centre of expertise for good governance · the 12 principles of good democratic governance...

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CONSEIL DE L’EUROPE

Centre of Expertise for

Good GovernanceAlina Tatarenko

Head of the Centre of Expertise

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Assisting central and local

governments

CENTRE OF EXPERTISE

Assisting central authorities

Legal assistance programmes (decentralization,

governance)

Preparation of reforms

Advice on legislation

Assisting local governments

Capacity building

programmes

Recommendation (2007) 12 on capacity building at local and

regional level

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Innovative tools

Leadership Public EthicsIMC, C2C,

CBC

Human Resource

managementLocal Finance

Peer

Reviews

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Central Government

Local government

CitizensStrategy for Good Governance, 12 principles, capacity-building tools

Member State

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The 12 Principles of Good Democratic Governance

• Represent the fundamental values of European democracyand requirements for good democratic governance at thelocal level.

• By reference to the 12 principles, local authorities from allCoE member States can improve their governance on acontinual basis.

• Public services provided by local authorities are financed bylocal residents through local taxes. The citizens expect theirlocal authority in return to respond to their expectations, tobe effective, accountable, transparent and responsive.

The Twelve Principles

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1. Participation, Representation Fair Conduct of Elections

2. Responsiveness

3. Efficiency and Effectiveness

4. Openness and Transparency

5. Rule of Law

6. Ethical Conduct

7. Competence and Capacity

8. Innovation and Openness to Change

9. Sustainability and Long-term Orientation

10. Sound Financial Management

11. Human rights, Cultural Diversity and Social Cohesion

12. Accountability

Video: https://www.youtube.com/watch?v=ao0qAoApT1M

Website: http://www.coe.int/en/web/good-governance/12-principles-and-eloge

THE 12 PRINCIPLES

OF GOOD DEMOCRATIC GOVERNANCE

https://www.youtube.com/watch?v=ao0qAoApT1M

http://www.coe.int/en/web/good-governance/12-principles-and-eloge

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Ethical Conduct ✓The public good is placed before

individual interests.

✓There are effective measures to preventand combat all forms of corruption.

✓Conflicts of interest are declared in atimely manner and persons involvedmust abstain from taking part inrelevant decisions.

Principle 6

Indicators:1. Public policies are decided taking in account the

general welfare role of the municipality.2. The local public interest guides the allocation of budgetary sources of the municipality.3. Codes of conduct specify the ethical standards expected of elected representatives and officials…4. Specific procedures have been adopted for decisions in areas at are vulnerable to corruption including procurement, selling municipal assets and awarding permits and licenses.5. An annual review of anti-corruption arrangements is undertaken, for example by internal or external audit.6. Personnel policies require staff to be appointed, promoted and awarded on merit, and/or disciplined only in accordance with approved procedures.7. Elected representatives and staff are required to declare any potential conflict of interest that could impact on decision taking and to stain from taking part in relevant decisions making. 8. Municipalities ensure an effective and efficient procurement and uses pre-set selection criteria. 9. Municipalities ensure free access to public procurement documents and decisions with regard to the awarding of the contract.

CoE Tools and Standards:

➢Public Ethics Benchmark

➢ Local Finance Benchmark

➢Guide, Guidelines

➢Recommendations

Citizens: In this municipality, all persons enjoy equal treatment irrespective of their connections with elected representatives or officials.

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OPEN GOVERNMENT – UCLG-UN

UCLG has recently created a Community of Practices on transparency and open local government. The group is formed by cities, but open to associate other institutions as well. On the UN side, UN-Habitat is an associated partner and UNODC is also interested in becoming part of it.

The main objective of the Community is to promote the work of Mayors and local governments worldwide in issues related to transparency and open government.

Building trust in local and regional publicadministration is fundamental toadvance towards any development goalset in the 2030 Agenda.

Main Principles of OpenGovernment:

- Transparency,

- Citizen participation,

- Accountability.

It is fundamental to strengthen thecapacities of local and regionalgovernments, including the developmentof participatory, innovative andsustainable tools, practices and policiesthat help to build effective, accountableand transparent institutions and ensureresponsive, inclusive, participatory andrepresentative decision-making at alllevels as part of the strategy forsustainable development.

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Open Government

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Implementation

Implementation of ELoGE:

Bulgaria

Norway

Malta

Greece

Spain – Basque Country

Poland

Italy

Ukraine

International projects – UDITE, ALDA,

Euroregions

Pilots – France

E-Tool on Good Governance :

https://etool.coe.int/login

https://etool.coe.int/login

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CONSEIL DE L’EUROPE Standards and Tools

• The Valencia Declaration and the Strategy for Innovation and Good Governance at local level, including the 12 Principles of Good Democratic Governance;

• Recommendation CM/Rec(2010)12 of the Committee of Ministers to member states on Judges: independence, efficiency and responsibilities;

• Recommendation CM/Rec(2000)10 of the Committee of Ministers to member states on codes of conduct for public officials;

• Parliamentary Assembly Recommendation 2105 (2017) on Promoting integrity in governance to tackle political corruption;

• The European Code of Conduct (CG 35 (2018) 12) of the Congress of Local and Regional Authorities for all Persons involved in Local and Regional Governance;

• PEB Tool

• The Draft Guidelines on Public Ethics – CDDG-2019

• The Management guide: Ethical frameworks for public organisations and public services – to be adopted by the CM in 2019;

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CONSEIL DE L’EUROPE Concequences of Corruption

• Financial impacts, including costs of fines and penalties imposed (in some cases they may be imposed both on individual staff members and on the organisation as a whole),

• Legal consequences, including the likelihood of litigation against the organisation and/or individual staff members responsible for taking the disputed decision,

• Loss of prestige and trust in the organisation as a result of complaints,

• Loss of trust among key partners of the organisation.

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CONSEIL DE L’EUROPE PEB Tool -1

The key elements of a formal anti-corruption system include:

• Requirements concerning ethical leadership related to internal communication, promotion of ethical attitudes, building the image of an ethical organisation;

• Expanding the scope of internal audits by adding issues related to the operation of an anti-corruption system;

• Implemented rules and mode of conduct in cases when corruptive actions occur;

• Educational activities targeted at the personnel with respect to ethics and corruption prevention.

• Anti-Corruption Policy – a separate document which is part of formal documentation regulating the operations of the institution;

• Corruption Risk Analysis covering identification of risks and the level of likelihood of their occurrence, and the related consequences for all processes identified in the institution;

• Systematic Audit Procedures applicable to anti-corruption safeguards, and monitoring of processes prone to the risk of corruption;

• Management procedures separated in the organisational structure, coupled with system supervision.

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Solutions

• Guidelines for actions to be taken in cases of corruptive situations or suspected unethical or illegal conduct,

• Procedures to verify assets’ declarations,

• Bylaws to prevent conflicts of interest,

• Solutions which specify general legal solutions regarding public procurement,

• Regulations concerning additional employment,

• Rules of contact with lobbyists,

• Personnel recruitment and promotion procedures.

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CONSEIL DE L’EUROPE Corruption Risk Analysis

Risk analysis tools were developed several decades ago for theneeds of business and financial institutions of estimating the risks ofunexpected and undesirable events (e.g. fires, accidents, etc.).Despite some criticism, these tools are becoming increasingly morepopular in public administration (e.g. to estimate the risk ofcorruption).

The goal of such tools is not to detect the existing corruptionphenomena but rather to assess the risk that these might materialise.Risk analysis tools can provide effective prevention and protectionfrom potential negative circumstances.

Based on the results of risk analysis, the processes within the institutionare divided into safe ones and those involving a higher risk ofcorruption events. Safe processes are those where, given their natureand goals, the risk of corruption events is low (the value of theassociated risk is below an agreed threshold). High-risk processes(labelled in various ways, depending on the institution) are thosewhich involve a higher risk of corruption.

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• Cash transactions,

• Decisions on expenditures made by individuals or groups of employees,

• Awarding contracts to suppliers/external contractors,

• Giving individuals or groups of individuals the opportunity to use limited services or resources,

• Ensuring freedom to staff members in making decisions to award subsidies or benefits,

• Making decisions concerning the selection of the place where a service is to be performed,

• Making decisions concerning employment and/or staff’s promotion,

• Making decisions that may affect individual careers in the long run.

• The following factors may accompany the likelihood of risk:

• Existence or absence of competition, e.g. there is a need to purchase a service, place an order, employ a specialist, obtain specific performances,

• Amount (size of funds) being expended,

• Existence of disputable issues,

• Existence of complaints in the past. Development and implementation of procedures which reduce the likelihood of risk would not eliminate risk completely, which is why it is important to have constant internal control mechanisms.

Risk analysis

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A sample service card for an

administrative service:

SERVICE CARD

• Name and scope of service offered:

• Card approval date:

• Responsible person:

• Documents required to settle the matter

• How to file the application / Where to submit documents

• How and when the matter will be arranged

• Responsible individuals at the office / Contact persons

• Fees

• Legal basis

• Appeal procedure

• Additional remarks

• Information on appendices / forms

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EXAMPLE: Factors that reduce or increase the

likelihood of a corruption event

Factors that reduce the likelihood of a risk – the existing safeguards

• Clearly defined powers within the scope of employees’ responsibilities and authorisations

• Transparent and objective compensation for employees, defined in the Compensation Rules

• A clear division of powers regarding the development, verification and validation of financial documents and operations

• Activities performed by one employee are verified by a colleague or a supervisor

• There are clear, stable and transparent rules of conduct set out in internal regulations (e.g. Internal Audit Rules)

• Meetings between the employees and outsiders take place in the presence of several people

• Tender committees are composed of representatives of several organisational units, in accordance with the rules set out in the internal regulations (e.g. Internal Audit Rules)

• Members of the tender committee sign a declaration of impartiality

• Records are kept to enable traceability and accountability of completed activities

• More than one organisational unit participate in various processes

Factors that increase the likelihood of a threat:

a) Vulnerability

• A large number of operations and their types

• Meetings between employees and outsiders are held without witnesses, outside the institution’s premises

• No rules governing the area concerned

• Employees are exposed to external pressures

• No clear criteria for dealing with issues/discretion in dealing with cases

b) Historical data

• Occurrence of the same threat in the institution in the past

• Occurrence of the same threat in other organisations16

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CONSEIL DE L’EUROPESample risk assessment card

Corruption risk assessment for a process (service):

......................................................................................................................

Description of corruption risks:

......................................................................................................................

Outcome of corruption risk assessment:

Likelihood of materialisation of a corruption risk (according to the adopted scale):

........................................................

Effects of materialisation of a corruption risk (according to the adopted scale):

........................................................

Total score for assessed corruption risk (likelihood x assessment of effects) ........................................................

Factors that reduce risk:

......................................................................................................................

Factor that increase risk:

......................................................................................................................

Proposed preventive measures:

......................................................................................................................

Way of monitoring corruption risk:

......................................................................................................................

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Risk Reduction or Elimination

• Developing and implementing detailed procedures to be applied by staff members,

• Defining the decision-making criteria before a tender is announced for the award of a contract for services, or works, or a competition for a position,

• Building acceptance of decision-making criteria among staff members who make decisions of a specific kind (in this context, it is important to avoid reinforcing bad practices),

• Separation of assessment and decision-making, for instance in a way that people who are responsible for assessing tender bids do not decide on awarding a specific contract,

• Defining rules and procedures for staff to report cases in which corruption risks have materialised.

• Training people who are responsible for decision-making concerning policies and procedures for adhering to ethical standards,

• Developing and implementing a system to control decision-making (one good solution might be to hand over the control to a third party),

• Gathering opinions from stakeholders (e.g. contractors, candidates for a position who were ultimately not hired, or bidders whose bid was not accepted) on whether the procedures were applied fairly,

• Developing and implementing an open procedure to file and examine complaints in order to ensure that the competent staff members from the organisation are independent in their decision-making.

• Introducing procedures (rules) of whistleblowing in the organisation.

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Risk Evaluation: example

Circumstances Risk likelihood Impact on the

organisation

Necessary

steps

Recruitment/promotion

Decisions on contract awards

Cash transactions

Access to services

No procedures to file and examine

complaints and/or to exchange

information with stakeholders

Pressure from someone within or

outside the organisation, aiming to

ignore the existing procedure

Other types of risks (specify)

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CONSEIL DE L’EUROPE Gender and Corruption

GRECO Research:

• More women - (politics, business, administration) – more democracy – less corruption

• Big corruption scandals (FIFA, Volkswagen, Rolls Roys) – more corruption risks in the men-dominated organisations.

• Man/women types of corruption – gratuity, bribe, economic extortion, conflict of interests

• IAI Austria – less than 20% of women in corruption cases

• Women participation as corruption prevention

• More corrupt societies – less elected women and vice versa

(2015 Roundtable)

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The European Score Card for Public Ethics at Local Level:

What gets measured, gets done!

Chapter A: Status of local elected representatives

Chapter B: Funding of political parties, political associations and individual candidates local level

Chapter C: Control and audit of local authorities

Chapter D: Status of local public servants

Chapter E: Transparency, administrative procedures, anti-corruption campaigns and evaluation

Chapter F: Local authorities’ relations with the private sector

General results

https://rm.coe.int/peb-public-ethics-benchmarking/1680746d52

PEB Tool -2

https://rm.coe.int/peb-public-ethics-benchmarking/1680746d52

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CONSEIL DE L’EUROPE DRAFT GUIDELINES ON PE

EUROPEAN COMMITTEE ON DEMOCRACY AND GOVERNANCE

(CDDG) - WORKING GROUP ON PUBLIC ETHICS(GT-EP)

DRAFT GUIDELINES ON PUBLIC ETHICS

Recommends:

- Draw up a public ethics strategy at national, regional, and local

level

- Encourage and ensure compliance with the principles of public

ethics…

Appendices: definitions, principles, steps and measures…

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CONSEIL DE L’EUROPE Draft Guide on PE

INTRODUCTION, The Approach, The Context

1.3 The Role of the GUIDE

1.4 The Council’s Public Ethics Portfolio

2.2 Implementing the GUIDE: From Principles to Framework to Culture

STEP 1: PRINCIPLES OF PUBLIC ETHICS

The Democratic Context

3.2 Guiding Principles

3.2.1 Principles relevant to democratic governance

Principles relevant to work performance

Principles relevant to personal and interpersonal relations

4. STEP 2: SOCIETY AND LEADERSHIP

4.1 Overview

4.2 An informed and engaged society

4.3 Leadership and Ownership

4.3.1 Personal Commitment

4.3.2 Overall strategic approach

Standards and strategies

Codes, Ownership

5. STEP 3: DEVELOPMENT, Overview

5.2 Understanding the how, what and why of the public ethics

organisational framework

5.2.1 Why? Doing the Right Thing for the Right Reasons in the Right Way

5.2.2 How? Taking Forward Steps 1 & 2 into the Organisational Context

5.2.3. What? Developing the Concrete Components for the Framework

General Issues, Specific Issues

Guidance on Legal and Regulatory Frameworks

Codes, Personal Rights, Roles and Responsibilities

Conflict-of-interest

Contracts, procurement and outsourcing

Lobbying, political activity and revolving door

Separation of Political and Administrative Duties

Good administrative practice

Promotion of Public Ethics

5.2.4 Where? The Role of Human Resources Management

6. STEP 4: ENABLEMENT

6.2 Reinforcement: Transparency and Accountability

6.3 Reform processes

6.4 Incentives, Rewards and Recognition for Promoting Ethical

Behaviour

6.5 Monitoring, Complaints (Internal and External), Formal

Reporting

6.8 Control: Compliance with the Ethical Framework

Internal control, External control

7. Appropriate Sanctions

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Head of the Centre of Expertisefor Good Governance

DG Democracy

Council of Europe,

67075 Strasbourg, France

[email protected]

Alina TATARENKO

THANK YOU

www.coe.int/en/web/good-governance/centre-of-expertise

mailto:[email protected]