ANTI-CORRUPTION


1. Introduction CONTENT

Corruption is a crosscutting issue not only in the public sector, but also for the private sector and NGOs as well. For governmental institutions, it is widespread in every ministry.

Theoretically, there is the linkage between corruption and poverty.  Corrupted institutions in general could not provide appropriate basic services to people and the public. It disturbs effective and efficient allocation of resources and discourages people to work well.  It also affects the private sector, especially small businesses, and development in general.  Corruption interrupts small business in Cambodia by adding to costs and creating unfair competition in the business environment. 

"Corruption is defined as abuse of public or private office for personal gain". This means any behavior in which people in the public or private sectors improperly and unlawfully enrich themselves or those close to them, or induce other to do so, by misusing their position.

Members of parliament introduced the first draft law on anticorruption in 1994, but it was not passed.  Since then, the Executive Branch has worked on several drafts, but the Council of Ministers has not approved any one of these drafts. Without implementation of an anti-corruption law, corruption is wide spread in Cambodia, especially within the government institutions. 

To cope with the above-mentioned problems, the Royal Government of Cambodia (RGC) with assistance from external donors has developed an anti-corruption program. It is one component of the GAP. The government understands that low salaries are the main root of corruption.  Therefore, increasing the salaries of the government officials is the first priority of the anti-corruption measures. 

2. Summary of progress CONTENT

The following summary of progress was prepared in February-March 2002 as the basis for further NGO discussions on the reforms. 

In general there is no notable progress in either the short term or long term goals. 

Short-term action 

The anti-corruption law is still under review and there has been no notable progress for the last three years. The audit authority is being created and will be operationalized in 2002, but it lacks independence from government. Finally the sub-decree on procurement has not been notably revised, nor has it been enforced.

Medium Term Action 

Although the Constitution supports the rights and freedom of the press, no specific law on the rights and freedom of the press has been prepared.  In public procurement, there is no new legislation or measures to promote efficiency, transparency, and accountability.  The public and media awareness program on corruption and consequences of corruption was not made. The publication of fee for basic service and educate about penalties for corruption activities was not started. 

In general, anti-corruption did not have notable progress. A little action has been made towards short-term goals, but there is no political will to implement the reforms. In the long term, there is no sign of progress. 

Further details of progress 

The progress report in the matrix below was prepared by the General-Secretariat of the Council for Administrative Reform (CAR) GAP monitoring unit in December 2001. The CAR received information on all reform areas in the GAP and summarized its findings in the progress report. The NGO Forum has made additional comments (in italics) to update the GAP progress report through interviews with donors, experts and technical persons in the field.  The table gives more details on progress in achieving the short-term (one year) and medium-term (2-3 years) goals. 

Progress in Anti-Corruption*

Actions to take

Current Status

Short-term Action (1 year)  
Prepare and adopt an enforceable code of ethics for judges, in full consultation with donors, NGOs and civil society.

In process

Part of draft strategy for legal and judicial reform.  A draft strategy was distributed to donors for comment in April 2002.**
Prepare and adopt an enforceable code of ethics for public officials (excluding judges) and elected officials, in full consultation with donors, NGOs and civil society

In process

Underway, consultations will be held before the end of the year.
Prepare and submit to the National Assembly and Senate anti-corruption legislation, that reflects a broad base consensus about its scope and modalities.

In process

Draft law has been prepared and is under review.  No progress noted. The various draft laws have been prepared since 1994 but none of these drafts have been approved. The latest version has been debated since 1998,but there is no sign that the government has the political will to get it passed.
Operationalize the National Assembly Audit Authority.

Completed

Has been established. Operating budget will be forthcoming as part of Budget 2002

The NAA has been established and operating budget is as a part of budget 2002. However, there is lack of legal infrastructure, experience and appropriate resources for implementation.
Review arrangements for enforcing the sub-decree on public procurement, prepare measures, improve the situation and start implementation. 

Have not implemented

Capacity of responsible units being systematically strengthened

There is no improvement in public procurement except some benefit sharing among those responsible.  There is no proper control mechanism of the process and no specific penalty for the corrupt persons. Political will to implement this reform appears to be lacking.
Medium term (2-3 Years)  
Prepare and submit to the National Assembly legislation reaffirming the right of freedom of the press and of information with provisions guaranteeing conditions stated above.

Have not implemented

Freedom of the press is guaranteed by the Constitution, it is more a matter of developing a Code of Ethics.

Legislation has not been prepared. The code of ethics should be developed by the press association rather than by the government
Re-evaluate the existing legal framework governing public procurement and introduce legislation to promote efficiency, transparency, and accountability, while curbing abuse in public procurement.

Have not implemented

Legal formwork is adequate, capacity of responsible.  Units being strengthened

Public procurement paper (including legal framework) was developed by ADB but the problem is related to operational procedures. There are no clear operational procedures. Political will to implement this reform appears to be lacking.
Develop and implement a public and media awareness program on corruption and the consequence of corruption.

Have not implemented

Survey on corruption will be widely disseminated.

Further public and media awareness programs have not been planned.  This is an area in which NGOs could assist.
Investigate ways and means to generalize publication of fees for basic public service and educate the public about penalties for corrupt activities

In process

Pilots underway, part of Administrative Reform One Window Service Delivery Initiative.

More public consultation with civil society is required.

* Source: Council for Administrative Reform (December 11, 2001), gGAP Progress Reporth
** Information in italics has been added, based on interviews or reviewing official documents/report.

3. Summary of NGO Involvement in the Sector

CONTENT

Anti-corruption is an area of concern to many NGOs, especially to those who work closely with the government.  A few NGOs have made monitoring or research into corruption the focus of their activities.  NGOs are also trying to address the need for better governance and transparency within their own programs. 

The Center for Social Development has assisted the government in the drafting of the anti-corruption law.  It has also conducted studies on the attitudes of Cambodians to corruption. 

LIDHEE Khmer has conducted a survey on corruption under a technical assistance grant from the World Bank. The study became the background paper for preparation of the anti-corruption reform. 

The Khmer Human Rights and Anti-Corruption Organisation educates the public about corruption, and seeks to expose corruption wherever it occurs. 

The Cambodian Independent Watch Committee on Corruption (CIWCC) is composed of local NGOs which have a strong will to help to reduce corruption in Cambodian society. 

The members of CIWCC are (i) ADHOC,  (ii) ANLWC, (iii) CC, (iv) CCPCR, IDA, (v) CHRTF, (vi) CLO, (vii) DFKSI, (viii) IDA,  (ix) LICADHO, (x) KID , (xi) KHEMARA, (xii)KHRACO, (xiii) KKKHRA, (xiv) KKKHRDA, (xv) LCJ, (xvi) LINKG, (xvii) USG (xviii) VIGILENCE, and (xix) WFP. 

The purpose of the committee is to discus issues related to legal aspects as well as practical issues in anti-corruption reform. It issues statements related to anticorruption in Cambodia. The group is monitoring the government in processing the anti-corruption law. 

The biggest concern of the CIWCC is the lack of transparency and corruption in public procurement in Cambodia. It is concerned that the problem is related not only to the governmentfs own budget, but to external assistance such as ADB and World Bank funds as well. 

Based on their involvement in this reform area, NGOs would like to raise the following issues concerning implementation of anti-corruption measures in the GAP: 

4. Issues Raised By NGOs CONTENT
  • The anti-corruption law
    The anti-corruption law is still in the process of being drafted. Various draft laws were prepared since 1994, but none were sent to the National Assembly to be approved. The draft laws have gone back and forward on the same issues without consensus. The NGOs have complained that there is no political commitment on the issues.  Members of the government want to exclude important elements of the draft law, including the declaration of personal property before taking office.

  • Anti-corruption authority  
    NGOs are concerned that the anti-corruption authority may be appointed by and from the governmental bodies. NGOs have said that they want to have independent authority (similar to that in Hong Kong and other countries) rather than a para-government authority. The government appointed authority would be dependent on the government and would face conflict of interests. 

 

  • Anti-corruption practice
    Current practice of anti-corruption activities is not appropriate because it does not have an appropriate specific law. Without a law, it is based on the personal judgment of the authorities, and not applied equally to both associates of the authority and others.

  • Need for greater public awareness about corruption  
    Cambodians, in general, do not strongly condemn those who steal public property, although they are most concerned about private property. This behavior relates to culture and the long history of corrupt practices in Cambodia. Lack of public knowledge about corruption and its effects is an obstacle to anti-corruption measures. 

  • Current problems regarding corruption  
    In all sectors of government, corrupt payments are evident in the delivery of almost all services and in the selection of staff for important positions.  However, it is most observable to NGOs in those sectors which serve the public and in which NGOs are active.

In the education sector, corruption is observable in the deployment of staff, who have to pay large sums to get the posting of their choice.  Corruption is still observable in the examination process, with large sums being paid for university and college entrance.  Despite the elimination of school entry fees for primary and secondary schools, students still make informal daily or monthly payments to their teachers. 

In the health sector, health staff continue to demand unofficial fees, with patients sometimes dying when they are unable to pay.  While the problem of drug supply in the public health system has been improved, the prices of drugs continue to be very high, suggesting continued corruption in the procurement system. 

  • Debate on corruption issues
    It is often said that administrative reform and payment of fair salaries will eradicate corruption.  It is true that without appropriate salaries, corruption will continue.  Many government officials are opposed to the introduction of an anti-corruption law because they are afraid that the legal system is too weak and that the law will not be applied equally.  However, corruption is currently evident at all levels of government, including especially among the very rich.  There is no reason for thinking that higher salaries will remove deeply entrenched habits and practices.  It is therefore necessary to compliment higher salaries with stiff anti-corruption measures and extensive public and civil servant education to change cultural behaviors.

  • Good governance in the NGO sector (see also under Public Administrative Reform)
    NGOs have advantages over government in implementing good governance due to their ability to pay living wages, the small size of their operations, and the competitive environment in which they compete for donor funding.  Nevertheless, they operate in the same cultural and legal environment as does the government, and problems remain.  Measures to improve governance in the NGO sector have included the promotion of a Code of Ethics for NGOs and its dissemination during annual NGO Fairs, training programs in financial and organizational management, and discussions and workshops promoting the role of NGO boards.  Many local NGOs in Cambodia currently do not have properly functioning boards.  Many NGOs undergo regular financial audits by internationally recognized independent auditors, but more could do so.  Some NGO boards have instigated special audits when management problems have come to light.

5. Recommendations

CONTENT

Recommendations to Government:

  • Speed up the process of approval of the anti-corruption law, which the Ministry of Parliament Relations and Inspection has drafted since 1998.  This law should be promulgated by the end of 2002 with extensive consultation with civil society.

  • Pass a law on declaration of assets by government employees.

  • In the absence of an anti-corruption law, anti-corruption measures in the UNTAC code detailing penalties for gembezzlement by public officialsh, gcorruptionh and gbriberyh should be enforced.

  • Disseminate information to the public through the media and involve civil society in pubic consultations on the anti-corruption issues.

  • Take immediate measures to improve and enforce public procurement procedures, in order that noticeable changes can be monitored by the end of 2002.

  • Inclusion of community representatives on institutions such as Health Center Management Committees can help reduce corruption at the local level.

  • The parliament should discuss the checks and balances in the three top institutions: the legislator, the executive and the judiciary. Executive control of the judiciary and legislature should be eliminated.

  • Political parties should give members of parliament the freedom to discuss and debate problems related to the national interest without fear of dismal from the party and parliament.

Recommendations to Donors:

  • Support government and NGOs to speed up the process of approval of the anti-corruption law.

  • Donors should be actively involved in third party monitoring, to ensure proper use of funds.

  • Donors should make progress in anti-corruption measures a key condition for continued assistance.

  • Donors should not restore support to higher education until the problems of corruption, including corruption in higher education entry, are properly addressed.

Recommendations to NGOs:

  • NGOs should participate in the process of monitoring of the GAP regarding anti-corruption activities.

  • NGOs should play an active role in anti-corruption awareness programs and educating the public about the problems caused by corruption.

  • The best contribution NGOs can make is to set a good example of good governance themselves.  Measures should include training in proper financial and organizational management, further dissemination of a Code of Ethics for NGOs, and strengthening the role of NGO boards.  NGO peak bodies should study examples of self-regulation in the NGO sector from other countries and devise appropriate strategies for improving governance of the NGO sector in Cambodia.

Further NGO recommendations related to anti-corruption measures may be found in the Governance and Transparency issues paper of the NGO Statement to the 2002 CG Meeting.