The Integrity Bulletin January 2019

Say No to Corruption

The Integrity Bulletin January 2019

Get United Against Corruption. Photo: UNODC

Main Stories in This Issue - Corrupt Actor of the Year 2019 Award - Rafale Corruption Case - Global Cost of Corruption - Consultation on Fighting Foreign Bribery - Interview with Ms Ulla Tørnæs

- Nawaz Sharif Corruption Case - Government Corruption in New Delhi - Effect of Corruption in Kenya - Corruption in Judiciaries - Corruption in Sport

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Global Cost of Corruption Is $2.6 Trillion On International Anti-Corruption Day, let us take a stand for integrity.

The UN Secretary-General António Guterres said in his message for International Anti-Corruption Day, observed on 9 December, that corruption is an assault on the values of the United Nations.

He stated that corruption robs societies of schools, hospitals and other vital services, drives away foreign investment and strips nations of their natural resources. It undermines the rule of law and abets crimes such as the illicit trafficking of people, drugs and arms. Mr. Guterres added that tax evasion, money laundering and other illicit flows divert much-needed resources for sustainable development.

United Nations Secretary-General António Guterres. UN Photo/Jean-Marc Ferré

Referring to the World Economic Forum estimates, he said that the cost of corruption is at least $2.6 trillion — or 5 percent of global gross domestic product. And according to the World Bank, he said, businesses and individuals pay more than $1 trillion in bribes each year. Corruption begets more corruption and fosters a corrosive culture of impunity.

The United Nations Convention against Corruption is among the primary tools for advancing the fight.

Sustainable Development Goal 16 and its targets also offer a template for action.

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“Through the Convention’s peer review mechanism, we can work together to build a foundation of trust and accountability. We can educate and empower citizens, promote transparency, and strengthen international cooperation to recover stolen assets,” Mr. Guterres suggested in his message.

“Millions of people around the world have gone to the ballots this year with corruption as one of their top priorities. On International Anti-Corruption Day, let us take a stand for integrity,” he added.

International Partnership to Stop Corruption in Sport IPACS consists of a Steering Committee composed of governments, sports organizations, and intergovernmental organizations.

More than 100 Ministers, international sports organizations, and experts from around the world met in London on 6 December, 2018 to reaffirm the global commitment to tackling corruption in sport.

Delegates at the International Partnership Against Corruption in Sport (IPACS) summit discussed how to manage conflicts of interest in awarding major sporting events to ensure the process is fair and transparent. They also explored tools to prevent corruption around procurement at sports events and the way infrastructure contracts are awarded.

United Nations Office on Drugs and Crime (UNODC) executive director Yury Fedotov said that "In all of our efforts to combat corruption and organized crime, UNODC emphasizes the need for multi-stakeholder approaches which can set international standards and build capacities, while harnessing the expertise and experience of all actors."

He also called IPACS, of which UNODC is a core member, a great example of such an initiative, and said that "Together we can promote integrity, stop criminals from exploiting sport for illicit gain, and harness the power of sport as a force for development and peace."

This was the first high-level IPACS meeting since the partnership was launched at the International Olympic Committee's (IOC) International Forum on Sport Integrity in February 2017.

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The partnership's mission is to bring international sports organizations, governments, and intergovernmental organizations together "to strengthen and support efforts to eliminate corruption and promote a culture of good governance in and around sport."

Next to UNODC, the following organizations form part of the core group, which coordinates the partnership's activities: The Council of Europe, the IOC, the Organisation for Economic Development and Cooperation (OECD), and the Government of the United Kingdom.

IPACS consists of a Steering Committee composed of governments, sports organizations, and intergovernmental organizations.

Attendees at the three-day summit included representatives from the Beijing 2022 Winter Olympics and Paralympics, the British Olympic Association and British Paralympic Association, Interpol, and the Commonwealth Games Federation. P ​ hoto: UNODC

United Nations Convention against Corruption The Conference of the States Parties (COSP) is the main policy-making body of the Convention.

The United Nations Convention against Corruption is the only legally binding universal anti-corruption instrument.

The Convention's far-reaching approach and the mandatory character of many of its provisions make it a unique tool for developing a comprehensive response to a global problem.

The Convention covers five main areas: preventive measures, criminalization and law enforcement, international cooperation, asset recovery, and technical assistance and information exchange.

The Convention covers many different forms of corruption, such as bribery, trading in influence, abuse of functions, and various acts of corruption in the private sector.

The Conference of the States Parties (COSP) is the main policy-making body of the Convention, supporting States parties and signatories in their implementation of the Convention and giving policy guidance to UNODC to develop and implement anti-corruption activities.

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The actual implementation of the ​Convention into domestic law by States parties is evaluated through a unique peer-review process, the Implementation Review Mechanism.

Corruption Hinders Productivity: OECD OECD has adopted a new Recommendation on Public Integrity, which provides a blueprint for public integrity strategy.

The Organisation for Economic Cooperation and Development (OECD) - an intergovernmental economic organization - asserts that corruption hinders both public and private sector productivity.

Corruption perpetuates inequality and poverty, impacting well-being and the distribution of income and undermining opportunities to participate equally in social, economic, and political life.

OECD suggests that integrity is essential for building strong institutions and assures citizens that the government is working in their interest, not just for the select few.

Integrity is not just a moral issue, it is also about making economies more productive, public sectors more efficient, societies and economies more inclusive. It is about restoring trust, not just trust in government, but trust in public institutions, regulators, banks, and corporations.

In 2017, the OECD adopted a new Recommendation on Public Integrity, which provides policymakers with the blueprint for a public integrity strategy.

It shifts the focus from ad hoc integrity policies to a comprehensive, risk-based approach with an emphasis on cultivating a culture of integrity across the whole of society. It is built on 3 pillars: System, Culture, and Accountability.

Interview with Ms Ulla Tørnæs A member of the Liberal Party, Ms Ulla Tørnæs is a Danish politician who currently serves as the Minister for Development Cooperation of Denmark.

Ms Ulla Tørnæs, Denmark Minister for Development Cooperation, sheds light on a slew of corruption issues and the anti-corruption remedies that can be used to combat corruption.

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Ms Tørnæs shares her views in an exclusive email interview with Rakesh Raman, the managing editor of Raman Media Network (​RMN​) and the editor of The Integrity Bulletin. Excerpts from the interview:

On definition of corruption The Ministry of Foreign Affairs defines corruption as the misuse of entrusted power for private gain.

This broad definition covers a range of different types of corruption such as bribery, extortion, embezzlement, etc.

On reasons of corruption in poor countries No country in the world is free from corruption. Each country is facing different challenges depending on the specific context.

Ms Ulla Tørnæs, Denmark Minister for Development Cooperation

On bureaucratic inefficiency I think the distinction between inefficiency and corruption is very important. Bureaucratic inefficiency can be related to corruption insofar as corrupt acts can be a reason for inefficiency.

On protection of citizens from corruption The challenge posed by corruption is complex and involves many different actors. Therefore, we need to apply a multi-stakeholder approach to fighting corruption. We need governments to provide an appropriate legal system and strong institutions.

On corruption in underdeveloped countries

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There are no quick fixes to fight corruption. It is a long process. Inaction is part of the problem. We need to engage at all levels and to be determined and steadfast over a long period of time. The fight against corruption is a fight that can be won, but also one that never stops.

On role of technology to stop corruption Technology offers new avenues to fight corruption. We should embrace the new possibilities technology brings and use it proactively in the service of the public good.

At the same time, it is crucial to be aware of the challenges and the existing problems which cannot be solved just by application of new technology.

You can ​click here​ to read the full interview.

Read and Download RMN Publications

Raman Media Network (RMN) Company – which is an integrated technology media and entertainment ​company – is working in diversified content creation, management, and distribution businesses on a global scale. Among other content-based activities, the company runs 4 global news sites on different subjects.

The company also publishes and distributes digital content products and magazines among readers around the world. You can ​read and download our digital products that cover diverse content streams.

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New Podcasts Launched to Prevent Corruption in Judiciaries UNODC supports the fulfillment of Bangalore Principles of Judicial Conduct and built the Global Judicial Integrity Network.

The Global Judicial Integrity Network has introduced a new series of podcasts to promote peer-learning and the exchange of good practices in strengthening and upholding judicial integrity. Relevant experts give their views on specific thematic issues of judicial integrity.

Article 11 of the UN Convention against Corruption (UNCAC) calls for boosting integrity and preventing corruption in judiciaries. To this end, UNODC supports the fulfillment of Bangalore Principles of Judicial Conduct and built the Global Judicial Integrity Network.

Recently, U.S. Judge Virginia Kendall was interviewed by Roberta Solis from the Global Judicial Integrity Network on how to incorporate judges' use of social media into judicial training courses.

Topics include how to structure training courses and apply existing codes of conduct to social media issues, as well as the potential concerns with judges' use of social media.

Corruption Costs Kenya 300,000 Jobs Every Year This intergenerational dialogue tackled the role of youth and educators in countering crime and corruption.

Corruption is such a strong impediment to development and democracy that the African Union declared 2018 as the African Anti-Corruption Year, with the aim to spread awareness about the effects of corruption and to strengthen those combating it.

With almost half of its population currently under the age of 25, and three-quarters under the age of 35, Africa is the youngest of all continents. It is clear that challenges such as socio-economic inequalities, social exclusion and unemployment, besides being risk factors for crime and corruption, prevent youth from reaching their full potential.

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To keep the dialogue open with this most important of resources, its young people, UNODC's Regional Office for Eastern Africa, with support from the Global Programme for the Implementation of the Doha Declaration, organized in December 2018 the National Youth Workshop on Promoting Good Governance and Integrity.

With the participation of some 500 Kenyan youth, representing all segments of society, including vulnerable communities from across the country, these young voices joined important stakeholders from the office of the President of Kenya, Government ministries, parliamentarians, the judiciary, academia, and the private sector.

National Youth Workshop on Promoting Good Governance and Integrity. Photo: UNODC

Describing the Government of Kenya's aspirations on the matter and its efforts to fight corruption in line with the Kenya Vision 2030 development programme, Elizabeth Mueni Kimulu, Director of Youth and Social Affairs Director in the Office of the President, stressed the necessity of a continuous dialogue with youth - as well as the tangible impact on people's opportunities. "Corruption costs Kenya some 300,000 jobs every year," she informed an amazed audience.

This intergenerational dialogue tackled the role of youth and educators in countering crime and corruption.

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OECD Holds Consultation on Fighting Foreign Bribery The OECD Anti-Bribery Convention is the foremost global legal instrument for fighting the supply side of foreign bribery.

The Organisation for Economic Cooperation and Development (OECD) Working Group on Bribery (WGB) holds consultations with business, trade unions, and civil society every year.

These consultations provide an opportunity for the WGB to receive inputs from all the stakeholders that have an interest in its work program. The last consultation was held on December 11 at OECD Conference Centre in Paris.

The consultation provides an opportunity to launch an OECD study that explores whether there is a "flip side" to enforcement actions that ended in sanctions for the supply-side of a foreign bribery transaction.

The OECD Anti-Bribery Convention is the foremost global legal instrument for fighting the supply side of foreign bribery. The supply side of foreign bribery relates to what bribers do – it involves offering, promising or giving a bribe to a foreign public official to obtain an improper advantage in international business. In contrast, the demand side of foreign bribery refers to the offence committed by public officials who are bribed by foreign persons.

The ​study was launched on December 11, 2018 at the OECD Working Group on Bribery's annual consultation with the private sector and civil society. ​Photo: OECD

Nawaz Sharif Jailed in Corruption Case The National Accountability Bureau of Pakistan had launched three cases against Sharif.

Former Pakistan Prime Minister (PM) ​Nawaz Sharif has been sentenced to 7 years' imprisonment by an anti-corruption court. While he was found guilty in the Al-Azizia Steel Mills graft case, the court acquitted him in the Panama Papers corruption case.

Reports suggest that Judge Muhammad Arshad Malik announced the verdict on December 24 in the presence of Sharif. The judge said there was enough evidence against Sharif in the Al-Azizia case and he could not provide money trail in his defence.

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Earlier Sharif was disqualified by Pakistan’s apex court in the Panama Papers case. The National Accountability Bureau of Pakistan had launched three cases against Sharif – Avenfield Properties case, Flagship Investment case, and Al-Azizia Steel Mills case.

In the Avenfield Properties corruption case (related to the purchase of four luxury flats in London) Sharif, his daughter Maryam, and son-in-law Mohammad Safdar were sentenced to 11, 8, and 1 year jail term respectively.

However, all three of them were bailed out by the Islamabad High Court in September. P ​ hoto: Pakistan PM Office

Government Supports Corruption to Harm Delhi Residents As millions of Delhi residents are victims of government-supported corruption, a community-driven social service “Clean House” helps the suffering residents raise their voice against corruption.

India’s capital New Delhi is not only the dirtiest and the ​most polluted city of the world, but it is also among the most corrupt cities. Today, corruption is so rampant in Delhi that the government is extending its open support to corruption and other illegal activities.

Office of the Registrar Cooperative Societies (RCS) of Delhi Government

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Case in point: Delhi’s cooperative group housing societies (​CGHS​) where an estimated 3 million people live. These housing societies are operated by highly corrupt managing committee (MC) members who collude with the top government officials and politicians to loot public money.

The MC members work as frontal groups to extort money from residents and share the booty with bureaucrats and politicians. The MCs are elected bodies – elected through flawed election processes - which are supposed to be controlled by the Registrar Cooperative Societies (​RCS​) of Delhi Government.

Since RCS office is full of corrupt officials, they do not act against the MC members despite repeated public complaints. When the complainants insist, in some cases RCS office orders superficial corruption ​inquiries in housing societies, but it hardly takes action against the corrupt MC members of those societies and corruption continues.

While a number of government departments are involved in corruption, the Delhi Development Authority (​DDA​) and the RCS office of Delhi Government are perhaps the most corrupt departments that are blatantly participating in corruption.

The main government departments that are systematically supporting corruption and lawlessness in Delhi are: ● ● ● ● ● ● ● ●

Registrar Cooperative Societies (RCS) of the Delhi Government Delhi Development Authority (DDA) Office of the Lt. Governor (LG) of Delhi Office of the Chief Minister and other Ministers of Delhi Municipal Corporations of Delhi (MCD) Delhi Fire Service (DFS) Delhi Urban Art Commission (DUAC) Delhi Police

As millions of common residents are victims of government-supported corruption, an exclusive community-driven social service “​Clean House​” helps the suffering residents raise their voice against corruption and other illegal activities in Delhi’s cooperative group housing societies.

Major Crime and Corruption Cases in Delhi

Click the following links to download and read the case reports.

Case Report 1

Case Report 2

Case Report 3

Case Report 4

Case Report 5

Case Report 6

While “Clean House” works as a free community court, it receives public complaints, makes the formal petitions, and submits them to different government departments and law-enforcement agencies.

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Join Corruption Research Project in India You are invited to join the project as volunteers to manage its diverse activities.

The Centre for Transparency and Accountability in Governance (CTAG), National Law University, Delhi - in collaboration with the humanitarian organization RMN Foundation - has launched a ​research project​ to compile an exclusive report on corruption in India.

The unique selling proposition (USP) of this report will be to sensitize different stakeholders in India and abroad about the limitations of the Indian governments in deploying information-driven processes to deal with corruption, although it will also cover traditional aspects.

You are invited to join the project as volunteers to manage its diverse activities such as research, public relations, content creation, data management, project monitoring, and so on. Candidates can contact Mr. Rakesh Raman, founder, RMN Foundation (Email: contact@rmnfoundation.org) with their contact details and a brief profile. It was planned to release the research report in January 2019.

However, for want of resources (financial as well as personpower), the project period is being extended.

Write for The Integrity Bulletin RMN Foundation - the humanitarian organization in India - has launched ​The Integrity Bulletin which is a monthly newsletter on global corruption news and issues. Currently, the newsletter project is being managed by Mr. Rakesh Raman who is a national award-winning journalist and founder of RMN Foundation.

The Integrity Bulletin i​ nvites anti-corruption organizations, social activists, professionals, and experts to contribute their editorial articles for the newsletter. You may please submit the articles with your brief profile to Mr. Rakesh Raman (Email: contact@rmnfoundation.org). People from all across the world are also invited to ​participate​ as volunteers in this project.

Download Previous Issues of The Integrity Bulletin October 2018

November 2018

December 2018

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Petition Demands JPC Probe in Rafale Corruption Case Rafale scam in India is stated be the biggest fraud in the world.

An online petition on public petition site Change.org seeks people’s support for the formation of a Joint Parliamentary Committee (​JPC​) to investigate the Rafale fighter aircraft deal.

The petition says that Indian Prime Minister Narendra Modi’s friend Anil Ambani, whose group has consolidated debt in excess of Rs. 45,000 crore (over $6 billion), was made a beneficiary of the “Offset” clauses worth Rs. 30,000 crore (over $4 billion) that are part of the deal.

According to the ​petition​, the total benefit to Anil Ambani’s Reliance Defence is Rs. 130,000 crore (about $20 billion) – which makes it the biggest fraud in the world.

Corrupt Actor of the Year 2019 Award The OCCRP jury settled on Danske Bank for the role its Estonian branch played in allowing billions of dollars to be laundered over the past decade.

A €230 billion money laundering scandal put Danske Bank ahead of a record 22 other contenders to win the 2019 Corrupt Actor of the Year ​award from the Organized Crime and Corruption Reporting Project (OCCRP).

For the past seven years, the non-profit media organization has spotlighted the individual or institution that has done the most over the previous 12 months to advance organized criminal activity and corruption in the world.

“Danske Bank is a worthy recipient of this prize. It highlights the role of the criminal services industry in enabling international corruption and crime,” said OCCRP co-founder and editor Drew Sullivan.

The term “criminal services” refers to the banks, law firms, registration agents, accountants, and others who help criminals and corrupt officials hide their assets and legitimize their operations.

“In the past 20 years, they’ve globalized organized crime and autocracy and helped everyone from Mexican drug cartels to Russian President Vladimir Putin to terrorists, autocrats, and almost every global threat,” he said. Sullivan was one of nine judges who made the final selection. Nominations were submitted by journalists and the public.

Finalists for the award meant to identify the world’s most influential rogues included:

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● ● ●

●

Russian President Vladimir Putin, a former OCCRP Person of the Year; Hungarian President Viktor Orban, who has enriched himself and his friends while cracking down on migrants and turning his country away from democracy;

Saudi Arabian Crown Prince Mohammed bin Salman, implicated in the death and dismemberment of US-based journalist Jamal Khashoggi, as well as in jailing dissidents and shaking down and torturing rivals; US President Donald Trump, whose charitable foundation, family business, and presidential campaign are embroiled in investigations.

In the end, the OCCRP jury settled on Danske Bank for the role its Estonian branch played in allowing billions of dollars to be laundered over the past decade.

In one operation, billions of dollars flowed through Danske’s Estonian branch from Azerbaijan to offshore companies, high-ranking officials, and even European politicians who praised the nation’s regime despite its chronic human rights abuses, according to an OCCRP report.

“In Azerbaijan, Danske Bank was the conduit for bribes, parking stolen assets, and the theft of national resources for one of the most vindictive and corrupt regimes in the world,” said Paul Radu, OCCRP co-founder and judge. “The corrupt Aliyev family couldn’t have done this without the bank.”

Danske Bank claims that since the spring of 2017, it has managed to block more than 3 million fraudulent e-mails to customers and employees. It adds that criminals pretending to be Danske Bank are to a great extent prevented from succeeding in their missions.

OCCRP serves as an investigative reporting platform for 46 member centers that stretch from Europe to Central Asia and across the Atlantic into Latin America. The Swedish Development Agency, USAID, the Danish Government, Luminate, the Open Society Foundations and other major international donors support OCCRP, which has offices in Sarajevo, Bucharest, Riga, Tbilisi, and Washington DC.

Meet the Editor The editor of ​The Integrity Bulletin ​Rakesh Raman is a national award-winning journalist and social activist. Besides working at senior editorial positions with leading media companies, he was writing an exclusive edit-page column regularly for The Financial Express (a daily business newspaper of The Indian Express Group).

Nowadays, for the past about 8 years, he has been running his own global news services on different subjects. He also has formed a free Education and Career Counselling Center for deserving children at a poor J.J. Colony in Dwarka, New Delhi under his ​NGO​ – RMN Foundation.

He runs an exclusive community-driven anti-corruption social service “​Clean House​” to help the suffering residents of Delhi raise their voice against the growing corruption and injustice. He also

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creates and distributes a number of ​digital publications that cover areas such as technology, law, environment, corruption and transparency.

He has created a comprehensive online information service to educate the Indian voters for the upcoming ​Lok Sabha election​ scheduled to happen in 2019.

Earlier, he had been associated with the United Nations (UN) through United Nations Industrial Development Organization (UNIDO) as a digital media expert to help businesses use technology for brand marketing and business development.

About The Integrity Bulletin Project The Integrity Bulletin content project is being carried out by RMN Foundation in collaboration with the Centre for Transparency and Accountability in Governance (​CTAG​), National Law University (NLU), Sector 14, Dwarka, New Delhi. ​The Integrity Bulletin is being circulated among the top anti-corruption organizations, law-enforcement agencies, civil society organizations, social activists, politicians, and others in India and abroad.

RMN Foundation is looking for collaborators across the world who can join hands with us to carry out major campaigns and projects to engage with different stakeholders in the anti-corruption domain.

Contact

Rakesh Raman Founder RMN Foundation

463, DPS Apts., Plot No. 16, Sector 4, Dwarka, Phase I New Delhi 110 078, INDIA

Contact by email

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