle@oecd.org phone: , fax:

2 Pillar I: Developing Effective and Transparent Systems for Public Service Integrity in Public Service: Establish systems of government hiring of public officials that assure openness, equity, and efficiency and promote hiring of individuals of the highest levels of competence and integrity through: Development of systems for compensation adequate to sustain appropriate livelihood and according to the level of the economy of the country in question Salaries, allowances and other benefits are reviewed by the Public Service Commission in consultation with the various trade unions that represent the workers. The review is also based on annual inflation costs taking into account the ability to pay by the government. At times job evaluation exercise is also carried out for the various occupational work groups. Development of systems for transparent hiring and promotion to help avoid abuses of patronage, nepotism, and favoritism help foster the creation of an independent civil service; and help promote a proper balance between political and career appointments. From 1st December 2002, the Public Service Commission delegated the powers that it used to hold in terms of hiring, suspending/terminating, promoting confirming and disciplining staffs to the various heads of departments. The Public Service Commission being the central department in the Public Service ensures that all vacant posts are advertised in the local newspaper and as well as overseas if need be and all departments should have a staff board which decides on the appointments, promotions, disciplinary and other issues regarding staff matters. Development of systems to provide appropriate oversight of discretionary decisions and of personnel with authority to make discretionary decisions. We have the Public Service Act and the General Orders that specifically state the procedures to follow and the disciplinary actions that may be imposed on an officer if he/she is found guilty of an office. Also the watchdogs of government, namely the Auditor General s Office and the Internal Audit Division of the government are used to investigate any suspect transaction. Development of personnel systems that include regular and timely rotation of assignments to reduce insularity that would foster corruption The General Orders requires staff to take leave when due to enable other officers to take up the post where in some instances hidden agendas of the post holder are revealed. Also the Public Service Commission and the Ministry of Finance in their circulars encourage ministries and department heads to rotate staff for administrative control purposes. 2

3 Integrity in Public Service: Establish ethical and administrative codes of conduct that proscribe conflicts of interest, ensure the proper use of public resources, and promote the highest levels of professionalism and integrity through: Prohibitions or restrictions governing conflicts of interest. Officers that want to engage themselves in business are required to first seek the approval of the Secretary for the Public Service and to specifically state that the business won t interfere with their official responsibility. If approved by the Commission, the approval will be sent to the respective department head who would be reminded to ensure that the officers engagement in his business won t interfere with his/her work. Systems to promote transparency through disclosure and/or monitoring of, for example, personal assets and liabilities Public Officers and all other employees are required by law under the Fiji Islands Revenue and Customs Authority Act (FIRCA) to disclose annually their earning on investments, properties and from any other source. Sound administrative systems which ensure that contact between government officials and business services users, notably in the area of taxation, customs and other corruptionprone areas, are free from undue and improper influence The Public Service Act and the Fiji Island Revenue and Customs Authority Act adequately cover the private interest of an officer alleged to be colluding with business services users. The disciplinary actions that could be imposed are specifically stated in the above legislations depending on the seriousness of the case. Promotion of codes of conduct taking due account of the existing relevant international standards as well as each country s traditional cultural standards, and regular education, training and supervision of officials to ensure proper understanding of their responsibilities The government has the PSC Code of Conduct together with the various Instructions such as the General Order; the Finance Instructions, the Supplies and Services Instructions, Transport Rules and Regulations where the duties and responsibilities of various categories of officers and work procedures are specifically stated. Measures which ensure that officials report acts of corruption and which protect the safety and professional status of those who do. A section has been established within the Public Service Commission requiring public officers and any member of the Public that report any act of corruption to state their names, address and phone contact. The people are being assured of the protection of their identity. This is yet to be legislated. 3

4 Accountability and Transparency: Safeguard accountability of public service through effective frameworks, management practices, and auditing procedures through Measures and systems to promote fiscal transparency Ministries and Departments are required to prepare their Corporate Plans, to submit their annual Budget estimates for approval by Parliament through the Minister of Finance in November each year and to compile their annual reports at the end of December each year Adoption of existing relevant international standards and practices for regulation and supervision of financial institutions The Auditor General being an independent office in accordance with Section 166 of the Fiji Constitution is empowered to carry out the inspection of public accounts, statutory bodies and Local Governments on a yearly basis. It is a professional office and they comply with the International Standards and as well as the Fiji Institute of Accountants Standard when discharging their duties in terms of supervision of financial institutions Appropriate auditing procedures applicable to public administration and the public sector and measures and systems to provide timely public reporting of performance and decision making Various legislative measures for ministries and departments, statutory bodies and Local Governments are in place for deadlines to be met in terms of submission of financial statements and annual reports. The financial statements once submitted are audited by the Auditor General. For any delays, Parliament approval should be sought for the extension of time in regard to the government s annual financial statement. The report once audited is submitted to the Speaker who would then arrange for its tabling in Parliament before it is referred to the Public Accounts Committee for their deliberations with the Heads of Ministries and Departments. After the Public Accounts Committee investigations are done, their report is referred back to Parliament and it is published. Appropriate transparent procedures for public procurement that promote fair competition and deter corrupt activity, and adequate simplified administration procedures The Government has sections in the Supplies and Services Instructions on the procedures to follow in terms of engaging contactors, dealing with contractors and purchases from sources other than contractors. The Instruction also have a provision on indents. The General Conditions of Contract adequately covers the provision on corrupt activities and the punitive action that can be imposed if a contractor and a civil servant are found guilty of this practice. Enhancing institutions for public scrutiny and oversight Ministries and Departments are aware that the Auditor General and the Internal Audit Division of the Ministry of Finance are given the powers under an Act of Parliament to carry out inspection as they may wish any time of the year. The reports of the Internal Auditors are incorporated in the Auditor Generals report and is tabled in Parliament before it is published and circulated to the general public. Systems for information availability including on issues such as application processing procedures, funding of political parties and electoral campaigns and expenditure. The Supervisor of Elections Office created by an Act of Parliament is responsible in the formulation of information related to any election and the process of educating members of the public in terms of awareness. Controls regarding funding of political parties and electoral campaigns and expenditures are taken care of in the Election Act.. Simplification of the regulatory environment by abolishing overlapping, ambiguous or excessive Government has set up respective Ministries/Departments and some government organizations such as the Ministry for Local Government, Ministry for Public Enterprise, Ministry for Labour, Ministry for Regional Development, Fiji Trade and Investment Bureau etc as agencies to accept suggestions and complaints from the business community and to channel them to the proper forum for reviews. The suggestions/complaints if considered valuable and changes are 4

5 regulations that burden business. necessary would be legislated and gazetted. Pillar II: Strengthening Anti-bribery Actions and Promoting Integrity in Business Operations Effective Prevention, Investigation and Prosecution: Take effective measures to actively combat bribery by a) Ensuring the existence of legislation with dissuasive sanctions with effectively and actively combat the offence of bribery of public officials Various legislations are in place to combat offences of bribery. The Judiciary is in the process of reviewing some of these legislation in order to effectively and actively tackle the increasing sophisticated offence of bribery. Under reviews are: The Charitable Trust Act (Cap 67) The Companies Act and The Religious Body s Registration Act (Cap 68) The Fiji Law Reform Commission will undertake the review and a Cabinet memorandum is already with the Attorney General. Also being revised is the Capital Market Development Authority Act (CMDA) which they are anticipating to present to Parliament some times in the 1st half of Government has also set up a National Task Force Against Corruption on 19/12/2002 to strengthen the existing legislation in many ways such as: The need to develop new laws to aid in the effective investigations and prosecutions of such offences; To encourage the establishment of the Code of Conduct contemplated by the Constitution; To develop public sector codes and enforceable ethical guidelines; The need for public education as to the damage done by corruption as a pre-requisite to public support for anti corruption initiatives; The establishment of a Fiji anti-corruption body with investigative and coercive powers specifically tasked to tackle corruption and bad governance. The representations are drawn from the public and private sectors with the dual objectives of formulating a national agenda on anti-corruption initiatives. The body is totally divorced from any political or other affiliates. It is a body focused on the issue and the solving of a national problem in partnership with government and the community. b) Ensuring the existence and effective enforcement of anti-money laundering legislation that provide for substantial criminal penalties for the laundering of the proceeds of corruption and crime A Financial Intelligence Unit has been formed under the Financial Transactions Reporting Act. The Ministry of Justice, the Reserve Bank of Fiji, the Director of Public Prosecutions and the Fiji Police Force had signed a memorandum of agreement (MOA) on 14July 2003 to establish a formal Unit. This is done in response to our obligation under the UN Special Resolution 1373 and the recommendations of the Financial Action Task Force (FATF), the international standard setting body in the area of countering money laundering and the financing of terrorism. Fiji is committed to work towards meeting international 5

6 consistent with the law of each country. standards in this area. c) Ensuring the existence and enforcement of rules to ensure that bribery offences are thoroughly investigated and prosecuted by competent authorities; these authorities should be empowered to order that bank, financial or commercial records be made available or be seized and that bank secrecy be lifted. The Financial Intelligence Unit (FIU) will be the Central Agency in Fiji responsible for receiving, analysis and disseminating to the relevant law enforcement authorities suspicious transaction reports and other financial information concerning suspected proceeds of crime and other related serious offences in order to counter money laundering and the financing of terrorism in Fiji. Prior to this (MOA) the financial institution were required to submit suspicious transactional reports and other financial information by the FIU is expected to make Fiji s anti money laundering regime more efficient in the way that the other relevant authorities within this region would be able to dedicate their resources more effectively to their respective functions. d) Strengthening of investigative and prosecutorial capacities by fostering interagency co-operation, by ensuring that investigation and prosecution are free from improper influence and have effective means for gathering evidence, by protecting those persons helping the authorities in combating corruption, and by providing appropriate training and financial resources. The Financial Intelligence Unit is housed in the Reserve Bank of Fiji building. Staff of the Unit are from the Reserve Bank of Fiji and the Fiji Police Force. The FIU would report to the Governor of the Reserve Bank of Fiji on the exercise of its powers and the performance of its duties and functions. The National Anti Money Laundering committee would provide advisory support to the FIU. Assistance from other donors have already been identified and will be pursued for training, computer and other resources. e) Strengthening bi- and multilateral co-operation in investigations and other legal proceedings by developing systems which in accordance with domestic legislation enhance (i) effective exchange of information and evidence, (ii) cooperation in searching and discovering of forfeitable assets as well as prompt international seizure and repatriation of these forfeitable assets. Fiji is a party to the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (Vienna Convention) having signed the convention on 25 March The anti-money laundering laws we have in place include a proceeds of Crime Act 1997 and Mutual Assistance in Criminal matters Act The Acts came into effect on 1st June

7 Corporate Responsibility and Accountability : Take effective measures to promote corporation responsibility and accountability on the basis of existing relevant international standards through a) Promotion of good corporate governance which would provide for adequate internal company controls such as codes of conduct, the establishment of channels for communication, the protection of employees reporting corruption, and staff training. The Companies Act regulates the conduct of all business in Fiji. The Act requires the companies accounts to be audited yearly, to prepare their reports for the shareholder, to submit their returns to the Fiji Island Customs and Revenue Authority, to be registered with the VAT Unit and to abide by all Government rules and regulations. The companies should not stop their workers from joining trade unions and from registering their complaints to the Ministry of Labour. All businesses should comply with the Occupational Health and Safety Standard (OHS). b) The existence and the effective enforcement of legislation to eliminate any indirect support of bribery such as tax deductibility of bribes. The Financial Transactions Reporting Act of which the Financial Intelligence Unit come under will be responsible to monitor such illegal dealings. They will work very closely with the Immigration Department and the Fiji Islands Revenue and Customs Authority and Commercial Banks. c) The existence and thorough implementation of legislation requiring transparent company accounts and providing for effective, proportionate and dissuasive penalties for omissions and falsifications for the purpose of bribing a public official, or hiding such bribery, in respect of the books, records, accounts and financial statements of companies. Companies are required by law to have their accounts audited by a Chartered Accountant under the Companies Act and as well as the Fiji Islands Revenue and Customs Authority Act have respective clauses in their Act to penalise companies that fail to submit their financial returns or falsify their financial returns or books of accounts. d) Review of laws and regulations governing public licenses, government procurement contracts or other public undertakings, so that access to public sector contracts could be denied as a sanction for bribery of public officials. The Ministry of Justice as stated earlier is in the process of reviewing some Acts and included in it is the Companies Act. This review is needed to incorporate more stringent actions as the current Act is a bit outdated. For contracts, government is calling for tender annually and the awarding of tender is decided by a Board, the chairman of which is the Deputy Secretary for Finance. In the general condition of the contract it is specifically stated that no contractor should collude with a government official or to receive any tips or donations vise versa. 7

8 Pillar III: Supporting Active Public Involvement Public Discussion of Corruption: Take effective measures to encourage public discussion of the issue of corruption through a) Initiation of public awareness campaigns at different levels. Corruption was a subject of debate in Parliament for sometimes this year and it went live in the TV and broadcasted in the radio, Fiji wide as well. The Chairman of the Public Accounts Committee publicly spoke on this issue in the television, newspapers and even visited rural areas to explain to the people what corruption is and to obtain feedbacks on corruption that people know of but are not being highlighted. b) Support of non-governmental organizations that promote integrity and combat corruption by, for example, raising awareness of corruption and its costs, mobilizing citizen support for clean government, and documenting and reporting cases of corruption. The commercial Banks had made an undertaking with the Reserve Bank of Fiji that they will inform them of any unusual or suspected transaction. The banks are also required by law to inform the Fiji Islands Revenue and Customs Authority of the interest earned by their clients on investments. Christian denominations are also helping in the awareness to combat corruption Even some contractors and members of the public are helping in reporting cases of corruption. c) Preparation and/or implementation of education programs aimed at creating an anti-corruption culture. Courses are being conducted to educate people on anti corruption action plan and the consequence people may face if they are party to any corruption act. Access to information: Ensure that general public and the media have freedom to receive and impart public information and in particular information on corruption matters in accordance with domestic law and in a manner that would not compromise the operational effectiveness of the administration or, in any other way, be detrimental to the interest of governmental agencies and individuals, through a) Establishment of public reporting requirements for justice and other governmental agencies that include disclosure about efforts to promote integrity and accountability and combat corruption. The three dailies frequently publish corrupt practices by public officers in their news articles. Most of these news are obtained through the Auditor General s report when it is published. A audit committee has been formed by Cabinet apart from the Public Accounts Committee to immediately look into the report of the Auditor General and the Internal Auditors report and initiate disciplinary actions and referral of cases to the Police if criminal actions are involved. b) Implementation of measures providing for a meaningful public right The information once published as parliamentary papers are no longer confidential and are free for public consumption in various government bookshops in the town. 8

9 of access to appropriate information. Public participation: Encourage public participation in anti-corruption activities, in particular through a) Co-operative relationships with civil society groups such as chambers of commerce, professional associations, NGO s, labor unions, housing associations, the media, and other organizations. Public involvement in the war against corruption is noted to be on the increase. For this year alone the Financial Intelligence Unit had received 100 suspicious transaction reports and a total of 300 since Complaints come in the form of letters, over the phones and even personally. These things were not done before, hence it is a show of co-operation to combat corruption. b) Protection of whistleblowers At the moment there is no legislation to protect whistleblowers from the general public. The current legislative only protect the banking and other institutions. Efforts are being made to legislate this. c) Involvement of NGOs in monitoring of public sector programmes and activities. Most NGOs especially the Citizen Constitutional Forum are closely monitoring the activities of our Parliamentarians, Civil Servants, business entities, political parties and overseas investors and often highlight their concerns in the daily newspapers and on the television. 9